Urals Energy PCL

Urals Energy PCL (AIM:UEN), the independent exploration and production company with operations in Russia, announces details of a contract it entered into with Petraco Oil company Limited ("Petraco") on 7 August 2012 in relation to the sale of all of the oil produced by the Company at its Arcticneft property (the "Contract"). The Contract replaced an original contract with Petraco which was entered into on 1 September 2006 and is on broadly comparable terms with that original contract. The Contract is a master sales contract which governs the overriding terms of the sales and purchase relationship between the Company and Petraco. The Contract includes a formula for calculating the sale price of the oil which is based on Brent Crude oil price plus a premium to reflect the increased quality of the oil from Arcticneft. The exact commercial terms of each tanker shipment are determined yearly by way an addendum to the Contract which details specific quantities, delivery details and the final sales price.