RNS Number:8308F
Urals Energy Public Company Limited
07 July 2006

For Immediate Release

                      URALS ENERGY PUBLIC COMPANY LIMITED

           Award of Deep Exploration Rights at Peschanoozersky Field

AIM traded Urals Energy ("Urals" or "the Company"), a leading independent
exploration and production company with operations in Russia, announces its
wholly-owned subsidiary, ZAO Arcticneft which operates the Peshanoozersky Field
on Kolguyev Island in the Barents Sea. , has been awarded by the Russian
Ministry of Natural Resources the right to test zones, without any depth
limitations, below the existing Lower Triassic horizon in the Peschanoozersky
Field.

The Russian Federal Agency of Subsurface Use has extended the license for the
Peschanoorzersky Field to allow the testing of zones below the existing
Charkobozhskaya Suite in the Lower Triassic Horizon.  The amendment to the
license has been made at no cost to the Company.

Based on the results of a 1986 test well which tested the deeper Permian
horizon, Urals Energy expects to develop a new zone with significant hydrocarbon
potential.  Well No. 29 tested approximately 180 barrels of oil per day when
drilled in 1986.  Geologic data indicate that the well penetrated the edge of a
Permian-age reef structure at 2,743-2,761 meters TVD.

Urals Energy plans to test the Permian horizon by re-entering Well No. 29, run a
Vertical Seismic Survey to confirm the structure, and drill a side-track
wellbore.  Based on the results of this re-entry, it is expected several new
exploratory well locations will be identified and further drilling will commence
in 2007.

Based on the results of the exploratory program, an application for a production
license for the Permian horizon will be made and a reserve report by DeGolyer &
MacNaughton will be commissioned. According to a 1986 report by the
Peschanoorzersky Field's prior owner, possible or C3 (Russian State reserve
category) reserves for the deeper Permian horizon were estimated to be 6 million
tons or approximately 48 million barrels.

Urals Energy already plans to drill four development wells in the
Peschanoozersky Field in the second half of 2006.

William R. Thomas, Chief Executive Officer, commented:

"The Arcticneft license extension is yet another example of the undeveloped
potential of Urals Energy's asset base.  By applying good geo-science to an
existing field, we are delivering the potential for significant reserve and
production increases with very attractive economics.  This also demonstrates the
value of a diversified portfolio of producing and exploration assets in Russia".


                                                                     7 July 2006


Pelham PR
James Henderson       020 7743 6673
Gavin Davis           020 7743 6677



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