The Board of Urals Energy PCL (AIM: UEN), the independent oil and gas exploration and production company with operations in Russia, has noted the recent rises in the Company's share price.

The Board does not believe that there has been a material change to the Group's overall operational or working capital position since the updates provided in the Company's recent announcements, including those made on 31 December 2018, 27 December 2018 and 22 November 2018. No further repayments have been received for the outstanding loans that were not authorized by the Board, identified in the Company's announcement of 22 November 2018, other than the repayment of the smaller loans which was announced on 27 December 2018 and also the repayment of the loan to Shvets Roman Viktorovich which has repaid since.

The Board continues to seek solutions to the Group's overall position, including the Group's constrained working capital position, which could involve a number of potential transaction structures. At this stage, the Board does not believe that there have been any new material developments in respect of such solutions.

No purchase agreement has been entered into or payment has been made in respect of the completion of the Group's auction commitment to purchase a ship, further details of which are included in the Company's announcement of 17 December 2018.

The Board is aware that the Company's nominated adviser met last week with the proposed directors that have been proposed by Adler Impex S.A. in its requisition notice to call an extraordinary general meeting of the Company, which has been convened to be held at 11:00 a.m. Cyprus time on 22 February 2019 (the "EGM"), further details of which are included in the Company's announcement of 31 December 2018.

The Board has been informed that the Company's nominated adviser's due diligence process and suitability considerations in respect of the Company, the Proposed Directors and Board independence should the resolutions at the EGM be passed, is ongoing. There can be no guarantee as to the outcome of the nominated adviser's due diligence process and suitability considerations. If the nominated adviser cannot reach a satisfactory conclusion it will resign and trading in the Company's shares on AIM will be suspended. If a new nominated adviser is not appointed within one month of such resignation, then trading in the Company's shares on AIM will be cancelled.

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