Loan Stock Draw Down, Conversion and Issue of E...

Nostra Terra Oil and Gas Company plc
                                     ('NTOG' or the 'Company')

                        Loan Stock Draw Down, Conversion and Issue of Equity

30 January 2008

Pursuant to the facility agreement (the `Facility Agreement') dated 25 June 2007 between the Company and Power Elite
Trading Inc (`PET'), and as detailed in  the Company's admission document dated 25 June 2007, PET provided a facility
of  up to  £600,000 (the 'Facility') which  the  Company could draw down into loan  stock,  subject  to certain
conditions. In addition, PET had the option to require up to £300,000 of the Facility to be drawn if at the end of the
facility period, being one year from admission to AIM, that sum had not been drawn down. Following the draw down  and
conversion of a total of £200,000 of the Facility in two tranches of £100,000, as announced on 19  September 2007 and 29
November 2007 respectively,  PET has offered to waive the conditions and make a further £100,000 of the Facility
available to be drawn down immediately as loan stock should the Company wish to do so. The Company has agreed to the
draw down to provide further working capital. PET has instructed the Company that following the draw down, the £100,000
of loan stock is to be converted into ordinary shares in the Company at a rate of one ordinary share for every of 0.5p
of loan stock, in accordance with the Facility Agreement.

Name                         Amount of Loan Stock    Number of Ordinary
                             Converted               Shares

Power Elite Trading Inc          £100,000                20,000,000


Following this draw down, a total of £300,000 of the Facility will have been drawn down by the Company. The remaining
£300,000 of the Facility is available to the Company at any time up until 20 July 2008, after at least three wells have
been subject to re-entry procedures, drilling, completing and pilot producing under the Company's work programme to
declare that the net revenues to be derived from sales of hydrocarbons will be insufficient, when added to the Company's
available cash resources, to finance the working capital requirements of the Company until 20 January 2009. In such
circumstances the Company may then draw down all or part of the remaining balance of the Facility in the form of zero
coupon convertible loan stock.

As  a  result of the loan stock conversion, PET will be interested in 20,000,000 ordinary  shares  in the Company. This
holding represents 5.46%  of  the  issued share capital of the Company, as enlarged by the conversion of the loan stock.

Following the issue and allotment of the new ordinary shares, the  Company  will have 366,424,522 ordinary shares of
0.1p in issue.

Application has been made for the new ordinary shares to be admitted to  trading on AIM on 4 February 2008.


For further information contact:

Nostra Terra Oil and Gas Company plc
Brian Courtney, Chief Executive Officer        [e-mail]
Stephen Oakes, Non-executive Director          Tel: [phone]


Blomfield Corporate Finance Limited            Tel: [phone]
Alan MacKenzie
Ben Jeynes