US$15.26 million Placing

Petroneft Resources PLC
11 July 2007

NOT FOR RELEASE, PUBLICATION or DISTRIBUTION IN OR INTO THE UNITED STATES,
CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN.

             PetroNeft Resources plc ('PetroNeft' or the 'Company')

                            US$15.26 million Placing


-      US$15.26 million fund raising from international institutional investors

-      Funds will be used to finance 2007/08 operational programme which will
       include:
           o  Two new low risk exploration wells in the Tungolskoye - Lineynoye 
              oil productive fairway targeting 53 million barrels of Possible 
              Reserves.
           o  One delineation well on the West Lineynoye Prospect
           o  Long term production test during Winter 2007/08

-      Field development and infrastructure improvements to be sanctioned to
       meet first production 2009 target


PetroNeft Resources plc, 100% owner of Stimul-T, the sole owner and operator of
Licence 61, Tomsk Oblast, Russian Federation, is pleased to announce that it has
agreed the terms of a conditional placing of 15,145,743 new Ordinary Shares at
Stg£0.50 (€0.74) per Ordinary Share (the 'Placing Shares'), raising gross
proceeds of approximately US$15.26 million ('the Placing').  Davy and Natixis
Bleichroeder acted as Joint Brokers to the Placing.

Certain Directors of PetroNeft will subscribe for the following Placing Shares:

                           Placing Shares subscribed       Resulting holding of    % of Enlarged Share
                                                 for            Ordinary Shares                Capital

Dennis Francis                                99,226                 20,388,843                  10.6%
David Sanders                                 25,000                  4,205,605                   2.2%
Tom Hickey                                    99,226                    764,226                   0.4%
Vakha Sobraliev                               99,226                 23,014,273                  12.0%


Completion of the Placing will be conditional on admission to trading on AIM and
IEX of the Placing Shares.  Application has been made for the admission of the
Placing Shares to trading on both AIM and IEX ('Admission') and it is expected
that Admission will occur and that dealings will commence on AIM and IEX on 16
July 2007. The Placing Shares will rank pari passu in all respects with the
existing Ordinary Shares currently traded on AIM and IEX. Following Admission
there will be 191,771,001 Ordinary shares in issue.

The net proceeds of the Placing will be used to finance the Company's 2007/08
Exploration, Delineation and PreProject Activities and for corporate and
administration expenses.  This includes:

1. Winter 2007/08 Drilling Programme

The results of the 2006/07 seismic and drilling programmes have been used to
define drilling targets and turnkey contracts have been finalised with OOO
Nizhnevartovskeservis for the use of the three rigs currently mobilised in
Licence 61 for the Winter 2007/08 drilling programme.

PetroNeft intends to drill two low risk exploration wells in the Tungolskoye -
Lineynoye productive oil fairway.  These exploration wells will be drilled on
the Korchegskaya and West Korchegskaya Prospects, which are estimated to contain
a combined 53 million barrels of Possible Reserves.  Development of these
Prospects tie-in to the planned Lineynoye and Tungolskoye Field Development
Infrastructure.

A delineation well is also expected to be drilled on the West Lineynoye Prospect
to provide further data for the Field Development Programme (Lineynoye No. 7, a
high impact exploration well is currently being drilled on this prospect which
is estimated to contain 67 million barrels of Possible Reserves).

In addition, PetroNeft will undertake a long-term production test during the
Winter 2007/08 period on one or more of the wells drilled during the 2006/07
drilling programme.

2. Field Construction Activities

Pipeline Engineering Design, Survey and Approvals Contract

As previously announced, PetroNeft has entered into a contract with 'ETC
Service' LLC for the design, survey and approval of an export pipeline from the
Lineynoye and Tungolskoye fields to the Transneft pipeline at the Raskino
pumping station. The contract also includes the design and approvals for the
custody transfer point at the Transneft regional pipeline tie-in point. The
award of this contract is a critical step in the ultimate development and
commercialisation process in respect of current and potential future discoveries
on Licence 61 and for first oil production in 2009.

Infrastructure Construction

In the Winter 2007/08 period, PetroNeft will undertake the construction of
bridge and road infrastructure to facilitate all year round field access and
pipeline mobilisation.


Commenting on the announcement, Dennis Francis, Chief Executive Officer of 
PetroNeft Resources plc said:

'We are delighted to have received such positive support from the markets for
this oversubscribed offering. We feel that in a short time we have proven that
an experienced Western and Russian management team, backed up with excellent
local contractors, can create real shareholder value in independent Russian oil.

These funds will allow us to build on our original successes. Drilling
commencing in the winter of 2007/08 will increase our reserves, adding further
value to our core territory of Licence 61. We remain committed to an early first
continuous production date in 2009, and these funds will be used to both
production test and further develop the necessary infrastructure.

This has been a good first year as a public company. With these new funds, we
believe that our team can both replicate recent successes and further enhance
PetroNeft's value as we move towards first production.'

Contacts


Dennis Francis, CEO, PetroNeft Resources plc
[phone]

Desmond Burke, Director Investor Relations, PetroNeft Resources plc
[phone]

John Frain / Brian Garrahy, Davy
[phone]

Damien Mauvais, Natixis Bleichroeder
[phone]

Nick Elwes / Paddy Blewer, College Hill
[phone]



Forward Looking Statements

This announcement contains forward-looking statements. These statements relate
to the Company's future prospects, developments and business strategies.
Forward-looking statements are identified by their use of terms and phrases such
as 'believe', 'could', 'envisage', 'potential' 'estimate', 'expect', 'may',
'will' or the negative of those, variations or comparable expressions, including
references to assumptions.

The forward-looking statements in this announcement are based on current
expectations and are subject to risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by those
statements. These forward-looking statements speak only as at the date of this
announcement.


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