Source: Petro Matad                        Date: 29 September, 2011

Analysis from Petro Matad Davsan Tolgoi 4 well (DT-4) returned positive results. The firm extracted 22 liters of oil without any traces of water.The sample consisted of 42.5 degree API, a high quality oil type that confirms Petro Matad's beliefs about the prospects at Davsan Tolgoi. Extracting a sample without water content indicates good progress is being made on the development of the well.“The testing of DT-4 has provided valuable information regarding the reservoir characteristics in the deeper parts of the Davsan Tolgoi area,” said Petro Matad Chief Executive Doug McGay. “The Lower Tsagaantsav reservoir characteristics at DT-4 compare favorably with historical production data from Block XIX, the adjacent block owned by Petro China, where all but four wells are reported to have required fracture stimulation, and where fracture stimulation is believed to have substantially increased production.”He went on further to say that in comparison to the oil obtained by Petro China at a nearby site, the samples from wells DT-1 and DT-4 indicate a medium to high quality form petroleum at the site.Petro Matad is the parent company of a group focused on oil exploration and future development and production in Mongolia. Its principle asset is the Production Sharing Contract (PSC) over Matad Block XX, a petroleum block in the far eastern part of Mongolia, near the Chinese border.