Source: Petro Matad Limited                 Date: 06 October, 2010

Petro Matad, the AIM quoted Mongolian oil explorer, has highlighted the following in its unaudited interim results for the six months ended June 30, 2010 and update for shareholders on events since the end of that period.

·                    Initial drilling success from Company's first exploration well

·                    Drilling program ongoing

·                    Funding secured to accelerate development of the Company's assets

·                    Strong technical team appointed

·                    New institutional shareholders.

Since the end of the period under review, the company has made significant progress in both its exploration and corporate activities.  The most important of these was the success of Davsan Tolgoi-1 which was then followed by the closure of the recent fund raise. A proud achievement of Petro Matad has been its being the first "in-residence" professional western technical team in the history of Mongolian petroleum exploration.  Petro Matad now has the personnel, and contractors to take full advantage of the exploration opportunities presented by its PCSs and drilling operations.

Following the spudding of DT-1, the company commissioned a 2D seismic survey on its Blocks IV and V in central Mongolia.  This is the first ever seismic survey done in this region of Mongolia, a matter of considerable pride for the company. Under Petro Matad's management and supervision a Mongolian geophysical contracting company, Khet LLC, undertook the 345-km survey, covering 7 seismic lines.  It has now been completed and the results are being processed before interpretation by an in-house professional team.

Seismic acquisition during 2010, rather than during 2011 as originally planned, was the result of rapid advancement of the company's geological knowledge of the central Mongolian basins.  The company's in-house exploration team completed field expeditions with the assistance of international and Mongolian experts. These activities streamlined the exploration program and advanced the goal of defining potential drillable targets in a much shorter time frame than originally envisaged.