The assignment whereby Tethys Oil through its wholly owned subsidiary Tethys Oil Blocks 3 and 4 Ltd ("Tethys") assigns to Mitsui E&P Middle East B.V., a subsidiary of Mitsui & Co. Ltd., ("Mitsui"), 20 percentage points in license 3 and 4 onshore the Sultanate of Oman has been approved by the Government of the Sultanate of Oman.

After the assignment to Mitsui, Tethys holds a 30 per cent interest in Blocks 3 and 4 and Mitsui E&P Middle East B.V. holds a 20 per cent interest. The operator CC Energy Development S.A.L. (Oman branch) holds a 50 per cent interest.

Mitsui and Tethys entered into an agreement on May 19, 2010 whereby Mitsui where to acquire 20 percentage points of the license covering Blocks 3 and 4 onshore the Sultanate of Oman ("The transaction"). Total compensation to be paid by Mitsui in consideration for the 20 per cent interest amounts to USD 20 million in cash. In addition Mitsui undertakes to fund Tethys share of non exploration related capital expenditure up to USD 60 million on Blocks 3 and 4 effectively from January 1st 2010. In addition Mitsui will pay to Tethys a production bonus amounting to USD 10 million in the event combined future production from the two Blocks come to exceed 10,000 barrels of oil per day.

Following the approval now obtained by the Government of the Sultanate of Oman it is expected that closing of the transaction will take place within ten days or as soon as closing documents are in place. Upon closing Tethys will receive the cash payment of USD 20 million as well as will be reimbursed all expenditure incurred on Blocks 3 and 4 since January 1, 2010, less MUSD 3 already paid by Mitsui on Tethys behalf.

This release is an extract of that published by the Issuer. Accordingly, MAC Capital Limited accepts no responsibility to the accuracy of the information provided.

About Tethys Oil AB

Tethys Oil is a Swedish energy company focused on identification and development for production of oil and natural gas assets in the Middle East, North Africa and Europe. Tethys' strategy is to primarily invest in projects in areas with known oil and natural gas discoveries that have not been properly appraised using modern technology. In this way, high returns can be achieved with limited risk.

The company has interests in licences in Oman, Morocco, France, Spain, Turkey and Sweden. The shares are listed on First North (TETY) in Stockholm. Remium AB is Certified Adviser.

Website: www.tethysoil.com

For further information, please contact
Magnus Nordin
Managing Director
Phone +46 8 679 4995
magnus@tethysoil.com

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