HIGHLIGHTS

• Farha South-3 well:
- flowed 1,010 bopd on pump test in the Barik layer in January 2010

• Saiwan East-2 well:
- the 2009 oil discovery in the Khufai reservoir with substantial reserve potential is being tested again with the drilling of Saiwan East-3
- measured more than 400 metres of gross heavy oil column

• 3D Seismic surveys:
- conducted 400 square kilometres 3D-seismic survey covering the entire Saiwan East structure on Block 4
- initiated 740 square kilometres 3D-seismic survey covering the Farha trend on Block 3

• Gaffney, Cline & Associates contracted for a third party resources and reserves audit of the Farha South and Saiwan East oil discoveries

• Tethys Oil has during the first quarter of 2010 received proceeds of TSEK 42,142 before issue costs from two private placements of 500,000 shares conducted in March and from 1,144,451 exercised warrants

• As at 31 March 2010 there have been no sales of oil and gas in Tethys Oil, nor for the equivalent period of last year

• Result for the first quarter of 2010 amounted to TSEK -6,685 (TSEK 1,568 for the corresponding period last year)

• Earnings per share amounted to SEK -0.24 (SEK 0.06) for the first quarter of 2010

• Cash and cash equivalents as per 31 March 2010 amounted to TSEK 3,305 (TSEK 13,620). Oil and gas investments amounted to TSEK 31,443 (TSEK 17,677) mainly related to Oman, Blocks 3 and 4

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

NOTES FOR THE EDITOR: