The Board of Directors of Tethys Oil AB has resolved to issue 1,300,000 new shares at a price of SEK 10 through a private placement directed to approximately 10 Swedish and international investors. The private placement is done with authorizations from the AGM held on May 8, 2008. The private placement is fully subscribed and the proceeds will amount to MSEK 13 (approximately MUSD 1.5) before issue costs.

A total of 1,300,000 new shares at a price of SEK 10 corresponding to approximately 5.4 per cent of the number of shares outstanding will be issued. After the private placement the number of shares in Tethys will amount to 25,280,086. The share capital of the company will increase by SEK 216,667 to SEK 4,213,348. The subscription price is in line with Tethys' current price on the stock market.

The proceeds from the private placement will be used to facilitate the ongoing work programme in Tethys' core area onshore Oman.

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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