Tethys Oil

Capital/Financing Update • Mar 4, 2014

Press release 2014-03-04

Tethys Oil AB (publ) redeems all outstanding bonds under its SEK 400,000,000 bond loan

Tethys Oil AB (publ) ("Tethys" or the "Company") has given notice to all holders of the Company's SEK 400,000,000 9.50% Bonds 2012/2015 (ISIN: SE0004808129) (the "Bonds") of exercise of its option for early redemption of the Bonds in accordance with Section 9 of the terms and conditions for the Bonds.

The redemption date when the redemption will occur will be 7 April 2014 (the "Early Redemption Date"). The record date for early redemption will be 31 March 2014. The early redemption amount will be SEK 1,045,000 per Bond, which constitutes 104.50 per cent of the nominal amount of each Bond. Accrued but unpaid interest up to and including the Early Redemption Date will also be paid to the bondholders on the Early Redemption Date.

The Bonds will be delisted from the corporate bond list at NASDAQ OMX Stockholm on or about 26 March 2014.

The Company's notice on early redemption is irrevocable and is governed by Swedish law. This press release is, for the avoidance of doubt, not an offer to purchase or sell financial instruments.

For further information, please contact

Magnus Nordin, Managing Director, phone +46 70 576 6555, magnus@tethysoil.com or

Morgan Sadarangani, CFO, phone +46 8 505 947 01, morgan@tethysoil.com

Tethys Oil AB (publ)

Tethys Oil is a Swedish energy company focused on exploration and production of oil and natural gas. Tethys Oil's core area is Oman, where the company is one of the largest onshore oil and gas concession holders. Tethys Oil also has exploration and production assets onshore France and Lithuania. The shares are listed on NASDAQ OMX Stockholm (TETY) in Stockholm.

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Website: www.tethysoil.com