3 April 2023

Petro Matad Limited

("Petro Matad" or the "Company")

Operational Update

Petro Matad (AIM: MATD), the AIM quoted Mongolian oil company, provides the following operational update.

Key Company Updates

·    The Velociraptor 1 well is scheduled to spud in June 2023 as soon as the rig is released from its current programme.

·    Documentation to certify the Block XX Exploitation Area as special purpose land is being prepared by the Ministry of Mining and Heavy Industry for submission to cabinet for approval.

·    Negotiations between Petro Matad and the government for a new block in Mongolia's 2023 Exploration Tender Round have commenced.

Block V Exploration

Following discussions with selected drilling contractor, Major Drilling ("Major"), a spud date for the Velociraptor 1 well has been confirmed for June 2023 following completion of Major's current programme for another operator. All required equipment for the well is in country. Field work has commenced to make ready the water supply well that will be used to supply the operation. Site construction will commence during May in good time for the scheduled June spud. The well is expected to take around 30 days to drill to a prognosed total depth of c.1500m.

Block XX Exploitation Licence

Documentation has been prepared by the Ministry of Mining and Heavy Industry and circulated to other relevant ministries in advance of submission to cabinet to secure approval to certify the Block XX Exploitation Area as a Special Purpose Area. The certification is being proposed on the basis that the Heron development is a project of national importance. We are pushing for the matter to be brought to cabinet urgently in order to allow in-field activities to commence to make the Heron 1 well ready for production.

2023 Exploration Licencing Round

Negotiations have commenced with MRPAM on the block for which Petro Matad has submitted an application in Phase 1 of the 2023 open tender exploration licencing round. Phase 2 of the round has recently been announced and the third phase is expected to be announced in the next few months. The Company is reviewing the newly offered blocks and plans to submit applications on those it has high-graded.

Mike Buck, CEO of Petro Matad, said:

"As shareholders will know, we have wanted to drill Velociraptor for some time now and so we are very excited to have agreed a firm schedule with the drilling contractor. The necessary preparatory work is already underway and all equipment for the well is in country ensuring we are ready to spud in June.

We continue to push the Mongolian Government for the certification of Block XX Exploitation Area as Special Purpose Land and are pleased that the Ministry of Mining and Heavy Industry is proposing the certification on the grounds of this being a project of national importance."

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About Petro Matad

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds 100% working interest and the operatorship of two Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 218 square kilometres in the far eastern part of the country and Block V has an area of 7,937 square kilometres in the central western part of the country.

Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.