Results of Capital Raise

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.

This Announcement does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any investment decision in respect of Petro Matad Limited or other evaluation of any securities of Petro Matad Limited or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities.

This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").  In addition, market soundings (as defined in UK MAR) were taken in respect of certain of the matters contained in this Announcement, with the result that certain persons became aware of such inside information, as permitted by UK MAR.  Upon the publication of this Announcement, this inside information is now considered to be in the public domain and such persons shall therefore cease to be in possession of inside information.

For immediate release

26 June 2024

Petro Matad Limited

("Petro Matad" or the "Company")

Results of Oversubscribed Placing and Subscription

Petro Matad Limited ("Petro Matad" or the "Company") (AIM: MATD), the AIM quoted Mongolian oil company, is pleased to announce that following the accelerated bookbuild which was announced on 25 June 2024, the Company has conditionally raised gross proceeds of GBP 7.0 million (US$8.9 million) through the Placing of new Ordinary Shares, and Subscription by each of a director and shareholder of the Company at a price of 2.0 pence (the "Placing Price") per share.

Shore Capital Stockbrokers ("Shore Capital") and Zeus Capital ("Zeus") acted as Joint Bookrunners.

Capitalised terms used in this announcement (this "Announcement") have the meanings given to them in the launch announcement, unless the context provides otherwise.

Highlights

·    The Company has conditionally raised, in aggregate, GBP 7.0 million (US$8.9 million) at a price of 2.0 pence per new Ordinary Share.

·    Petrovis Matad Inc. (a Substantial Shareholder as defined under the AIM Rules) is participating in the Subscription for a total of 39,370,077 Subscription Shares with a total value of US$1 million.

·    Mike Buck, CEO of Petro Matad, is participating in the Subscription for a total of 3,937,007 Subscription Shares with a total value of US$100,000.

·    Conditionally, in aggregate, a total of 350,000,000 New Shares will therefore be issued, representing approximately 24 per cent. of the enlarged share capital.

Retail Offer

As part of the Capital Raising, the Company announced on 25 June 2024 that it was launching a separate retail offer of up to 20 million new Ordinary Shares at the Placing Price on the BookBuild Platform to raise up to a further £400,000 (US$0.5m) to provide existing retail shareholders in the United Kingdom with an opportunity to participate in the Capital Raising. A separate announcement will be made on the result of the Retail Offer, expected to be released on 1 July 2024.

Admission

Application will be made for the admission of the Placing Shares to trading on the AIM market of London Stock Exchange plc ("Admission"). It is ‎expected that such Admission will take place at or around 8.00 a.m. (London time) on 1 July 2024. Application will be made for the admission of the Subscription Shares to trading on the AIM market of London Stock Exchange plc. It is ‎expected that such admission will take place at or around 8.00 a.m. (London time) on 3 July 2024.

Related Party Transaction

As a substantial shareholder, Petrovis Matad Inc.'s participation in the Subscription is deemed to be a related party transaction for the purposes of AIM Rule 13. The independent director of Petro Matad (being for this purpose Tim Bushell), having consulted with the Company's nominated adviser, Shore Capital, considers that the terms of Petrovis Matad Inc.'s participation in the Subscription are fair and reasonable insofar as Shareholders are concerned.

As a director, Mike Buck's intended participation in the Subscription is deemed to be a related party transaction for the purposes of AIM Rule 13. The independent Director of Petro Matad (being for this purpose Tim Bushell), having consulted with the Company's nominated adviser, Shore Capital, considers that the terms of his participation in the Subscription are fair and reasonable insofar as Shareholders are concerned.

Enquiries:

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 214 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.

Market Abuse Regulation

This Announcement is released by Petro Matad Limited and contains inside information for the purposes of UK MAR and is disclosed in accordance with the Company's obligations under UK MAR. The person who arranged for the release of this Announcement on behalf of Petro Matad Limited was Mike Buck, Chief Executive Officer.

Important Notices

Shore Capital is a member of the London Stock Exchange and is authorised and regulated in the United Kingdom by the Financial Conduct Authority (the "FCA") and Zeus is regulated in the United Kingdom by the FCA. Each of Shore Capital and Zeus is acting exclusively for the Company and no one else in connection with the Placing, and Shore Capital and Zeus will each not be responsible to anyone (including any Placees) other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Placing or any other matters referred to in this Announcement.

The notification below, made in accordance with the requirements of UK MAR, provides further details of above transactions.