Petrel Resources Plc provides Preliminary Results for Year Ended 31 December 2010.

Highlights:

• The Subba and Luhais oil field development contract in Iraq is virtually completed. • Petrel has received all US$7 million due from the sale of the Company’s shareholding in Subba and Luhais. Petrel maintains a 10% profit interest. • Petrel has applied to participate in the 4th Oil Licencing Round in Iraq. • The Company await parliament approval on the Tano 2A licence block in Ghana where Petrel holds a 30% interest. • Reprocessing of over 760 kilometres of seismic lines on Tano 2A has identified a number of promising areas. • Petrel has submitted applications for blocks in the Porcupine Basin area offshore Ireland. • The company has over US$6 million in cash.

John Teeling, Chairman, commented,“Waiting is frustrating for shareholders, management and employees. We are waiting for necessary approvals in Ghana on the Tano 2A block. We are waiting for a hydrocarbon law in Iraq to clarify our position on the Western Desert block 6. We are an applicant in the current licencing round in Iraq, but that too will take time. We have gone back to our 1980s origins by using our extensive Irish offshore database to apply for blocks in the new licencing round. We are well funded and ready to move once necessary approvals are obtained.”

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