Tethys Petroleum Limited has filed a preliminary short form prospectus for a new issue of ordinary shares. The offering will be for gross proceeds of up to $30 million. The net proceeds of the offering are intended to be used by Tethys to fund work on its existing properties in Tajikistan, Uzbekistan and Kazakhstan, and for working capital and general purposes.

The aim of the offering is to provide funding for near term development and appraisal activities in Tajikistan and Uzbekistan, to further expand the Company's gas development in Kazakhstan, and to acquire additional data to potentially enhance the value of the Company's exploration assets in Tajikistan. The issue price of the shares and the corresponding number of shares to be issued will be determined in the context of the market at the time of filing a final short form prospectus in respect of the offering.

Fraser Mackenzie Limited, Renaissance Capital and Quam Capital will act as co-lead managers for the offering. The offering will be conducted in Canada through Fraser Mackenzie Limited, and Renaissance Capital and Quam Capital will act as special selling agents for the purpose of procuring subscribers in certain jurisdictions outside of Canada, where each such special selling agent is qualified to carry on business. Tethys will grant an over-allotment option to the agents, exercisable for a period of 30 days following the closing of the offering.

The offering is subject to all customary conditions and regulatory approvals, including that of the Toronto Stock Exchange.

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