Mr. Casey McCandless reports

TETHYS PETROLEUM CORPORATE UPDATE

Tethys Petroleum Ltd. has provided an update on the company's operations in the Republic of Kazakhstan.

Regulatory update

Tethys has received the permit from the Ministry of Ecology, which will allow for test oil production from the KBD-10 and KBD-11 wells. Production is scheduled to start on April 8. Regarding the commercial licence, the ministry has not yet issued the official minutes of the working group, and the company is trying to determine the reason for the delay.

Gas marketing update

The company has been continuing to work on a resolution with QazaqGaz over the dispute on the payment of gas produced by the company. The companies have been unable to come to an agreement, and gas production has been shut in. Due to the shutdown of gas production, a significant number of employees may be forced to take a temporary furlough and are at risk of permanent dismissal. Sixteen employees have been put on furlough. In an effort to reduce the number of staff laid off, 17 employees have been transferred from TethysAralGas to KulBas in order to assist with the oil production on KBD-10 and KBD-11.

About Tethys Petroleum Ltd.

Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian region.

We seek Safe Harbor.