OREANDA-NEWS. September 18, 2007. Sibir is pleased to announce that at the Extraordinary General Meeting of the Company held earlier today all the resolutions proposed to shareholders were duly passed.

As a result the Central Fuel Company (“CFC”), a company owned by the Moscow City Government, will subscribe for 69,714,254 new ordinary shares in Sibir (“Subscription Shares”) in exchange for the transfer of 35,010 common shares in the Moscow Oil & Gas Company (“MOGC”) to Sibir (“Subscription”). The Subscription Shares are expected to be admitted to trading on AIM at 8.00 am on 19 September 2007. At the same time Sibir will complete the acquisition of the 7,780 preferred shares in MOGC from CFC in exchange for US$200,000,000 (“Preferred Shares Acquisition”).

Following completion of the Subscription and the Preferred Shares Acquisition, Sibir will own 100 per cent. of MOGC and CFC will own shares in Sibir representing 18.03 per cent of Sibir’s issued share capital, as enlarged by the Subscription Shares.

Sibir also announces that at the Annual General Meeting of the Company, which was held after the EGM, all resolutions put to shareholders were duly passed. The resolution to re-elect Urs Haener was not put to shareholders as he has decided to step down from the board of Sibir (“Board”) in order to pursue other business interests. The Board wishes to thank Mr Haener for his valuable contribution to the Company and wishes him well for the future.

Henry Cameron, CEO of the Company, commented “Approval of the MOGC transaction marks the full realisation of Sibir’s strategic objective of becoming a fully integrated oil company with a balanced portfolio of upstream and downstream assets in Russia. The transaction significantly strengthens the company’s downstream operations by providing refining capacity for its growing crude production while expanding its participation in 139 retail fuels outlets in the City of Moscow and surrounding region. With the City of Moscow now a major shareholder Sibir is in growth mode and is well positioned to move forward with its plans to grow its reserves base and production, upgrade the Moscow refinery along with its fellow shareholders and grow its retail network on a pan Russia basis.”