OREANDA-NEWS. On August 20, 2008 Tethys Petroleum Limited, common shares of which are listed on the special trading floor of the regional financial center of Almaty in the third category, provided Kazakhstan Stock Exchange (KASE) with the press release, the press-centre of KASE reported:

Tethys Petroleum Limited ("Tethys" or "Company"), registered on Toronto Stock Exchange under TPL symbol and in the official list of the special trading floor of the regional financial center of Almaty (STFRFCA), with aGG_TPL_, is pleased to provide financials for Q2 2008.

KEY FINANCIALS

On June 27, 2008 the Company has finished the deal on public offering of ordinary shares with UDS50 m. returns (USD46.25 m. net of broker commissions and specialist fees).

In Q2 2008 actual returns of the Company from sales of gas from Kyzyloi deposit (net of license payment and with no account to VAT return) made up USD1.56 m. Average output of gas for sale, equals to approximately 566 cubic meters per day from the first six wells of the deposit.

A USD5.28 m. net loss has been registered for three months according to the data as on June 30, 2008. More than 3.6 million of the loss were caused by reallocation of non-cash funds, related to costs of options on share and coupons, and due to reduction of costs of licensed areas with proved deposits. General and administrative expenditures were less than in Q1; however exceeding that of 2007, mainly thanks to additional expenses connected with the deal on public offering of securities and staff expansion, and also because of business development costs, related to further prospective developments of the Company.

As on June 30, 2008 cash funds of the Company and their equivalents made up USD58.9 m. without account to preliminary payments of USD5.8 m., mainly related to advance payment for drilling works in Kazakhstan and stage payment of equipment, required for the second stage works on development of shallow hearted gas in Kazakhstan.

Capital expenditures of Q2 2008 in the amount of USD13.1 m. were mainly caused by acquisition of deep drilling machine "Telesto" and accompanying equipment for drilling of wells at Akkulka and Kulbas areas, and because of payments related to equipment and construction within the second stage works of the Company on development of near surface gas.

Consolidated financials statements with discussions and analysis of financials by the management of the Company (MD&A) will be released at the website of the Company www.tethyspetroleum.com and SEDAR website www.sedar.com.