Production Revenues Increase 46% Marketwire – Canada GRAND CAYMAN, CAYMAN ISLANDS–(Marketwire – Nov. 14, 2012) – Tethys Petroleum today announced its third quarter 2012 financial results. The results are highlighted by a 46% increase in production revenues over the third quarter of last year. RECENT FINANCIAL HIGHLIGHTS Q3 2012 vs Q3 2011 — Total Oil and Gas Revenue up 46% at USD10.0 million — Average oil production from the Doris field, Kazakhstan up 74% at 2,732 bopd — Administrative costs down 8% at USD4.5 million — Total Assets USD252.1 million

9 months 2012 vs 9 months 2011

— Total Oil and Gas Revenue up 72% at USD26.7 million — Average oil production from the Doris field, Kazakhstan up 145% at 2,234 bopd — Administrative costs down 2% at USD15.5 million

The 9 months period in 2012 has seen a substantial increase in oil production and revenue from the Doris oil field in Kazakhstan with a small drop in corporate administrative costs over the same period. It is forecast that both these trends will continue into 4Q 2012. On the revenue side both October’s and November’s average oil production figures have so far contributed toward the best quarter of oil production in Kazakhstan to date. October oil production averaged approximately 3,700 bopd and it is forecast that Novembers’ production figures will exceed this number. These figures demonstrate the optimisation of the trucking operation in Kazakhstan is coming to fruition which has been the main restriction on maximum production to date, not the production capability of the wells.

On the costs side in Q3 the Company has initiated a review of all costs with a particular focus on administrative expenses. The objective of this exercise is first and foremost to review all areas with a view to reducing costs but particularly administrative costs, and secondly to review the categorization of costs to ensure that the Company is reporting consistently with other similar oil and gas companies, which will facilitate appropriate comparison within its peer group.

Some of these measures can be seen in a 22% reduction in the Q3 2012 costs over the Q2 2012 costs and in the 8% reduction against Q3 2011, but it is expected most of the effect will be realised in the quarters to come as this assessment and resulting action takes some time to implement. This cost reduction exercise does not in anyway reflect the growth prospects of the Company which, as can be seen from the higher production and revenue growth in Kazakhstan and the recent signing of the MOU for a Tajikistan farm-in partner, are very good.

The Company reports financial results in accordance with International Financial Reporting Standards (“IFRS”).

These highlights along with other operational and financial details will be further discussed in a scheduled conference call. Details of the conference call can be found below:

Conference Call:

A conference call will be held at 10:30 AM EST US and Canada and 15:30 PM GMT European time on Thursday, November 15, 2012. The North American conference call number is ((866) 202-3048) and the outside North America conference call number is (+1 (617) 213-8843). The conference call code to use is (32537707). Please call in about 10 minutes before the starting time in order to be patched into the call.

Webcast:

The call is being webcast and can be accessed at: http://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=213714&eventID=4869022.

The following disclosure is provided to comply with regulatory requirements:

During the fourth quarter of 2011 and the first quarter of 2012, the Company borrowed from various lenders an aggregate principal amount of USD10 million for the purpose of re-financing the purchase price of drilling rigs. The loans are evidenced by loan notes having a maturity of one year or two years. The lenders also received warrants to purchase ordinary shares of the Company having a term of one year or two years, corresponding to the term of the loan notes. In October 2012, the Company received approval from a number of lenders to a one-year extension of the maturity date of loans notes in the principal amount of USD2,165,240 maturing in December 2012. In connection with the approval of the extension of the maturity date, the Company agreed, subject to definitive lender approval, to extend by six months the expiry date of 1,575,000 warrants issued in December 2011 (having an exercise price of CAD0.58 to CAD0.65) and 3,017,380 warrants issued in February, March and April 2012 (having an exercise price of CAD0.84 to CAD1.18), excluding warrants issued to insiders of the Company. The number of ordinary shares into which these warrants may be exercised represents, in aggregate, 1.6% of the number of ordinary shares outstanding on the date hereof. The exercise prices of these warrants represent a premium of 14% to 27% in the case of the warrants issued in December 2011 and 64% to 131% in the case of the warrants issued in February, March and April 2012 of the volume weighted average trading price of the ordinary shares of the Company on the TSX for the five days to October 19, 2012, being the date of the agreement with the lenders. The change to the expiry dates of these warrants will be effective on November 29, 2012. The Company will also issue, subject to definitive lender approval, 1,082,620 warrants having an exercise price of $0.64 to lenders who agreed to extend the maturity date of their one year loan notes by 12 months. These warrants will expire on certain dates in December 2013 or, in the case of 307,620 warrants issued to two officers of the Company, June 2014. The number of ordinary shares into which these new warrants may be exercised represents, in aggregate, 0.4% of the number of ordinary shares outstanding on the date hereof (0.1% in respect of the warrants to be issued to the two officers of the Company). The exercise price of the new warrants represents a premium of 25% of the volume weighted average trading price of the ordinary shares of the Company for the five days to October 19, 2012.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

This press release contains “forward-looking information” which may include, but is not limited to, statements with respect to our operations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. See our Annual Information Form for the year ended December 31, 2011 for a description of risks and uncertainties relevant to our business, including our exploration activities. A barrel of oil equivalent (“boe”) conversion ratio of 6,000 cubic feet (169.9 cubic metres) of natural gas = 1 barrel of oil has been used and is based on the standard energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Tethys Petroleum Limited Condensed Consolidated Statement of Financial Position (Unaudited) (in US Dollars) As at September 30, December 31, 2012 2011 $’000 $’000 Non-current assets Property, plant and equipment 121,894 128,918 Intangible assets 104,165 99,959 Restricted cash 1,406 1,407 Prepayments and other receivables 10,629 10,217 Investment in jointly controlled entity 1,118 1,113 —————————— 239,212 241,614 —————————— Current assets Inventories 1,934 2,025 Trade and other receivables 7,449 5,478 Loan receivable from jointly controlled entity 1,868 2,013 Cash and cash equivalents 1,146 10,746 Restricted cash 474 885 Derivative financial instruments – interest rate swap – 630 —————————— 12,871 21,777 —————————— Total assets 252,083 263,391 —————————— —————————— Equity attributable to shareholders Share capital 28,671 28,669 Share premium 306,725 306,725 Other reserves 41,200 38,530 Accumulated deficit (161,527) (144,962) Non-controlling interest 8,648 8,918 —————————— Total equity 223,717 237,880 —————————— Non-current liabilities Financial liabilities – borrowings 5,874 1,632 Deferred taxation 2,913 2,111 Trade and other payables 402 547 Asset retirement obligations 248 386 —————————— 9,437 4,676 —————————— Current liabilities Financial liabilities – borrowings 7,411 8,396 Derivative financial instruments – warrants 688 264 Derivative financial instruments – foreign currency hedge – 157 Deferred revenue 1,238 1,839 Trade and other payables 9,294 10,179 Current tax 298 – —————————— 18,929 20,835 —————————— Total liabilities —————————— 28,366 25,511 —————————— Total shareholders’ equity and liabilities 252,083 263,391 —————————— —————————— Tethys Petroleum Limited Condensed Consolidated Statement of Comprehensive Income (Unaudited) For the three and nine months ended September 30, 2012 (in US Dollars) For the 3 months For the 9 months ended ended September 30, September 30, 2012 2011 2012 2011 $’000 $’000 $’000 $’000 Sales and other revenues 9,990 6,849 26,681 15,506 Other operating income – 922 – 6,628 —————————————- Total revenue and other income 9,990 7,771 26,681 22,134 Production expenses (3,562) (3,393) (9,401) (6,918) Depreciation, depletion and amortisation (4,766) (3,857) (12,557) (9,684) Exploration and evaluation expenditure written off (138) (1,807) (138) (1,807) Listing expenses – (273) – (606) Business development expenses (42) (697) (621) (1,926) Administrative expenses (4,490) (4,859) (15,248) (15,520) Share based payments (582) (1,054) (2,459) (3,111) Foreign exchange (loss) / gain – net (158) (183) (334) 33 Fair value loss on derivative financial instrument (149) (231) (216) (554) Loss from jointly controlled entity (395) (291) (294) (802) Net finance (costs) / income (296) 194 (1,148) 912 —————————————- Loss before taxation (4,588) (8,680) (15,735) (17,849) Taxation (529) 105 (1,100) 283 —————————————- Loss for the period (5,117) (8,575) (16,835) (17,566) —————————————- —————————————- Loss attributable to: Shareholders (4,906) (8,575) (16,565) (17,566) Non-controlling interest (211) – (270) – —————————————- Loss for the period (5,117) (8,575) (16,835) (17,566) —————————————- —————————————- Loss per share attributable to shareholders Basic and diluted (0.02) (0.03) (0.06) (0.07) Tethys Petroleum Limited Condensed Consolidated Statement of Cash Flows (Unaudited) For the three and nine months ended September 30, 2012 (in US dollars) For the 3 months For the 9 months ended ended September 30, September 30, 2012 2011 2012 2011 $’000 $’000 $’000 $’000 Cash flow from operating activities Loss before taxation for the period (4,588) (8,680) (15,735) (17,849) Adjustments for Share based payments 582 1,054 2,459 3,111 Net finance cost / (income) 296 (194) 1,148 (910) Unsuccessful exploration and evaluation expenditure written off – 1,807 – 1,807 Depreciation, depletion and amortization 4,766 3,857 12,557 9,684 (Gain)/loss on disposal of assets – (16) – 120 Fair value loss on derivative financial instrument 149 231 216 554 Net unrealised foreign exchange (gain) / loss 228 (70) 216 (22) Loss from jointly controlled entity 395 291 294 802 Deferred revenue (157) 1,721 (601) (55) Other operating income – (922) – (6,628) Net change in non-cash working capital 84 (1,252) (1,903) (483) —————————————- Net cash generated / (used) in operating activities 1,755 (2,173) (1,349) (9,869) —————————————- Cash flow from investing activities Interest received – 36 5 112 Expenditure on exploration and evaluation assets (2,412) (3,335) (4,014) (9,624) Expenditures on property, plant and equipment (3,609) (7,813) (5,317) (27,210) Movement in restricted cash 1 2,100 412 (1,451) Investment in jointly controlled entity – – (5) – Payments made on behalf of jointly controlled entity – (5,071) (12,435) Movement in advances to construction contractors (643) 1,304 (1,677) 1,187 Movement in value added tax receivable 251 (980) 1,098 (3,133) Net change in non-cash working capital 1,476 726 (924) 1,080 —————————————- Net cash used in investing activities (4,936) (13,033) (10,422) (51,474) —————————————- Cash flow from financing activities Proceeds from issuance of borrowings, net of issue costs 999 – 10,334 – Repayment of borrowings (246) (93) (7,112) (269) Interest paid on borrowings (283) (69) (804) (266) Movement in other non-current liabilities (71) (76) (213) (227) —————————————- Net cash generated / (used) in financing activities 399 (238) 2,205 (762) —————————————- Effects of exchange rate changes on cash and cash equivalents (44) 114 (34) (14) Net decrease in cash and cash equivalents (2,826) (15,330) (9,600) (62,119) Cash and cash equivalents at beginning of the period 3,972 32,346 10,746 79,135 —————————————- Cash and cash equivalents at end of the period 1,146 17,016 1,146 17,016 —————————————- FOR FURTHER INFORMATION PLEASE CONTACT: North America Tethys Petroleum Limited Sabin Rossi, Vice President Investor Relations Office: +1 416-941-1257 +1 416-947-0167 (FAX) Europe Tethys Petroleum Limited Veronica Zhuvaghena, Vice President Corporate Communications Office: +44 1481 725911 +44 1481 725922 (FAX) Corporate Brokers: FirstEnergy Hugh Sanderson/David Van Erp Office: + 44 207 448 0200 Seymour Pierce Richard Redmayne/Jonathan Wright/Stewart Dickson Office: +44 207 107 8000 Asia Pacific: Quam IR Anita Wan Office phone/fax: +852 2217 2999 FTI Consulting Ben Brewerton/Edward Westropp Office: +44 207 831 3113 Tethys Petroleum Limited [email protected] www.tethyspetroleum.com http://m.tethyspetroleum.com Source: Tethys Petroleum Limited