Conversion period begins for PA Resources convertibles

The holders of PA Resources AB's convertible bonds 2008/2014 can convert them into new shares in the company during the month of September 2010.

According to the terms for PA Resources AB's convertible bonds 2008/2014, outstanding convertible bonds can be converted into new shares in the month of September each year. 2010 conversion period begins on 1 September 2010 and ends on 30 September 2010. The conversion price is set at SEK 8.52 per share after the adjustment that was made in the light of the rights issue in June 2010.

Instructions concerning the conversion process, application forms as well as other information about the convertible bonds, are available on the company's website www.paresources.se under Investor Relations/The convertible bonds.

Please note that if conversion of convertible bonds into shares is done in September 2010, the right to receive accrued interest on the nominal amount of the convertible bonds from 15 January 2010 will fall.

Please also note that it will not be possible to transfer PA Resources' convertible bonds between Sweden and Norway from 26 August 2010 up to and including 1 October 2010. After 1 October this is possible again.

PA Resources has a total of 61,517,024 outstanding convertible bonds with a nominal amount of SEK 16 per convertible bond. That means that the total loan amount of outstanding convertible bonds amounts to SEK 984,272,384 in total with the 2010 conversion period at hand.

The convertible bonds are listed both on NASDAQ OMX Nordic Exchange in Stockholm and on Oslo Stock Exchange.

Summary information on the convertible loan:

ISIN Number:  SE0002694455

Ticker symbol: PAR KV1 on NASDAQ OMX Nordic Exchange in Stockholm, PAR02 on Oslo Stock Exchange

Issuer: PA Resources AB

Duration time: The convertible bonds duration time is up to and including 15 January 2014.

Interest:  The convertible bonds carry a fixed annual interest of 11 percent during the duration time. The interest is paid on January 15 each year, first time in 2010 and last time in 2014.

Nominal amount: 16 SEK per convertible bond

Conversion: The convertible bonds can be converted into new shares during the month of September each year. The last time conversion is possible is in September 2013.

Repayment: If conversion into new shares is not made on 30 September 2013 at the latest, the outstanding convertible loan amount will be repaid to the holder of the convertible bonds at maturity including accrued interest from the last interest due date (15 January 2013).

For complete terms for PA Resources' convertible loan 2008/2014, see the prospect that is available on the company's website www.paresources.se under Investor Relations/The convertible bonds.

Stockholm, 23 August 2010
PA Resources AB (publ)

For additional information, please contact:
Bo Askvik
President and CEO
PA Resources AB
Tel +46 (0)8 21 83 82

or

Ann-Kristin Littorin
Head of Corporate Communication
PA Resources AB
Telephone: +46 (0)8 440 26 09
Mobile: +46 73 923 903 68
E-mail: info@paresources.se

PA Resources AB (publ) is an international oil and gas group with the business strategy to acquire, develop, exploit and divest oil and gas reserves, as well as explore new findings. The Group operates in Tunisia, United Kingdom, Denmark, Greenland, Netherlands, Equatorial Guinea and the Republic of Congo (Brazzaville). PA Resources is today one of the largest oil producers in Tunisia and also has production in the Republic of Congo. The parent company is located in Stockholm, Sweden.
PA Resources' net sales amounted to SEK 2,113 Million during 2009. The company is listed on the NASDAQ OMX Nordic Exchange in Stockholm, Sweden (segment Mid Cap) and on the Oslo Stock Exchange in Norway (segment OB Match). For additional information, please visit www.paresources.se