West Siberian Resources Ltd: Report for the extended Financial Year October 1, 2003-December 31, 2004

• Oil revenue increased by 150% to MUSD 22.1 (MUSD 8.9) for the extended 15-month financial year and by 207% to MUSD 7.8 (MUSD 2.5) for the quarter ended December 31, 2004. • The result before tax improved to MUSD 23.2 (MUSD -29.3) for the financial year and to MUSD 24.5 (MUSD -1.8) for the quarter. The financial year net result amounted to MUSD 17.1 (MUSD –28.0) and the quarterly net result amounted to MUSD 20.1 (MUSD -2.7). • The result before tax for the quarter and the financial year was affected by a MUSD 21.4 reversal of last years’ non-cash impairment loss as required by IAS 36. The reversal was based on the updated appraisal of the Company’s oil reserves and cash flow projections. • Excluding the impairment loss reversal, the result before tax would amount to MUSD 1.8 for the financial year and MUSD 3.1 for the quarter and the net result would amount to MUSD 0.8 for the financial year and MUSD 3.8 for the quarter. • The net result corresponds to USD 0.06 per share for the fifteen months period (USD -0.49 per share). For the quarter, the earnings per share were USD 0.05 (USD -0.09 per share). • Oil production increased by 97% to 1,176,903 barrels for the extended financial year and by 195% to 434,903 barrels for the quarter. • The board approved a new accelerated development plan and acquisition strategy and is reviewing the capital structure, a potential preferential rights offering and other long-term growth financing options. Note: All comparisons from the prior financial year reflect 12 months from October 1, 2002- September 30, 2003.

Results – the Group The net result for the 15 months extended financial year ended December 31, 2004 was MUSD 17.07 corresponding to USD 0.06 per share (MUSD -27.98 and USD -0.49 per share, respectively, for the twelve months of last year). For the quarter ended December 31, 2004 the Group reports a net result after tax of MUSD 20.09 corresponding to USD 0.05 per share (MUSD -2.69 and USD -0.09 per share, respectively, for the corresponding period of last year). The Group revenue for the financial year was MUSD 22.36 (MUSD 8.99). For the quarter, the Group revenue was MUSD 7.90 (MUSD 2.57). The production costs for the financial year were MUSD 12.63 (MUSD 6.28) and for the quarter the production costs were MUSD 4.19 (MUSD 1.50). For the financial year, the depletion charge was MUSD 1.34 (MUSD 0.67) and for the quarter the depletion charge was MUSD 0.51 (MUSD 0.17). For the financial year ended September 30, 2003, the former board of directors appraised the value of the oil reserves, determined that the assets were impaired and recorded an impairment loss of MUSD 21.38 under the International Financial Reporting Standard IAS 36 “Impairment of assets”. As of December 31, 2004 this impairment loss was reversed in full as required by IAS 36, reflecting that the loss no longer exists based on an updated appraisal of oil reserves and cash flow projections. The appraisal reflects the Company’s new field development plan and was supported by an independently updated geological model and RPS-Troy Ikoda’s, independent UK based petroleum consultants, appraisal of the Company’s recoverable oil reserves in the Middle Nyurola field. Based on the above and the revised oil price projections, it was determined that last years’ impairment loss no longer exists and consequently should be reversed. The selling, general and administration expenses amounted to MUSD 5.53 (MUSD 4.25) for the financial year and MUSD 1.73 (MUSD 1.06) for the quarter. Operating result was a profit of MUSD 23.74 (loss of MUSD 24.37) for the financial year and a profit of MUSD 22.43 (loss of MUSD 0.10) for the quarter . Net finance expenses were MUSD 3.65 (MUSD 5.04) for the financial year and MUSD 0.11 (MUSD 1.94) for the quarter. For the financial year, there was currency exchange rate gain of MUSD 3.07 (loss of MUSD 1.46) and for the quarter currency exchange rate gain amounted to MUSD 2.20 (MUSD 0.21). The current and deferred tax charge was MUSD 5.75 (income MUSD 1.60) for the financial year and MUSD 4.43 (MUSD 0.62) for the quarter. These tax costs for the financial year and the quarter include deferred tax of MUSD 5.13 related to the impairment loss reversal. Besides, a correction of a prior year error in deferred tax was charged to the opening retained earnings in the amount of MUSD 1.51. For the financial year ended December 31, 2004 minority interest amounted to MUSD 0.35 (MUSD 0.28). For the quarter ended December 31, 2004 there was no minority interest charge. For the corresponding period of the last year minority interests amounted to MUSD 0.24. The board of directors propose that no dividends shall be paid for the financial year ended December 31, 2004.