2010 Annual Results and Conference Call Details

March 21, 2011

GRAND CAYMAN, CAYMAN ISLANDS, Mar 21, 2011 (MARKETWIRE via COMTEX) —

Tethys Petroleum Limited (“Tethys” or the “Company”) (TSX: TPL) today announced its Annual Results for the period ended December 31, 2010. The full Annual Results together with a Management Discussion & Analysis have been filed with the Canadian securities regulatory authorities. Copies of the filed documents may be obtained via SEDAR at www.sedar.com or on Tethys’ website at www.tethyspetroleum.com. The summary financial statements are attached to this press release.

The Company’s 2010 financial statements are prepared under International Financial Reporting Standards (“IFRS”).

Highlights

-- The Company generated revenues from gas and oil sales of US$14.71 million in the year ended December 31, 2010 reflecting a 72% increase compared to US$8.56 million in the year ended December 31, 2009. -- Cash balance at December 31, 2010 was US$79.14 million compared to US$7.30 million at December 31, 2009. -- The basic and diluted loss per share in the year ended December 31, 2010 was US$0.15 compared to US$0.20 in the year ended December 31, 2009. -- Total assets at December 31, 2010 were US$267.75 million compared to US$137.08 million at December 31, 2009. -- The average oil and gas production per production day for the fourth quarter 2010 was 6,158 boe/d -- The Company's capital expenditure in the year ended December 31, 2010 was US$38.29 million plus a further $19.90 million by the Company's joint venture in Tajikistan compared to a total of US$32.29 million in the year ended December 31, 2009. -- Operating costs in the year ended December 31, 2010 were US$7.08 million compared to US$3.40 million in the year ended December 31, 2009. -- The Company recorded a net loss of US$29.65 million in the year ended December 31, 2010 compared to a net loss of US$21.72 million in the year ended December 31, 2009.

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 11:00 AM Eastern Time on Wednesday, March 23, 2010. The North American conference call number is 866.788.0545 and the outside North America conference call number is 857.350.1683. The conference call code to use is 60363554. 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://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=213714&eventID=3901793

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Tajikistan, Kazakhstan 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, 2010 for a description of risks and uncertainties relevant to our business, including our exploration activities. A 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 Consolidated Statement of Financial Position (in US dollars) As at December 31 2010 2009 $'000 $'000 Non-current assets Intangible assets 16,892 24,378 Property, plant and equipment 115,653 73,171 Investments 1,015 659 Other receivables 12,320 5,171 Loan receivable from jointly controlled entity 35,460 21,727 ------------------------ 181,340 125,106 ------------------------ Current assets Inventories 2,121 2,368 Trade and other receivables 3,680 2,311 Cash and cash equivalents 79,135 7,297 Derivative financial instruments - interest rate swap 1,472 - ------------------------ 86,408 11,976 ------------------------ Total assets 267,748 137,082 ------------------------ ------------------------ Equity attributable to shareholders Share capital 26,063 13,455 Share premium 297,222 153,748 Other reserves 34,261 27,775 Accumulated deficit (118,023) (88,374) ------------------------ Total equity 239,523 106,604 ------------------------ Non-current liabilities Deferred gain on sale of assets to jointly controlled entity 3,699 3,659 Financial liabilities - borrowings 2,853 9,324 Shares to be issued - 3,750 Deferred taxation 4,070 598 Trade and other payables 721 808 Asset retirement obligations 192 206 ------------------------ 11,535 18,345 ------------------------ Current liabilities Financial liabilities - borrowings 5,047 1,086 Derivative financial instruments - warrants 405 1,053 Derivative financial instruments - interest rate swap - 95 Deferred revenue 2,450 3,113 Trade and other payables 8,788 6,786 ------------------------ 16,690 12,133 ------------------------ ------------------------ Total liabilities 28,225 30,478 ------------------------ Total shareholders' equity and liabilities 267,748 137,082 ------------------------ ------------------------ Tethys Petroleum Limited Consolidated Statement of Comprehensive Loss (in US dollars) Year ended December 31, 2010 2009 $'000 $'000 Sales and other operating revenues 14,706 8,559 Finance income 61 76 ------------------------ Total revenue and other income 14,767 8,635 Production expenditures (7,076) (3,405) Depreciation, depletion and amortization (5,885) (3,238) Exploration and evaluation expenditure written off - (887) Listing expenses (1,288) (1,652) Administrative expenses (25,511) (16,880) Foreign exchange loss - net (337) (2,397) Fair value loss (net) on derivative financial instrument (24) (479) Loss from jointly controlled entity (634) (1,000) Finance costs (190) (203) ------------------------ Loss before taxation (26,178) (21,506) Taxation (3,471) (214) ------------------------ Net loss and comprehensive loss for the year attributable to shareholders (29,649) (21,720) ------------------------ ------------------------ Loss per share attributable to shareholders ------------------------ ------------------------ Basic and diluted (0.15) (0.20) ------------------------ ------------------------ No dividends were paid or are declared for the year (2009 - $Nil). Tethys Petroleum Limited Interim Consolidated Statement of Cash Flows (in US dollars) Year ended December 31, 2010 2009 $'000 $'000 Cash flow from operating activities Loss before taxation (26,178) (21,506) Adjustments for Share based payments 5,956 2,628 Net finance cost 112 127 Unsuccessful exploration and evaluation expenditures - 887 Depreciation, depletion and amortization 5,885 3,238 Payment of royalties (78) - Fair value loss on derivative financial instrument 24 479 Listing expenses 351 - Net unrealised foreign exchange (gain)/loss (75) 1,120 Loss from jointly controlled entity 634 1,000 Deferred revenue (663) 3,113 Net change in non-cash working capital (2,792) (1,160) ------------------------ Net cash used in operating activities (16,824) (10,074) ------------------------ Cash flow from investing activities Interest received 61 76 Expenditure on exploration and evaluation assets (31,688) (22,648) Expenditures on property, plant and equipment (6,605) (9,573) Investment in restricted cash (356) (72) Acquisition of subsidiary, net of cash received - 532 Sale of subsidiaries, net of cash disposed - (112) Payments made on behalf of jointly controlled entity (14,070) - Movement in advances to construction contractors (3,298) 829 Value added tax receivable (4,148) (670) Net change in non-cash working capital 3,461 1,273 ------------------------ Net cash used in investing activities (56,643) (30,365) ------------------------ Cash flow from financing activities Proceeds from issuance of short-term borrowings - 2,500 Repayment of short-term borrowings - (2,500) Proceeds from issuance of long-term borrowings 1,840 5,020 Repayment of long-term borrowings (4,974) (856) Interest paid on long-term borrowings and other non- current payables (1,036) (152) Other non-current liabilities (296) (109) Proceeds related to shares to be issued - 3,750 Proceeds from issuance of equity, net of issue costs 149,770 17,906 ------------------------ Net cash generated from financing activities 145,304 25,559 ------------------------ Effects of exchange rate changes on cash and cash equivalents 1 (23) Net decrease in cash and cash equivalents 71,838 (14,903) Cash and cash equivalents at beginning of the year 7,297 22,200 ------------------------ Cash and cash equivalents at end of the year 79,135 7,297 ------------------------ ------------------------

Contacts: Tethys Petroleum Limited Sabin Rossi Vice President Investor Relations +1 416 572 2065 +1 416 572 2201 (FAX) info@tethyspetroleum.com www.tethyspetroleum.com Tethys Petroleum Limited TD Canada Trust Tower 161 Bay Street, 27th Floor Toronto N5J 2S1, Canada http://m.tethyspetroleum.com In Asia-Pacific: Quam IR Anita Wan Associate Director + (852) 2217-2999 + (852) 2217-2999 (FAX) anita.wan@quamgroup.com
SOURCE: Tethys Petroleum Limited

mailto:info@tethyspetroleum.com http://www.tethyspetroleum.com http://m.tethyspetroleum.com mailto:anita.wan@quamgroup.com