Tethys Announces the Successful Closing of a US$50 million Public Offering

June 27, 2008

Friday, June 27, 2008, Toronto, Canada – Tethys Petroleum Limited (“Tethys”) today announced that it has completed its public offering of 21,276,596 Ordinary Shares for gross proceeds of US$50 million (the “Offering”). The Ordinary Shares were sold at a price of US$2.35 (C$2.39) each. Following this Offering Tethys has 66,393,292 Ordinary Shares in issue and a market capitalization of approximately US$160 million (C$162 million). The Ordinary Shares are listed on the Toronto Stock Exchange under the symbol “TPL”. The net proceeds of the Offering will be used by Tethys for project development, capital expenditures, working capital and general corporate purposes. The Offering was conducted through Jennings Capital Inc. as Lead Agent and TD Securities Inc. as Co–Lead Agent. Quam Securities Company Limited of Hong Kong and Brokerage Company Astana Finance JSC of Astana, Kazakhstan acted as Special Selling Agents.

Dr. David Robson, Chief Executive Officer of Tethys commented on the news, “We are pleased with the success of the offering, which was oversubscribed. The Offering should enable us to achieve our plans for our exploration and development projects in Tajikistan and Kazakhstan and continue to execute our strategy in Central Asia.”

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republic of Kazakhstan and the Republic of Tajikistan. In Kazakhstan its current development and exploration assets are located close to the Aral Sea in western Kazakhstan within the North Ustyurt Basin adjacent to the prolific Pre-Caspian Basin. In Tajikistan Tethys is working in the Afghan-Tajik Basin (an extension of the Amu Darya Basin) under a Production Sharing Contract covering over 8 million acres in the southwest portion of the country.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein. The securities have not been and will not be registered under the United States Securities Act of 1993, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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, including, the risks and uncertainties outlined under the section titles “Risk Factors and Uncertainties” in our prospectus (available at www.sedar.com). Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected.

This news release is not for distribution to United States newswire services or for dissemination in the United States.

For more information please contact:

Sabin Rossi
Vice President Investor Relations
Tethys Petroleum Limited
TD Canada Trust Tower
161 Bay Street, 27th Floor
Toronto N5J 2S1

Office: 1-416-572-2065
Fax: 1-416-572-2201
e-mail: info@tethys.gg
website: www.tethyspetroleum.com

In Kazakhstan

Ardak Akanov
Managing Director
PG Communications
Almaty, Samal 2 Business Center Satty

Office phone/fax: 2 72 88 67, 2 72 82 37, 2 72 77 45
Cell: +77017115604
Email: development@pressclub.kz