Malka Oil has in a press release today announced that a binding term sheet has been signed with Gazprom Neft regarding the sale of Malka Oil's Russian production subsidiary, OOO STS-Service. The transaction is subject to shareholder approval and Malka Oil will convene an Extraordinary General Meeting to be held on December 17 2009, for decision of approval of the transaction. The notice will be published in the Post- och Inrikes Tidningar, and Svenska Dagbladet on Thursday 3 December 2009 and published on the company's website. For further information, please contact: Maks Grinfeld, MD, tel: +46 768 077 614 Sven-Erik Zachrisson, Chairman of the Board of Directors, tel: +46 8 41 05 45 96 For further information on Malka Oil AB, see the website Reasonable caution notice: The statement and assumptions made in the company's information regarding Malka Oil AB's ("Malka") current plans, prognoses, strategies, concepts and other statements that are not historical facts are estimations or "forward looking statements" concerning Malka's future activities. Such future estimations comprise but are not limited to statements that include words such as "may occur", "concerning", "plans", "expects", "estimates", "believes", "evaluates", "prognosticates" or similar expressions. Such expressions reflect the management of Malka's expectations and assumptions made on the basis of information available at that time. These statements and assumptions are subject to a large number of risks and uncertainties. These, in their turn, comprise but are not limited to i) changes in the financial, legal and political environment of the countries in which Malka conducts business, ii) changes in the available geological information concerning the company's projects in operation, iii) Malka's capacity to continuously guarantee sufficient financing to perform their activities as a "going concern", iv) the success of all participants in the group, or of the various interested companies, joint ventures or secondary alliances, v) changes in currency exchange rates, in particular those relating to the RUR/USD rate. Due to the background of the many risks and uncertainties that exist for any oil-prospecting venture and oil production company in its initial stage, Malka's actual future development may significantly deviate from that indicated in the company's informative statements. Malka assumes no implicit liability to immediately update any such future evaluations. This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.