PETROGRAND AB: OBSERVATION STATUS REMOVED

With effect from today June 11th 2010 the observation status is removed for the shares in PETROGRAND AB (publ) (former Malka Oil AB), traded on NASDAQ OMX First North in Stockholm. NASDAQ OMX Stockholm AB published its decision in a stock market announcement on June 10th 2010. The observation status has been in force since early 2009, during a period of major uncertainty in respect of the financial situation and future business of the company. As a result of the sale of the company's production operations in Russia in early 2010, the company's financial situation has been stabilized and as a result of the decision to approve a new business plan at an extraordinary general meeting in the end of April, the shareholders have given their support for the future business of the company. These circumstances made the company contact the stock exchange to discuss the observation status and a process was initiated which led to yesterday's decision by NASDAQ OMX. 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 Certified Adviser First North:  HQ Bank Reasonable caution notice: The statement and assumptions made in the company's information regarding Petrogrand AB's ("Petrogrand") current plans, prognoses, strategies, concepts and other statements that are not historical facts are estimations or "forward looking statements" concerning Petrogrand'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 Petrogrand'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 Petrogrand conducts business, ii) changes in the available geological information concerning the company's projects in operation, iii) Petrogrand'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, Petrogrand's actual future development may significantly deviate from that indicated in the company's informative statements. Petrogrand assumes no implicit liability to immediately update any such future evaluations. [HUG#1423325] Press Release (PDF): http://hugin.info/138739/R/1423325/372242.pdf