President Energy today provides an update on its interests in Salta, Argentina.

President has announced that the non producing exploration areas of Matorras and Ocultar have, with the consent of the Province of Salta, been relinquished and the work commitments transferred to the producing Puesto Guardian Concession.

The transfer of the work commitments to Puesto Guardian totalling in value US$2.61m, is approximately the cost of one production well in addition to the current three well programme. Accordingly, this means that the Company has exchanged non-drilling exploration dollar commitments for a further production well which it fully intends to drill in a known producing area, thereby generating royalties for the Province and revenue for the Company whilst permitting the Province to re-market the exploration Blocks.

President expresses its sincere appreciation of the support of the Salta Province and its authorities in its endeavours both in relation to the current US$11 million three well drilling programme, the single most large capital investment in oil and gas production in Salta for many years, and the matters referred to in this announcement.