2015-01-23

Issuance of Shares and Grant of Options

GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - Jan. 23, 2015) - Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:TPL) (LSE:TPL) announces the issuance of shares and the grant of options under the Company's Long-Term Share Incentive Plan ("LTSIP").

Issuance of shares

In accordance with the provisions of the UK Listing Rules and Disclosure and Transparency Rule 3.1.2R ("DTR 3"), the Company announces that it has today issued 90,478 restricted ordinary shares to its Executive Chairman, John Bell as part of his salary since being appointed on 26 November 2014.

Under the terms of the service contract entered into between a subsidiary of the Company and John Bell, during the first year of his service, 30% of John Bell's salary shall be paid in restricted ordinary shares in the Company. These restricted ordinary shares shall rank pari passu to other ordinary shares in Tethys (and shall not represent a separate class of shares of Tethys) but are subject to certain contractual restrictions, including that they may not be transferred for a period of one year from the date of John Bell's appointment, subject to certain exempt circumstances resulting in early release. The total number of restricted ordinary shares that may be issued to John Bell as part of his salary during the first year of service (being up to 507,719 ordinary shares representing approximately 0.15% of the Company's issued share capital) has been calculated by reference to a price of 16.84p, being the average closing price of ordinary shares of Tethys during the 15 days prior to the date of his appointment.

Application has been made for such restricted ordinary shares to be admitted to the Official List of the UK Financial Conduct Authority and to trading on the London Stock Exchange. Following the issuance of these restricted ordinary shares John Bell will hold interests in a total of 90,478 ordinary shares in the Company, representing approximately 0.03% of the Company's issued share capital.

Full details of John Bell's remuneration will be provided in the Management Information Circular that will be published in connection with the Company's forthcoming annual general meeting.

Grant of options pursuant to the LTSIP

The Company announces in accordance with the provisions of DTR 3 that each of the persons set out below, each being a Person Discharging Managerial Responsibility ("PDMR") of the Company (and together representing all of the PDMRs of the Company for the purposes of DTR 3), has today been granted the following options over ordinary shares of US$0.10 each in the capital of the Company pursuant to the LTSIP:

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                      Number of                     Vesting      Expiry date
                ordinary shares
                     over which    Exercise
Name of PDMR    options granted price (GBP)
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John Bell             1,000,000      16.84p 23 January 2015 25 November 2019
               -------------------------------------------------------------
                                                  1/3 on 22  22 January 2020
                                               January 2016
                                                  1/3 on 22
                                               January 2017
                                                  1/3 on 22
                      1,350,000         15p    January 2018
-------------------------------------------
Julian Hammond        1,125,000         15p
-------------------------------------------
Denise Lay              900,000         15p
-------------------------------------------
David Botting           247,500         15p
-------------------------------------------
James Rawls             247,500         15p
-------------------------------------------
David Henderson         247,500         15p
-------------------------------------------
Marcus Rhodes           247,500         15p
-------------------------------------------
David Roberts           247,500         15p
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As a result of the above, the PDMRs hold options over the following (aggregate) numbers of ordinary shares of the Company:

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                    Aggregate number of ordinary  Percentage of total issued
                       shares over which options      ordinary shares of the
Name of PDMR                             granted                     Company
----------------------------------------------------------------------------
John Bell                              2,350,000                        0.7%
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Julian Hammond                         2,055,000                        0.6%
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Denise Lay                             1,395,000                        0.4%
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David Botting                            247,500                        0.1%
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James Rawls                              595,500                        0.2%
----------------------------------------------------------------------------
David Henderson                          247,500                        0.1%
----------------------------------------------------------------------------
Marcus Rhodes                            595,500                        0.2%
----------------------------------------------------------------------------
David Roberts                            247,500                        0.1%
----------------------------------------------------------------------------

FOR FURTHER INFORMATION PLEASE CONTACT:
Clive Oliver
Corporate Secretary, Vice President Finance
+44 1481 716899

Tethys Investor Relations
Sabin Rossi
Vice President Investor Relations
srossi@tethyspetroleum.com

info@tethyspetroleum.com

Web: http://www.tethyspetroleum.com
Twitter: https://twitter.com/tethyspetroleum

FirstEnergy Capital LLP
Hugh Sanderson
Jonathan Wright
David van Erp
+44 207 448 0200

Source: Tethys Petroleum Limited