2010-03-02

Tethys Announces Completion of US$46.5 Million Private Placement

Toronto, Canada, Tuesday, March 2, 2010 ‐ Tethys Petroleum Limited (“Tethys” or the “Company”) today announced that it has completed a previously announced private placement of 30,000,000 Ordinary Shares for gross proceeds of US$46.5 million (the “Offering”). Fraser Mackenzie Limited acted as Canadian agent.

The Ordinary Shares were placed at a price of C$1.55 each. The Ordinary Shares of the Company are listed on the Toronto Stock Exchange (“TSX”) under the symbol “TPL”. The net proceeds of the Offering will be used by Tethys for capital expenditures and general corporate purposes.

One of the subscribers is a related party of the Company within the meaning of applicable Canadian securities laws. Additional information relating to the interest of the related party in the private placement is contained in a material change report filed in accordance with Canadian securities law on February 19, 2010. No director or employee of Tethys participated in the private placement. Settlement for the purchase of 29,300,000 Ordinary Shares was completed on March 1 while settlement for the purchase of 700,000 Ordinary Shares is expected today.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

This press 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 1933, 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 relating to the sufficiency of the proceeds for the purposes contemplated. See the description of risks and uncertainties and underlying factors and assumptions relevant to the offering and “forward looking information” contained herein and to the Company’s business, including its exploration and development activities, contained in the Annual Information Form dated March 31, 2009 (which are incorporated herein by reference). The “forward looking statements” contained herein speak only as of the date of this press release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.

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, Canada

Office:                                               +1 416 572 2065
Fax:                                                   +1 416 572 2201
Email:                                      info@tethyspetroleum.com 
Website:                                     www.tethyspetroleum.com

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