2009-05-24

Tethys Petroleum Announces Filing of Prospectus for Proposed Equity Offering

Sunday, May 24, 2009, Toronto - Canada - Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:"TPL") announced today that it has filed a preliminary short form prospectus for a new issue of ordinary shares. The offering will be for gross proceeds of up to $30 million. The net proceeds of the offering are intended to be used by Tethys to fund work on its existing properties in Tajikistan, Uzbekistan and Kazakhstan, and for working capital and general purposes. The aim of the offering is to provide funding for near term development and appraisal activities in Tajikistan and Uzbekistan, to further expand the Company’s gas development in Kazakhstan, and to acquire additional data to potentially enhance the value of the Company’s exploration assets in Tajikistan. The issue price of the shares and the corresponding number of shares to be issued will be determined in the context of the market at the time of filing a final short form prospectus in respect of the offering.

Fraser Mackenzie Limited, Renaissance Capital and Quam Capital will act as co-lead managers for the offering. The offering will be conducted in Canada through Fraser Mackenzie Limited, and Renaissance Capital and Quam Capital will act as special selling agents for the purpose of procuring subscribers in certain jurisdictions outside of Canada, where each such special selling agent is qualified to carry on business. Tethys will grant an over-allotment option to the agents, exercisable for a period of 30 days following the closing of the offering.

The offering is subject to all customary conditions and regulatory approvals, including that of the Toronto Stock Exchange.

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 news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein. Any such solicitation or offer may only be made in accordance with applicable laws. 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 risk that the Company be unable to successfully complete the offering and the risk that the proceeds may not be sufficient for the purposes stated in the prospectus and the risk that all regulatory approvals will be obtained and conditions satisfied. 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 preliminary prospectus dated May 22, 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

Office phone/fax: +7 (727) 272 8867, +7 (727) 272 8237, +7 (727) 272 7745
Email: development@pressclub.kz