2008-07-18

Continuance under the laws of the Cayman Islands and adoption of Shareholder Rights Plan

Georgetown, Grand Cayman, Cayman Islands, Friday, July 18, 2008: Tethys Petroleum Limited ("Tethys" or the "Company" (TSX:TPL)) today announced that the continuance of the Company from the laws of Guernsey to the laws of the Cayman Islands has been completed on July 17, 2008. The continuance, which was approved by the shareholders of the Company at the annual meeting on April 24, 2008, is described in the management information circular dated March 20, 2008 ("the management information circular") available on sedar.com. As a result of the continuance, the Company is an exempted company continued under the laws of the Cayman Islands and is now subject to the Companies Law (Revised) of the Cayman Islands. Although the Company has adopted a new memorandum and new articles of association, the continuance does not create a new legal entity.

As a result of the continuance, the adoption of the Shareholder Rights Plan described in the management information circular became effective on July 17, 2008. The adoption of the Shareholder Rights Plan was approved by the Company's shareholders at the annual meeting on April 24, 2008. A copy of the Shareholder Rights Plan was attached to the management information circular.

As stated previously, the primary objective of the Shareholder Rights Plan is to provide the Board of Directors of the Company with sufficient time to explore and develop alternatives for maximizing shareholder value if a take over bid is made for the Company and to provide every shareholder with an equal opportunity to participate in such a bid. The Company is not aware of any specific take over bid having been made for the shares of the Company. The Shareholder Rights Plan will expire at the 2011 annual shareholders meeting unless renewal thereof has been approved by Shareholders.

Holders of Ordinary Shares of the Company will continue to hold one (1) Ordinary Share of the Company for each Ordinary Share currently held. The existing share certificates representing Ordinary Shares of the Company's share capital will not be cancelled. Although new share certificates will be adopted, the existing certificates will continue to represent ordinary shares in the capital of the Company as currently constituted and the adoption of the Shareholder Rights Plan Agreement.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republic of Kazakhstan and more recently the Republic of Tajikistan. 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 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. Tethys Petroleum Limited is registered in Georgetown, Grand Cayman, Cayman Islands and is listed on the Toronto Stock Exchange (TSX) with the symbol "TPL" and on the RFCA in Almaty, Kazakhstan

See our Annual Information Form for the year ended December 31, 2007 for a description of risks and uncertainties relevant to our business, including our exploration activities.

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
e-mail: info@tethyspetroleum.com
website: www.tethyspetroleum.com

in Kazakhstan

Ardak Akanov
Managing Director
PG Communications
Almaty, Samal 2 Business Center Satty
Office phone/fax: 2 72 88 67, 2 72 82 37, 2 72 77 45
Cell: +77017115604
Email: development@pressclub.kz

Tethys Petroleum Limited is registered in Georgetown, Grand Cayman, Cayman Islands and is listed on the Toronto Stock Exchange (TSX) with the symbol "TPL" and on the RFCA in Almaty, Kazakhstan