ALLIANCE OIL COMPANY LTD. - USD 350 million 9.875% Guaranteed Notes due 2015 (ISIN: XS0493579238/US018760AA67; CUSIP: 018760AA) (the Notes)

ALLIANCE OIL COMPANY LTD. ANNOUNCES AMALGAMATION WITH ALFORD FINANCIAL LTD.

On 17 December 2013, the amalgamation under Bermuda law of the original issuer
of the Notes, Alliance Oil Company Ltd. (the Issuer") and Alford Financial Ltd
(Alford) took effect, pursuant to which the Issuer and Alford were amalgamated
into a new company also named Alliance Oil Company Ltd. (the New Issuer). By
operation of Bermuda law all rights and obligations of the Issuer have been
transferred to the New Issuer as a result of the amalgamation. Accordingly, the
New Issuer has assumed all obligations of the Issuer under the Notes.

Background

Alford was incorporated as a jointly-owned subsidiary of Lambros Overseas S.A.
and OJSC Alliance Group (together, the Alliance Group). Immediately prior to
the amalgamation of the Issuer and Alford taking effect, Alliance Group and its
affiliated companies controlled approximately 43 per cent of the voting rights
attaching to the shares in the Issuer. The amalgamation was approved by the
shareholders of the Issuer at a special general meeting of the Issuer held on 2
December 2013. Following the satisfaction of the conditions to the
amalgamation under the Implementation Agreement dated 30 November 2013 between
the Issuer, Alford and others relating to the amalgamation, an application was
made to the Registrar of Companies in Bermuda (the Bermuda Registrar) for the
issue of the Certificate of Amalgamation on 16 December 2013. The Bermuda
Registrar issued the Certificate of Registration on 17 December 2013. The
amalgamation took effect under Bermuda law upon the issuance of the Certificate
of Registration.

Enquiries

Pavel Kim, Head of Investor Relations
Phone. +7 495 777 18 08, ext 1056
E-mail: pkim@aoil.ru

 Jakob Sintring, Investor Relations
     Phone. +46 8 611 49 95E-mail: sintring@allianceoilco.com
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