EXTRAORDINARY GENERAL MEETING IN MALKA OIL AB APPROVES THE BOARD OF DIRECTORS DECISION FOR A RIGHTS ISSUE AND A EARLY CONVERSION OF THE CONVERTIBLE BONDS

An Extraordinary General Meeting of shareholders in Malka Oil AB
(publ) was held in Stockholm today. The agenda was mainly to decide
upon the Board of Directors in Malka Oils proposal for a rights issue
and the proposal for early conversion of the company's convertible
debts into shares.

It was decided to change the Company's articles of association. The
wording in § 5 is changed from "The number of shares shall be no less
than 200 000 000 and no more than 800 000 000" to "The number of
shares shall be no less than 2 000 000 000 and no more than 8 000 000
000".

It was decided to reduce the share capital by SEK 0.45 per share,
which means a total of SEK 150 980 778, to be placed in a fund to be
used in accordance with a resolution of a general meeting. The
reduction means that a corresponding amount is transferred to the
Company's equity. It is proposed that the reduction will be carried
out without cancelling shares, whereupon the share's quotient value
will decrease from SEK 0.5 to SEK 0.05 per share.

It was decided to change the time period for converting the bonds and
instead offer the holders to call for conversion of their claims,
within a time period stated in the detailed proposal, into a total of
1 678 000 000 new shares in the Company, at a changed conversion
price of approximately USD 0.0447 per share (however not to a price
below the quotient value), increasing the Company's share capital
with SEK 83 900 000, which equals a dilution of approximately 83 per
cent of the Company's share capital and total number of votes. This
dilution has been calculated as the number of shares and votes, which
at the most can be converted, divided by the total number of shares
and votes after such a conversion. The calculation of the dilution
does not include those 6 000 000 warrants issued by the annual
general meeting 2008.

It was decided on a new share issue, without derogation from the
shareholders' pre-emptive rights, of no more than 2 013 077 040
shares, increasing the Company's share capital with no more than SEK
100 653 852, which equals a dilution of approximately 86 per cent of
the Company's share capital and total number of votes. This dilution
has been calculated as the number of shares and votes, which at the
most can be issued, divided by the total number of shares and votes
after such an issue. The calculation of the dilution does not include
those 6 000 000 warrants issued by the annual general meeting 2008.
Neither does the calculation include those shares and votes that will
follow as a result of a resolution in accordance with item 9 above.
The issue price shall be SEK 0.07 per share.

It was decided on a bonus issue, without issuing new shares,
increasing the share capital with no more than SEK 67 080 778, to be
transferred from the unrestricted equity.


For further information, please contact:
Fredrik Svinhufvud, Managing Director Malka Oil, tel +46 8 5000 7811,
mobile +46 708 708 708
Richard Tejme, CFO, tel +46 8 5000 7812 mobile +46 707 31 52 17


For further information on Malka Oil AB, see the website
www.malkaoil.se

Malka Oil AB (publ) is an independent oil and gas production company
operating in the Tomsk region in western Siberia. Its current
position consists of oil and gas assets for licence block number 87
in the said region. The block has a surface of 1,800 square
kilometres. There are currently three oil fields at the licence
block, namely Zapadno-Luginetskoye ("ZL"), Lower Luginetskoye ("LL")
and the Schinginskoye oil field, and a large quantity of other not
yet drilled oil structures.
The ZL and LL oil fields are in production and these two oil fields
have during 2007 went through reserve classification by the Russian
State Committee of Reserves (GKZ) and during spring 2008 a Western
reserve study made by DeGolyer and MacNaughton. The GKZ registered
extractable oil and condensate reserves in the categories C1 and C2
amounted to 97 million barrels at the end of 2007. The company's own
estimate of its extractable oil and condensate reserves, C1+ C2, in
the three existing oil fields on licence block number 87 is currently
140-190 million barrels. The Western reserve study estimation as of
April 30, 2008 amounted to 43.5 million barrels 2P and 90.6 million
barrels 3P oil reserves.
Malka Oil's licence block is surrounded by a large number of
producing oil and gas fields.

Reasonable caution notice: The statement and assumptions made in the
company's information regarding Malka Oil AB's ("Malka") current
plans, prognoses, strategies, concepts and other statements that are
not historical facts are estimations or "forward looking statements"
concerning Malka's future activities. Such future estimations
comprise but are not limited to statements that include words such as"may occur", "concerning", "plans", "expects", "estimates","believes", "evaluates", "prognosticates" or similar expressions.
Such expressions reflect the management of Malka's expectations and
assumptions made on the basis of information available at that time.
These statements and assumptions are subject to a large number of
risks and uncertainties. These, in their turn, comprise but are not
limited to i) changes in the financial, legal and political
environment of the countries in which Malka conducts business, ii)
changes in the available geological information concerning the
company's projects in operation, iii) Malka's capacity to
continuously guarantee sufficient financing to perform their
activities as a "going concern", iv) the success of all participants
in the group, or of the various interested companies, joint ventures
or secondary alliances, v) changes in currency exchange rates, in
particular those relating to the RUR/USD rate. Due to the background
of the many risks and uncertainties that exist for any
oil-prospecting venture and oil production company in its initial
stage, Malka's actual future development may significantly deviate
from that indicated in the company's informative statements. Malka
assumes no implicit liability to immediately update any such future
evaluations.