Novy Neft Limited - Annual General Meeting - Update

Hamilton, Bermuda: March 31st, 2005 - The Directors of Novy Neft Limited (the "Company"), wish to advise that at the Annual General Meeting ("AGM") held on 31 March 2005 Shareholders attending by proxy voted in favour of the Company continuing as an investment company.

Votes cast were as follows:-

For - 3,336,293 / Against - 420,521 / Abstain - 0

Further to the commitment made by the Directors in their announcement of 31 March 2005, the Directors now propose a buy back of up to a further 15% of the Company's issued share capital as at 19 August 2004 on 29 April 2005.  This is equivalent to 18.43% of the current shares in issue.  So as not to disadvantage the remaining shareholders, the price at which shares will be bought back will be determined by reference to the average price at which the underlying Gazprom structures are sold in the market in order to raise the cash necessary to pay the selling shareholders and will be at a 1% discount to that price.

A copy of this announcement (to include a reply slip for use by those Shareholders who may wish to participate in the buy back) is to be distributed to all Shareholders today.  Those Shareholders wishing to participate should complete the reply slip as directed and return as soon as possible, and in any event no later than 5 p.m. on 27 April 2005 to the Registrar and transfer agent, Bermuda Trust (Isle of Man) Limited , PO Box 34, 12/13 Hill Street , Douglas, Isle of Man IM1 1EF, British Isles (Fax: (44) 1624 637778).

If demand is received for more than 15% of the shares to be bought back and cancelled, then Shares will be bought back on a pro rata basis.  The record date for the buy back will be 27 April 2005.

The Directors wish also to remind shareholders that they will only use their discretion to buy-back or redeem Shares in accordance with guidelines which are designed to ensure that the Company is not open-ended for taxation or regulatory purposes and that accordingly shareholders cannot expect with any degree of certainty that any of the Shares they may offer for re-purchase or redemption will be bought back or redeemed at any particular time.

Expected Timetable:

Receipt of Buyback Requests                                27 April 2005

Buy Back Price Determined                                29 April 2005

Shares Repurchased and Cancelled                                3 May 2005

Details of Buyback announced                                5 May 2005

Distribution of Proceeds                                31 May 2005

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