Novy Neft Limited - Further Repurchase of Shares in the Market

Hamilton, Bermuda: 4 May 2005 - Further to the announcement of 31 March 2005 the Directors of Novy Neft Limited (the "Company") are pleased to advise that  2,249,999 Shares representing 15% of the total Shares in issue (as at 19 August 2004) were repurchased and cancelled on 29 April 2005 at a price of US$19.11 per Share.  The repurchase price represented a 1% discount to the Net Asset Value as calculated based on the average price at which underlying shares were sold to finance the repurchase.

The Directors received redemption requests in respect of 8,072,443 shares.  As this exceeded the 15% maximum determined by the Directors, Shares were bought back on a pro rata basis.  Accordingly, those shareholders who participated in the buy-back have had 27.87% of their shares repurchased.  The record date for the buy back was 27 April 2005.  It is anticipated that proceeds will be available for distribution on or about 31 May 2005.

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