Novy Neft II Limited - Update

.  If that resolution is not passed, the Directors are required to formulate proposals to be put to shareholders for the winding up or other reorganization or reconstruction of the Company'.

The Directors have noted that the discount at which the Company's shares are trading has widened in recent days and currently stands at a c. 6% discount.

The Directors would like to remind shareholders that the Bye-laws of the Company also incorporate a discount floor provision. This provision provides that 'if ,after the first anniversary of the launch of the Company, for any consecutive period of four months, the market price of the shares (determined on a monthly basis in accordance with the Bye-laws) has stood at a discount in excess of 10 per cent. of the Net Asset Value per Share as at each relevant month end, the Directors are required, within 30 days after the end of the fourth month, to propose an ordinary resolution for the Company to continue as an investment company. If this resolution is not passed the Directors are required to formulate proposals to be put to Shareholders for the winding-up or other reconstruction of the Company'.

The Directors will continue to monitor the discount at which the share price trades whilst taking all appropriate measures necessary to ensure that the Company does not become open ended for tax or regulatory purposes.

For further information on Novy Neft II Limited please contact: