Fitch Downgrades Tristan's IDR to 'RD'

03 Aug 2010 6:44 AM (EDT)

Fitch Ratings-London/Warsaw-03 August 2010: Fitch Ratings has downgraded Tristan Oil Ltd.'s
(Tristan) Long-term foreign currency Issuer Default Rating (IDR) to 'RD' (Restricted Default)
from 'C' and removed it from Rating Watch Negative (RWN). Tristan's senior unsecured rating is
'C' with a Recovery Rating of 'RR6'.

The downgrade reflects the fact that, according to Tristan, it is still unable to make interest
payment on the outstanding eurobonds following the expiry of a 30-day grace period at end-July
2010.

Fitch further notes that the recent cancellation of the subsoil use contracts of two operating
companies - Kazpolmunay (KPM) and Tolkynneftegaz (TNG) - by the Kazakh Ministry of Oil
and Gas may trigger a bondholders' put option under a change of control provision in the bond
documentation. If a put option is triggered, Fitch believes that Tristan is unlikely to be able to
meet its obligations to repurchase the bonds due to its weak financial position as reflected in its
FY09 financials (For further details refer to "Fitch Revises Tristan's Rating Watch to Negative",
dated 23 July 2010).

Applicable criteria, "Corporate Rating Methodology", dated 24 November 2009, are available at
www.fitchratings.com.

Contacts: Angelina Valavina, London, Tel: +44 (0) 20 7682 7383, Jacek Kawalczewski,
Warsaw, +48 22 338 6291.

Media Relations: Julian Dennison, London, Tel: +44 020 7682 7480, Email:
julian.dennison@fitchratings.com; Peter Fitzpatrick, London, Tel: + 44 (0)20 7417 4364, Email:
peter.fitzpatrick@fitchratings.com.

Related Research:
Corporate Rating Methodology
Fitch Ratings
Tristan Oil Ltd.

Long Term Issuer Default Rating: RD 03-AUG-2010 Downgrade

Market Sector(s): Energy (Oil & Gas) RECOVERY RATING KEY

Country: Kazakhstan Outstanding RR1
Analyst(s): Corporates: Kawalczewski, Jacek Superior RR2
Corporates: Valavina, Angelina Good RR3
(Primary) Average RH4
Below-Average RR5
Identifier(s): CUSIP: 89676X
Pod RR6

INTERNATIONAL RATINGS
senior unsecured
notes
Maturity Currency Amount Coupon Long Ratings Short CUSIP ISIN
Date Original Rate Term Recovery Term
01-JAN- USD 420,000,000 10.5% C RR6 --- 89676XAA1 US89676XAA19
2012
01-JAN- USD 420,000,000 10.5% C RR6 --- --- USG90748AA57
2012

Copyright © 2010 by Fitch, Inc., Fitch Ratings Ltd. and its subsidiaries.