L-attorney Files Formal Complaint With UK F.S.A Against Petrocapital Resources PLC

By L-attorney, PRNE
Wednesday, June 16, 2010

VADUZ, Liechtenstein, June 17, 2010 - L-attorney acting for a substantial shareholder group of the
oil and gas investment Firm Petrocapital Resources PLC, has filed an
exhaustive complaint with the F.S.A. in the UK today. The complaint is
primarily directed against Petrocapital's former and current directors
alleging potential misuse of company (investor) funds, breach of duty and
dissemination of misleading and factually incorrect statements and
information to the public.

What finally triggered the exhaustive complaint are opaque and
highly questionable terms and conditions of a loan note arrangement with one
of the Company's directors, which, as per a Memo sent by the Company's
current Chairman Tom Kristensen to a Company shareholder, would drain the
Company of a colossal GBP 1.45 Million of precious investor funds which were
committed as a loan by its founding shareholder in 2009 under strict
investment guidelines and according to the Company's investment strategy to
be allocated exclusively to natural resources projects.

Petrocapital Resources PLC, which has no revenues, has
received in excess of Euros 7 Million in shareholder loans to be committed
towards revenue producing resources (mainly oil and gas) projects in North
. To date the Company, as per its announcements, has invested only a
small fraction of these funds (app Euros 1.4 Million) in a United States oil
project, without any due diligence. Investor anguish and frustration about
the use of Company capital to continue funding a very costly personal claim
against a former director through the Company's solicitors. A claim, that has
no apparent value to the Company. Shareholders have grown extremely
concerned, that under these circumstances, numerous written and verbal
demands for clarification and substantiation of the terms and conditions of
the alleged loan notes from Petrocapital's new management, a reply has yet to
be received.

Kristensen in a recent Memo sent to one of the Company
shareholders, further suggests that the Company, as per the undisclosed terms
and conditions of this note, would be inclined, in order to avoid 'costly law
suits with noteholders', to settle the outstanding loan notes at a discount,
which would however result in a very substantial and completely unjustfifable
pay-out of GBP 1.45 Million to existing loan noteholders, presumably
Armstrong and Mendoza without any recorded consideration. This would further
dangerously deplete the already rapidly dwindling cash reserves of
Petrocapital, which are otherwise largely being spent on several
international ongoing legal actions of little or no shareholder value or
interest and are the focus of substantial shareholder and investor concern.

A payment of this magnitude out of investor funds is clearly
against the interests of shareholders and investors, who have committed their
funds to be allocated specifically in lucrative oil and gas projects in North
and not to be used to pay out current and former company directors on
loan notes for no adequate consideration rendered, in blatant disregard of
shareholder interests.

Furthermore the funds have been provided to Petrocapital as a
shareholder loan and are to be invested according to the original Company
investment strategy. Such a pay-out would certainly constitute a flagrant
misuse of investor funds.

After so far the Company has spent hundreds of thousands of
Pounds in legal fees, a seven figure 'free ride' for the directors in
question would leave investors with less than half of their original cash
investment in place.

The purpose of the regulatory complaints is to request an
independent investigation into the practices of the former and the current
board of the company to assure that shareholder funds are preserved.

The emergence of further disturbing news concerning past
business dealings and involvements of PCR's former chairman Manoli Olympitis
has greatly added to the urgency of shareholder action. This information,
recently brought to light and confirmed through an independent and reputable
channel, greatly added to smoldering investors' anxiety over possible past
improper management practices and Board misconduct of Petrocapital's former
Board of Directors.

The shareholders' lingering concerns about Olympitis' past
conduct and true intentions, particularly in view of his sudden and
unexpected resignation as Chairman and CEO of Petrocapital literally one day
the UK Takeover Panel announced that his alleged Rule 9 Takeover Code breach
by certain shareholders back in September 2009, which had paralized the
company and led to millions of pounds in market capital loss, was clearly
dismissed as unsubstantiated, more than 8 months later in an official Company

This event allowed the former directors to seize control of the company
in September 2009 and signing power over GBP 5 million remaining in investor
funds which were destined for lucrative oil investments by its ousted

As per the Company's announcement, the Company's burn-rate has almost
tripled from app GBP 300.000 p.a. to over GBP 800.000 p.a during Olympitis'
exercise of control over the Company, largely due to legal fees in connection
with the initiated Takeover Panel complaint and subsequent defence actions
vis-a-vis shareholders and, more recently, a full-blown legal battle with a
former director of the company in a personal matter of Olympitis'. The
company is still suspended from the market on the request of the directors
although the directors announced that the share will be listed immediately


    Pflugstrase 22,
    9490 Vaduz
    E-Mail: info@l-attorney.com

    Hermann Ludescher,
    Tel: +423-232-11-40 (Vaduz)
    E-Mail: hermann.ludescher@l-attorney.com

Contact: l-attorney, Pflugstrase 22, 9490 Vaduz, E-Mail: info at l-attorney.com; Hermann Ludescher, Tel: +423-232-11-40 (Vaduz), E-Mail: hermann.ludescher at l-attorney.com

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