INTEROIL PROPOSE AN EQUITY ISSUE TO COMPLETE REFINANCING

The Board of Directors (the "Board") of InterOil Exploration & Production ASA
("InterOil") has noted that the voluntary offer from West Face has lapsed and
will not be completed. The offer was to provide USD 50 million in new cash to
InterOil through a combination of equity and bond subscription from West Face
and was an important part of the ongoing refinancing process. The USD 50 million
would, together with the USD 90 million secured debt financing from Citibank
(Peru and Colombia), enable InterOil to complete the refinancing and provide
necessary working capital. The Citibank financing is conditional upon a
refinancing completed within August 2010.

The Board is therefore pleased to announce that EksportConsult AS and Rakila
Properties Ltd. have agreed to underwrite USD 50 million of a proposed equity
issue of USD 50-70 million. The Board has called for an extraordinary general
meeting to be held 26 August 2010 to resolve the equity issue.

The Board is proposing an equity issue of USD 50-70 million by way of an
undocumented private placement directed towards existing shareholders and other
qualified Norwegian and International investors to be completed before end of
August, 2010. The issue price will be set through a book-building process,
however the underwriting agreement secures a minimum subscription price of NOK
5.00 per share. As compensation for underwriting the share issue, the
underwriters have been granted a preferred allocation of 20 per cent of the
equity issue at the issue price.

InterOil will revert with more information regarding the share issue in due
course.

SEB Enskilda has been retained as sole financial advisor in connection with the
proposed equity issue.

Enquiries may be directed to:
Kristen Jakobsen, financial advisor Tel: +47 91548408 or
Thomas J. Fjell, Director  legal and strategic affairs, Tel: +47 95815300

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InterOil Exploration & Production ASA is a Norwegian based exploration and
production company - listed on the Oslo Stock Exchange - with focus on
Latin-America. The company is operator of several production and exploration
assets in Peru and Colombia, and is an active license partner in Angola and
Ghana. InterOil currently employs approximately 250 people and is headquartered
in Oslo.

This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)


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