PETROMINERALES PROVIDES UPDATE WITH RESPECT TO INTEROIL OFFER

Bogotá, Colombia - August 25, 2010 - Petrominerales
Ltd. ("Petrominerales") (TSX:PMG), a
66% owned subsidiary of Petrobank Energy and
Resources Ltd. (TSX:PBG), announces that, in
connection with our previously announced order for
InterOil shares and bonds in the private
placement ("Private Placement") of equity and bonds
announced by InterOil Exploration and
Production ASA ("InterOil"), we have today informed
the Board of Directors of InterOil and the
managers for the Private Placement that, should a
change of control be triggered in the
covenants made by InterOil in its borrowing
agreements with Citibank (the "Citibank Facilities")
as a result of Petrominerales assuming control of
more than 50% of the shares in InterOil,
Petrominerales will provide InterOil with financing
in an amount and on terms and conditions
equal to the Citibank Facilities.

Petrominerales has also confirmed to the InterOil
Board of Directors and the managers of the
Private Placement that, should Petrominerales be
successful in our order pursuant to the
Private Placement, we will commence a mandatory offer
for the remaining outstanding shares in
InterOil in accordance with the Norwegian Securities
Trading Act.

InterOil is an international petroleum company
headquartered in Oslo, Norway, listed on the
Oslo Børs Stock Exchange under the symbol "IOX".
InterOil is engaged in the acquisition,
exploration, development and operation of oil and
natural gas properties focussed primarily in
Peru and Colombia.

Petrominerales Ltd. is a Latin America-based
exploration and production company producing
oil in Colombia with 17 exploration blocks covering a
total of 2.1 million acres in the Llanos and
Putumayo Basins and five exploration blocks in Peru
covering a total of 9.4 million gross (5.2
million net) acres in the Ucayali and Titicaca
Basins. Petrominerales is 66% owned by
Petrobank Energy and Resources Ltd. (TSX:PBG).

Forward-Looking Statements. Certain information
provided in this press release constitutes
forward-looking statements. The
words "anticipate", "expect", "project", "estimate", "
forecast" and similar expressions are intended to
identify such forward-looking statements.
Specifically, this press release contains forward-
looking statements relating to Petrominerales' plans
to acquire securities of InterOil and provide loan
facilities to InterOil. The reader is cautioned that
assumptions used in the preparation of such
information, although considered reasonable at the
time of preparation, may prove to be incorrect.
Actual results achieved during the forecast
period will vary from the information provided herein
as a result of numerous known and
unknown risks and uncertainties and other factors.
Such factors include, but are not limited to:
the outcome of allocation of InterOil shares and
bonds in InterOil's private placement,
discussions and negotiations with InterOil, approval
of the Private Placement by the InterOil
shareholders, general economic, market and business
conditions; fluctuations in oil prices; risks
associated with oil and gas operations; and other
factors, many of which are beyond the control
of Petrominerales. There is no representation by
Petrominerales that actual results achieved
during the forecast period will be the same in whole
or in part as those forecast. Except as may
be required by applicable securities laws,
Petrominerales assumes no obligation to publicly
update or revise any forward-looking statements made
herein or otherwise, whether as a result
of new information, future events or otherwise.

FOR MORE INFORMATION PLEASE CONTACT:
John D. Wright, Strategic Adviser and Chairman of the
Board
Corey C. Ruttan, President and Chief Executive Officer
Jack F. Scott, Chief Operating Officer
Kelly D. Sledz, Chief Financial Officer
Telephone: 403.750.4400 or 011.571.629.2701
Calle