VANCO PRYKERCHENSKA LTD STARTS NEGOTIATIONS WITH THE GOVERNMENT OF UKRAINE, ARBITRATION CASE JOINTLY POSTPONED

Vanco Prykerchenska, Kyiv, Ukraine, Thu, July 9, 2010

KYIV - The State of Ukraine and Vanco Prykerchenska Ltd have jointly postponed for three months the arbitration case in Stockholm, and started
negotiations with a view to the amicable settlement of the Prykerchenska HSA dispute.

"As part of the settlement the Company will be seeking assurances from the Government that throughout the entire life of the Prykerchenska HSA the
Project will be protected from the kind of interference and blocking we experienced with the previous Government. We believe that we now have an
excellent chance to resolve all outstanding issues and to sign an amicable settlement agreement," Jim Bown, President of Vanco Prykerchenska Ltd, stated.

"I am confident that with the present constructive approach of the new Government we can quickly reach agreement and thus Ukraine can take the first steps towards energy independence.  This will also send a strong signal to the international oil and investing community that Ukraine really is open for business," Bown continued.

NOTE:  Vanco Exploration, Houston, Texas, is a member of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.usubc.org.