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) Country: Kazakhstan Analyst(s): Corporates: Kawalczewski, Jacek Corporates: Valavina, Angelina (Primary) Identifier(s): CUSIP: 89676X INTERNATIONAL RATINGS

senior unsecured

notes Maturity Date

Currency Original

Amount Coupon Rate

Ratings Recovery

Long Term

Short Term

CUSIP ISIN

01-JAN-2012

USD 420,000,000 10.5% C RR6 89676XAA1 --- US89676XAA19

01-JAN-2012

USD 420,000,000 10.5% C RR6 --- USG90748AA57 ---

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

RECOVERY RATING KEY Outstanding RR1 Superior RR2 Good RR3 Average RH4

RR5 Below-Average Pod RR6