Monday, December 21, 2009, Toronto, Canada - Tethys Petroleum Limited (“Tethys” or the “Company” TSX: TPL)) today announced that it will complete a non-brokered private placement of 10,000,000 Ordinary Shares for gross proceeds of US$5 million (the “Offering “), subject to regulatory approval. The Company has received subscriptions for the US$5 million maximum amount of the Offering.
 
The Ordinary Shares have been placed at a price of US$0.50 (C$0.53) each. The Ordinary Shares of the Company are listed on the Toronto Stock Exchange under the symbol “TPL” and the placement is subject to the Toronto Stock Exchange approval.
 
The net proceeds of the Offering will be used by Tethys for project development and capital expenditures. No commission was paid on the private placement. The private placement is scheduled for completion during the first week of January 2010.  One of the subscribers is a related party of the Company within the meaning of applicable Canadian securities laws. The proposed date for completion of the private placement is less than 21 days from the date of this release to ensure the availability of the proceeds to the Company on a timely basis.
 
Additional information relating to the interest of the related party in the private placement will be contained in a material change report to be filed in accordance with Canadian securities law.

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities currently in the Republics of Kazakhstan, Tajikistan and now Uzbekistan. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our operations. Such forward looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. See our Annual Information Form for the year ended December 31, 2008 for a description of risks and uncertainties relevant to our business, including our exploration activities.

Contacts:
Tethys Petroleum Limited
Sabin Rossi
Vice President Investor Relations
(416) 572-2065
(416) 572-2201 (FAX)
Email: info@tethyspetroleum.com
Website: www.tethyspetroleum.com

In Kazakhstan
PG Communications
Ardak Akanov
Managing Director
Office phone/fax: +7 727 272 8867
Email: development@pressclub.kz