Financial Reports

• Total revenue amounted to MUSD 501.1 (Q1 2009: MUSD 327.6).

• EBITDA amounted to MUSD 100.7 (Q1 2009: MUSD 99.8).

• Profit before tax amounted to MUSD 58.8 (Q1 2009: MUSD 55.9).

• The result for the quarter amounted to MUSD 45.5 (Q1 2009: MUSD 50.5).

• Earnings per share amounted to USD 0.26 (Q1 2009: USD 0.31).

• 5.6 mbbl (Q1 2009: 5.3 mbbl) of oil were refined and 3.8 mbbl (Q1 2009: 4.2 mbbl) produced.

• Eurobond offering raised MUSD 350.

Dear shareholders,

In the first quarter 2010, Alliance Oil produced 3.8 million barrels and refined 5.6 million barrels of oil in line with our full year targets. We report a 12% increase in EBITDA compared to the fourth quarter 2009 with improved margins both in the upstream and downstream segment.

The first quarter operations were affected by increased pipe-line and railroad transportation costs, higher domestic gas and electricity prices. However, the overall pricing environment remained favorable with Brent prices moving between USD 70-80 per barrel. The combination of these economic factors balanced our operations leading to practically flat domestic and export netbacks. The impact of the rouble exchange rate fluctuations was neutral as it floated around RUB 30 per USD for the period.

In the upstream segment, regional performance has stabilized with improved operations in Volga-Urals and a lower contribution from the Tomsk region. Initial production from the Kolvinskoye field was transported to the Kharyaga facilities by using trucks on the winter-roads. Significant resources are committed to support the Kolvinskoye oil field development plan to start commercial production in 2011.

Our upstream capital expenditures plan for 2010 includes drilling of 74 new wells with 8 exploration wells in the Timano-Pechora and Volga-Urals regions. In Timano-Pechora, rigs were mobilized and drilling started at eight locations. We expect production increases from the new wells in the third quarter and consider the implementation of the drilling program to be well on track.

In the downstream segment, maintenance works started at the catalytic reforming unit of the Khabarovsk refinery in March. The unit was shut for 50 days with lower volumes of gasoline produced and restarted on the 1 May 2010. New gasoline storage tanks of 5,000 cubic meters total capacity have been put into service at the Khabarovsk wholesale depot with the most advanced double-wall reservoir technology to provide considerably improved technological, ecological and work safety conditions.

The modernization of the refinery is progressing as scheduled, and we expect to launch the upgraded refinery in 2012. Our general contractor for the modernization program, Technicas Reunidas, is gearing up deliveries of additional resources and equipment to the refinery's construction site.

The financial position of the company further improved. Following the successful placement of MUSD 350 five-year Eurobonds, our cash position stood at MUSD 455 with a larger part of the company's debt due after 2012.

Outlook

Despite the current volatility in commodities' and financial markets, our intention to deliver the targets highlighted in the company's strategy through 2012 is firm. The long-term production target in upstream is to reach 90,000 barrels per day in 2012. The 2010 target remains at 50,000 barrels per day with a total production of 17 million barrels.

In the downstream segment, we continue to focus on the refinery modernization project while further developing our marketing and retail operations. The Khabarovsk refinery's plan is to process 21 million barrels of oil in 2010.

The company will remain financially disciplined with a traditional focus on efficiency and integrity of its operations. We constantly seek to maintain our growth strategy and continue to pursue new business opportunities.

Arsen Idrisov,
Managing Director

For further information:
Arsen Idrisov, Managing Director, Alliance Oil Company Ltd, telephone +7 (495) 777 18 08.
Eric Forss, Chairman of the Board, telephone +46 8 613 00 85.

Presentation/ Conference call
Date: Thursday, May 27, 2010
Time: 10.00 CET
Venue: Operaterrassen, Stockholm
To participate by telephone, please dial:
from Sweden +46 (0)8 5051 3792
from Russia +7 495 705 9452
from other countries +44 (0)20 7806 1968

Alliance Oil Company Ltd is a leading independent oil company with vertically
integrated operations in Russia and Kazakhstan. Alliance Oil has proved and
probable oil reserves of 526 million barrels, refining capacity of 70,000
barrels per day and a network of gas stations and wholesale oil products
terminals. Alliance Oil's depository receipts are traded on the NASDAQ OMX
Nordic under the symbol AOIL.