RNS Number:4007P
Caspian Holdings plc
05 March 2008

                              Caspian Holdings Plc
                          ("Caspian" or the "Company")

5 March 2008

                           Credit Facility Agreement

Further to the announcement made on 24 April 2007, Caspian Holdings Plc
announces that it has drawn down the second tranche of the unsecured credit
facility to raise �100,000 at a rate of 4% over LIBOR from investors and major
shareholders.

The credit facility, as announced on 24 April 2007, has been amended with the
agreement of all parties to extend the time period in which the second tranche
is available for drawdown to a period of 12 months.

Participating investors in the second tranche have been granted 25 options over
ordinary shares in the Company for every �1.00 invested in the facility as a
commitment fee The options have an exercise price of 3 pence and expire on 31
December 2010. However, should the Company's Zhengeldy Subsoil License in
Kazakhstan be terminated or suspended by the Ministry of Energy and Mineral
Resources of Kazakhstan, the above options in relation to the second tranche
will then have an exercise price of 1 pence and expire on 31 December 2010.

The second tranche of the loan is a short term facility to fund working capital
and new project acquisition activities. It is intended that the entire facility
is replaced with more permanent finance in the future following either the
extension of the Zhengeldy licence area and/or new project acquisition. The
entire loan will be repaid in full on the earlier of an equity raising or at
maturity on 11 April 2009. Major shareholders including Chairman Michael
Masterman have shown their support for the company in participating in the loan
facility.

Related Party Transaction

Masterman Investments Limited ("MIL"), a company related to Michael Masterman, a
director of Caspian, and of which Michael Masterman is a director and sole
shareholder, is a lender participating in the Credit Facility to the amount of
�50,000 and will therefore receive 1,250,000 options as a commitment fee. The
loan by MIL is therefore classified as a related party transaction for the
purposes of the AIM Rules. Accordingly the Directors (other than Michael
Masterman), having consulted with Grant Thornton Corporate Finance (in its
capacity as the Company's nominated adviser), confirm that they are satisfied
that the terms of MIL's participation in the credit facility are fair and
reasonable insofar as the shareholders of the Company are concerned.

Following this transaction and the awarding of options, Michael Masterman will
be interested in 11,900,000 ordinary shares in the Company representing an
interest of 12.0% in the total voting rights of the Company. In addition,
Michael Masterman is interested in 6,250,000 options over ordinary shares in the
Company as follows:

Stock Options Held     Option Exercise Price     Expiry Date
5,000,000              �0.04                     31 December 2010
1,250,000              �0.03                     31 December 2010

Enquiries:

Caspian Holdings Plc                 Grant Thornton Corporate Finance
Michael Masterman                    Fiona Owen
T: +44 (0) 7791 288381               T: +44 (0) 20 7383 5100

Hoodless Brennan                     Parkgreen Communications
Luke Cairns                          Clare Irvine / Justine Howarth
T: +44 (0) 20 7538 1166              T: +44 (0) 20 7851 7480
www.caspianoil.co.uk



                      This information is provided by RNS
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