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RNS Number:6078S
Nelson Resources Limited
13 October 2005


13 October 2005

Nelson Resources Limited

                LUKOIL AND NELSON RESOURCES EXTEND NEGOTIATIONS

Toronto, Ontario, October 13, 2005 - Nelson Resources Limited of Bermuda (TSX/
AIM: NLG) ("Nelson") today announced that LUKOIL Overseas Holding Ltd.("Lukoil") 
and Nelson are continuing to negotiate to reach an agreement concerning the 
previously announced proposal received from Lukoil to acquire 100% of the fully 
diluted common shares of Nelson for US$2 billion in cash by 9A.M.London time on 
October 13, 2005.

Gilles Thieffry, Chair of the Special Committee of Nelson's Board stated that
"the Special Committee remains committed to trying to obtain a fair offer from
Lukoil to minority shareholders on terms consistent with those to be received by
the majority shareholders."

There can be no assurance that discussions will lead to any agreement or offer
being made to the minority shareholders.

Certain officers and directors of Nelson have ownership interests in or are
otherwise connected to shareholders that have entered into lock-up agreements
with Lukoil for all of their shares of Nelson which amount to an aggregate of
566,393,162 issued and outstanding common shares of Nelson, representing 64.96%
of the currently issued and outstanding common shares of Nelson on an undiluted
basis. There are 16,950,000 common shares of Nelson issuable upon the exercise
of options held by principals of these shareholders.

Nelson is advised that:

(i) Mr. Askar Alshinbaev, a director of Nelson, owns 11% of the ultimate holding
company of Central Asian Industrial Holdings N.V. ("CAIH"), which holds
172,501,884 common shares of Nelson, representing approximately 19.78% of the
currently issued and outstanding common shares of Nelson on an undiluted basis.
Mr. Alshinbaev has options to acquire a further 1,000,000 common shares of
Nelson.

(ii) Mr. Mirbulat Abuov and Mr. Arvind Tiku, directors of Nelson, each 
respectively own 40% and 32% of the voting shares of Energy Investments
International, which holds 171,343,328 common shares of Nelson, representing
approximately 19.65% of the currently issued and outstanding common shares of
Nelson on an undiluted basis. Mr. Abuov and Mr. Tiku each have options to 
acquire a further 4,000,000 common shares of Nelson.

(iii) Mr. Baltabek Kuandykov is the President and a director of the Corporation
and is the sole shareholder of Cott Holdings Group, which holds 154,208,994
common shares of Nelson, representing approximately 17.69% of the issued and
outstanding common shares of Nelson on an undiluted basis. Mr. Kuandykov has
options to acquire a further 7,250,000 common shares of Nelson.

(iv) Mr. Peter Gross, a director of the Corporation, is an attorney-at-law and
representative of Alyco Advisory AG Zurich, the management company of Center
Finance, which holds 68,338,956 common shares of Nelson, representing
approximately 7.84% of the issued and outstanding common shares of Nelson on an
undiluted basis. Mr. Gross has options to acquire a further 700,000 common
shares of Nelson.

Under its board nomination rights, CAIH nominated Mr. Paul Maxwell and Mr.
Maxwell was elected at the annual meeting of shareholders held on June 10, 2005.

For further information, please contact:

Nelson Resources Limited
Nicholas Greene, Chief Financial Officer                   Tel: +44 20 7495 8908
ngreene@nelsonresources.co.uk

Fred Hodder                                                Tel: +44 20 7495 8908
fhodder@nelsonresources.co.uk

Investor Relations

Bell Pottinger Corporate & Financial (London)
Nick Lambert                                               Tel: +44 20 7861 3232

Cavalcanti Hume Funfer Inc. (CHF Inc., Toronto)
Olav Svela, Vice President                                  Tel: +1 416-868-1079
olav@chfir.com

If you prefer to receive press releases by e-mail, please contact Heather 
Colpitts (heather@chfir.com) and specify "Nelson press releases" in the subject
line.

Further information on Nelson Resources can be found on the Company's website at
www.nelsonresources.com.

The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES. This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the securities of the
Company in the United States. The securities of the Company have not been and
will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
                                    
                                     - ENDS-



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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