NLG Arria Nlg Ords

    29 November 2004

                     NELSON RESOURCES LIMITED ANNOUNCES 
                   AGREEMENT WITH CHAPARRAL RESOURCES INC. 
                 FOR EXERCISE OF KARAKUDUK PRE-EMPTION RIGHT

Nelson Resources Limited ("Nelson" or the "Company" - TSX / AIM: NLG), a leading
independent exploration and production company operating in Kazakhstan, today
announced that it has signed an agreement with Chaparral Resources, Inc.
("Chaparral"), holders of a 60% stake in the Karakuduk field, which provides
that Chaparral will exercise or cause to be exercised its pre-emption right with
respect to purchasing the remaining 40% stake in the field, if requested to do
so by Nelson. The Company is the majority shareholder of Chaparral, holding 60%
of outstanding shares.

The Karakuduk field is operated by Joint Stock Company Karakudukmunai ("KKM"),
which is currently owned 60% by Chaparral through two wholly-owned subsidiaries,
and 40% by the Kazakh state oil company Kazmunaigas. In the event that
Kazmunaigas gives notice to Chaparral or its subsidiaries of its intent to sell
its 40% interest in KKM, then under the KKM shareholders' agreement dated
April 14, 1999 the other stakeholders have the right of first refusal to
purchase this interest at the price and on the terms specified in such notice.

At this time, no notification has yet been received by Chaparral or its
subsidiaries of Kazmunaigas's intent to sell. However, on 24 November 2004,
Kazmunaigas announced the results of an auction of certain of its assets, which
included its 40% stake in KKM. The winning bid for this interest was
approximately $34.6 million.

Nick Zana, Nelson's Chief Executive Officer, commented, "The opportunity to
secure a further interest in the Karakuduk field, which affords significant
potential for growth in production, is in line with Nelson's strategy to
increase reserves and production through both acquisition and rapid field
development. It would also allow the Company to consolidate its control of the
field."

The Karakuduk field is located onshore in western Kazakhstan, 340 kilometres
northeast of the Caspian port of Aktau. It has total estimated proved and
probable reserves of 63.0 million barrels of oil (independent reserve report,
31 Dec 2003), and produced 8,290 barrels of oil per day on average for the third
quarter 2004.

 
For further information, please contact:
----------------------------------------
Fred Hodder, CFO                              Tel: 020 7495 8908
Nelson Resources Limited                      fhodder@nelsonresources.co.uk

S.A.(Al) Sehsuvaroglu, Senior Vice President  Tel: +7 3272 58 25 81/2/3
Nelson Resources Limited                      sas@nelsonresources.com

Investor Relations:

Ann-marie Wilkinson / Nick Lambert      Tel: 020 7861 3232
Bell Pottinger Corporate & Financial (London)   
    

Notes
-----

Nelson Resources Limited is an oil production and development holding company
with operations in the Republic of Kazakhstan.  The Company established its
presence in the Kazakhstan oil sector in 2000 and its management team,
comprising both international and Kazakh executives, has extensive experience
of the Kazakh operating and regulatory environment. The Company owns 50% of
Kazakhoil Aktobe LLP (KOA), a 50/50 joint venture between Nelson and
Kazmunaigas, the national oil company of Kazakhstan, which is developing the
Alibekmola and Kozhasai fields.  The Company owns a 50% participatory interest
in the North Buzachi oil field located in western Kazakhstan (50% Nelson, 50%
CNPC International (Buzachi) Inc.).  In May 2004, Nelson purchased 60% of
Chaparral Resources Inc., which has a 60% interest in the joint stock company
Karakudukmunai, with the remaining 40% being held by Kazmunaigas.  The Company
also holds an option to acquire a minimum 25% participatory interest in two
Caspian Sea offshore blocks, Zhambai South and South Zaburunye.  With its
financing and administrative offices in London, the Company maintains its
operational office in Almaty, Kazakhstan, which oversees the field joint
ventures in western Kazakhstan. Nelson and its affiliated companies employ
approximately 800 people. Common shares of Nelson are listed on the Toronto
Stock Exchange and quoted on London's Alternative Investment Market under the
symbol NLG.

Readers are cautioned that the preceding statements and information may include
certain estimates, assumptions and other forward-looking information. The actual
future performance, developments and/or results of the Company may differ
materially from any or all of the forward-looking statements, which include
current expectations, estimates and projections, in all or part attributable to
general economic conditions and other risks, uncertainties and circumstances
partly or totally outside the control of the Company, including oil prices,
imprecision of reserve estimates, drilling risks, future production of gas and
oil, rates of inflation, changes in future costs and expenses related to the
activities involving the exploration, development, production and transportation
of oil, hedging, financing availability and other risks related to financial
activities, and environmental and geopolitical risks. Discussion of the various
factors that may affect future results is contained in the Company's recent
filings with Canadian securities regulatory authorities. The Company disclaims
any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.





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