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Arrangement of Export Financing 5 January 2005 NELSON RESOURCES LIMITED CONCLUDES U.S.$40 MILLION EXPORT FINANCING Nelson Resources Limited ("Nelson" or the "Company", TSX / AIM: NLG), a leading independent oil exploration and production company operating in Kazakhstan, today announces that it has arranged on behalf of its subsidiary, Nelson Petroleum Buzachi B.V. ("NPB"), a four and a half year financing agreement in the form of a structured oil pre-export facility with a principal amount of up to U.S.$40 million through the Commodity Structured Finance Group of BNP Paribas (Suisse) S.A. Proceeds of this financing will be used in part to refinance the previously announced NPB oil prepayment facility arranged in June 2004. The financing is structured as a U.S.$40 million revolving credit line available for two years. Thereafter, the facility converts to an amortising term loan, with regular repayments being made until the final repayment date 54 months after the initial advance. Repayments are secured by offtake agreements under which NPB will sell crude oil from the North Buzachi field to one or several offtakers. Interest on the facility will be paid on a monthly basis, at a rate of one month LIBOR plus a 3.25% per annum margin, increasing to a 4.25% per annum margin after 12 months. Nelson serves as financial guarantor of the facility. Nick Zana, Nelson's Chief Executive Officer, commented, "The North Buzachi field is proving to be an excellent asset and I am encouraged by its future prospects. The arrangement of this financing facility will support the ambitious development plans we have for the field." 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 exploration and production 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, operator of the Karakuduk field. The remaining 40% of this field is currently in the process of being acquired by Nelson. The Company also holds an option to acquire a minimum 25% participatory interest in two Caspian Sea offshore blocks, Zhambai South and South Zaburunye. 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 London's Alternative Investment Market under the symbol NLG. END

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