CORRECTION: Tethys Petroleum Limited: Tajikistan Update

TIDMTPL

CORRECTION: Tethys Petroleum Limited: Tajikistan Update
FOR: TETHYS PETROLEUM LIMITED

TSX, LSE SYMBOL: TPL

DUSHANBE, TAJIKISTAN--(Marketwire - Dec. 2 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

This document corrects and replaces the press release that was sent on 07:00 02-Dec-2011 GMT.

Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:TPL)(LSE:TPL) today provided an overview of its
Tajikistan asset and the recently signed Option Agreement.

=- Tethys has a Production Sharing Contract for 25-years (signed June 2008)
covering an area of 35,000 km2.

=- Excellent commercial terms: Tethys takes 91% of the oil/gas during the
cost recovery period and 70% after costs have been recovered. There are
no other taxes, levies or duties.

=- The Afghan-Tajik basin is part of and an extension of the Amu-Darya
basin, one of the most prolific gas/condensate basins in the world. The
Amu-Darya basin has many giant fields such as the South Yolotan Field in
Turkmenistan with 749 TCF reserves (the second largest gas field in the
world) and Tethys believes Tajikistan has similar potential.

=- Tethys is targeting the same stratigraphic horizons in Tajikistan
existing below the salt layer. These horizons have never been drilled.

=- 1.14 Billion barrels oil equivalent (7 TCF) audited unrisked Prospective
Resources are contained within the block.

=- A detailed data acquisition programme is well under way, and expected to
be finished in 2012. A deep well targeting the undrilled subsalt
horizons is planned to be located by year-end 2012.

=- EOL09 exploration oil discovery - 36 degrees API oil. Testing of the
well is ongoing.

=- The Persea exploration well is expected to reach total depth (TD) in
December 2011. Subsequent to test results, the prospect could be quickly
commercialised.

=- The Beshtentak 20 oil well has now tested at over 600 bopd of good
quality (38 degrees API oil) with further workovers and new well
planned on the Beshtentak field.

=- A Gas Sales Agreement has been finalised to commercialise the associated
gas from the Beshtentak 20 well.

=- Oil sales have already commenced, with an approximate price of
$60/barrel.

=- The Asset is Currently run through a Joint Venture, Seven Stars Energy
Corporation ("SSEC"), owned 51% by Tethys and 49% by Sangam Ltd.

Option Agreement

Currently the rights to the Bokhtar PSC are owned by Seven Stars Energy Corporation, of which Tethys owns 51%
and Sangam Ltd, the partner, owns 49%. 2% of Tethys ownership is non-voting shares so both entities have equal
control currently.

Tethys signed an option agreement with the Sangam Ltd, which provides Tethys the right to purchase 34% of the
equity of Sangam Ltd for US$7 million in cash with this option expiring on December 31st, 2011.

Post-deal equity in SSEC:

-------------------
Tethys: 85%
Sangam: 15%
-------------------

To date, Tethys has funded 100% of oil and gas activities through a loan to SSEC. As of April 1st 2011, the
loan stood at US$49,920,200. After the exercise of the Option Agreement, the full US$49,920,000 loan will be
reduced to zero and Tethys equity in SSEC will increase from 51% to 85%. The net affect of this on Tethys
future cash flow (for the loan amount) is only a reduction of US$7,488,000.

The cost to Tethys of the transaction is US$7,000,000 in cash as of the date of the exercise of the Option
Agreement and US$7,488,000 of future oil and gas revenues (in the form of dividends paid by SSEC) dependent on
potential future cash flow.

Deal benefits

=- Acquire over 388 million barrels of prospective resources.

=- Acquire greater rights to reserves in the Beshtentak field that are
currently not evaluated.

=- Reduce the interest of a non-funding partner, thereby increasing the
Return on Capital Employed going forward.

=- Obtain control of the Tajikistan joint-venture.

=- Create a share structure much more favourable for a farm-in partner,
with discussions ongoing with several parties.

The Asset: The Bokhtar Production Sharing Contract

Tethys primary asset in Tajikistan is the Bokhtar Production Sharing Contract ("Bokhtar PSC") which covers a
total area of approximately 35,000km2 (8.65 million acres). The area included in the PSC (the "PSC Area") is in
the south-western part of Tajikistan and is a large, highly prospective region which has existing oil and gas
discoveries but which has seen limited exploration to date. The PSC is held by Kulob Petroleum Limited ("KPL"),
a wholly-owned subsidiary of SSEC.

Tethys believes that the PSC Area has considerable potential for oil and gas condensate. The area includes
almost the entire Tajik portion of the Afghan-Tajik basin, an extension of the prolific Amu Darya basin, which
contains giant and supergiant gas and gas condensate fields in nearby Turkmenistan and Uzbekistan. The South
Yolotan Field in Turkmenistan has been independently evaluated at 749 TCF of gas reserves (Gaffney, Cline and
Associates. Ltd, October 2011, as quoted on the Chamber of Commerce and Industry of Turkmenistan website) and
the Dauletobad field was originally attributed with 60 TCF of gas reserves (U.S. Geological Survey, Reston,
Virginia: 2004). The Company is unable to confirm that the information in respect of the Yolotan Field and
Dauletobad Field was prepared in accordance with the COGE Handbook as required by Canadian rules relating to
disclosure of gas reserves.

A proven hydrocarbon system exists in the PSC Area, but only limited exploration has taken place in the past.
Several reservoir horizons are present and both sweet, light oil as well as gas condensate has been produced.
Salt tectonics dominate the southern part of the area where numerous salt domes provide the potential for
substantial hydrocarbon traps. TRACS, the independent reserve/resource auditors, have attributed 1.14 Barrels
of Oil Equivalent (7 TCF) of unrisked resources to the PSC Area. The prospective resources were determined as
at December 31, 2010. Reference is made to pages 66 to 68 of the Company's Annual Information Form dated March
23, 2011 available on sedar.com for a discussion relating to the prospective resources, including the
description thereof and risks and uncertainties associated with recovery of Prospective Resources. Reference is
also made to the cautionary statement under "Forward Looking Information and Cautionary Statement Regarding
Prospective Resources".

Under the Production Sharing Contract, the Contractor (KPL) recovers 100% of capital and operating costs from
up to 70% of total production (the maximum allowed under the production sharing legislation of Tajikistan) and
the remaining production (termed "Profit Oil and Gas") is shared 70% to KPL and 30% to the State, whose share
includes all taxes, levies and duties on oil and gas production.

The terms are fixed over the twenty-five year life of the PSC, which was signed in 2008.

Strategy in Tajikistan

The primary strategy in Tajikistan is to undertake a comprehensive geological and geophysical data gathering
exercise with the intention of locating and drilling the first deep exploration well below the regional salt
layer. This deep well will target very large prospective resources, as set out in the TRACS resource report.
These prospects have never been drilled before in Tajikistan but are prolific producers from the same
reservoirs in the adjacent countries of Uzbekistan and Turkmenistan.

This programme is firmly on track and consists of the following:

=- In 2008, Tethys obtained and analysed the State geophysical information
and well data of the shallower drilling that had been undertaken in the
Soviet period and compiled an extensive database, which was combined
with a regional geological model built in-house.

=- In 2009-10, Tethys designed and acquired a regional 2D seismic program
whereby 693km of good quality 2D seismic was obtained and interpreted.

=- In 2011, Tethys carried out an aeromagnetic graviometry survey over more
than half of the PSC Area. This data complements the acquired seismic
data, State geophysical information and well data. The aeromagnetic
graviometry survey is currently under evaluation.

=- In 2012, following on from the results of the aeromagnetic graviometry
survey, it is planned to acquire focused 2D or 3D seismic data over key
prospective areas with the intention of identifying the location for the
first deep well.

=- As well as the deeper exploration programme, Tethys has been undertaking
a shallower exploration programme, and also rehabilitating old oil and
gas fields with the intention of generating early cash flow to take
advantage of the good contract terms and high oil/gas prices in
Tajikistan.

=- The East Olimtoi (EOL09) exploration well is located in the south-east
of the PSC Area, south of the town of Kulob and only some 10 kilometres
north-west of the Afghan border. The well testing programme is
continuing with additional specialist equipment due to arrive at the
field in December 2011 to attempt to establish continual flow of oil
from the Alai zone, where oil has been recovered. The nearest oilfield
in the region is the Beshtentak field some 75 km to the north-west which
produces oil from the Bukhara limestone. This is the first exploration
oil discovery in Tajikistan since independence.

=- The Persea 1 exploration well, located near the town of Kurgon-Teppa in
the south-west part of the PSC Area, is primarily targeting the Bukhara
limestone formation in a four-way dip closed structure with the
overlying Alai formation forming a potential secondary target. The
planned total depth of this well is 2,700 metres and it is expected that
this will be reached in December 2011.

=- The Beshtentak oil well BST20 located in the Baljuvon region has
recently been worked over by applying modern perforating and acidisation
techniques and applying natural gas lift. The well has recently been
flow testing at rates of over 600 barrels of oil per day ("bopd"). The
oil has an API gravity of 38 degrees and no water is being produced.
Initial sales agreements have been signed and the first payments from
oil sales have been received. There are additional workover candidates
on the Beshtentak field which has gross prospective resources of 11.7
million barrels of oil and 16.1 billion cubic feet (0.23 billion cubic
metres) of gas as quoted by the Company's independent reserves and
resources assessment effective December 31, 2010. (Reference is made to
pages 66 to 68 of the Company's Annual Information Form dated March 23,
2011 available on sedar.com). There is good infrastructure to facilitate
transport and sales of oil with oil currently being sold at
approximately $60 per barrel. Funds from the announced financing will
also be used to focus on this field and increasing production on this
field in the short-term with an immediate cash flow impact due to 91%
produced oil and gas going to the contractor.

Dr. David Robson, Chairman and Chief Executive Officer, commented on the potential acquisition, "This is an
incredible opportunity to increase our equity holding in one of our key assets in an area that has huge
geological upside with excellent fixed commercial terms over 25 years. Our exploration strategy is firmly on
track to finish off the geophysical data gathering and then to locate the first deep well in 2012. Oil
production now covers all in-country costs, and we aim to increase this production in 2012 with further work on
the Beshtentak field. This acquisition should result in a multiple of its cost in resulting shareholder value
should we execute our program in Tajikistan and demonstrate further success going forward."

Tethys is focused on oil and gas exploration and production activities in Central Asia with activities
currently in the Republics of Kazakhstan, Tajikistan and Uzbekistan. This highly prolific oil and gas area is
rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered
deposits.

Forward Looking Information and Cautionary Statement regarding Prospective Resources

This press release contains "forward-looking information" which may include, but is not limited to, statements
with respect to our operations. Such forward-looking statements reflect our current views with respect to
future events and are subject to certain risks, uncertainties and assumptions, including the risk that the
Option will not be exercised and the exercise of the Option will not be completed on the terms contemplated,
the risk that the Company may be unable to complete its data and drilling programs or the planned well
workovers within the timeframes contemplated. In addition, there is no certainty that any portion of the
prospective resources will be discovered, and if discovered, there is no certainty that it will be commercially
viable to produce any portion of the prospective resources. The term "prospective resources" is based on the
definition in the COGE Handbook. See our Annual Information Form for the year ended December 31, 2010 for a
description of risks and uncertainties relevant to our business, including our exploration activities. The
"forward looking statements" contained herein speak only as of the date of this press release and, unless
required by applicable law, the Company undertakes no obligation to publicly update or revise such information,
whether as a result of new information, future events or otherwise.

This press release does not constitute an offer or a solicitation of an offer to buy, securities of Tethys
Petroleum in the United States or to United States persons. Tethys Petroleum's securities 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 United States
persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption
from such registration is available.

FOR FURTHER INFORMATION PLEASE CONTACT:

Tethys Petroleum Limited
Sabin Rossi
Vice President Investor Relations
Office: +1 416 572 2065
+1 416 572 2201 (FAX)
info@tethyspetroleum.com

In Europe: Tethys Petroleum Limited
Veronica Zhuvaghena
Vice President Corporate Communications
Office: +44 1481 725911
+44 1481 725922 (FAX)
www.tethyspetroleum.com
Mobile site: m.tethyspetroleum.com

In Asia-Pacific: Quam IR
Anita Wan
Associate Director
Office: +852 2217 2999
+852 2217 2999 (FAX)

Tethys Petroleum Limited

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