ANNUAL INFORMATION FORM For the Year Ended December 31, 2014 March 31, 2015 The Tethys Petroleum Limited Annual Report and Accounts for 2014 consists of three documents as detailed below: 1) Management’s Discussion & Analysis: this includes the documents required to be disclosed pursuant to National Instrument 51-102 of Canadian Securities Administrators “Continuous Disclosure Obligations” (“Canadian NI 51-102”) in respect of an annual Management’s Discussion & Analysis and the documents required to be disclosed pursuant to UK’s Disclosure & Transparency Rules with respect to DTR 4.1 “Annual Financial Report” (DTR 4.1); 2) Annual financial information: this includes the Consolidated Financial Statements, the documents required to be disclosed pursuant to Canadian NI 51-102 with respect to an annual financial report and the documents required to be disclosed pursuant to DTR 4.1 and 3) The Annual Information Form (“AIF”): this includes the documents required to be disclosed pursuant to Canadian NI 51 – 102 and DTR 4.1 and the statement which is required to be presented in accordance with DTR 7.2 “Corporate Governance Statements”. TABLE OF CONTENTS GLOSSARY OF ABBREVIATIONS AND TECHNICAL TERMS ............................................................................8 PRESENTATION OF OIL AND GAS INFORMATION........................................................................................11 BASIS OF PRESENTATION OF PROSPECTIVE RECOVERABLE RESOURCES ..............................................12 CURRENCY AND EXCHANGE RATES ...........................................................................................................13 CONVERSION ..............................................................................................................................................13 FORWARD-LOOKING STATEMENTS.............................................................................................................14 CORPORATE STRUCTURE...........................................................................................................................18 Name, Address and Incorporation................................................................................................................18 Intercorporate Relationships........................................................................................................................19 GENERAL DEVELOPMENT OF THE BUSINESS.............................................................................................21 Company History........................................................................................................................................21 DESCRIPTION OF THE BUSINESS................................................................................................................24 General .....................................................................................................................................................24 Kazakhstan................................................................................................................................................26 Tajikistan...................................................................................................................................................36 Georgia .....................................................................................................................................................41 Rigs and Equipment ...................................................................................................................................44 Competitive Conditions ...............................................................................................................................45 Environmental............................................................................................................................................45 Kazakhstan................................................................................................................................................45 Tajikistan...................................................................................................................................................45 Georgia .....................................................................................................................................................45 Uzbekistan.................................................................................................................................................46 Employees.................................................................................................................................................46 Specialized Skill and Knowledge..................................................................................................................46 Foreign Operations.....................................................................................................................................46 STATEMENT OF RESERVES DATA AND OTHER OIL AND GAS INFORMATION .............................................47 Disclosure of Reserves Data .......................................................................................................................47 Reserves Reconciliation..............................................................................................................................54 Additional Information Relating to Reserves Data ..........................................................................................54 Other Oil and Gas Information .....................................................................................................................56 RISK FACTORS ............................................................................................................................................62 Risks Related to the Company and its Business............................................................................................62 Risks Related to the Republics of Kazakhstan, Tajikistan, and Georgia ...........................................................74 DIVIDENDS OR DISTRIBUTIONS...................................................................................................................78 DESCRIPTION OF SHARE CAPITAL..............................................................................................................78 Ordinary Shares.........................................................................................................................................78 Preference Shares......................................................................................................................................79 Shareholder Rights Plan .............................................................................................................................79 MARKET FOR SECURITIES ..........................................................................................................................79 Price Range and Volume of Trading of Ordinary Shares ................................................................................79 Prior Sales.................................................................................................................................................81 -1- ESCROWED SECURITIES AND SECURITIES SUBJECT TO CONTRACTUAL RESTRICTIONS ON TRANSFER 81 DIRECTORS AND EXECUTIVE OFFICERS.....................................................................................................81 Directors....................................................................................................................................................81 Executive Officers ......................................................................................................................................84 Corporate Cease Trade Orders....................................................................................................................85 Bankruptcies..............................................................................................................................................85 Penalties or Sanctions ................................................................................................................................86 CONFLICTS OF INTEREST ...........................................................................................................................86 PROMOTER..................................................................................................................................................86 CORPORATE GOVERNANCE STATEMENT...................................................................................................86 Introduction................................................................................................................................................87 Board of Directors ......................................................................................................................................87 Election of Directors....................................................................................................................................88 Board Mandate ..........................................................................................................................................89 Position Descriptions ..................................................................................................................................89 Board Committees......................................................................................................................................90