THE WALL STREET JOURNAL: Nelson Resources To Buy 50% Of Arman Field: “Nelson said the field is on the Caspian shoreline, 200 kilometers north of Aktau, and is operated by Arman LLP, a joint venture which will be owned 50% by Shell Kazakhstan Development B.V. and 50% by Nelson. Shell will continue to hold operating responsibility for the field.” (ShellNews.net) 23 Dec 04

DOW JONES NEWSWIRES

December 23, 2004

TORONTO -- Nelson Resources Ltd. (NLG.T) has entered into a definitive agreement to acquire a 50% interest in the Arman field from Kazakh state oil company Kazmunaigas.

In a news release, the Canadian oil and gas company, which operates in Kazakhstan, said it will pay a price of $10.8 million from existing cash resources. Closing of the transaction remains subject to normal government and regulatory approval, and is expected to occur next month.

The 8,650-acre Arman field has total estimated remaining reserves of about 10.8 million barrels of oil and is producing an estimated 4,500 barrels of oil a day. Nelson said the field is on the Caspian shoreline, 200 kilometers north of Aktau, and is operated by Arman LLP, a joint venture which will be owned 50% by Shell Kazakhstan Development B.V. and 50% by Nelson. Shell will continue to hold operating responsibility for the field.

Company Web Site: http://www.nelsonresources.com

-Carolyn King, Dow Jones Newswires; 416-306-2100