Jarch Group says confident to sign oil deal with South Sudan

September 20, 2007 — There have been several statements in the press purported to come from
Government of Southern Sudan (GoSS) officials regarding various commodity
rights. Jarch remains very comfortable with its right in the South. Prior
to the signing of Comprehensive Peace Agreement (CPA), Jarch signed
agreements for hydrocarbon and other rights including rights of first
refusal with both the SPLM/NDA in February 2003 and the SSDF in March 2004.
All the agreements required the various rebel groups to bring their
contracts with them when a government in the South was formed. General
Paulino Matip, former head of the SSDF and currently Deputy
Commander-in-Chief of the SPLA, did exactly this when he joined forces with
GoSS in January 2006 under the Juba Declaration. As stated in the CPA,
agreements signed prior to the CPA do not have to be approved by the
National Petroleum Commission (NPC). General Paulino had presented the
Jarch agreements to President Salva Kiir for acceptance by the GoSS and
these agreements have in turn been accepted by the President as we have
stated previously. In fact, Jarch officials have been told that in
conversations between the President and the General when General Paulino
asked His Excellency about these purported statements, the President
commented to the General, “Don’t worry.”

We understand that there will always be those individuals operating for
their own gain at the expense of the people of South Sudan, but we are
confident in GoSS that this will all be sorted out. As stated before, our
contracts provide many benefits for the people of South Sudan while
protecting their environment. In addition, as previously stated, we will
donate directly back to the people, at least 10% of our profits from South
Sudan operations.

“It is YOUR Land, YOUR Oil!”

JARCH MANAGEMENT GROUP, LTD.