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Press release from Marketwire

Petrominerales Launches Convertible Note Offering

Tuesday, August 10, 2010

Petrominerales Launches Convertible Note Offering08:30 EDT Tuesday, August 10, 2010BOGOTA, COLOMBIA--(Marketwire - Aug. 10, 2010) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG), a 66% owned subsidiary of Petrobank Energy and Resources Ltd. (TSX:PBG), is pleased to announce that we intend to make an offering (the "Offering") of up to US$300 million principal amount of convertible notes due 2016 (the "Notes"). The Offering is being conducted by private placement outside of Canada and is being led by ABG Sundal Collier Norge ASA ("ABG") as sole bookrunner. Petrominerales has granted an option to ABG to increase the size of the Offering by up to an additional US$100 million principal amount of Notes. We are advised by ABG that, based on pre-marketing efforts, the Offering has received significant indications of interest. The Notes are convertible into common shares of Petrominerales and are expected to have an annual coupon in the range of 2.375% to 2.875% and a conversion premium of 32.5% to 37.5%, based on the volume weighted average share price of Petrominerales' shares on the Toronto Stock Exchange for the trading period commencing August 10, 2010 and ending August 12, 2010.The Notes will be issued at 100% of their principal amount and, unless previously redeemed, converted or cancelled, will mature in 2016. The Notes are expected to be issued on or about August 25, 2010. The Offering is subject to certain approvals, including the approval of the Toronto Stock Exchange. This Offering further enhances Petrominerales' already substantial financial flexibility and strengthens our balance sheet. It is expected that the proceeds of the Offering will be used to fund our oil and gas exploration and development activities in Colombia and Peru, and may be used to capitalize on potential acquisition opportunities as they arise. Petrominerales Ltd.Petrominerales Ltd. is a Latin America-based exploration and production company producing oil in Colombia with 17 exploration blocks covering a total of 2.1 million acres in the Llanos and Putumayo Basins and five exploration blocks in Peru covering a total of 9.4 million gross (5.2 million net) acres in the Ucayali and Titicaca Basins. Petrominerales is 66% owned by Petrobank Energy and Resources Ltd. (TSX:PBG).Forward-Looking StatementsCertain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to an offering of convertible notes, including expected terms of the Offering, timing for completion of the Offering and anticipated use of proceeds. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. A discussion of those risks and uncertainties can be found in the Company's Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; timing of receipt of regulatory approvals; investor demand for the Offering; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.FOR FURTHER INFORMATION PLEASE CONTACT: Petrominerales Ltd. John D. Wright Chairman and Strategic Advisor 403.750.4400 or 011.571.629.2701 or Petrominerales Ltd. Corey C. Ruttan President and Chief Executive Officer 403.750.4400 or 011.571.629.2701 or Petrominerales Ltd. Jack F. Scott Chief Operating Officer 403.750.4400 or 011.571.629.2701 or Petrominerales Ltd. Kelly D. Sledz Chief Financial Officer 403.750.4400 or 011.571.629.2701 ir@petrominerales.com www.petrominerales.com