InterOil Announces Approval of PRL39 by PNG Government, Clarification on Deal With Total

InterOil Corporation

is pleased to announce that the PNG Department of Petroleum and Energy has approved the Company's application for Petroleum Retention License 39, which includes the Triceratops discovery. Additionally, InterOil is providing further clarification regarding the fixed and variable payments agreed to with Total S.A.

in relation to the sale of a gross 61.3% (net 47.5%, after PNG government back-in of 22.5%) in PRL 15, which includes the Elk and Antelope fields. The Sale and Purchase Agreement, which will be filed on SEDAR and with the SEC today, stipulates both fixed and variable payments as previously disclosed. Fixed payments to InterOil include US$613 million on transaction completion, which is expected in Q1 2014; US$112 million on a final investment decision for a new LNG plant; and US$100 million at first LNG cargo from the proposed LNG facility. In addition to these fixed amounts, variable payments for amounts in excess of 3.5 Tcfe for the gas resource will depend on certification by two independent certifiers following up to three appraisal wells to be drilled in PRL15. The gas resource payment for amounts greater than