Oriel Secures US$50 Million Loan for the Continuing Development of the Tikhvin Ferrochrome Smelting Plant, Russia

LONDON, UNITED KINGDOM--(Marketwire - March 27, 2008) - Oriel Resources Plc ("Oriel" or "the Company") (TSX: ORL.TO)(AIM: ORI) announces the completion of a US$50 million secured debt facility from Nomos Bank (OJSC), Russia ("Nomos") which will be provided to Oriel's subsidiaries IPH Polychrom Holding BV ("IPH") and North West Ferroalloys and will principally be used for the short term working capital requirements of the Tikhvin ferrochrome smelting plant, northwest Russia. This loan has been arranged on commercial terms.

Pursuant to deeds of release dated 22 February 2008, Oriel and Canaccord Adams released certain of the vendors of IPH (the "IPH Sellers") from the lock-in and escrow agreements. This was done to facilitate these IPH Sellers pledging their Oriel Shares to OJSC Khanty Mansiysk Bank (KMB) as security for an inter-bank credit facility to Nomos Bank of up to US$50 million for the benefit of Oriel. The deed of release provides that, in the event that the pledge is released and the lock-in and escrow agreements would still have been effective, each of the relevant IPH Sellers has agreed to re-enter into lock-in and escrow agreements on substantially the same terms as the released lock-in and escrow agreements. On 24 March 2008, KMB agreed to release the pledge upon Mechel OAO making the offer for the entire issued share capital of Oriel, announced this morning.

The loan bears a coupon of 12% per annum (rising to 14% per annum subject to changes in the Russian Central Bank re-financing rate at the discretion of Nomos) and will be fully drawn down by June 2008. The loan is repayable in equal quarterly instalments, the first instalment to be paid on 25 March 2009.

Details of the IPH Sellers' escrowed shares released are shown below.

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                                 No. of Escrowed         % of Oriel's
Holders of Escrowed Shares       Shares Released         Market Value
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A&NN Properties Ltd                   43,569,928                 6.84%
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Ehud Rieger                            3,485,594                 0.54%
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Diana Rieger-Weiss                     3,485,594                 0.54%
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Shaul Rieger                           3,485,594                 0.54%
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Total Escrowed Shares Released        54,026,710                 8.47%
----------------------------------------------------------------------

The escrow period was due to expire on 6 June, 2008.

Alexander Nesis, a Non-executive Director of Oriel, is an 18.2% beneficial owner of Nomos.

The arrangements constitute related party transactions for the purposes of the AIM Rules for Companies, as the IPH Sellers include Ehud Rieger (an Oriel Non-executive Director), Baran-Alrig Limited (a company of which Ehud Rieger is a Director), Platinum Bow Limited and Polyprom Holdings BV (each of which is a substantial shareholder of Oriel and the latter of which is beneficially owned by Alexander Nesis, an Oriel Non-Executive Director). The Oriel Directors (other than Ehud Rieger and Alexander Nesis, who are considered related parties in connection with these arrangements) consider, having consulted with Canaccord Adams, as Oriel's nominated adviser, that the terms of the arrangements are fair and reasonable insofar as Oriel Shareholders are concerned.

Oriel's Executive Chairman, Dr Sergey V Kurzin commented;

"The US$50 million will cover Tikhvin's short term working capital needs and plant enhancements which are expected to increase the efficiency of the current smelting processes."

Contacts

Dr Sergey V Kurzin
Oriel Resources Plc
Executive Chairman
+44 (0) 20 7514 0590

David Swan
Oriel Resources Plc
CFO & Company Secretary
+44 (0) 20 7514 0590

Gavin Dallas
Oriel Resources Plc
Marketing and PR
+44 (0) 20 7514 0590
+44 (0) 20 7514 0591 (FAX)
Email: info@orielresources.com
Website: www.orielresources.com

Robin Birchall / Ryan Gaffney
Canaccord Adams Limited
+44 (0) 20 7050 6500

Michael Padley / Michael Spriggs
Bankside Consultants
+44 (0) 20 7367 8888

Keith Schaefer
Vanguard Shareholder Solutions
(604) 608-0824