InterOil Corporation

InterOil Corporation

February 28, 2005 09:04 ET

InterOil Announces Preliminary Year-End 2004 Unaudited Financials


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INTEROIL CORPORATION

TSX SYMBOL: IOL
ASX., AMEX SYMBOL: IOC

FEBRUARY 28, 2005 - 09:04 ET

InterOil Announces Preliminary Year-End 2004 Unaudited
Financials

TORONTO, ONTARIO--(CCNMatthews - Feb. 28, 2005) - InterOil Corporation
(TSX:IOL) (AMEX:IOC) (ASX/POMSoX:IOC), a Canadian company with
operations in Papua New Guinea, today announces preliminary unaudited
financial accounts for the year-ended 2004. InterOil is required by the
Australian Stock Exchange (ASX) to lodge preliminary unaudited financial
results within 60 days of year-end. This release is to satisfy
regulation that all exchanges are kept informed of the same information.
The year-end 2004 audited financials will be released by March 31, 2005.
A copy of the ASX filing can be found on our web site at
www.interoil.com.

In accordance with the company's accounting policy for oil and gas
exploration and development activities which complies with the US and
Canadian Generally Accepted Accounting Policies, it is necessary under
the Statement of Financial Accounting Standards No. 19 to expense
previously capitalized drilling expenditures. This financial adjustment
is in addition to the cost of exploration licences, geological and
geophysical works and the seismic program that has been expensed in the
fiscal year 2004

InterOil is developing a vertically integrated energy company whose
primary focus is Papua New Guinea and the surrounding region. Its assets
comprise an oil refinery, upstream petroleum exploration licenses, and
retail and commercial distribution assets. The majority of the refined
products from InterOil's refinery are secured by off-take contracts with
Shell and InterOil's wholly-owned subsidiary, InterOil Products Limited.
BP Singapore is InterOil's agent for crude oil supplied to the refinery.
InterOil is also undertaking an extensive petroleum exploration program
within its eight million acre license area located in Papua New Guinea.

InterOil's common shares trade on the Toronto Stock Exchange under the
symbol IOL in Canadian dollars; on the American Stock Exchange under the
symbol IOC in US dollars; and on the Australian Stock Exchange in CHESS
Depositary Interests in Australian dollars under the symbol IOC which
trade on a 10:1 basis to common shares. For more information please see
the InterOil website at: www.interoil.com.

Cautionary Statements

This press release contains forward-looking statements. All statements,
other than statements of historical facts, included in this release,
including without limitation, statements regarding our drilling plans,
business strategy, plans and objectives of management for future
operations and those statements preceded by, followed by or that
otherwise include the words "believe", "expects", "anticipates",
"intends", "estimates" or similar expressions or variations on such
expressions are forward-looking statements. The Company can give no
assurances that such forward-looking statements will prove to be
correct. Risks and uncertainties include, but are not limited to, the
existence of underground deposits of commercial quantities of oil and
gas; fluctuations in prices for oil and gas production; curtailments or
delays in development due to mechanical, operating, marketing or other
problems; capital expenditures that are either significantly higher or
lower than anticipated because the actual cost of identified projects
varied from original estimates; and from the number of exploration and
development opportunities being greater or fewer than currently
anticipated.

The Company currently has no reserves as defined under Canadian National
Instrument 51-101 reserve definitions. See the Company's filings with
the Canadian securities regulators for additional risks and information
about the Company's business.

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