InterOil Announces Preliminary Year-End 2004 Unaudited Financials

    News Editors

    TORONTO--(BUSINESS WIRE)--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.



    InterOil Corporation (TSX:IOL) (ASX.:IOC) (AMEX:IOC)

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CONTACT: InterOil Corporation Gary M Duvall V.P., Corporate Development (281) 292-1800 Email: gary.duvall@interoil.com OR InterOil Corporation Anesti Dermedgoglou V.P., Investor Relations +61 7 4046 4600 Email: anesti@interoil.com Website: www.interoil.com

KEYWORD: NEW YORK AUSTRALIA INTERNATIONAL CANADA ASIA PACIFIC INDUSTRY KEYWORD: OIL/GAS ENERGY EARNINGS SOURCE: InterOil Corporation

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