InterOil Announces Intention to Delist from the Australian and Papua New Guinea Stock Exchanges

Business Wire, Feb 18, 2005

TORONTO -- InterOil Corporation (TSX:IOL) (AMEX:IOC) (ASX/POMSoX:IOC), a Canadian company with operations in Papua New Guinea, today announced that it has notified the Australian Stock Exchange (ASX) and the Port Moresby Stock Exchange (POMSoX) that it intends to delist from those Exchanges. InterOil commenced trading on the ASX on August 10, 2000, trading as CHESS Depository Interests on a 10:1 basis to InterOil common shares, and on the POMSoX on October 7, 2000, trading in common shares. In 2004, InterOil's common shares began trading on the Toronto Stock Exchange (TSX) and the American Stock Exchange (AMEX) where the majority of trading now occurs. The ASX and the POMSoX now represent less than 1% of InterOil's total trading volume.

In the best interests of our shareholders and the future growth of our company we believe that our efforts should be concentrated where most of our shareholders are now based, namely the North American market.

Conditions applicable to the delisting will be communicated to shareholders once received from the Exchanges.

"We would like to thank the Australian Stock Exchange and POMSoX for their support over the past 5 years. In the early years, these exchanges provided our shareholders with the only venues to invest in our company", stated Mr. Phil Mulacek, CEO and Chairman. "This action will allow us to concentrate our corporate activities in North America where our securities are closely followed and will simplify our access to the world's largest capital market."

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)