InterOil to Present at the Papua New Guinea Petroleum Showcase Conference in Sydney, Australia

Market Wire, October, 2007

InterOil Corporation (TSX: IOL)(AMEX: IOC)(POMSoX:IOC) today announced that Mr. Phil Mulacek, Chairman and Chief Executive Officer of InterOil, will be presenting at the Papua New Guinea Petroleum Showcase conference that is being held in Sydney, Australia on October 29, 2007. The conference will focus on eight case studies from Australian and International companies. The title of InterOil's presentation will be - Building an integrated energy company - the story of InterOil.

In addition Dr. Jack Hamilton, Chief Executive Officer of Liquid Niugini Gas Ltd., will be presenting at the same conference on October 30, 2007.

Presentation slides will be available on InterOil's website: www.interoil.com on October 29, 2007 Australian time. A link to the Liquid Niugini Gas Ltd. presentation will be available on the InterOil website or at: www.liquidniuginigas.com - on October 30, 2007 Australia time.

COMPANY DESCRIPTION

InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. During 2006, the company announced a gas and condensate discovery, completed an optimization program at the refinery, and doubled the downstream business by acquiring Shell's distribution assets in Papua New Guinea. In addition, InterOil is a shareholder in PNG LNG Inc., a Joint Venture with Merrill Lynch Commodities and Pacific LNG established to construct Papua New Guinea's first LNG plant on a site adjacent to InterOil's refinery in Port Moresby.

InterOil's common shares trade on the Toronto Stock Exchange under the symbol IOL in Canadian dollar and on the American Stock Exchange under the symbol IOC in US dollars. For more information please see the InterOil website at: www.interoil.com .

CAUTIONARY STATEMENTS

This news release contains projections and other forward-looking statements within the meaning of United States and Canadian securities laws. These projections and statements reflect the company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors. Some of the factors which could affect our future results and could cause results to differ materially from those expressed in our forward-looking statements include: the ability of our refinery to operate at full capacity and to operate profitability; the success of our exploration activities; political, legal and economic risks related to our operations in Papua New Guinea; our ability to market refinery output; our dependence on exclusive relationships with our suppliers and customers; our ability to obtain necessary licenses; our ability to renew our petroleum licenses with the Papua New Guinea government; adverse weather, explosions, fires, natural disasters and other operating hazards, some of which may not be insured; the impact of competition; the enforceability of legal rights; the volatility of prices for crude oil and the volatility of the difference between our purchase price of oil feedstock and the sales price of our refined products; the uncertainty of our ability to attract capital; uninsured operations; covenants in our financing and other agreements that may limit our ability to engage in business activities, raise additional financing or respond to changes in markets or competition; and the risk factors discussed in our filings with the Securities and Exchange Commission, including but not limited to those in our Annual Report for the year ended December 31, 2006 on Form 40-F.

Any forward-looking statement speaks only as of the date on which such statement is made and the company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

InterOil currently has no reserves as defined in Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Any information contained herein regarding resources are references to undiscovered resources under NI 51-101, whether stated or not.

Contacts: InterOil Corporation North America David Larson (281) 292-1800 Email: david.larson@interoil.com InterOil Corporation Australasia Anesti Dermedgoglou 61 7 4046 4600 Email: anesti@interoil.com Website: www.interoil.com