InterOil Announces Release of Sponsor Collateral Under OPIC Agreement (USA)

June 22, 2011

InterOil Corporation and Overseas Private Investment Corporation, an agency of the United States of America (OPIC) have agreed to the release of certain sponsor support collateral related to the 2001 loan agreement.

OPIC has released the common stock which was pledged by PIE Group LLC, a company controlled by InterOil’s Chief Executive Officer. The release of this collateral and termination of various other sponsor support arrangements required when the loan was entered into in 2001 reflects InterOil’s development and organizational maturity, the increased strength of its balance sheet, and the reduced balance of the loan from the original $85 million to $40 million, after the next installment is paid at the end of this month. A parent guarantee originally provided by InterOil Corporation in 2001, will continue for the remaining life of the loan.

As a result of the release, PIE Group LLC has informed InterOil that it will distribute the common shares to its individual members and will be dissolved. The effect of this distribution will be a reduction in the number of InterOil’s common shares controlled by Mr. Mulacek and a less than corresponding increase in his personal holdings.

Collin Visaggio, InterOil Chief Financial Officer, commented, “I am pleased that we have restructured the existing debt arrangement in preparation for further investment in the Gulf LNG Project.”

[mappress]

Source: InterOil, June 22, 2011;