February 19, 2008

PETROLEUM & RESOURCES HAS NOT ISSUED OR INVESTED IN ANY AUCTION-RATE PREFERRED SECURITIES OR DEBT

Recent press reports have described the turmoil in the market for auction-rate securities and debt and its potential impact on closed-end funds that have issued auction-rate preferred shares, invested in auction-rate securities or debt, or that use leverage to enhance yield. If these reports have alarmed you about the impact of this situation on your holdings in Petroleum & Resources, please be aware that the Corporation has not issued or invested in any auction-rate preferred shares or debt and does not use leverage. If you would like further information about this matter, please contact our Investor Relations group by email to: contact@peteres.com or by calling us at (800) 638-2479.