November 11, 2004

PETROLEUM & RESOURCES CORPORATION DECLARES YEAR-END CAPITAL GAIN DISTRIBUTION AND INVESTMENT INCOME DIVIDEND

BALTIMORE, MARYLAND, November 11, 2004 -- The Board of Directors of Petroleum & Resources Corporation declared the following year-end capital gain distribution and income dividend, payable December 27, 2004, to stockholders of record as of November 23, 2004:

1) a capital gain distribution of $0.79 per share, representing the undistributed net capital gain realized during the year 2004, all of which was long-term; and

2) an income dividend of $0.14 per share, representing the undistributed net investment income for the year 2004.

Both payments are payable in stock or cash at the option of each stockholder. The ex-dividend date for the year-end distribution is November 19, 2004.

Distributions in 2004 made prior to today's announcement were $0.39 per share, consisting of $0.30 from investment income, $0.07 from long-term capital gain, and $0.02 from short-term capital gain. Accordingly, total distributions by the Corporation for the year will be $1.32. In 2003, the Corporation paid total distributions of $0.38 in dividends and $0.81 in capital gains.

Petroleum & Resources Corporation is a Baltimore-based closed-end investment company. It is traded on the New York Stock Exchange and Pacific Exchange, and its symbol is PEO.

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For further information, please contact:

Douglas G. Ober, Chairman, President & Chief Executive Officer
Lawrence L. Hooper, Jr., Vice President, General Counsel & Secretary
at (410) 752-5900 or (800) 638-2479

E-mail: contact@peteres.com
Website: www.peteres.com

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