November 10, 2005

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

BALTIMORE, MARYLAND, November 10, 2005 -- The Board of Directors of Petroleum & Resources Corporation (NYSE:PEO) declared today a year-end distribution of $1.39 per share, consisting of the following:

1) a capital gain distribution of $1.14 per share, representing the undistributed net capital gain realized during 2005, of which $1.00 was long-term and $0.14 was short-term; and

2) an income dividend of $0.25 per share, representing the undistributed net investment income for 2005.

Both payments are payable in stock or cash at the option of each stockholder. The payable date for the distribution is December 27, 2005, the record date is November 22, 2005, and the ex-dividend date is November 18, 2005.

Distributions in 2005 made prior to today's announcement were $0.39 per share, consisting of $0.31 from investment income. $0.06 from long-term capital gain, and $0.02 from short-term capital gain. Accordingly, total distributions by the Corporation for 2005 will be $1.78. The Corporation paid total distributions of $0.44 in dividends and $0.87 in capital gains in 2004.

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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