November 9, 2006

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

BALTIMORE, MARYLAND, November 9, 2006 -- The Board of Directors of Petroleum & Resources Corporation (NYSE:PEO) declared today a year-end distribution of $3.41 per share, consisting of the following:

1) a capital gain distribution of $3.23 per share, representing the undistributed net capital gain realized during 2006, of which $2.92 was long-term and $0.31 was short-term; and

2) an income dividend of $0.18 per share, representing the undistributed net investment income for 2006.

Both payments are payable in stock or cash at the option of each stockholder. The payable date for the distribution is December 27, 2006, the record date is November 21, 2006, and the ex-dividend date is November 17, 2006.

Total distributions by the Corporation for 2006 will be $3.80, including distributions made prior to today's announcement of $0.39 per share, consisting of $0.29 from investment income, $0.07 from long-term capital gain, and $0.03 from short-term capital gain. For comparison, the Corporation paid total distributions of $1.78 in 2005, consisting of $0.56 in dividends and $1.22 in capital gains.

Petroleum & Resources Corporation is a Baltimore-based closed-end investment company. Its stock is traded on the New York Stock Exchange under the ticker symbol 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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