DENVER, Colorado --Tipperary Corporation (AMEX-TPY), an independent oil and gas company, today announced results of its annual meeting and provided an update on current operational activities. Kenneth L. Ancell, David L. Bradshaw, Eugene I. Davis, Douglas Kramer, Marshall D. Lees, Charles T. Maxwell and D. Leroy Sample were reelected as directors of the Company, and PricewaterhouseCoopers was re-appointed as the Company's independent auditor. More than 80 percent of the outstanding voting stock was represented in person or by proxy at the meeting.

The Company's operational update addressed Tipperary's activities in Queensland, Australia and its exploration activities in the Rocky Mountain region of the United States.

Tipperary is primarily focused on the Comet Ridge coalbed methane project in Queensland, Australia and has reported a discounted pre-tax proved reserve value for its interest in the project of $97 million at December 31, 2001. In addition, the Company's independent engineers estimate that unproved reserves in the probable and possible categories have a discounted value of future net cash flows totaling $196 million. It is important to note that the Company is precluded from including these probable and possible reserves with proved reserves in its filings with the SEC. While unproved reserve estimates provide no guarantee of actual reserves, assuming the reserve quantities estimated by the independent petroleum engineers and a $.35 per Mcf value in the ground, total reserves could ultimately have a value in the range of $1 billion.

The Company expects development of new gas markets in Queensland to create demand that will surpass the supply of gas deliverable from existing proved reserves in the state. As indicated in prior news releases, the Company's contract with Queensland Fertilizer Assets Limited (QFAL) is contingent upon QFAL obtaining financing commitments for construction of a fertilizer plant that would use the gas, and Tipperary's ability to finance the drilling and completion of enough wells to satisfy the delivery requirements. The contract would be beneficial for the Company because of the favorable pricing structure it has obtained. However, the Company has identified other emerging markets that are requesting tenders for the volumes if QFAL is not successful in financing and building the plant.

The Company's employee headcount has increased to 35 from the 15 employees reported in its Form 10-KSB for the Year Ended December 31, 2001. This increase has resulted from the Company assuming operations of the Comet Ridge project effective March 22, 2002, under a previously announced court order. The right of the Company and other non-operators to remove the operator and install a successor operator has been the subject of ongoing litigation. The trial date, which was originally set for April 29, 2002, has been postponed due to the defendant's appeal of the injunctive order in favor of Tipperary. Although the appeal will be heard on an expedited basis, the Company cannot predict when it will be concluded.

Regarding U.S. operations, Tipperary provided an update on developments related to three new exploration projects in Colorado. The Company owns 50%, and operates, the Lay Creek coalbed methane project covering approximately 82,000 acres in Moffat County, Colorado, and is currently completing four wells in a pilot program around one of the two test wells drilled in 2001. The Company is encouraged by early gas and water production. If commercially viable production can be achieved, the Company believes that early data from the coals suggest a reserve potential of more than one trillion cubic feet. Based on expected growth in gas demand, the net value to the Company of these possible reserves could be in the range of $500 million.

The Company also has a 40% interest in another project in Moffat County, which is prospective for conventional gas. Tipperary recently recovered most of its investment in this Nine Mile prospect with the sale of a 60% interest in the 35,000-acre project to a third party operator. The Company will be carried for 50% of its cost to casing point for the first wildcat well, which the operator is currently drilling. The Company believes the reserve potential for conventional gas in the Almond and Lewis sandstone formations could be as high as 200 Bcf net to the Company's interest and that the Company's interest in the project, if successful, could ultimately have a net value to Tipperary in the range of $200 million.

In northeastern Colorado, Tipperary has recently assembled a block of acreage and is now seeking an industry partner to participate in exploratory drilling of conventional oil and gas prospects. The prospective area covers approximately 135,000 acres, most of which are covered by fee leases that the Company has acquired. Prospects will target the fractured Niobrara formation and secondarily deeper zones and could result in gas reserves of up to 150 to 220 Bcf. The Company believes the potential of possible producing formations could eventually have a value in the range of $200 million.

Tipperary also reported that the Hanna Draw coalbed methane project in southern Wyoming is dewatering at a rate which is unacceptable to the Company and that it would explore divestiture opportunities of this project.

David Bradshaw, Tipperary CEO, said, "We are still in the early stages of our domestic projects, which are accompanied by all of the risks associated with oil and gas exploration. Our strategy has been to gain exposure to large reserve targets at a relatively low cost. However, because of the inherent risk in exploration, there can be no assurance that our estimates of eventual potential value in either the U.S. or Australia will be realized in whole or in part. However, we are optimistic that we will be able to increase the pace of development drilling of the already-proven Comet Ridge project at significantly reduced costs. We've started implementing cost savings and are targeting an average lifting cost of $.40 per Mcf and an average finding cost of $.10 per Mcf."

In other news, the Company recently obtained the remaining $5 million available under the credit agreement with TCW Asset Management Company and is in discussions with TCW regarding funding of other drilling projects in Australia and possibly the United States.

Tipperary Corporation is an independent energy company focused primarily on exploration for, and production of, coalbed methane and conventional natural gas. Headquartered in Denver, Colorado, Tipperary owns 90% of Queensland, Australia-based Tipperary Oil & Gas (Australia) Pty Ltd. This subsidiary, which holds a 65% interest in southeastern Queensland's Comet Ridge coalbed methane project, also holds other exploration permits in Queensland totaling approximately 1.5 million acres. Domestically, Tipperary holds interests in several exploration projects in Colorado and Wyoming covering approximately 385,000 acres.

Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "may," "will," "expect," "anticipate," "estimate" "continue," or comparable words. In addition, all statements other than statements of historical facts that address activities that Tipperary expects or anticipates will or may occur in the future, including estimates of unproved oil and gas reserves and values, are forward-looking statements. Readers are encouraged to read the SEC reports of Tipperary, particularly its Annual Report on Form 10-KSB for the Year Ended December 31, 2001, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.