DENVER, Colorado --Tipperary Corporation (Amex: TPY), an independent energy company, today announced that its Board of Directors has approved the distribution of non-transferable subscription rights to holders of its outstanding common stock to purchase additional shares of common stock. Holders of the common stock as of October 24, 2001, the record date, will be entitled to purchase additional shares of the Company's common stock at a price per share of $1.85, the subscription price. This price represents approximately a 14% discount to the Company's closing stock price on October 24, 2001. The rights will expire on November 30, 2001 at 5:00 PM Mountain Time, unless the Company, in its sole discretion, decides to extend the expiration date. The offering could raise up to $30 million for the Company.

The Company's largest shareholder, Slough Estates USA Inc., which holds approximately 52.6% of the outstanding shares of common stock, has verbally indicated its intent to participate in the rights offering.

Holders of record of common stock as of the close of business on October 24, 2001 will receive one right for every 1.551 shares of common stock they hold. Each whole right entitles shareholders to purchase one share of common stock for the subscription price. Fractional rights will be rounded-up to the nearest whole right. Rights holders who exercise their rights in full will also have the opportunity to subscribe for additional shares of common stock on a pro-rata basis to the extent any shares remain available at the expiration date. The proceeds will be used to repay debt, fund further exploration and development activities and for general corporate purposes.

The Company is mailing to its shareholders of record a prospectus for the rights offering accompanied by a subscription rights certificate and related instructions for exercising their rights. The prospectus contains a description of the rights offering and other relevant information.

If shareholders have any questions about this rights offering, including questions about subscription procedures and requests for additional copies of the prospectus or other documents, they should contact Geoff High or Alicia Alexander of Pfeiffer High Public Relations at 303-393-7044.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or jurisdiction.

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. In addition to its major interest in the Comet Ridge coalbed methane project, this subsidiary holds other exploration permits in Queensland totaling over 1.5 million acres. Domestically, Tipperary holds an interest in the 38,000-acre Hanna Draw coalbed methane exploration project in Wyoming, 50% of a 63,000-acre Colorado coalbed methane exploration prospect in Moffat County, Colorado and 100% of other prospects in Colorado totaling 117,000 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" or "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 are forward-looking statements. Readers are encouraged to read the SEC reports of Tipperary, particularly its Annual Report on Form 10-KSB(A) for the Transition Period Ended December 31, 2000, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.