Participation in the Shale Oil/Gas Project in Texas

Jun. 30, 2011

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Mitsui & Co., Ltd. ("Mitsui") is pleased to announce that it, through its subsidiary Mitsui E&P Texas LP ("MEPTX"), has entered into a definitive agreement with the U.S. oil and gas development company, SM Energy Company (NYSE: SM) ("SME"), to acquire a 12.5% working interest in SME's Eagle Ford property in Texas, USA. The agreement was signed on June 29, 2011 and the closing of the transaction is expected during the 3rd quarter 2011, after the satisfaction of customary conditions.

Contractual Coverage

Buyer Mitsui E&P Texas LP
Seller SM Energy Company
Acquired Assets 12.5% working interest of the project, approx. 47,000 net acres includes 39,000 net acres of Eagle Ford Shale.
Consideration MEPTX will carry up to USD 680 Million of SME's future development cost
Operator Anadarko Petroleum Corporation

Project Overview - MEPTX net

Peak Production 20k boed
Total Project Costs Approx. USD 1.2 Billion
Life of Production Approx. 30 years

This project, which currently produces oil, natural gas and natural gas liquids which are sold mainly in the Texas market, will allow for the drilling of more than one thousand wells over the next decade. Furthermore, MEPTX will enter into an Area of Mutual Interest with SME concerning the area of Mitsui's acquired interests to jointly acquire new leases to further expand its business.

Although the development of shale formation had been considered to be uneconomical in the past, due to recent technological advances and innovations, low cost shale gas development and production has become practicable in recent years. In addition, in these days, shale oil development is growing sharply. The Eagle Ford Shale is located in Texas, USA, whose oil demand is one of the highest in the country, and produces valuable products with high liquid contents, and is considered to be one of the most attractive shale plays in the United States along with the Marcellus Shale where Mitsui also has its stake.
We expect that this project, which includes technically and financially capable partners, will become a core business base for Mitsui providing cash flow and profit over the long term.

We have expanded our shale oil/gas portfolio in the Unites States and Poland, and aim to expand our shale business into other countries leveraging our global network and the knowledge acquired through these projects. Mitsui has positioned its energy and mineral resources business as a strategically significant business area and will continue to acquire attractive oil and natural gas assets in order to establish a more robust and well-balanced business portfolio.

Summary of MEPTX As of Jun. 2011

Registered Company Name Mitsui E&P Texas LP
Head Office Texas, USA
Establishment June 24, 2011
Ownership Mitsui & Co., Ltd. 100%

Summary of SME As of Dec. 2010

Registered Company Name SM Energy Company
Location Colorado, USA
Listed Stock Exchange NYSE
Employees Approx. 600
Total Assets Approx. USD 3.1 Billion
Daily Production Approx. 67 Thousand boed

This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.


For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Investor Relations Division
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Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-80-5912-0321
Facsimile: +81-3-3285-9819
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