Africa Oil Announces Private Placement and Provides an Operational and Financial Update - Seite 3

The Company, through its 45% ownership interest in Horn Petroleum Corporation, has informed the Government of Puntland (Somalia) that the Company will be downsizing its office in Bosaso, Puntland and will refrain from any operational activity and associated expenditures until the political situation improves. The Company has requested a two year extension to the current exploration period from the Puntland Government to allow time for the ongoing political challenges to be resolved. Accordingly, the Company has elected during the fourth quarter of 2014 to record a non-cash impairment charge related to its assets in Puntland. As at September 30, 2014 intangible exploration assets related to these properties amounted to US$91 million.

The Company has notified its Joint Venture Partners of its decision to withdraw from its 10% working interest in the Adigala Block (Ethiopia). Accordingly, the Company has elected during the fourth quarter of 2014 to record a non-cash impairment charge related to costs associated with this Block. As at September 30, 2014 intangible exploration assets related to these properties amounted to US$6 million.

The Offering - listing and selling restrictions

An application will be made to the Toronto Stock Exchange (the "TSX") for approval of the Offering and the new shares will be admitted to listing on Nasdaq Stockholm following registration of an admittance to trading prospectus with the Swedish Financial Supervisory Authority (Sw. Finansinspektionen). The closing of the Offering is subject to regulatory approval and certain other customary conditions including, but not limited to, the execution of a definitive agency agreement between the Company and the Bookrunners. The closing of the Offering is expected to occur on or about February 23, 2015, or such other dates as the Company and the Bookrunners may agree.

Common shares issued to Canadian residents will be subject to resale restrictions under Canadian securities laws for a period of four months plus one day from the date of the closing of the Offering. Subject to applicable securities laws, common shares issued to residents outside of Canada pursuant to the Offering may not be sold, transferred or otherwise disposed of on the TSX or, except pursuant to an exemption from prospectus requirements under Canadian securities laws, to any person in Canada or otherwise into Canada for a period of four months plus one day from the date of the closing of the Offering.