Africa Oil Announces US$100 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 1, 2015) - Africa Oil Corp. (TSX:AOI)(OMX:AOI) ("Africa Oil" or the "Company) is pleased to announce that it has entered into an investment agreement with Stampede Natural Resources S.a.r.l. ("Stampede"), an entity owned by a fund advised by Helios Investment Partners LLP ("Helios"), to sell, on a non-brokered private placement basis, 52,623,377 of its common shares at a price of CAD $2.31 for gross proceeds of CAD $121,560,000 (US $100 million⁽¹⁾). Upon completing, Stampede would own approximately 12.37% of the issued and outstanding common shares of the Company.

Helios is an Africa-focused investment firm. The Company has agreed that its participation will entitle Stampede to nominate one non-executive director to the board of Africa Oil. In addition, the Company has granted certain rights to Stampede including the right to participate for its pro-rata share in future financings.

Net proceeds of the private placement will be used towards the Company's ongoing appraisal and development work program in East Africa.

An application will be made to the Toronto Stock Exchange (the "TSX") for approval of the private placement 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 financing is subject to regulatory approval and certain other customary conditions. The Company expects the closing to occur on or around May 29, 2015.

Keith Hill, President and CEO of Africa Oil, commented, "We are very pleased to have been able to attract a large investor with the credentials and reputation of Helios into the Company which we consider as a strong endorsement of the Lokichar Basin project, despite the current oil price downturn. This relationship will not only be of short term benefit by strengthening our balance sheet and allowing us to continue with drilling operations and pre-development work, but also has the potential to provide a core investor as the development project progresses."