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Africa Oil Provides Operational Update and Year-End Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/27/14 -- Africa Oil Corp. (TSX VENTURE:AOI)(OMX:AOI) ("Africa Oil" or the "Company") is pleased to provide year-end financial results and an update on its operations in Kenya and Ethiopia.

Seven rigs are currently active on the Company's blocks including four rigs on Blocks 13T and 10BB in the Tertiary Lokichar Basin in Western Kenya, one rig on Block 9 in the Cretaceous Anza rift in Northern Kenya, one rig in the South Omo Block in the Tertiary basin in Southern Ethiopia and one rig in Block 8 in the Jurassic/Triassic basin in the Somali region of Ethiopia.

In the Lokichar Basin, two rigs are drilling exploration/appraisal wells and two rigs are conducting testing operations. Africa Oil Kenya BV holds a 50% working interest in these blocks along with partner Tullow Oil plc who holds the remaining interest and is operator.

The Weatherford 804 rig has completed drilling operations on the Emong prospect. The well was located approximately four kilometres northwest of the Ngamia-1 field discovery and was drilled to a total depth of 1,394 metres. It encountered oil and gas shows while drilling, however the Auwerwer sandstones that are the primary reservoirs in the Ngamia field were thin and poorly developed in Emong-1 and the well was plugged and abandoned. It is believed that the reservoir was poorly developed due to its proximity to the basin bounding fault and its location within what appears to be a local isolated slumped fault margin. The results are not expected to impact the thickness and quality of reservoir throughout the main Ngamia field area. This rig will now move to the Ekunyuk prospect on the eastern flank play which is on trend with recent discoveries at Etuko and Ewoi.

The Sakson PR-5 rig is continuing drilling operations on the Twiga-2 updip appraisal well and is expected to be completed in mid-April. This rig will then move to drill a downdip appraisal of the Amosing discovery, which appears to have high quality reservoir and may be one of the largest discoveries in the basin to date.

Testing operations have been completed on the Ekales-1 well using the SMP-5 rig and have confirmed this significant discovery. Two DST's were completed and flowed a combined rate of over 1,000 barrels of oil per day from a combined 41 metre net pay interval. The upper zone had a very high productivity index of 4.3 stb/d/psi. This rig will next test the Agete discovery.

The Etuko-2 well was drilled by the PR Marriott 46 rig as an exploration well to test the upper Auwerwer sands overlying the previously announced Etuko discovery. The well penetrated a potential significant oil column identified from formation pressure data and oil shows while drilling and in core, with good quality reservoir, but flowed only water on drill stem test. The results are considered inconclusive and analysis is underway to consider further options to evaluate this reservoir. This rig will next drill the Ngamia-2 appraisal well.

The Great Wall 190 rig is drilling ahead on schedule and budget at the Sala prospect in the Cretaceous Anza graben. This well is operated by Africa Oil Kenya B.V. which holds a 50% interest and operatorship with partner Marathon Kenya Limited B.V., a subsidiary of Marathon Oil Corporation holding the remaining 50%. The well is currently at approximately 1500 metres depth and drilling ahead. Results of this well are expected to be announced in the second quarter.

The Shimela prospect in the South Omo Block in Ethiopia is expected to spud before the end of March and will target a new basin in the Tertiary trend, the Chew Bahir Basin. Numerous potential hydrocarbon indicators have been observed on seismic in this basin and if this well is successful in proving up an active petroleum system and thus "opening" the basin, numerous other prospects identified in the basin will be de-risked. This rig will next drill the Gardim prospect in the southern portion of the basin. Both wells are basin bounding fault prospects similar to the Ngamia/Amosing/Twiga discoveries in the Lokichar basin.

The El Kuran-3 well, in the Somali region of Ethiopia, has reached a total depth of 3,528 metres and is currently undergoing logging and evaluation prior to taking a decision on the way forward on the well. There have been numerous oil and gas shows in the well which is a follow up to a discovery made by Tenneco in the 1970's. There appears to be a significant amount of oil and gas in several intervals and the primary issues are the quality of the reservoir and potential commerciality given the remote location.

Keith Hill, President and CEO of Africa Oil, commented, "We are very pleased that all wells in the Lokichar Basin continue to find hydrocarbons indicating a very rich prolific source rock. We continue to gather key reservoir data through drilling and testing, with particular emphasis on understanding the distribution of the most productive reservoirs in the basin. This understanding should be enhanced with the addition of the 3D seismic survey which should allow us to develop a comprehensive reservoir model which will be essential for moving the Lokichar basin into development. We are on track to drill six very exciting potential basin-opening wells in 2014 including wildcat wells in the Chew Bahir, West Turkana, and South Kerio Basins, and along the eastern flank of the Anza Basin in addition to at least three additional exploration targets in the Lokichar Basin."

The Company is also actively pursuing pre-development studies in the Block 10BB/13T area including commencement of the front end engineering design (FEED) and environmental and social impact assessment (ESIA) studies for the pipeline, export terminal and field facilities. It is the goal of the partnership to conclude these studies and achieve project sanction by the end of 2015/early 2016.

Significant Events in 2013


--  Africa Oil ended the year with cash of $493.2 million and working
    capital of $439.8 million. In October, the Company completed a brokered
    private placement issuing an aggregate of
    56,505,217 common shares at a price of 51.75 Swedish Kronas ("SEK") per
    common share for net proceeds of $440 million significantly improving
    the Company's liquidity and capital resource position. 
--  During 2013, the Company completed seven exploration wells and two
    multi-zone well tests across its blocks and exited the year with three
    wells drilling and one well under test. 
--  During the first half of the 2013, the Company completed a series of
    well tests at both Twiga South-1 and Ngamia-1 on Blocks 13T and 10BB in
    Kenya, respectively. These successful well tests confirmed over 5,000
    barrels of oil per day ("bopd") flow potential per well and doubled the
    previous estimates of net oil pay. Transient Pressure Analysis has been
    conducted on the Twiga South-1 and Ngamia-1 well tests. No pressure
    depletion was recorded over the duration of the tests. 
--  In July 2013, the Company announced a new oil discovery at Etuko-1.
    Etuko-1 is located 14 kilometres east of Twiga South-1 in Block 10BB and
    was the first test of the Basin Flank Play in the eastern part of the
    South Lokichar Basin. The well encountered approximately 40 metres of
    net oil pay in the Auwerwer and Upper Lokhone targets and approximately
    50 metres of additional potential net pay in the Lower Lokhone interval
    based on log analysis. In February 2014, the Company announced the
    results of five well tests conducted on five Lokhone pay intervals in
    Etuko-1. Light 36 degree API waxy crude oil was successfully flowed from
    three zones at a combined average rate of over 550 barrels of oil
    equivalent per day. 
--  In September 2013, the Company announced a new oil discovery at Ekales-1
    located in the Basin Bounding Fault Play between the Ngamia-1 and Twiga
    South-1 discoveries. Logs indicated a potential pay zone of 60 to 100
    metres to be confirmed by flow testing. 
--  In November 2013, the Company announced a new oil discovery at Agete-1
    located seven kilometres north of the Twiga South-1 discovery along the
    Basin Bounding Fault Play in Block 13T. Logs indicated a significant oil
    column with an estimated 100 metres of net oil pay in good quality
    sandstone reservoirs. Well testing will commence imminently and an
    appraisal well is planned in the first half of 2014. 
--  In January 2014, the Company announced a new oil discovery at Amosing-1
    located seven kilometres southwest of the Ngamia-1 discovery along the
    Basin Bounding Fault Play in Block 10BB. Logs indicate 160 to 200 metres
    of potential net oil pay in good quality sandstone reservoirs. Well
    testing and an appraisal well are planned for the first half of 2014. 
--  Also in January 2014, the Company announced a new oil discovery at Ewoi-
    1 located four kilometres to the east of the Etuko-1 discovery in the
    Basin Flank Play on the eastern side of the South Lokichar Basin in
    Block 10BB. Logs indicate potential net pay of 20 to 80 metres to be
    confirmed by well testing. 
--  Given the significant volumes discovered and the extensive exploration
    and appraisal program planned to fully assess the upside potential of
    the basin, the Tullow-Africa Oil joint venture has agreed with the
    Government of Kenya to commence development studies. In addition, the
    partnership is involved in a comprehensive pre-FEED study of the export
    pipeline. The current ambition of the Government of Kenya and the joint
    venture partnership is to reach project sanction for development,
    including an export pipeline, by the end of 2015 or early 2016. 
--  To facilitate these development activities in parallel with exploration
    and appraisal, an "Area of Interest" (AOI) encompassing the South
    Lokichar Basin discoveries and further prospects in
    Blocks 10BB and 13T, was agreed with the Government of Kenya in February
    2013. This agreement allows a multiple field approach to development of
    the resources while permitting the continued focus on exploration to
    increase the resource base while concurrently appraising discoveries. 
--  All operations in Block 10BB and Block 13T in Northern Kenya were
    temporarily suspended for approximately 12 days beginning on October 28,
    2013 as a precautionary measure following demonstrations by members of
    local communities. Operations resumed after successful discussions
    relating to the operating environment with central and regional
    government and local community leaders. These discussions led to the
    signing of a Memorandum of Understanding which clearly lays out a plan
    for the Government of Kenya, county government, local communities in
    Northern Kenya and the Tullow-Africa Oil joint venture to work together
    inclusively over the long-term and to ensure operations can continue
    without disruption in the future. 
--  In the first quarter of 2013, the Tullow-Africa Oil joint venture tested
    a Cretaceous play in the Anza Basin with the Paipai-1 commitment well in
    Block 10A (Kenya), encountering light hydrocarbon shows. Due to concerns
    over economic viability, the Company and its partners have relinquished
    Block 10A. As a result, the Company recorded a $22.9 million impairment
    of intangible exploration assets in the fourth quarter of 2013. 
--  In December 2013, the Company reported that the Bahasi-1 well on Block 9
    in Kenya, had only encountered minor shows of gas. The rig then moved to
    drill Sala-1 on the northeastern flank of the basin to test a large
    prospect in the Cretaceous Anza rift, which is up-dip of two wells that
    had significant hydrocarbon shows. The Sala-1 well is currently drilling
    and is expected to complete in the second quarter of 2014. 
--  In July 2013, the Company reported that the Sabisa-1 well on the South
    Omo Block in Ethiopia, the most northerly well drilled on the Tertiary
    rift trend to date, had confirmed a viable hydrocarbon system with oil
    and heavy gas shows. In December 2013, the Company announced that the
    potential hydrocarbon bearing sands in Sabisa-1 were not present at the
    Tultule-1 well location. There were gas shows in the section, which
    point to a potential hydrocarbon source, and the results of these two
    wells will be analyzed to determine the future exploration program
    direction in the North Turkana Basin. Preparations are underway to drill
    two exploration wells in the Chew Bahir Basin, located to the east of
    the South Omo Block, in 2014. The first of these wells, Shimela-1, will
    spud imminently. 
--  The Company and its partners continued to actively acquire, process and
    interpret an extensive 2D seismic program totaling approximately 3,044
    kilometres during 2013 over Blocks 10BA, 10BB, 12A, 13T in Kenya and the
    South Omo Block in Ethiopia with two onshore and one offshore 2D seismic
    crews operating through the year. A third onshore 2D seismic crew
    operating in the South Omo Block was released in May 2013 after
    completing 1,174 kilometres of 2D seismic. During 2014, the Company is
    planning to acquire 1,270 kilometres 2D seismic over the North Lokichar
    and Kerio Basins covering Blocks 10BB, 10BA and 13T. In addition, the
    Company and its partner in Blocks 10BB and 13T have commenced the
    acquisition a 550 square kilometre 3D seismic survey over the
    discoveries and prospects along the western basin bounding fault in the
    South Lokichar Basin. 
--  In September 2013, the Company announced details of an updated
    independent assessment of the Company's contingent and prospective
    resources on its Kenyan and Ethiopian exploration properties. The
    effective date of this assessment was 31 July 2013 and it was carried
    out in accordance with the standards established by the Canadian
    Securities Administrators in National Instrument 51-101 Standards of
    Disclosure for Oil and Gas Activities. The assessment confirmed that the
    discovered South Lokichar Basin in Northern Kenya contains gross
    contingent resources of 368 million barrels of oil in the first three of
    seven discoveries in the basin, an increase of 557% over the assessment
    conducted in mid 2012. In addition, gross risked prospective resources
    of 1,213 million barrels of oil are estimated for the South Lokichar
    Basin. Net Contingent Resources for the Company are estimated at 231
    million barrels of oil. Net Unrisked Prospective Resources for the
    Company are estimated at 9,647 million barrels of oil (excluding
    Puntland) and Net Risked Prospective Resources at 1,294 million barrels
    of oil (excluding Puntland). Please refer to the Company's press release
    dated September 3, 2013 for details of the prospective and contingent
    resources by prospect and lead, including the geologic chance of
    success. Plans are underway to update this independent resource
    assessment to include well results since July 2013 for release in the
    second quarter of 2014. The Company has a significant exploration and
    appraisal program set out for 2014 which will see over 20 wells
    completed. The program is focused on drilling out the remaining prospect
    inventory in the South Lokichar Basin, appraising existing and future
    discoveries with the aid of the new 3D Seismic survey, drilling six new
    basin opening wells and progressing the South Lokichar Basin development
    studies towards project sanction. This significant program in 2014 is
    fully funded. 

2013 Financial and Operating Highlights

Consolidated Statement of Net Income (Loss) and Comprehensive Income (Loss)

(Thousands of United States Dollars)


---------------------------------------------------------------------------
For the years ended                                December 31, December 31,
                                                          2013         2012
---------------------------------------------------------------------------
                                                                           
Operating expenses                                                         
  Salaries and benefits                                $ 5,040      $ 3,665
  Stock-based compensation                              12,746        4,943
  Travel                                                 1,588        1,469
  Office and general                                     1,160        1,012
  Donation                                               1,151        2,313
  Depreciation                                              55           48
  Professional fees                                        786        4,187
  Stock exchange and filing fees                           969          916
  Impairment of intangible exploration assets           22,874        3,127
---------------------------------------------------------------------------
                                                        46,369       21,680
Finance income                                          (4,141)      (1,727)
Finance expense                                          9,210          164
---------------------------------------------------------------------------
Net loss and comprehensive loss                         51,438       20,117
---------------------------------------------------------------------------
Net income and comprehensive income attributable                           
 to non-controlling interest                            (1,222)      (2,676)
Net loss and comprehensive loss attributable to                            
 common shareholders                                    52,660       22,793
---------------------------------------------------------------------------
Net loss attributable to common shareholders per                           
 share                                                                     
  Basic                                                 $ 0.20       $ 0.10
  Diluted                                               $ 0.20       $ 0.10
---------------------------------------------------------------------------
Weighted average number of shares outstanding for                          
 the purpose of calculating earnings per share                             
  Basic                                            263,081,763  220,664,278
  Diluted                                          263,081,763  220,664,278
---------------------------------------------------------------------------

Operating expenses increased $24.7 million for the year ended December 31, 2013 compared to the prior year. The Company recorded a $22.9 million impairment of intangible exploration assets relating to Block 10A in Kenya in 2013, while in 2012, the Company recorded a $3.1 million impairment of intangible exploration assets relating to Blocks 7 and 11 in Mali. The increase of $7.8 million in stock -based compensation is attributable to an increase in the number of options granted in 2013 compared to 2012. The $3.4 million decrease in professional fees was mainly the result of 420,000 common shares issued in 2012 as a settlement of claimed professional fees relating to previously completed farmout transactions. The $1.4 million increase in salary and benefits is the result of increased operational activity and increased headcount in 2013. The Company made $1.2 million donation in 2013 and a $2.3 million donation in 2012, both to the Lundin Foundation.

Financial income and expense is made up of the following items:


---------------------------------------------------------------------------
For the years ended                                December 31, December 31,
                                                          2013         2012
---------------------------------------------------------------------------
                                                                           
Loss on marketable securities                                -         (124)
Fair value adjustment - warrants                         3,115          832
Interest and other income                                1,026          326
Bank charges                                               (24)         (40)
Foreign exchange gain (loss)                            (9,186)         569
---------------------------------------------------------------------------
                                                                           
Finance income                                           4,141        1,727
Finance expense                                         (9,210)        (164)
---------------------------------------------------------------------------

The loss on revaluation of marketable securities is the result of a decrease in the value of 10 million shares held in Encanto Potash Corp which were acquired as part of the acquisition of Lion. These shares were sold during the first quarter of 2012.

At December 31, 2013, nil warrants were outstanding in AOC and 9.5 million warrants were outstanding in Horn. AOC holds 2.2 million of the warrants outstanding in Horn. The Company recorded a $3.1 million gain on the revaluation of warrants for the year ended December 31, 2013 due to a reduction in the number of Horn warrants outstanding, a reduction of the remaining life of the Horn warrants that remain outstanding, and a reduction in the volatility of the Horn's share price. The Company will record fair market value adjustments on the Horn warrants until they are exercised or they expire (all expire in June 2014).

Interest income increased in 2013 due to a significant increase in cash late in the fourth quarter of 2012 and in the fourth quarter of 2013 as a result of cash received from the non-brokered private placement in December 2012 and the brokered private placement in October of 2013, respectively.

During October of 2013, the Company entered into an economic hedge in an effort to mitigate exposure to fluctuations in the US dollar versus the Swedish Krona exchange rate between the date the private placement was announced and the date the private placement closed, in which the Company issued shares for Swedish Krona. As a result, the Company incurred foreign exchange losses on the foreign currency instrument of $7.4 million in the fourth quarter of 2013. The remaining foreign exchange gains and losses are primarily related to changes in the value of the Canadian dollar in comparison to the US dollar. Historically, the Company has recorded foreign exchange gains when the Canadian dollar has strengthened versus the US dollar, and has recorded losses when the Canadian dollar has weakened versus the US dollar.

Consolidated Balance Sheets

(Thousands United States Dollars)


---------------------------------------------------------------------------
                                                   December 31, December 31,
                                                          2013         2012
---------------------------------------------------------------------------
                                                                           
ASSETS                                                                     
Current assets                                                             
  Cash and cash equivalents                          $ 493,209    $ 272,175
  Marketable securities                                      -            -
  Accounts receivable                                    3,195        2,848
  Prepaid expenses                                       1,379        1,124
---------------------------------------------------------------------------
                                                       497,783      276,147
Long-term assets                                                           
  Restricted cash                                        1,250        1,119
  Property and equipment                                   103           82
  Intangible exploration assets                        488,688      282,109
---------------------------------------------------------------------------
                                                       490,041      283,310
                                                                           
Total assets                                         $ 987,824    $ 559,457
---------------------------------------------------------------------------
                                                                           
LIABILITIES AND EQUITY                                                     
Current liabilities                                                        
  Accounts payable and accrued liabilities            $ 57,976     $ 36,188
  Current portion of warrants                                1        2,288
---------------------------------------------------------------------------
                                                        57,977       38,476
Long-term liabilities                                                      
  Warrants                                                   -          828
---------------------------------------------------------------------------
                                                             -          828
                                                                           
Total liabilities                                       57,977       39,304
---------------------------------------------------------------------------
                                                                           
Equity attributable to common shareholders                                 
  Share capital                                      1,007,414      558,555
  Contributed surplus                                   24,396       12,123
  Deficit                                             (150,736)     (98,076)
---------------------------------------------------------------------------
                                                       881,074      472,602
  Non-controlling interest                              48,773       47,551
---------------------------------------------------------------------------
Total equity                                           929,847      520,153
---------------------------------------------------------------------------
Total liabilities and equity                         $ 987,824    $ 559,457
---------------------------------------------------------------------------

The increase in total assets from 2012 to 2013 is due to the brokered private placement in October 2013 which raised $440 million net of issuance costs and related foreign exchange.

Consolidated Statement of Cash Flows

(Thousands United States Dollars)


---------------------------------------------------------------------------
                                                   December 31, December 31,
                                                          2013         2012
---------------------------------------------------------------------------
Cash flows provided by (used in):                                          
Operations:                                                                
  Net loss and comprehensive loss for the year       $ (51,438)   $ (20,117)
  Items not affecting cash:                                                
    Stock-based compensation                            12,746        4,943
    Share-based expense                                      -        3,763
    Depreciation                                            55           48
    Loss on marketable securities                            -          124
    Impairment of intangible exploration assets         22,874        3,127
    Fair value adjustment - warrants                    (3,115)        (832)
    Foreign exchange loss related to financing           7,396            -
    Unrealized foreign exchange loss                        25        1,055
    Changes in non-cash operating working capital         (756)        (657)
---------------------------------------------------------------------------
                                                       (12,213)      (8,546)
Investing:                                                                 
    Property and equipment expenditures                    (76)         (91)
    Intangible exploration expenditures               (229,453)    (133,823)
    Farmout proceeds                                         -       34,259
    Proceeds from sale of marketable securities              -        2,442
    Changes in non-cash investing working capital       21,942       12,373
---------------------------------------------------------------------------
                                                      (207,587)     (84,840)
Financing:                                                                 
    Common shares issued                               448,386      255,169
    Foreign exchange loss related to financing          (7,396)           -
    Deposit of cash for bank guarantee                  (1,250)        (375)
    Release of bank guarantee                            1,119        2,175
---------------------------------------------------------------------------
                                                       440,859      256,969
Effect of exchange rate changes on cash and cash                           
 equivalents denominated in foreign currency               (25)        (966)
---------------------------------------------------------------------------
Increase in cash and cash equivalents                  221,034      162,617
Cash and cash equivalents, beginning of year           272,175    $ 109,558
---------------------------------------------------------------------------
Cash and cash equivalents, end of year                 493,209    $ 272,175
---------------------------------------------------------------------------
  Supplementary information:                                               
    Interest paid                                          Nil          Nil
    Income taxes paid                                      Nil          Nil
---------------------------------------------------------------------------

The increase in cash for the year ended December 31, 2013 is mainly the result of the brokered private placement in October 2013 which raised $440 million in cash net of issuance costs and related foreign exchange, offset partially by intangible exploration expenditures and cash-based operating expenditures.

Consolidated Statement of Equity

(Thousands United States Dollars)


---------------------------------------------------------------------------
                                                   December 31, December 31,
                                                          2013         2012
---------------------------------------------------------------------------
                                                                           
Share capital:                                                             
  Balance, beginning of year                         $ 558,555    $ 306,510
  Private placement, net                               447,355      226,446
  Exercise of warrants                                       -       14,340
  Shares issued in lieu of professional fees                 -        3,763
  Exercise of options                                    1,504        7,496
  -------------------------------------------------------------------------
  Balance, end of year                               1,007,414      558,555
  -------------------------------------------------------------------------
Contributed surplus:                                                       
  Balance, beginning of year                          $ 12,123      $ 8,425
  Exercise of Horn warrants                                  -        1,148
  Stock based compensation                              12,746        4,943
  Exercise of options                                     (473)      (2,393)
  -------------------------------------------------------------------------
  Balance, end of year                                  24,396       12,123
  -------------------------------------------------------------------------
Deficit:                                                                   
  Balance, beginning of year                         $ (98,076)   $ (75,283)
  Dilution loss through equity                               -            -
  Net loss and comprehensive loss attributable to                          
   common shareholders                                 (52,660)     (22,793)
  -------------------------------------------------------------------------
  Balance, end of year                                (150,736)     (98,076)
  -------------------------------------------------------------------------
  Total equity attributable to common                                      
   shareholders                                      $ 881,074      472,602
  -------------------------------------------------------------------------
Non-controlling interest:                                                  
  Balance, beginning of year                          $ 47,551     $ 36,296
  Non-controlling interest on issuance of Horn                             
   shares                                                    -        8,579
  Net income and comprehensive income                                      
   attributable to non-controlling interest              1,222        2,676
  -------------------------------------------------------------------------
  Balance, end of year                                  48,773       47,551
  -------------------------------------------------------------------------
  Total equity                                       $ 929,847    $ 520,153
---------------------------------------------------------------------------

The Company's consolidated financial statements, notes to the financial statements, management's discussion and analysis for the year ended December 31, 2013 and the 2013 Annual Information Form have been filed on SEDAR (www.sedar.com) and are available on the Company's website (www.africaoilcorp.com).

Outlook

The Company has increased the pace of exploration significantly during 2013. Seven rigs are currently operating. Completion of the brokered private placement in October 2013 has increased the Company's liquidity and capital resource position which is expected to fund the Company's portion of exploration, appraisal and development activities until mid 2015.

The near term focus of exploration is to continue drilling and testing wells in the South Lokichar Basin in Northern Kenya improving on recent cost efficiencies realized while continuing to grow the Company's contingent resource base, and to drill potential basin-opening wells in the Turkana, Chew Bahir, Kerio, and Anza basins within Kenya and Ethiopia.

The results to date onshore Kenya are an important step towards understanding the potential and commerciality of the South Lokichar Basin. Resources discovered to date are of a scale that the Tullow-Africa Oil joint venture has initiated discussions with the Government of Kenya and other relevant stakeholders regarding development options including an export pipeline. It is understood that discussions are ongoing between the Governments of Kenya, Uganda and Sudan regarding a regional crude oil pipeline export system to Lamu in Kenya and the Government of Kenya has indicated that it will issue an Expression of Interest within the next few months seeking parties willing to fund, build and operate the pipeline system.

In 2014, the Company expects to drill six new basin opening wells, drill all key prospects in the South Lokichar Basin, fully appraise the Ngamia and Twiga discoveries, and have a defined understanding of development.

Cautionary Statements regarding Well Test Results

Drill stem tests are commonly based on flow periods of 1 to 5 days and build up periods of 1 to 3 days. Pressure transient analysis has not been carried out on all well tests and the results should therefore be considered as preliminary. Well test results are not necessarily indicative of long-term performance or of ultimate recovery.

Forward Looking Statements

Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable Canadian securities legislation). Such statements and information (together, "forward looking statements") relate to future events or the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities, ultimate recovery of reserves or resources and dates by which certain areas will be explored, developed or reach expected operating capacity, that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in oil prices, results of exploration and development activities, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government or other regulatory approvals, actual performance of facilities, availability of financing on reasonable terms, availability of third party service providers, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements.

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and Ethiopia as well as Puntland (Somalia) through its 45% equity interest in Horn Petroleum Corporation. Africa Oil's East African holdings are within a world-class exploration play fairway with a total gross land package in this prolific region in excess of 215,000 square kilometres. The East African Rift Basin system is one of the last of the great rift basins to be explored. Seven new significant discoveries have been announced in the Northern Kenyan basin in which the Company holds a 50% interest along with operator Tullow Oil plc. The Company is listed on the TSX Venture Exchange and on First North at NASDAQ OMX-Stockholm under the symbol "AOI".

ON BEHALF OF THE BOARD

Keith C. Hill, President and CEO

Africa Oil's Certified Advisor on NASDAQ OMX First North is Pareto Securities AB.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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