Africa Oil Corp.
TSX VENTURE : AOI

Africa Oil Corp.

March 30, 2009 17:08 ET

Africa Oil Increases Private Placement and Revises Terms

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 30, 2009) - Africa Oil Corp. ("Africa Oil" or "the Company") (TSX VENTURE:AOI) is pleased to advise that it has agreed to increase the size of its previously announced private placement from Cdn $20 million to up to Cdn $30 million. In addition, the terms of the private placement, including the price per subscription receipt, have been amended so that an aggregate of up to 31,578,947 subscription receipts will be issued at a price of Cdn $0.95 per receipt. Each subscription receipt will entitle the holder to receive one unit of the Company without further payment upon completion of the previously announced acquisition of a portfolio of East African properties from Lundin Petroleum AB. One unit shall comprise one common share plus one share purchase warrant exercisable at Cdn $1.50 per share for a period of three years. In the event that Africa Oil trades at or above Cdn $2.00 for a period of 20 consecutive days, a forced exercise provision will come into effect. A 5% finder's fee may be payable on all or a portion of the private placement.

The net proceeds of the private placement will be used to finance the operations of the portfolio of East African oil exploration projects to be acquired from Lundin Petroleum as well as for general working capital purposes. If the acquisition is not completed on or before June 15, 2009, the subscription receipts shall be automatically redeemed by the Company at a price equal to the price paid by the holder plus accrued interest.

In addition, the Company announces that Mr. Keith Hill will be appointed Chief Executive Officer of the Company, effective immediately. Mr. Rick Schmitt will remain President of Africa Oil.

Mr. Hill has over 25 years experience in the oil industry including international new venture management and senior exploration positions at Occidental Petroleum and Shell Oil Company. Prior to his involvement with Africa Oil, Mr. Hill was President and CEO of Pearl Exploration and Production Ltd., following upon his success as President and CEO of Valkyries Petroleum where he led the company through rapid growth and ultimately a highly successful $700 million takeover by Lundin Petroleum. In addition, Mr. Hill was one of the founding directors of Tanganyika Oil which was recently the subject of a $2 billion takeover by Sinopec International Petroleum. His education includes a Master of Science degree in Geology and Bachelor of Science degree in Geophysics from Michigan State University as well as an MBA from the University of St. Thomas in Houston.

Further to a news release dated February 4, 2009, the Company's existing Cdn $6 million loan (plus accrued interest) from a shareholder of the Company will be now converted to units of the Company on the basis of Cdn $0.95 per unit. Each unit will comprise one common share and one share purchase warrant, each warrant having the same terms as the units issued in the private placement.

The foregoing transactions are subject to all requisite regulatory, government and shareholder approval as required.

ON BEHALF OF THE BOARD

Rick Schmitt, President

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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