Vanoil Energy Ltd.
TSX VENTURE : VEL

Vanoil Energy Ltd.

January 18, 2012 17:30 ET

Vanoil Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2012) - Vanoil Energy Ltd. ("Vanoil" or the "Company") (TSX VENTURE:VEL) has closed its non-brokered private placement, announced on December 23, 2011, issuing 4,755,582 common shares at a price of $0.43 per share for total gross proceeds of $2,044,900.

The securities issued pursuant to the private placement are subject to a four month hold period expiring May 19, 2012. The Company paid finders' fees totalling $60,200.

The proceeds will be used for the continued exploration and development of the Company's African properties and for general working capital purposes.

About Vanoil Energy Ltd.

Based in Vancouver, Canada, Vanoil is an internationally diversified oil and gas exploration company that has a portfolio of oil and gas assets in the African countries of Kenya and Rwanda, and in the Province of Alberta, Canada. In Kenya, Blocks 3A and 3B were acquired in October 2007 through the signing of a Production Sharing Contract with the Government of the Republic of Kenya. Blocks 3A and 3B, which cover 24,912 square kilometres, are part of the under-explored Cretaceous Central African Rift Basin System. Vanoil has a 1,631 square kilometer oil and gas exclusive licence in the East Kivu Graben in Rwanda. Vanoil also owns a 42% working interest in the Sarcee 12-13 gas well and the surrounding four sections (2,560 acres) of land in the Turner Valley Area in South-western Alberta.

To find out more about Vanoil please visit our website at www.vanoil.ca.

Disclaimer for Forward Looking Information

This news release includes forward looking statements that are subject to assumptions, risks and uncertainties. Statements in this news release which are not purely historical are forward looking statements, including without limitation any statements concerning the Company's intentions, plans, estimates, beliefs or expectations regarding the future. Although the Company believes that any such intentions, plans, estimates, beliefs and expectations in this news release are reasonable, there can be no assurance that any such intentions, plans, beliefs and expectations will prove to be accurate.

The Company cautions readers that all forward looking statements, including without limitation those relating to the Company's future operations and business prospects, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward looking statements.

Any forward looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward looking statements, or to update the reasons why actual events or results could or do differ from those projected in the forward looking statements. The Company assumes no obligations to update any forward looking statements, whether as a result of new information, future events or otherwise.

Neither 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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