Africa Oil closes $100 million financing

Africa Oil has announced that it has closed the $100 million non-brokered private placement previously announced May 1, 2015. Pursuant to an Investment Agreement dated May 1, 2015, 52,623,377 common shares, issued at a price of CAD $2.31 per share for gross proceeds of CAD $121,560,000 (US $100 million1) have been released to Stampede Natural Resources S.à r.l. (“Stampede”), an entity owned by a fund advised by Helios Investment Partners LLP (“Helios”). Stampede now holds approximately 12.37 percent of the issued and outstanding common shares of the company. With the increase of 52,623,377 new common shares of the company, the total number of issued and outstanding common shares of the company is, as at the date hereof, 425,248,026 common shares with voting rights.

Also pursuant to the Investment Agreement, Andrew Bartlett, Oil and Gas Partner at Helios, has been appointed as Helios’ nominee to the Africa Oil board of directors. Stampede has also been granted certain rights, 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.

The Toronto Stock Exchange (the “TSX”) has conditionally approved the private placement and the new shares will be admitted to trading on Nasdaq Stockholm following approval and registration of an admittance to trading prospectus with the Swedish Financial Supervisory Authority.

The common shares issued pursuant to the private placement 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 until September 30, 2015.

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and Ethiopia as well as Puntland (Somalia) through its equity interest in Africa Energy Corp. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol “AOI”.