Africa Oil completes investment in Impact Oil and Gas

On February 7, 2018, Africa Oil Corp. ("Africa Oil") announced that it entered into agreements that will provide it with an approximately 25.2% equity interest in Impact Oil and Gas Limited ("Impact").

Pursuant to the subscription agreement, inter alia Impact will provide for the purchase of 59,681,539 ordinary shares and 29,840,769 ordinary share purchase warrants for an aggregate subscription price of approximately US$15 million. The subscription agreement also provides that during the nine (9) month period after closing of the transactions contemplated by the subscription agreement, Africa Oil may acquire, at the election of either Africa Oil or Impact, an additional 9,946,923 shares and 4,973,461 warrants for an aggregate subscription price of approximately US$2,500,000.

Africa Oil also entered into a share purchase agreement with Helios Natural Resources 2 Ltd. ("Helios") to acquire 70,118,381 shares and 15,529,731 warrants currently held by Helios in the capital of Impact in exchange for 13,946,545 common shares of Africa Oil.

Finally, Africa Oil entered into an investors agreement with Impact and certain other shareholders of Impact that will provide Africa Oil with the right to nominate up to two members of the board of directors of Impact based on certain share ownership thresholds and consent rights with respect to certain fundamental matters in respect of Impact, including the future issuance of securities of Impact.

Africa Oil announced the completion of the US$15 million subscription in Impact and the purchase of Impact warrants held by Helios on March 7, 2018, upon receipt of all necessary approvals.

Impact is a private UK company that acquired its first asset, the Tugela South Exploration Right, offshore South Africa in 2011 and has subsequently expanded its asset base across the offshore margins of South and West Africa.

Africa Oil is a Canadian oil and gas company with assets in Kenya and Ethiopia, including the South Lokichar Basin (25% working interest in Blocks 10BB and 13T), where the Company and its Joint Venture Partners are undertaking activities aimed at sanctioning development.

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