SacOil

Oil

The Company is focusing on African oil opportunities with the key focus on short-term production situations. The exploration assets should be in proven areas of discovery with above average upside potential. The production mission is currently being addressed by the acquisition of Nigerian near production assets acquired in Joint Venture with EER a Nigerian oil and investment and consulting company. SacOil will have a 50% benefit and funding obligation in all EER joint venture acquisitions.

The exploration property rights are located in the Democratic Republic of the Congo (DRC) Lake Albert area close to the Uganda and DRC border. The area is part of the Rift Valley and is known as the Albertine Graben area which is a proven petroleum discovery region. Bituminous shales are known to be present and are generally mature. This is being evidenced by numerous oil seeps and recent positive drill results in adjacent oil concessions.

Manganese

The Company manufactures manganese, sulphate powder, manganese sulphate solution and manganese oxide at its plant in Mpumalanga better known as the Greenhills plant. The main source of income from the plant is from the sale of manganese sulphate, manganese hydrate and manganese oxide. The average production of the plant is 300 tonnes per month of manganese sulphate and 360 tonnes of manganese oxides which approximately 230 tonnes are used to produce manganese sulphate powder.

This business is not considered to be a core asset.

Strategy

• Build an African footprint with a balanced portfolio of assets - The opportunity to monetize assets
• Explore early stage opportunities in Africa with low entry costs - Established credibility and support to advance projects
• Seek partnerships with major oil and gas companies with extensive experience in Africa - Low/ manageable funding requirements
• Target discovered, but undeveloped, or near-term producing assets - Leverage the value curve by bringing assets in to account

Why Invest in Africa

• Under explored: By 2020 Africa is envisaged to account for 20 per cent of the world Oil & Gas production
• Significant potential for Hydrocarbons: Recent frontier discoveries (Sierra Leone, Ghana, Uganda, Mozambique)
• Energy Security: The need is great amongst African Nations – and growing
• African ownership of Sovereign Assets: Through primarily indigenous companies.

Democratic Republic of the Congo (DRC)

Block III

The exploration property rights are located in the DRC Lake Albert area close to the Uganda and DRC border. The area is part of the Rift Valley and is known as the Albertine Graben area which is a proven petroleum discovery region. Bituminous shales are known to be present and are generally mature. This being evidenced by numerous oil seeps and recent positive drill results in adjacent oil concessions.

DRC Block 3 Albertine Graben

The Albertine Graben is part of the East African Rift System (Western Branch) which is a relatively young exploration province with the fi rst exploration starting as recent as 1999. To date over 800 million barrels of recoverable oil resources have been discovered with two fields namely Kingfisher (200 million barrels) and Giraffe-Buffalo (300 million barrels) being the biggest discoveries. The total resource base estimated at 2 G barrels. To date the majority of the exploration has been on the Uganda side but the DRC concessions are considered to be highly prospective with Block 3 being close to recent significant discoveries.

Ownership

SacOil PTY Limited has an 85% participating interest in Block 3 with SacOil Holdings having a 50% stake which results in an overall 42.5% participating interest. The National Oil Company of the DRC holds a 15% interest.

Technical

The licence area is 3,177 square kilometres situated mostly in low land (Semliki river plain) flanked by rift margins and is on trend from recent discoveries in Uganda. The areas have been identified as Oil and Gas prone with the main source kitchen believed to be below deeper parts of Lake Albert. It is considered possible that a smaller kitchen is located in the southern part of Block 3. Kibuku oil seeps suggest that oil is likely to be found in the northern part of the block.

Work programme

The five year programme will be divided into five sub-periods and the initial work will include field studies as well as geochemical studies. Following this will be the acquisition, processing and interpretation of a minimum of 4,000 square kilometres of 2D seismic data. If the results are satisfactory then a drilling programme will follow with at least two exploration wells being drilled.

Competent Person’s report

A Competent Person’s Report on Block III has been prepared according to the rules of AIM, including the AIM Giuidance Note for Mining, Oil and Gas Companies, June 2009.

Nigeria

Block OPL 281

The production mission is currently being addressed by acquisition of Nigerian near production assets acquired in Joint Venture with EER a Nigerian Oil and Investment and Consulting company. SacOil will have a 50% benefit and funding obligation in all EER joint venture acquisitions.

The background and deal

OPL is an ex Shell permit having been drilled between 1967 and 1970. The initial award was to a company named Binergy Limited who subsequently had their licence revoked. The block was rewarded to Transcorp in 2006 as part of a Mini Bid Round. Transcorp have paid the majority of the $30 million signing bonus and will cede a 40% equity stake to SacOil on condition the licence is reinstated to Transcorp by the Federal Government of Nigeria.

Terms of the Farm-in:

EER is the technical partner who will operate the asset on behalf of the JV and Transcorp

JV will pay $20 million upon Minister of Petroleum consent for deal

JV will pay $7.5 million upon commercial production declaration

JV will pay $5 million within 90 days of first oil being produced

Technical

Discovery wells Obote-1 and Ekoro-1 drilled between 1967-1970. The terrain is an onshore swamp location and the entire block has been covered by Shell with 3D Seismic during 1991/2. The competent persons report indicates Contingent Resources of 250 MMBOE with further potential in two additional prospects and deeper zones. The hydrocarbons in the two wells were discovered between 2,400 and 4,000 metres with Obote-1 encountering 4 hydrocarbon levels and Ekoro-1 intersecting 8 hydrocarbon levels.

South Africa

Greenhills plant

The company manufactures manganese, sulphate powder, manganese sulphate solution and manganese oxide at its plant in Mpumalanga better known as the Greenhills plant. The main source of income from the plant is from the sale of manganese sulphate, manganese hydrate and manganese oxide. The average production of the plant is 300 tonnes per month of manganese sulphate and 360 tonnes of manganese oxides which approximately 230 tonnes are used to produce manganese sulphate powder. This business is not considered to be a core asset and will be probably disposed of in the short term future.

Board

Richard John Linnell - Independent Non-executive Chairman

Appointed 19 September 2002

Member of Audit and Risk Committee and member of Nomination and Remuneration Committee

Richard Linnell is an experienced geologist, who has worked with various companies which now form part of the BHP Billiton (SA) Group, culminating in running the Samancor manganese operations and Billiton’s exploration and development activities in South Africa. Richard is a former non-executive director of BHP Billiton (SA) Limited and is Chairman of Coal of Africa Limited. Richard is also Chairman of Independent Power South Africa.

Gontse Moseneke - Non-executive Director of SacOil

Appointed 31 August 2009

Chairman of Social and Ethics Committee and member of Nomination and Remuneration Committee

Gontse Moseneke has a background in financial management and investment banking. He is part of the executive team at Encha Group Limited, a diversified ed investment holding company. He has also been involved in a project by the South African Oil and Gas Alliance to develop and market South Africa’s engineering and related services capability. Gontse holds a Bachelor of Science degree in Statistics and Actuarial Sciences from the University of Cape Town, and a Diploma in Actuarial Techniques from the Institute of Actuaries (London, United Kingdom).

Colin Bird - Non-executive Director of SacOil

Appointed 20 April 2008

Colin has a Diploma in Mining Engineering, is a Fellow of the Institute of Materials, Minerals and Mining and is a certified Mine Manager both in the UK and South Africa. In the past Colin was Technical and Operations Director of Costain Mining, which involved responsibility for operations in Argentina, Venezuela and Spain.

Besides that he has been involved in the management of nickel, copper, gold and other diverse mineral operations. Colin has founded and floated several public companies in the resource sector and served on resource company boards in the UK, Canada and South Africa.

James William (Bill) Guest - Independent Non-executive Director

Appointed 1 May 2011

Chairman of Audit and Risk Committee and member of Social and Ethics Committee

Bill has over 35 years’ international exploration and production experience within the oil industry, in technical business development and senior management functions. He has 14 years’ experience as a main board director of London listed oil and gas exploration and production companies with front line involvement in corporate and strategic development, PR/IR and fundraising. Recent roles included being the managing director of Endeavour Norway and President of Gulf Keystone Petroleum. Currently Bill is a non-executive director of Hurricane Exploration plc. and Matra Petroleum. Bill holds a BSc Honours degree in Geology from Leicester University, UK and is a Fellow of the United Kingdom Energy Institute.

John Bentley - Independent Non-executive Director

Appointed 1 May 2011

Chairman of Nomination and Remuneration Committee and member of Audit and Risk Committee

John has over 40 years’ experience in the natural resources sector. He was Managing Director of Gencor's Brazilian mining company, Sao Bento Mineracao, from 1988 to 1993 when he became chief executive of Engen's Exploration & Production division. In 1996 he was instrumental in floating Energy Africa Limited on the Johannesburg Stock Exchange and became Chief Executive for the following five years building it into one of the leading African independent oil and gas companies.

More recently John was Executive Chairman of FirstAfrica Oil plc and a non-executive director of Adastra Minerals Limited. He currently serves on the board of a number of resource companies including as chairman of Faroe Petroleum plc, chairman of Scotgold Resources Limited, deputy chairman of Wentworth Resources Limited and non-executive director of Resaca Exploitation Inc and Kea Petroleum plc. John holds a degree in Metallurgy from Brunel University.

Management Team

Robin Vela - Chief Executive Officer

Appointed 25 February 2008

Robin is the founding Chief Executive Oficer of SacOil. Robin is a professionally qualified and experienced Investment Banker/Executive as well as a UK qualified Chartered Accountant and Fellow of the UK Chartered Securities Institute. Robin is also an appointed consultant to the World Bank and International Finance Corporation.

During his career path Robin has a verifiable track record of leading and closing corporate and investment related transactions in SADC and the City of London. Robin graduated with an honours degree in Economics and Accounting from Bristol University.

Carina de Beer - Finance Director

Appointed 10 August 2010

Carina heads the financial division of SacOil. Carina is a Chartered Accountant (SA) and completed her articles with PricewaterhouseCoopers.

Carina has 12 years’ experience in corporate financial management and reporting, company secretarial practice, compliance and corporate governance. Carina has served as an executive member of a number of JSE listed entities. She is a member of the Institute of Directors as well as the South African Institute for Chartered Accountants.

Bradley Cerff - Vice President

Appointed 9 May 2011

Bradley Cerff has 15 years’ experience in the oil and gas exploration and production industry. Bradley joined SacOil from PetroSA where he held the position of regional manager for East and West Africa. He was responsible for upstream assets and business development in East and West Africa, maintaining and developing a sustainable portfolio of exploration and production assets in West Africa.

Bradley has managed teams and assets in almost all African oil producing countries including Nigeria. Bradley has also drilled a number of exploration and production wells, developed and produced oil on the continent.

Bradley has a Masters Degrees in Science and Business Administration focused on foreign direct investment in the African oil and gas industries. He is also a member of the Society of Petroleum Engineers.

Willem de Meyer - Vice President - Commercial

Appointed 10 January 2012

Willem obtained a B.Sc (Hons) degree in Geophysics at the University of Pretoria and a M.Com degree in Mineral Economics at the Rand Afrikaans University.

His 25 years of technical and operational experience in the O&G industry with PetroSA, the National Oil Company of South Africa, and SOEKOR, which he joined in 1982 and subsequently became part of PetroSA.

Willem held a variety of senior managerial roles, including General Manager of E&P, Vice President of new business and chief economist. A Geophysicist by training, he is a member of the South African Geophysical Association and registered as a Professional Natural Scientist with the South African Council for Natural Scientific Professions. Willem will, on a part time basis, retain his responsibilities as an Investment Analyst to the Earth Resource Investment Group.

Jordaan Fouché - Vice President – Technical and New Business

Appointed 10 January 2012

Jordaan holds an honours degree in Geology and an MBA, both from the University of Stellenbosch.

He has over 25 years’ experience in the O&G industry primarily as an investor in O&G companies and assets. Jordaan developed his operational and technical skills set as a geophysicist at SOEKOR / PetroSA, where he was a Project Leader and International Portfolio Manager and was extensively involved in both technical and commercial work, including seismic acquisition and interpretation and the commercial analysis of O&G reservoirs.

Jordaan was a founding member of the Earth Resource Investment Group, a leading and award winning energy resource investment fund. Prior to that, he spent time as an Investment Analyst at Craton Capital and a Senior Project Manager at Industrial Development Corporation, a South African development finance institution.

The Company is aware of the following shareholdings on Admission:

Updated from SacOil website 10.05.2012