Africa Oil Corp. reports that the TSX Venture Exchange has accepted for filing documentation pertaining to the August 19, 2009 farmout agreement between Lion Energy Corp. (“Lion Energy”) and Africa Oil. under the farmout agreement Lion Energy has the right to earn an interest in three petroleum blocks located in the Republic of Kenya and two petroleum blocks located in Puntland, Somalia.

With regards to the three petroleum blocks located in Kenya, Africa Oil will transfer to Lion Energy a 10% interest in the Block 9 Production Sharing Agreement, a 25% license interest in the Block 10A Production Sharing Contract and a 20% interest in Block 10BB Production Sharing Contract. Under the terms of the Block 9 PSA, with the drilling of the Bogal-1 well, which is currently continuing, the Company and its partners have fulfilled and exceeded the minimum work and financial obligations of the initial exploration period. As consideration for farming into Block 9, Lion Energy has agreed to finance 33.333 per cent (to a maximum of US$5-million) of Africa Oil’s obligation to pay 40% of exploration costs incurred under the JOA in respect of Block 9. Lion Energy will be responsible for financing its working interest share of all other joint operating expenses.

Under the terms of the Block 10A PSC, the initial four-year exploration period expires in October, 2011, the partners are obligated to complete geological and geophysical (“G&G”) operations (including acquisition of 750 kilometers of 2-D seismic) with a minimum expenditure of US$7.8-million. Additionally, the partners are required to drill one exploration well with a minimum expenditure of US$8.5-million. As consideration for farming into Block 10A, Lion Energy has agreed to finance 50 per cent (to a maximum of US$4-million) of future joint operating expenses in the performance of a seismic program. Lion Energy will be responsible for financing its working interest share of all other joint operating expenses.

In accordance with the terms of the Block 10BB PSC, the initial exploration period expires in January, 2012, the partners are obligated to complete G&G operations (including acquisition of 200 kilometers of 2-D seismic and 200 square kilometers of 3-D seismic) with a minimum expenditure of US$6-million gross. In addition, the partners are required to drill one exploration well with a minimum expenditure of US$6-million. As consideration for farming into Block 10BB, Lion Energy has agreed to finance 40 per cent (to a maximum of US$6-million) of future joint operating expenses in the performance of a seismic program and drilling of one exploration well. Lion Energy will be responsible for financing its working interest share of all other joint operating expenses.

Under the terms of the PSAs for the Nugaal and Dharoor blocks, located in Somalia, the partners are required to drill one exploration well in each block during each exploration period. The first exploration period expires in January, 2011, and the second optional three-year exploration period would be expected to expire in January, 2014. During the exploration period on both the Dharoor and Nugaal blocks, the partners are obligated to complete G&G operations (including geological fieldwork, geochemical surveys, reprocessing seismic). In addition, the partners are required to drill one exploration well during each of the two exploration periods, with a minimum expenditure of US$5-million during each exploration period. As consideration for farming into the Dharoor and Nugaal blocks, Lion Energy has agreed to finance 30 per cent (to a maximum of US$5.1-million) of the first US$17-million of future JOA costs incurred in drilling one exploration well on each of the Dharoor and Nugaal blocks. Lion Energy will be responsible for financing its working interest share of all other joint operating expenses.