Algeria, December 23, 2018

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Africa Oil announces additional investment in Impact Oil and Gas

Africa Oil Corp. (AOC) has made further investments of $20.5 million in Impact Oil and Gas Limited ('Impact'), a private UK company with exploration assets in South and West Africa.

Additional Investment in Impact Oil and Gas

The Company has entered into a subscription agreement (the 'Subscription Agreement') with a 50.343,961 ordinary share purchase warrants in Impact held by AOC at £ 0.18 per warrant and the purchase by AOC or ordinary shares or Impact in an aggregate amount of US $ 6.3 million.

In addition, AOC has not been included in the acquisition of additional shares and warrants in the aggregate of US $ 2.5 million in November 2018 which, in combination with the current investment, will result in Africa Oil holding an approximately 30% interest in Impact.

The funds are provided by AOC to Impact as a loan to Arostyle Investments (Proprietary) 1549 Proprietary Limited ('Main Street') to acquire a 5.1% effective interest in Block 11B / 12B offshore South Africa. Block 11B / 12B is located in the Outeniqua Basin approximately 175 kilometers off the southern coast of South Africa.

The block covers an area of 18,734 square kilometers with water depths ranging from 200 to 2,000 meters. The Brulpadda-1AX re-entry is expected to commence drilling before the end of this year. The partners in the 11B / 12B block are Total SA (45%), Canadian Natural Resources Limited (20%), Qatar Petroleum (25%) and Main Street (10%). Africa Energy Corp. holds a 49% interest in Main Street and Africa Oil holds an approximately 34.6% interest in Africa Energy Corp.

Africa Oil CEO Keith Hill commented:

'We are very pleased to have significant investments in two companies that have invested in Main Street, which is a material interest in the upcoming Brulpadda well. 2019. The well will be operated by TOTAL, which gives us confidence that we will be able to move forward. '

The transactions contemplated by the Subscription Agreement are subject to certain customary conditions to closing, including shareholder approval of Impact.

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