<p>
 </p>
<p>
<strong>May 26, 2011 (AOI – TSXV, AOI - NASDAQ OMX) … Africa Oil
Corp. </strong>(“Africa Oil”, “the Company” or
“AOC”) is pleased to announce its financial and operating results
for the three months ended March 31, 2011.</p>
<p>
Highlights and accomplishments during the first quarter of 2011 included:</p>
<p>
 </p>
<ul>
<li>
The Company completed the acquisition of Centric Energy Corp.
("Centric"), a publicly traded oil and gas company listed on the TSX
Venture Exchange. Total consideration paid was valued at $60.2 million and
included the issuance of 30,155,524 AOC common shares. Centric's primary
asset is Block 10BA in Kenya which is strategically located within the highly
prospective East African Tertiary Rift System between AOC's Block 10BB and
its South Omo Block. Centric and Tullow Oil plc (“Tullow”) are
joint venture partners on the Block 10BA. In addition, Centric also has a
carried 25% interest in Block 7 and Block 11, both located in the Republic of
Mali and operated by Heritage Oil Corporation. </li>
</ul>
<p>
 </p>
<ul>
<li>
Africa Oil entered into amending agreements with the Government of Puntland
in the quarter, represented by the Puntland Petroleum and Mineral Agency, in
respect of the production sharing agreements ("PSAs") for the Dharoor
Valley Exploration Area and the Nugaal Valley Exploration Area. Under the PSAs,
as amended, the First Exploration Agreement has been extended for a further 12
months, from January 17, 2011 to January 17, 2012.  Under the amended
PSAs, AOC is obligated to spud a minimum of one exploratory well in the Dharoor
Valley Exploration Area by July 27, 2011. A second exploratory well is required
to be spudded in the Nugaal Valley Exploration Area or, at the option of AOC,
in the Dharoor Valley Exploration Area, by September 27, 2011.  In
conjunction with this amendment, the Company completed its farmout agreement
with Red Emperor Resources NL (“Red Emperor”). Under the terms of
the farmout agreement and an election made by Red Emperor to increase their
interests, Red Emperor will earn a 20% interest in both the Dharoor and Nugaal
Valley Blocks and is committed to paying a disproportionate share of costs
related to the one well drilling commitment included in the first exploration
period of both the Dharoor and Nugaal Valley Production Sharing
Agreements.</li>
</ul>
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 </p>
<ul>
<li>
The Company signed a definitive agreement with Lion Energy Corp.
("Lion"), a publicly traded oil and gas company listed on the TSX
Venture Exchange, to acquire all of the issued and outstanding common shares of
Lion. Pursuant to the agreement with Lion, AOC will acquire, by way of a plan
of arrangement, all of the issued and outstanding shares of Lion in
consideration for 0.20 common shares of AOC for each common share of Lion. It
is anticipated that 17,233,636 AOC shares will be issued as consideration to
acquire Lion. Lion is a joint venture partner of AOC in Kenya and Puntland
(Somalia), and currently holds the following working interests; 33.3% in Block
9 (Kenya), 10% in Block 10BB (Kenya), and 15% in each of Dharoor Valley and
Nugaal Valley (Puntland).  In addition to the above properties, Lion
estimated that it had cash, accounts receivable and investments in marketable
securities with an approximate aggregate value of CAD$30 million at the date of
signing the definitive agreement.  A meeting of Lion shareholders, to
approve the transaction, is scheduled to be held on June 8, 2011 and, assuming
shareholder approval, the transaction is expected to close shortly
thereafter. </li>
</ul>
<p>
 </p>
<ul>
<li>
Subsequent to the end of the first quarter, Africa Oil entered into a letter
of intent for the creation of a new Puntland focused oil exploration
company.  The new company will be created as a result of the transfer of
AOC's interest in its oil and gas properties in Puntland (Somalia) to
Denovo Capital Corp. (“Denovo”) (the "Transaction"). 
Denovo is a capital pool company and intends for the Transaction to constitute
the "Qualifying Transaction" of Denovo, as that term is defined in the
policies of the TSX Venture Exchange. Under the terms of the letter of
intent:</li>
</ul>
<p>
 </p>
<ul>
<li>
Africa Oil and Denovo will negotiate and enter into a definitive agreement
pursuant to which Africa Oil will transfer to Denovo all of the issued and
outstanding shares of its subsidiary holding companies (the "Puntland
Subsidiaries") which hold participating interests in the Dharoor Valley and
Nugaal Valley Production Sharing Agreements in Puntland (Somalia) (the
"Puntland PSAs").  Africa Oil will receive, in consideration of
the transfer, 27,777,778 common shares of Denovo. As a result of the
Transaction, the Puntland Subsidiaries will become wholly owned subsidiaries of
Denovo.</li>
</ul>
<p>
 </p>
<ul>
<li>
Africa Oil currently holds a 45% participating interest in the Puntland PSAs.
Upon completion of the transaction for the acquisition of Lion Energy Corp,
AOC's participating interest in the Puntland PSAs will be increased,
directly or indirectly, to 60%. It is anticipated that the entire 60%
participating interest will be transferred to Denovo.</li>
</ul>
<p>
 </p>
<ul>
<li>
The definitive agreement will provide for conditions precedent that are
standard for a transaction of this nature, including receipt, by both AOC and
Denovo, as required, of all regulatory, partner and third party approvals
including TSX Venture Exchange approval. Denovo will also seek Denovo
shareholder approval for a proposed 0.65 (new) for 1.00 (old) consolidation of
its common shares and a change of name of the company, both of which are
conditions precedent to completion of the transaction. It will be a condition
precedent of the transaction that Africa Oil will have completed its proposed
acquisition of Lion Energy Corp. and that Denovo will have completed a private
placement of CAD$35 million comprised of 38,888,889 subscription receipts of
Denovo sold at a post-consolidation price of CAD$0.90 per subscription receipt.
Each subscription receipt will be exercised, upon completion of the
transaction, into a unit of Denovo, comprised of one common share and one share
purchase warrant (a "Denovo Warrant"). Each Denovo Warrant will entitle
the holder to acquire an additional Denovo share for $1.50 for two years,
subject to accelerated exercise provisions if the Denovo shares trade at
greater than $2.00 for 10 consecutive trading days. It is anticipated that the
definitive agreement will be entered into during the second quarter of
2011.</li>
</ul>
<p>
 </p>
<ul>
<li>
Africa Oil will acquire 11,111,111 subscription receipts in the private
placement financing, for proceeds of CAD$10 million. At the conclusion of the
Transaction and the private placement financing described above, AOC is
anticipated hold approximately 55% (non-diluted) of the issued and outstanding
common shares of Denovo.  Upon completion of the Transaction it is
expected that Denovo will meet the listing requirements of the Exchange for a
Tier II Oil and Gas Issuer.</li>
</ul>
<p>
 </p>
<ul>
<li>
Africa Oil ended the quarter in a strong financial position with cash of
$77.8 million and working capital of $57.2 million as compared to cash of $76.1
million and working capital of $70.6 million at December 31, 2010.  The
Company’s liquidity and capital resource position improved since year end
primarily as the result of payments received upon the completion of farmout
transactions. Working capital improved $24.4 million subsequent to the end of
the quarter as the current portion of the warrant and convertible debenture
obligations were settled in shares. </li>
</ul>
<p>
 </p>
<ul>
<li>
Africa Oil currently has more than sufficient funds to meet its portion of
the $163 million expenditure obligations ($43 million net) as per the active
work programs approved by the Company’s Board of Directors for
2011.  During the first quarter, the Company spent $5.0 million of the
2011 Board of Directors approved $43 million in capital expenditures.</li>
</ul>
<p>
 </p>
<ul>
<li>
As of the end of the first quarter, the Company has completed all previously
announced farmout transactions with Tullow.  Tullow has acquired a 50%
interest in, and operatorship of, five of AOC's east African exploration
blocks, comprised of four exploration blocks in Kenya and one exploration block
in Ethiopia.</li>
</ul>
<p>
 </p>
<ul>
<li>
The Company completed the amendment to their farmout agreement with Lion. The
amendment reduced Lion’s interest in Block 10BB to 10% (originally 20%)
and eliminated its interest in Block 10A (originally 25%). </li>
</ul>
<p>
 </p>
<ul>
<li>
The Company, together with its joint venture partner Lion, entered into the
First Additional Exploration Phase under the Block 9 PSC in Kenya. As a result
of the withdrawal of its two other joint venture partners, AOC will now hold a
66.7% working interest in the PSC and has been approved by the government as
Operator of Block 9. Lion will hold the remaining 33.3%. The First Additional
Exploration Phase commenced on December 31, 2010 and will expire on December
31, 2013 with a one well work commitment (minimum depth 1,500 meters).</li>
</ul>
<p>
 </p>
<ul>
<li>
The Company continued to actively explore in East Africa:</li>
</ul>
<p>
 </p>
<ul>
<li>
In Block 10BB, the Company, together with its partners, is currently in the
process of undertaking Full Tensor Gravity (“FTG”) surveys and
finalizing the prospect and lead inventory on Block 10BB.  Drilling is
scheduled to commence in the third quarter of 2011.</li>
</ul>
<p>
 </p>
<ul>
<li>
In Block 10A, the Company, together with its partners, has completed
recording approximately 800km (gross) of 2D seismic.  Seismic data
acquired is currently being processed.  The Company expects to drill a
well on this block in the fourth quarter of 2011.</li>
</ul>
<p>
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<ul>
<li>
In Puntland, the Company has recently signed a letter of intent with a
drilling contractor and plans to spud the first well in the Dharoor Block
during the third quarter of 2011. A second well in the Dharoor Block is planned
to commence following completion of the first exploration well.</li>
</ul>
<p>
 </p>
<ul>
<li>
In Block 9, the Company, together with its partners, has recently commenced
750km (gross) 2D seismic survey focused on the oil prone Kaisut sub-basin. The
seismic crew has recently commenced recording and is anticipated to be
completed during the third quarter of 2011.</li>
</ul>
<p>
 </p>
<ul>
<li>
The Company completed its seismic acquisition program in the Company’s
Ogaden area of Ethiopia, acquiring 500 km 2D seismic. The new data has been
integrated with existing seismic to generate a series of new prospect maps. The
Company continues to focus efforts on the large El Kuran prospect.</li>
</ul>
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<p>
Keith Hill, President and CEO, commented, “Africa Oil continued to add
highly prospective exploration acreage to its portfolio during the first
quarter of 2011. Exploration activities continued throughout the quarter with
FTG, 2D seismic and drilling preparations continuing on multiple blocks. The
Company is very well financed, has a well diversified exploration portfolio and
reputable joint venture partners. We are looking forward to the commencement of
continuous drilling in 2011.”</p>
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<p>
(For full report see attached file.)</p>
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