Board and Management Changes

1 July 2013

MADAGASCAR OIL LIMITED

("Madagascar Oil" or the "Company")

Madagascar Oil Limited announces Board and Management Changes

Madagascar Oil (AIM: MOIL) is pleased to provide an update on the restructuring of its Board and management team as envisaged following the financing transaction completed on 12 February 2013.

Today the Company announces the following appointments to the Board of Directors of the Company (the "Board") as Non-Executive Directors, effective close of business 28 June 2013: Mr. Al Njoo, Dr. Achmad Madjedi Hasan and Mr. Richard Laing. In addition, the Company announces the resignations of Mr. Ian Barby and Mr. Peter Kingston from the Board, also effective close of business 28 June 2013. Madagascar Oil also announces the appointment of Mr. Gordon Stein as Chief Financial Officer

Mr. Richard Laing will join the Board as an Independent Non-Executive Director. He replaces Mr. Ian Barby who agreed to step down as part of the arrangements agreed with shareholders prior to the financing transaction completed in February 2013.

Until recently, Mr. Laing was CEO of CDC Group plc (formerly the Commonwealth Development Corporation), and prior to that was CFO at FTSE 250 company De La Rue plc. He has extensive international financial and business experience especially in emerging markets, including Africa and Asia, with first-hand experience of financing significant projects, both directly and through collaboration with governments and international finance institutions. He is a Chartered Accountant and will also act as Chairman of the Audit Committee.

As described in the circular of 28 December 2012, and in accordance with the terms of the Relationship Agreement, the Benchmark Parties have the right to appoint two representatives to the Board. The first such representative was Peter Kingston, appointed on 31 December 2012. Mr. Kingston is now stepping down from the Board and is being replaced by Dr. Hasan. Mr. Njoo is being appointed as the second representative of the Benchmark Parties. Both Mr. Njoo and Dr. Hasan have strong backgrounds in successfully developing and monetising large steam flood oil developments, similar to those of the Company's core assets.

Following these appointments the Board will consist of six Directors, Andrew Morris (Chairman), Paul Ellis (CEO), Iain Patrick (Senior Independent Director), Richard Laing, Al Njoo and Dr. Hasan. As announced on 24 January 2013, the Company, in accordance with the Relationship Agreement Amendment, intends to appoint another Independent Director in due course, such that the Board will consist of seven Directors.

Based on his contribution to the Company to date and his extensive, complementary technical and commercial experience, the Independent Directors have asked Mr. Kingston to continue to serve as an Adviser to the Board for a period of at least six months, and Mr. Kingston has accepted that role.

As previously announced, Stewart Ahmed is now installed in Madagascar as Chief Operating Officer and Country Manager, and the Company is pleased to announce today the arrival of Gordon Stein as Chief Financial Officer. Mr. Stein will take over from Seth Fagelman as CFO and will be supported by Stuart Wesson as Group Controller in Madagascar. This strengthening of the management team will enable the Houston office to close, as scheduled, in July and all functions will be transferred to the company's offices in the UK and Madagascar.

Mr. Stein is a qualified CPFA accountant and has over 20 year of experience in the oil and gas industry with a range of roles in both business operations and finance, including LASMO plc, Centrica plc and British Gas plc as well as being CFO at organisations including Regal Petroleum plc and Cadogan Petroleum plc.

Operationally, the Tsimiroro steam-flood pilot continues to progress with 14 wells now under cyclic steam stimulation. The Board continues to look to strengthen the team in Madagascar under Mr. Ahmed's guidance, and as operations ramp up, the Company expects additional expertise to be added to the team to ensure it has a world class, international team to meet the needs of the business.

The Company would also like to take this opportunity to wish Ian Barby, Peter Kingston and Seth Fagelman the best with their future endeavours and to thank them for their hard work and significant contribution during their time at the Company.

Andrew Morris, Chairman, commented:

"We are delighted with the progress we have made in restructuring the team over the last few months and achieving the significant milestone of commissioning the Tsimiroro pilot. We will continue to strengthen the team as the needs of the business evolve.

"I would like to thank the outgoing directors for their support and contributions, especially over the last few months and welcome the new directors and Mr. Stein who will bring a wealth of talent and experience to the team."

-ENDS-

The Information included below is required under Schedule 2 part g of the AIM Rules for Companies:

Richard George Laing (aged 59):

Mr. Laing started his career at PricewaterhouseCoopers, qualifying as a Chartered Accountant, having studied Engineering at Cambridge University. Mr. Laing spent fifteen years at De La Rue where he progressed to become CFO of this FTSE 250 company with a position on the Main Board. In 2000 he joined CDC Group plc (formerly the Commonwealth Development Corporation), where he gained extensive exposure to emerging markets in Africa and Asia in particular, initially as CFO and then in 2004 taking over as CEO. He also has first-hand experience of financing significant projects both directly and through collaboration with governments and international finance institutions.

Al Njoo Kok Kiong (aged 57):

Mr. Njoo has over 25 years' experience in energy banking and industry in Central and South East Asia, China and North America. He is co-founder and director of Calgary-based Nations Petroleum, which has successfully developed and transformed three major steam flood developments in Kazakhstan, Azerbaijan, and California.

He began his career as a corporate and energy banker with the Chase Manhattan corporate and investment banks. He is a principal at the Benchmark group, Singapore, and director of Merrill Lynch Indonesia. He is a trustee of Give to Asia, San Francisco, and the Sumber Waras hospital, Jakarta. Mr. Njoo is one of the sponsors for the UBS impact focus SME (small and medium sized enterprise) fund and the Impact Investment Exchange, Singapore, promoting social causes and entrepreneurs worldwide.

Current Directorships Past Directorships (past 5 years)

Benchmark Advantage Fund None

Nations Petroleum

Merrill Lynch Indonesia

Tirtamas Majutama

Dr. Achmad Madjedi Hasan (aged 78):

Dr. Hasan has over 50 years' experience in the areas of exploration, production, development and management of international petroleum and geothermal ventures. During his 24 year career with Chevron Indonesia which operates the Duri Field, the world's largest steam flood, he held various key positions in the company in Indonesia and in the USA, including Head of Operations, Manager of Reservoir Engineering, Coordinator of E&P, Assistant to the Board Chairman, and a member of the negotiation team for contract extensions.

Dr. Hasan has also participated in other enhanced oil recovery projects and geothermal developments. He has published various technical papers and books on steam flood and three books on petroleum contracts. Since 2006 he has been an active arbitrator and Master Consultant in PT Pranata Energi Nusantara, a leading Indonesian energy technical services group.

Current Directorships Past Directorships (past 5 years)

PT Pranata Energi Nusantara Consulting None

Gordon Bowman Stein (aged 54):

Mr. Steintrained as an Accountant qualifying as a Member of the Chartered Institute of Public Finance and Accountancy (CPFA). Gordon has over 20 years experience in the Oil and Gas industry having previously held management positions with Cadogan Petroleum plc, Vanguard Energy Ltd, Regal Petroleum plc, Acorn Oil & Gas Ltd, LASMO plc and Monument Oil & Gas plc. He has also worked for Centrica plc. and British Gas plc.

There is no further information to be disclosed pursuant to Schedule Two Part (g) of the AIM Rules for Companies.