CAUTIONARY ANNOUNCEMENT

SACOIL HOLDINGS LIMITED

(Incorporated in the Republic of South Africa)

(Registration number 1993/000460/06)

JSE share code: SCL AIM share code: SAC

ISIN: ZAE000127460

("SacOil" or the "Company")

JSE CAUTIONARY ANNOUNCEMENT

In terms of paragraph 3.9 of the JSE Listings Requirements, immediately after an issuer acquires knowledge of any material price sensitive information and the necessary degree of confidentiality of such information cannot be maintained, an issuer must publish a cautionary announcement.

As such, shareholders are advised that SacOil has entered into non-binding negotiations ("the Potential Transaction") which, if successfully concluded, may have a material effect on the price of the Company's securities.

Accordingly, shareholders are advised to exercise caution when dealing in the Company's securities until a full announcement is made.

CLARIFICATION OF RECENT MEDIA COVERAGE

SacOil advises that, contrary to a recent press report, it is not in discussions and/or negotiations to make an acquisition of a production asset in Nigeria nor is it seeking to acquire any asset producing 5,000 barrels of oil per day. However, SacOil in its normal course of business continuously seeks opportunities to expand and optimise its portfolio of upstream assets, and will engage in informal discussions from time to time with several parties regarding such opportunities.

Johannesburg

11 August 2014

JSE Sponsor

Nedbank Capital