Company Presentation

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

6 November 2014

MADAGASCAR OIL LIMITED

("Madagascar Oil", "MOIL" or the "Company")

Company Presentation

Madagascar Oil announces that a new, updated, company presentation (the "Company Presentation") is available on the Company's website, which includes the following items which are additional to the information previously reported in the 2014 Half-Year Results on 23 September 2014, the Open Offer Circular issued on 20 October 2014 (the "Circular") and the announcement of the submission of the Block 3104 Tsimiroro Development Plan (the "TDP") on 28 October 2014 and which are summarised below.

Steam Flood Pilot Production

Further to the Half Year Results announcement issued on 23 September 2014, the Company is pleased to report that, following completion of the late-Summer remedial wellwork programme, production in October 2014 from the Tsimiroro Steam Flood Pilot ("SFP") was 459 barrels of oil per day ("BOPD"). Since the commencement of SFP operations in April 2013, 147,140 barrels of oil production had been reached at the end of October 2014.

Oil production, averaged for each month in 2014, are shown in a chart on slide 6 of the Company Presentation and has been as follows:-

Block 3104 Tsimiroro Development Plan - phased development of work programme

Slides 12 and 13 of the Company Presentation are taken from the TDP and provide an update on the intended phased development of Block 3104, including Phase 1a and Phase 1b which were formerly shown in total as Phase 1 of the intended work programme in the Company's Presentation released in December 2013 and in the Circular. It is intended that Phase 1a will involve the existing SFP compartment to enable delivery of sales of over 5,000 BOPD when fully developed. Phase 1b is expected to involve a further fault compartment which it is anticipated will enable the targeted rate of 10,000 BOPD of sales to be met in the first phase. The TDP requires approval under the production sharing contract in relation to Block 3104 and is subject to change.

Source: Block 3104 Development Plan - submitted 27 October 2014 - targets based on Company estimates.

The anticipated timeline for the development of Block 3104 from 2015 through to 2040 is also set out in the Company Presentation and is based on the Company's current estimates and will be subject to change as the development progresses and will depend on the availability of funding.

The anticipated timeline for the phased development, as included in the TDP, is as follows:

· Phase 1a and Phase 1b comprise the transportation of oil for domestic market and international sales of up to 10,000 BOPD by road-trucks.

· Phase 1a development drilling is intended to commence in the second half of 2015 and will continue for up to three years.

· It is estimated that production from Phase 1a may continue for the full 25 year term of the Block 3104 initial exploitation period allowable under the PSC.

· Phase 1b will follow-on immediately after Phase 1a with this commencing around the beginning of 2018 for a two-three year development drilling campaign.

· Current plans for Phase 2 will involve the installation of a pipeline to the west coast of Madagascar commencing construction as early as 2018, subject to a revised TDP submission and approval, with a two-year construction period estimated.

· It is intended that development drilling of Phase 2 will commence on completion of the pipeline commissioning with production starting as early as 2020.

· It is planned that further appraisal work on other existing structures on Block 3104, such as Tsimiroro South and Tsimiroro Deep South, will commence as early as 2016 for a period of up to four years. This will involve seismic acquisition and possibly appraisal drilling. Any discovered commercial hydrocarbons can then be developed simultaneously with the main Tsimiroro field from 2020 onwards, subject to obtaining the necessary approvals.

Madagascan Power Generation Policy

The Council of the Government of Madagascar ("Conseil de Gouvernement") of 19 August 2014 issued a communique de presse announcing the adoption of a communication from the Finance Minister ("Ministère des Finances et du Budget") on the proposal to revitalise the state owned power generation company JIRAMA. As part of this revitalisation, the Conseil de Gouvernement adopted the proposal to use fuel oil for electricity generation in replacement of diesel oil in order to halve production costs per kWh. The Board of Madagascar Oil believes that this change in energy policy may increase the market opportunities in Madagascar for the sale of Tsimiroro crude oil produced in Block 3104 in the future.

Contact Information:

www.madagascaroil.com