Directors' Dealings and Issue of Equity

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20 March 2012

MADAGASCAR OIL LIMITED

("Madagascar Oil" or the "Company")

Directors' Dealings and Issue of Equity

Madagascar Oil (AIM: MOIL) announces the following exercise by Directors of restricted shares into new common shares of par value US$0.001 each in the share capital of the Company ("Common Shares") for nil consideration pursuant to the Company's former restricted stock plan:

In addition, 780,000 Common Shares have been issued to certain employees and contractors following the vesting of restricted shares into new Common Shares.

Details of the restricted stock plan are set out in the Company's admission document which is available for download via the Company's website at www.madagascaroil.com.

The new Common Shares will rank pari passu in all respects with the Company's existing Common Shares and application has been made to the London Stock Exchange for these 2,046,670 new Common Shares to be admitted to trading on AIM ("Admission").

It is expected that Admission will become effective and that dealings in the new Common Shares will commence at 8.00 a.m. on 23 March 2012. Following Admission, the Company's issued common share capital will consist of 253,835,137 Common Shares with voting rights. Madagascar Oil does not hold any Common Shares in treasury.

The above figure of 253,835,137 Common Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Madagascar Oil under the Financial Services Authority's Disclosure and Transparency Rules (the relevant provisions of which have been incorporated into the Company's bye-laws).

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