Holding in Company

17 August, 2011

MADAGASCAR OIL LIMITED

("Madagascar Oil" or the "Company")

Holding in Company

Madagascar Oil has received notification that, following the disposal of 14,000,000 ordinary shares in the Company on 3 August 2011, Grafton Resource Investments Ltd no longer holds a notifiable interest in the ordinary shares of the Company.

Contact Information:

Madagascar Oil Limited +1 (713) 357-4820

Rene O'Neil

Strand Hanson Limited +44 (0)20 7409 3494

Angela Peace

David Altberg

Pelham Bell Pottinger +44 (0)20 7861 3232

Mark Antelme

Jenny Renton

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