Issue of Equity

11 September 2012

ELAND OIL & GAS PLC

("Eland" or the "Company")

Issue of Equity

As set out in the Admission Document dated 24 August 2012, all loan notes were converted into £1.00 ordinary shares of the Company ("Ordinary Shares") upon admission to trading on AIM. Additionally, all loan note holders made elections to receive their interest due on the first, second and third round loan notes, as applicable, as either cash or to be converted into Ordinary Shares at par value. A proportion of this interest, with an aggregate value of £391,232 was incorrectly recorded as payable in cash rather than convertible into Ordinary Shares. Accordingly the Company has cancelled £391,232 of interest payable and is today issuing 391,232 new Ordinary Shares.

An application has been made to AIM for the admission of 391,232 Ordinary Shares, which will rank pari passu with the existing Ordinary Shares and it is expected that these new Ordinary Shares will be admitted to trading on 17 September 2012. Following the admission of the new Ordinary Shares to AIM, the Company will have 135,263,214 Ordinary Shares in issue.

For further information:

Eland Oil & Gas PLC (+44 (0) 1224 737 300)

www.elandoilandgas.com

Les Blair, CEO

George Maxwell, CFO

Canaccord Genuity Limited (+44 (0) 20 7523 8000)

Henry Fitzgerald-O'Connor

Peter Stewart

Rob Collins

Citigate Dewe Rogerson (+44 (0) 20 7638 9571)

Martin Jackson

Jack Rich