Issue of Options

Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas

29 January 2013

Magnolia Petroleum Plc(`Magnolia' or `the Company') Issue of Options

Magnolia Petroleum Plc, the AIM quoted US onshore oil and gas exploration andproduction company, has today issued options to subscribe for ordinary sharesin the Company to Steven Snead, the CEO, Rita Whittington, the COO, Dr. JohnCubitt, the non-executive chairman, Ronald Harwood, a non-executive director,and Gavin Burnell, a non-executive director, all at a price of 2.925 pence pershare, being the mid-market closing price on Monday 28 January 2013, the latestpracticable date before this announcement. The options will be exercisable fora period of 7 years subject to the terms of the scheme.

Director Current Price of Number of Total Number New Total Holding New O Options of Existing Number of ptions Issued Options / Options / Warrants Warrants Steven Snead 200,415,998 2.925p 6,779,661 14,110,000 20,889,661 Rita 11,635,294 2.925p 6,779,661 10,126,000 16,905,661 Whittington Dr. John 619,908 2.925p 1,694,915 4,400,000 6,094,915 Cubitt Ronald 30,582,426 2.925p 1,694,915 1,660,000 3,354,915 Harwood Gavin 14,385,797 2.925p 3,389,830 11,220,768 14,610,598 Burnell **ENDS**

For further information on Magnolia Petroleum Plc visit www.magnoliapetroleum.com or contact the following:

Steven Snead Magnolia Petroleum Plc +01 918 449 8750 Rita Whittington Magnolia Petroleum Plc +01 918 449 8750 Antony Legge/James Thomas Daniel Stewart & Company Plc +44 (0) 20 7776 6550 John Howes/John-Henry Wicks Northland Capital Partners +44 (0) 20 7796 8800 Limited Lottie Brocklehurst St Brides Media and Finance +44 (0) 20 7236 1177 Ltd Frank Buhagiar St Brides Media and Finance +44 (0) 20 7236 1177 Ltd NotesMagnolia Petroleum Plc is an AIM quoted, US focused, oil and gas explorationand production company. Its portfolio includes interests in 90 producing andnon-producing assets, primarily located in the highly productive Bakken/ThreeForks Sanish hydrocarbon formations in North Dakota as well as the oil richMississippi Lime and the substantial and proven Woodford and Hunton formationsin Oklahoma.Summary of WellsCategory Number of wells Producing 90 Being Drilled/Completed 15 Elected to participate/waiting to spud 17 TOTAL 122

This summary excludes four out of six wells acquired as part of the acquisitionof 800 gross acres with a 100% working interest in Osage County, Oklahoma, asannounced on 10 February 2012. These four wells are currently `shut in' andwill require a workover programme at some point in the future to bring backinto production.