Issue of Options

Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil and Gas

16 January 2018

Mayan Energy Ltd ('Mayan' or 'the Company')

Issue of Options

Mayan (AIM: MYN), the AIM listed oil and gas company, announces that today it has issued options over 116.6 million Ordinary Shares to certain of its Directors, Key management, Employees and Consultants (the "New Options"). These New Options replace all pre-existing options which consequently have been cancelled.

Vesting of the New Options is conditional on Mayan achieving production of 500 barrels of oil per day (net to Mayan), with any attributable production expected from the Company's recent investment in Deloro Energy Inc (the Asphalt Ridge Project in Utah) excluded from the aforementioned production figure.

The exercise price of the New Options is 1.1p per share, which represents a 183% premium over the Placing Price the Company raised £2million, as announced on 16 November 2017, which was itself a 62% premium over Mayan's then 90 day VWAP ("Volume Weighted Average Price"). The New Options have a duration of 5 years and represent 10% of Mayan's existing issued share capital.

Mayan believes that the terms of the New Options brings the strike price of its share options more into line with the current market price of Mayan's shares and together with the production target should afford a viable incentive and reward package to the Company's Directors, Key Management, Employees and Consultants as they work to deliver increased value to shareholders. The New Options replace existing options issued to the Directors and Key Management on 1 September 2016.

After the issue of the New Options, the share option holdings of the above may be summarised as follows:

The number of ordinary shares currently in issue is 1,166,335,931 with share options and investor warrants outstanding of 116,633,593 and 82,692,134 respectively.

The issue of 52,485,117 New Options (representing 4.5% of the ISC) to two of the Company's Directors, Charlie Wood and Eddie Gonzalez, constitutes a related party transaction under the AIM Rules for Companies. Accordingly, JD McGraw, a Non-Executive Director at Mayan, who is independent of the issue of options, having consulted with the Company's Nominated Adviser, considers the terms of the investment to be fair and reasonable insofar as Mayan's shareholders are concerned.

Special note concerning the Market Abuse Regulation:

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ("MAR").

**ENDS**

For further information visit www.Mayan energy.com or contact the following:

Notes:

Mayan Energy Limited is an AIM listed (London Stock Exchange) oil and gas energy company; whose present operations which are focussed on the redevelopment and enhancement of its upstream oil and gas interests in Texas, Oklahoma, and Louisiana and its investments in the Asphalt Ridge Project Utah, and in Block Energy Plc, Georgia.

The notification below, made in accordance with the requirements of the EU Market Abuse Regulations, provides further detail in respect of the transaction as described above.