Market update and termination of reverse

For immediate release

17 October 2016

New World Oil and Gas plc

(the "Company")

Market update

and

termination of reverse transaction

The Company announces that an issue has arisen in connection with a transaction previously carried out by the Company which may have a material impact on its financial condition. This situation is currently being investigated by the Company. Unfortunately, as a consequence of this, the Company has been informed by Big Sofa Limited that due to the current uncertainty surrounding this legacy issue, it has decided to terminate discussions with the Company regarding a possible reverse transaction and listing on AIM. A further update will be provided in due course once the situation can be clarified, pending which trading in the Company's shares will remain suspended.

-Ends-

Enquiries:

Adam Reynolds

New World Oil and Gas plc

Tel. +44 (0) 7785 908158

or

Nicholas Lee

New World Oil and Gas plc

Tel. +44 (0) 20 7580 7576

Roland Cornish or Felicity Geidt

Beaumont Cornish Limited (Nominated Adviser)

Tel: +44 (0)20 7628 3396

Jeremy Garcia, Ben Simons or Antonia Pollock

Vigo Communications (Financial Public Relations)

Tel: +44 (0)20 7830 9700