Resource update

Immediate Release 25 February 2011

Chariot Oil & Gas Limited

("Chariot", the "Company" or the "Group")

Resource Update

Increase of 700 million barrels to a new total of 13.9 billion barrels of Gross Mean Unrisked Prospective Resources

Chariot Oil & Gas Limited (AIM: CHAR), the Africa focused oil and gas exploration company, is pleased to announce an increase of a further 700 million barrels from 1,940 to 2,631 billion barrels, up 36%, in its estimate of gross unrisked mean prospective resources in its Northern licence offshore Namibia. This increase has resulted from continued technical work undertaken on the 3D seismic data acquired across these blocks which has also led to a significant improvement in the chance of success. Chariot's gross mean unrisked prospective resource volume now totals 13.9 billion bbls (10.4 billion bbls net to Chariot).

Concurrent to the work which identified the Nimrod prospect, a mega structure located in block 2714A with an attributable gross mean prospective resource potential of 3.7 billion barrels as announced on 13 January 2011, Chariot has continued to evaluate a number of other plays within its Northern and Southern licence areas.

In the Northern licence areas, blocks 1811 A & B, seismic data inversion and attribute analysis has led to identification of additional Late Cretaceous/Palaeogene fan systems exhibiting Amplitude Versus Offset ("AVO") anomalies consistent with hydrocarbon-filled sands. These overlie older Cretaceous structural closures and subsequently enhance the stacked target potential. In addition this work has further de-risked the Tapir and Tapir N prospects with the chance of success increasing from 14% to 23%.

Paul Welch, CEO of Chariot commented, "This additional resource upgrade further increases the value contained within our asset portfolio. The amplitude anomalies identified and now quantified on the 3D seismic are encouraging regarding potential hydrocarbon fluid content. This has allowed us to significantly de-risk this area ahead of drilling. Our technical work continues and we anticipate further upgrades within our Southern licences once a similar exercise has been completed there."

TABLE OF RESOURCE VOLUMES:

This table of unrisked prospective resources is as determined by Netherland, Sewell & Associates, Inc. dated 28th October 2010 together with updated volumes and risk factors for the Nimrod Albian Structural prospect based on DHIs as determined by Chariot. The G and H Barremian prospects which underly the Albian Nimrod prospect are unchanged (NSAI figures).

A further prospective resource addition has been made for the Tapir N and Tapir prospects, based on the identification of addition volumes at Paleogene level. The results of seismic attribute analysis also de-risk these prospects resulting in an improved chance of finding hydrocarbons.

* Total resource numbers are arithmetically summed in accordance with SPE 2007 PRMS guidelines; therefore, these totals do not include the portfolio effect that might result from statistical aggregation.

** Many of the prospects and leads in the Northern and Southern blocks have multiple horizons with independent chances of success. The stated risk factors; however, are consistent with the given volumes.

QUALIFIED PERSON

Martin Richards, Chariot's Chief Reservoir Engineer, is the qualified person for the purpose of this release. Martin has worked in the oil and gas industry for over 30 years and has an in-depth experience of all aspects of subsurface management, reservoir engineering and petroleum economics. He has an MA in Physics from Oxford University, an MSc in Geophysics and Planetary Physics from Newcastle University and an MEng in Petroleum Engineering from Heriot-Watt University. He has read and approved the technical disclosures in this announcement.

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NOTES TO EDITORS

About Chariot

Chariot Oil & Gas Limited is an independent oil and gas exploration group. The Group currently holds licences covering eight blocks in Namibia, through its wholly owned subsidiary Enigma Oil & Gas (Pty) Limited, all of which are offshore. All of these blocks are currently in the exploration phase.

Shares in Chariot Oil & Gas limited are admitted to trading on the AIM Market of the London Stock Exchange under the symbol 'CHAR'.

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcemnt.