Resource Update

Immediate Release 13 January 2011

Chariot Oil & Gas Limited

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

Resource Update

Increase of 3.1 billion barrels to a new total of 13.2 billion barrels of Gross Unrisked Mean Prospective Resources

Mega Structure Identified

Chariot Oil & Gas Limited (AIM: CHAR), the Africa focused oil and gas exploration company, is pleased to announce an increase of a further 3.1 billion barrels in its estimate of gross unrisked mean prospective resources in its Southern licence 2714A offshore Namibia. Further technical work undertaken on the 3D seismic data acquired across this block, in which Chariot has a 50% interest, has identified additional resources within a single 'mega-structure' and significantly increased the estimated chance of success on this primary prospect to from 16% to 20%. Chariot's gross mean unrisked prospective resource volume now totals 13.2 billion bbls (9.7 billion bbls net to Chariot).

This technical work, which included remapping and seismic attribute analysis, was undertaken subsequent to the updated resource statement released on the 6 September 2010 which announced an increase in gross mean unrisked prospective resources to 10.1 billion barrels and a prospect and lead inventory of 11 prospects and 6 leads. These figures were verified by the independent assessment of Netherland Sewell & Associates Inc. in its Competent Persons Report, announced on 28 October 2010.

The further increase in prospective resource volume has been identified in a single very large structural prospectin the Southern acreage. This 'mega-structure', some 500 km2 in area, lies wholly within the 3D seismic area and displays seismic attributes, including Amplitude Versus Offset ("AVO") anomalies, that are indicative of a hydrocarbon charge in what is believed to be a Lower Cretaceous deltaic sandstone reservoir. The robust geological interpretation (sealed reservoir within a large structural closure surrounded by a mapped potential charge kitchen) suggests the AVO anomaly is valid and has justified an increase in the estimated chance of success to 20% for this 'mega-structure'. Chariot continues to evaluate other plays in the block, particularly deeper Barremian targets, equivalent to the reservoir level of the Kudu field, where additional AVO anomalies are indicated. Additionally, further evaluation is ongoing in Chariot's Northern acreage with a technical update on these areas to be included in future announcements.

Paul Welch, CEO of Chariot commented, "Our portfolio continues to develop in an extremely positive way, with our technical work providing further insight and understanding of the prospectivity of our licence areas. We are very pleased with this further increase in resource volumes, the identification of a mega structure and the resultant de-risking. These findings continue to underscore the world-class potential we believe is held within our licence areas."

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 announcement.