Result of Open Offer

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12 November 2014

MADAGASCAR OIL LIMITED

("Madagascar Oil" or the "Company")

Result of Open Offer

Madagascar Oil announces the result of the Open Offer for up to approximately £3.8 million (approximately US$6.1 million) at 10.25 pence per share, further details of which were set out in the Open Offer Circular (the "Circular") dispatched to Shareholders on 20 October 2014.

The Open Offer closed at 11.00 a.m. on 11 November 2014. The Company has received valid acceptances from Qualifying Shareholders of 1,412,265 Open Offer Shares. This represents 3.8% of the Open Offer Shares available under the Open Offer. The Company has therefore raised gross proceeds of approximately £0.1 million (approximately US$0.2 million) through the Open Offer.

Application will be made for these 1,412,265 Open Offer Shares, which will rank pari passu in all respects with the Existing Common Shares, to be admitted to trading on the AIM Market of the London Stock Exchange. It is expected that Admission of the Open Offer Shares will occur and dealings will commence at 8.00 a.m. on 18 November 2014.

The Company has, to date, raised total gross proceeds from the Placing and Open Offer of approximately £12.4 million (approximately US$20.3 million) via the issuance of 120,603,470 Placing Shares and Open Offer Shares.

The Company has the option, should it wish to do so, to place any shares not taken up under the Open Offer, amounting to 35,768,541 shares, at 10.25p for a period of 90 days, or other such period as the Company may determine.

Iain Patrick, the Senior Independent Director of Madagascar Oil, commented:

"The Open Offer was provided by the Company as an opportunity for Shareholders to minimise dilution of their equity holding following the recent Placing with the Participating Major Shareholders. It has been undertaken in challenging market conditions, with the Issue Price trading at a premium to the share price for almost the entire offer period. With the total funds raised from the Placing and Open Offer, Madagascar Oil is well placed to continue preparations for commencement of the first phase of development of the Tsimiroro Block."

All defined terms in this announcement have the meanings given to them in the Circular.

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