Submission of Tsimiroro Development Plan

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This announcement does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any decision in respect of Madagascar Oil Limited or other evaluation of any securities of Madagascar Oil Limited or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities.

28 October 2014

MADAGASCAR OIL LIMITED

("Madagascar Oil" or the "Company", together with its subsidiaries, "the Group")

Submission of Tsimiroro Development Plan

Further to the announcement made by the Company on 24 September 2014, Madagascar Oil is pleased to announce that the Block 3104 Tsimiroro Development Plan (the "TDP") has been submitted to the Executive Committee, ahead of the 4 November 2014 deadline set by the production sharing contract in respect of Block 3104 (the "Block 3104 PSC"). The submission of the TDP follows regular working group meetings with OMNIS, to discuss all aspects of the TDP, since the Company's subsidiary, Madagascar Oil S.A. ("Madagascar Oil SA") declared, in early May 2014, that Block 3104 is a "Commercial Discovery" under the terms of the Block 3104 PSC. The Executive Committee is constituted of representatives of Madagascar Oil SA and representatives of the office des Mines Nationales et des Industries Strategiques ("OMNIS").

Following submission of the TDP, OMNIS have a period of 30 days to make any comments on the TDP and, if no such comments are made then, the TDP is deemed approved. Any comments which are provided by OMNIS will need to be considered by OMNIS and Madagascar Oil SA within 30 days of receipt and the TDP will require approval by the Executive Committee in accordance with the procedure set out in the Block 3104 PSC. Assuming the TDP is approved, it is expected that OMNIS will obtain the 25 year exploitation mining title in relation to the exploitation period under the Block 3104 PSC.

In the meantime the Company continues to prepare for Phase 1 of the FDP, including securing the necessary funding to proceed, which, as previously announced, includes a potential further fundraising of up to $50m, to be undertaken in the short to medium term after the approval of the TDP.

Further details of the Group's future financing and operational plans can be found on the Company's website in the Placing and Open Offer Circular dated 20 October 2014 (the "Circular").

Stewart Ahmed, Chief Operating Officer & Madagascar Oil S.A. General Manager commented:

"The submission of the TDP is a major step forward for Madagascar Oil, the development of the Tsimiroro Block and, potentially, the future of oil and gas production in Madagascar. We are the first company to submit an oilfield development plan in Madagascar and the submission of the TDP is a further demonstration of our commitment to unlock what could be a vast natural resource for the country.

The Group would like to thank the Madagascar government and, in particular, OMNIS for their support in the preparation of the TDP. We have worked closely with OMNIS in recent months and have benefited greatly from their contribution towards the approach, structure and content of the TDP."