Update re Discussions on the Exploration Blocks

7 July 2011

MADAGASCAR OIL LIMITED

("Madagascar Oil" or the "Company")

Update re Discussions on the Exploration Blocks

The Company previously announced on 24 June 2011 that a Management Committee Meeting with OMNIS, the regulatory agency of the government of Madagascar that manages the country's oil and gas resources, was scheduled for 6 July 2011 to discuss approval of the 2011-2012 work programmes for its three exploration blocks. Due to an unexpected change in schedule, the relevant OMNIS staff were unavailable for this meeting and the Company is in the process of rescheduling the meeting. The Company will provide further updates with regard to the approval of the 2011-2012 work programmes for the exploration blocks in due course.

Following the recent successful resolution of the dispute surrounding the Company's Tsimiroro Block, the Company is continuing with its previously announced work programme.

Contact Information:

Madagascar Oil Limited +1 (713) 357-4820

Rene O'Neil

Strand Hanson Limited +44 (0)20 7409 3494

Angela Peace

David Altberg

Pelham Bell Pottinger +44 (0)20 7861 3232

Mark Antelme

Jenny Renton

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