Update re Farm-Out Process and Drilling Plans

Immediate Release 31 March 2011

Chariot Oil & Gas Limited

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

Update re Farm-Out Process and Drilling Plans

Chariot Oil & Gas Limited (AIM: CHAR), the Africa focused oil and gas exploration company, today provides an update on the farm-out process and progress with regard to drilling plans and further exploration work achieved across its licence acreage offshore Namibia.

Chariot has been very encouraged with the offers that have been received to date and is pleased to report that it is at the advanced negotiation stage on several blocks in the farm-out process. Discussions continue and the Company looks forward to updating the market with further information shortly.

Chariot remains committed to drilling its first well in Q4 2011 and is pleased to report that a contract has been signed with Senergy (GB) Ltd to provide drilling and support services for its planned wells on the Tapir North (Northern Licence) and Nimrod (Southern Licence) prospects. Chariot management and a team from Senergy recently visited Namibia as part of this process, meeting with government officials and local contractors. As previously stated, Chariot is planning to drill one well in Q4 2011 with a second in Q1 2012.

Chariot also reports that additional attribute analysis and mapping work has continued on the 3D seismic acquired in the Southern blocks. As a result it expects to release a further resource update following the completion of this work in the early part of the second quarter.

Paul Welch, CEO of Chariot commented, "Our farm-out efforts continue to be our main focus of activity and these discussions are progressing very well. Concurrent to these negotiations, we are very pleased with our developments in regard to moving our drilling efforts forward. This year is going to be one of significant progress for the Company and I look forward to providing updates in due course."

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, 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.