Mr. Keith Hill reports

AFRICA OIL CONFIRMS CLOSING OF PRIME DEBT REFINANCING AND DIVIDEND PAYMENT TO PRIME SHAREHOLDERS

Africa Oil Corp.'s investee company, Prime Oil & Gas Cooperatief UA, has confirmed the closing of its debt refinancing, and thus significantly increasing its debt capacity and extending its debt maturity profile. This supports the distribution of dividends by Prime to its shareholders, and Prime will distribute the first dividend of 2023 for $125.0 million or $62.5 million net to Africa Oil's 50% shareholding in Prime on June 21, 2023. The closing of this refinancing follows the renewal of Oil Mining License ("OML") 130 for a period of 20 years, as announced in the Company's announcement of May 29, 2023.

At the end of the first quarter 2023 Prime had an outstanding reserves-based lending ("RBL") facility and a pre-export finance facility ("PXF") with an aggregate outstanding debt amount of $720.3 million ($360.2 million net to AOC). Prime has refinanced these facilities with the closing of a new RBL facility and the PXF has been retired. This new facility is for a principal amount of $1,050.0 million ($525.0 million net to AOC) and has a 6-year tenor. Prime had a cash position of $396.9 million ($198.5 million net to AOC) at the end of the first quarter 2023.

Africa Oil closed the acquisition of a 50% shareholding in Prime in January 2020 for a cash consideration of $519.5 million. The Company has received a total of $712.5 million in dividend payments from Prime, including the $62.5 million amount to be received on June 21, 2023, and achieved payback of its Prime investment in under three years.

Africa Oil is also pleased to announce that the lenders in its standby credit facility, which is currently undrawn, have confirmed an increase in the available facility amount to $200.0 million from $100.0 million previously. The Company's standby credit facility is available up to April 20, 2024, and has a maturity of October 20, 2025. At the end of the first quarter 2023, Africa Oil had a debt-free balance sheet and a cash position of $158.2 million.

Africa Oil President and CEO Keith Hill commented: "the expansion and closing of Prime's debt refinancing, the payment of a $125.0 million dividend by Prime and the renewal of OML 130 license are important achievements in the first half of 2023. As a result, Africa Oil and Prime have greater flexibility in their near-term capital allocation decision making, underpinned by strong balance sheets in both businesses. At Africa Oil, we are well positioned to pursue our ambitions for further growth and improved shareholder returns at the appropriate time. Our plans are complemented by the potentially transformational Orange Basin appraisal and exploration campaign, offshore Namibia, which is currently under way with the Venus appraisal and Nara exploration program."

Africa Oil CFO Pascal Nicodeme commented: "We are grateful for the continuing support of our relationship banks. The doubling of the available amount for our standby credit facility to $200.0 million, is a testament to the quality of our assets and our disciplined financial management. Strong banking support is a key competitive advantage in the independent E&P sector. We look forward to further collaboration with our relationship banks as we execute our business plan."

About Africa Oil

Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria and an exploration/appraisal portfolio in west and south of Africa, as well as Guyana. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol "AOI".

We seek Safe Harbor.