2010-08-31-2010-08-19-2010-08-19

Acquired 80% WI & operatorship in 29,465-sq. km. South Omo Block.

Africa Oil Corp., Vancouver, (Toronto Venture: AOI) has closed its farm-in agreement with Maputo, Mozambique-based Agriterra Ltd. (formerly White Nile Ltd.) to acquire an 80% participating interest and operatorship of the South Omo Block in Ethiopia for $2.5 million.

Africa Oil Ethiopia BV, a subsidiary of Africa Oil, acquired the interest in the block in the Omo Rift Valley of south-western Ethiopia. The block spans 29,465 square kilometers and is within the Tertiary age East African Rift, just north of Lake Turkana, Kenya.

Africa Oil Ethiopia will pay 80% of past costs incurred by Agriterra, to a maximum of US$2.5 million, to earn its 80% participating interest. The payment of these past costs will be set-off against future cash calls made to Agriterra by Africa Oil Ethiopia in respect of Agriterra's 20% participating interest. Africa Oil Ethiopia will also fund 100% of the costs associated with a work program comprised of 500 kilometers of 2-D seismic, a field geology program, and a surface geochemistry program.

Total cost for this work program is estimated at US$6.5 million with the majority of these costs to be incurred in the first half of 2011.