Sacoil : Mozambique Update

SacOil Holdings Limited

('SacOil' or 'the Company')

UPDATE ON THE AFRICAN RENAISSANCE GAS PIPELINE IN MOZAMBIQUE

Further to the announcement on 1 March, 2016, SacOil announces that a Joint Venture Agreement for the development of the African Renaissance Pipeline Project ('Project') was signed in Maputo, Mozambique on Friday, April 22, 2016 by the following parties i.e. Empresa Nacional de Hidrocarbonetos (ENH), Profin Consulting Sociedade Anonima (Profin), China Petroleum Pipeline Bureau (CPP), China Petroleum & Technology Development Corporation (CPTDC) and Progas Investment Group (Pty) Limited.

SacOil as a Company elected not to sign the Joint Venture Agreement at this time, while the Board evaluates the Agreement and the associated opportunity with regards to the Company's participation in the Project. The Company will provide an update in due course.

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About SacOil

SacOil is a South African based independent African oil and gas company, dual-listed on the JSE and AIM. The Company has a diverse portfolio of assets spanning production in Egypt, exploration and appraisal in the Democratic Republic of Congo, Malawi and Botswana, and midstream and downstream operations. The Company continues to evaluate industry opportunities throughout Africa as it seeks to establish itself as a leading, full-cycle pan-African oil and gas company.