Vanoil Energy Ltd. : Vanoil Mutually Agrees To Terminate Strategic Partnership

July 20, 2012 - Vancouver, British Columbia -Vanoil Energy Ltd. ("Vanoil" or the "Company") wishes to announce the mutually agreed termination of its strategic partnership agreement with Global Mining Management Ltd. (GMM) originally announced on June 18, 2012.

James Passin, President and CEO of Vanoil stated, "We have enormous respect for the GMM team, their commitment and accomplishments. However, Vanoil has an exclusive focus on East Africa and an aggressive, goal orientated timetable particularly over the next nine months. GMM's and Vanoil's management determined that in the short term the major changes envisioned in the strategic partnership agreement would be potentially disruptive and geographically challenging for Vanoil".

Vanoil will close its current round of financing on July 30, 2012.

About Vanoil Energy Ltd. Vanoil is a Canadian public company focused on Africa and the exploration and development of its significant portfolio of oil and gas properties in Kenya and Rwanda. In Kenya the Company has 100% ownership of Blocks 3A and 3B by way of a production sharing contract ("PSC") executed with Kenyan Ministry of Energy. These blocks cover 24,912 square kilometers and are part of the highly prospective Central African Rift system, which is geologically analogous to the prolific oil and gas fields in South Sudan. In Rwanda, Vanoil is concluding negotiations for that country's first production sharing contract (PSC) covering 1,631 square kilometers of oil and gas in the East Kivu Graben, the southern extension of the Albertine Graben where Heritage and Tullow Oil made their historic discoveries in neighbouring Uganda.

To find out more about Vanoil, please visit our website at www.vanoil.ca or contact Don Padgett at 604-689-1515 x 104 or by email dp@primarycapital.net.

On behalf of the Board of Directors
VANOIL ENERGY LTD.

"James Passin"

James Passin, President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward Looking Information

This news release includes forward looking statements that are subject to assumptions, risks and uncertainties. Statements in this news release which are not purely historical are forward looking statements, including without limitation any statements concerning the Company's intentions, plans, estimates, beliefs or expectations regarding the future. Although the Company believes that any such intentions, plans, estimates, beliefs and expectations in this news release are reasonable, there can be no assurance that any such intentions, plans, beliefs and expectations will prove to be accurate.

The Company cautions readers that all forward looking statements, including without limitation those relating to the Company's future operations and business prospects, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward looking statements.

Any forward looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward looking statements, or to update the reasons why actual events or results could or do differ from those projected in the forward looking statements. The Company assumes no obligations to update any forward looking statements, whether as a result of new information, future events or otherwise.

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