Key Petroleum Ltd. : Tanzania Sale Agreement

19 November 2012

The Manager

Australian Securities Exchange Company Announcements Office Level 4/20 Bridge Street

SYDNEY NSW 2000

Dear Sir

Please see ASX Announcement for Investors regarding the divestment of all Tanzanian interests from

Key Petroleum Limited ("Key") to Bounty Oil and Gas NL (BUY).

Regards

Managing Director

Ground Floor, 39 Stirling Highway, Nedlands, Western Australia 6009

T: +61 (0)8 6389 0322 F: +61 (0)8 6389 0697 E: info@keypetroleum.com.au W: www.keypetroleum.com.au

ABN 50 120 580 618

ASX AND MEDIA ANNOUNCEMENT

19 November 2012

A Sale Agreement has been executed between Key Petroleum Limited ("Key") and Bounty Oil and Gas NL ("Bounty") for the entirety of Key's Tanzanian assets. These include Key's 5% interest in the Kiliwani North Development License and its Tanzanian subsidiary Funguo Petroleum Limited.
The terms of the Sale Agreement require that Bounty pay USD $250,000 cash to Key, of which USD $205,480 has been allocated to the development costs of the Kiliwani North Development License. The remaining cash balance of USD $44,470 will be paid directly to Key. An additional consideration of AUD $156,000 (BUY) in ordinary shares will be issued and allotted to Key as part of this transaction.
Managing Director Kane Marshall said the transaction now completes the full divestment of Key's international
interests allowing the company to focus on its Australian exploration objectives.
"As promised we have accomplished the sale of Key's remaining international interests. We can now go forward and focus all our attention on the upcoming Australian exploration activities in the Canning and Perth Basins, especially with our imminent drilling campaign in Cyrene-1. We are very pleased to have executed this deal with Bounty and look forward to proactively participating in Bounty's growth in both Tanzania and Australia as a shareholder".
For further information, please contact: Kane Marshall
BSc (Geology), BCom (Inv & Corp Fin), Masters PetEng, SPE, AAPG Managing Director

Key Petroleum Ltd

Telephone: +61 8 6389 0322

Competent Persons Statement

Information in this ASX Release relates to information compiled by Mr Kane Marshall. Kane Marshall is a Practicing Petroleum Engineer and holds a BSc (Geology), a BCom (Inv & Corp Fin) and a Masters in Petroleum Engineering. He is a member of the Society of Petroleum Engineers (SPE) and the American Association of Petroleum Geologists (AAPG).

Ground Floor, 39 Stirling Highway, Nedlands, Western Australia 6009

T: +61 (0)8 6389 0322 F: +61 (0)8 6389 0697 E: info@keypetroleum.com.au W: www.keypetroleum.com.au

ABN 50 120 580 618

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