SAC.L Regulatory News (SAC)

SACOIL HOLDINGS LIMITED

(Incorporated in the Republic of South Africa)

(Registration number 1993/000460/06)

JSE share code: SCL AIM share code: SAC

ISIN: ZAE000127460

("SacOil" or "the Company")

29 March 2012

Johannesburg

CORPORATE UPDATE

·; Block III asset update

·; Issue of shares for cash to YA Global Masters SPV Ltd

·; Appointment of auditors and joint broker

1. Block III asset update

On 12 March 2012, Total E&P RDC ("Total") acquired a further 6.66% effective interest in Block III from DIG Oil Proprietary Limited ("DIG"), a shareholder in Semliki Energy SPRL ("Semliki"). Pursuant to the acquisition, Total's holding in Block III increased to 66.66%, whereas SacOil's effective interest remains unchanged at 12.5%, DIG's holding reduces to 5.84% and the Democratic Republic of Congo ("DRC") Government retains 15.0%. As a result of this transaction, Semliki, a company incorporated in the DRC and through which SacOil and DIG own their interests in Block III, is now owned 68% by SacOil and 32% by DIG.

SacOil's effective interest of 12.5%, its entitlement to contingent cash bonuses of USD$54m and a free carry on all exploration expenses up to final investment decision (when a development plan is approved) remains unchanged. DIG and SacOil are pursuing additional assets in the DRC.

2. Issue of shares for cash to YA Global Masters SPV Ltd ("YA")

SacOil shareholders ("Shareholders") are advised that 29 328 257 new SacOil ordinary shares ("SEDA Shares") will be issued to YA at a price of R0.43 per SEDA Share pursuant to the terms of the Standby Equity Distribution Agreement dated 12 October 2011 and approved by Shareholders in a general meeting on 17 November 2011.

Application has been made to the JSE Limited ("JSE") to grant a listing of the SEDA Shares and to the London Stock Exchange for the admission of the SEDA Shares to trading on the AIM Market ("AIM"). The listing of the SEDA Shares on the JSE and the admission of the SEDA Shares to trading on AIM are expected to take place on Wednesday, 4 April 2012. The proceeds of the issue of the SEDA Shares will be utilised towards funding of corporate costs in relation to potential transactions and proposals.

3. Appointment of auditors and joint broker

The Company is pleased to announce the following appointments effective 26 March 2012:

·; Ernst & Young Inc. (South Africa) as independent external auditors; and

·; First Energy Capital as joint broker (United Kingdom).

FirstEnergy is a leading international energy-focused bank, providing full-service energy investment banking operations. FirstEnergy's UK activities include corporate broking, equity research, sales and trading, corporate mergers and acquisitions and oil and gas property acquisitions and divestiture advisory.

ENDS

About SacOil

SacOil is an African independent upstream oil and gas company, focused on African assets with a dual listing on the JSE and AIM. SacOil's vision is to build a balanced hydrocarbon exploration and production portfolio using the Company's African heritage to bring about its competitive advantage at the point of entry where the primary strategic objective is the development, exploration and production of discovered assets, with existing or near term production, cash and revenue potential.

SacOil is focussed on oil and, where there is a defined access to market, gas in low risk, proven hydrocarbon bearing basins. The company seeks to build a portfolio of assets across the E&P spectrum from potentially "High Impact" exploration through to undeveloped discoveries with near term cash flow potential, and production with defined upside.

The Company is willing and able to operate through the exploration phase but will continue to focus on the establishment of strategic industry partnerships in order to maximise its opportunity set, manage portfolio risk and ensure that the optimum technical and operating skills are applied to each opportunity.

Consistent with this strategy, SacOil has built up an E&P portfolio including oil discoveries in Nigeria and potentially high impact exploration in the DRC detailed as follows:

Ø in Block III, through its partnership with Total, it is envisaged that the work program committed to will demonstrate prospectively and eventually lead to oil production;

Ø in relation to OPL 281, SacOil is in the process of evaluating and appraising oil discoveries through the reprocessing of seismic data with a view to drill an appraisal well; remaining conditions precedent to the farm in agreement include: perfection of title and all the necessary Nigerian government and Nigerian National Petroleum Company ('NNPC') consents in relation to the licence; and

Ø in OPL 233, the Joint Venture Committee consisting of SacOil, NIGDEL and EER  is committed to acquiring 3D OBC seismic data, which should assist in evaluating the size of the existing oil discovery. 

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