Bemolanga Production Sharing Contract

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MADAGASCAR OIL LIMITED

("Madagascar Oil" or the "Company")

27th May, 2011

Response to Media Reports Regarding Bemolanga Production Sharing Contract

In response to recent media reports, Madagascar Oil Limited confirms that, with Total E&P Madagascar, it is currently in the process of seeking an extension of one year to the current exploration phase under the production sharing contract for Block 3102 (Bemolanga).Total E&P Madagascar is the operator of Block 3102 and holds a 60% interest, with Madagascar Oil holding the remaining 40%.

Both companies are in the process of obtaining further Government approvals of the extension and a further update will be provided in due course.

Contact Information:

Pelham Bell Pottinger +44 (0)20 7861 3232

Mark Antelme

Jenny Renton

Strand Hanson Limited +44 (0)20 7409 3494

Simon Raggett

Angela Peace

-ENDS-