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SACOIL HOLDINGS LIMITED - Update On Mozambique Opportunity And Withdrawal Of Cautionary Announcement

Release Date: 31/03/2014 16:15:00      Code(s): SCL     
(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?)


Update on Mozambique opportunity

Shareholders are referred to the cautionary announcement published on 24 February 2014
and are advised that SacOil and The Public Investment Corporation (SOC) Limited (?PIC?)
have now entered into a Memorandum of Understanding (?MoU?) dated 31 March 2014 with
The Instituto De Gest?o Das Participac?es Do Estado (?IGEPE?). IGEPE is an entity that
manages investment portfolios and shares on behalf of the Government of the Republic of
Mozambique in commercial ventures. SacOil is a South African based independent African oil
and gas company listed on the JSE and AIM (JSE: SCL / AIM: SAC).

The MoU, which builds on and replaces the relationship outlined in the Expression of Interest
between the parties dated 19 February 2014, is intended to regulate the relationship between
the parties with regard to:

    -   assuring the supply of natural gas and energy security, and opening up and growing
        the industrial and domestic consumer market for natural gas across Mozambique;

    -   establishing joint venture companies to, inter alia, build an onshore natural gas
        central processing facility, a pipeline to link the gas fields in Mozambique with
        potential customers in Southern Africa (referred to as the ?African Renaissance
        Project? or ?ARP?) and to develop and grow the natural gas consumer market in
        South Africa and other Southern African Development Community member states for
        the supply and distribution of natural gas along the pipeline in Mozambique (referred
        to as ?Gas for the People Project? or ?GPP?); and

    -   establishing ancillary projects such as, but not limited to, a gas-to-liquid plant and a
        combined cycle gas power plant.

Importantly, both the ARP and GPP are long term projects, and are subject to, amongst other
matters, feasibility studies, front end engineering design, detail engineering, market analysis,
social impact studies, the conclusion of joint venture agreements by 30 July 2014 or such
later date as agreed to in writing by the parties, and the raising of the funding required for the
projects. The feasibility studies are subject to the approval of the boards of directors of each
of the PIC and SacOil and satisfaction of any other applicable approval processes of these

Further updates in this regard will be provided to SacOil shareholders as and when new
developments occur.

Withdrawal of cautionary announcement

The board of SacOil has provided shareholders with all information relating to the entering of
the MoU and accordingly shareholders are advised that they no longer need to exercise
caution when dealing in the Company?s securities.

31 March 2014

JSE Sponsor
Nedbank Capital

For further information please contact:

SacOil Holdings Limited
Roger Rees / Tariro Mudzimuirema                           +27 (0)11 575 7232

Nedbank Capital, a division of Nedbank Limited (Sponsor)   +27 (0) 11 294 3524
Michelle Benade

finnCap Limited (Nominated Adviser and Broker)
                                                           +44 (0) 20 7220 0500
Matthew Robinson / Christopher Raggett

FirstEnergy Capital (Joint Broker UK)                      +44 (0) 20 7448 0200
Majid Shafiq
Travis Inlow

Pelham Bell Pottinger (UK)
Philip Dennis                                              +44 (0) 20 7861 3919
Nick Lambert                                               +44 (0) 20 7861 3936
Rollo Crichton-Stuart                                      +44 (0) 20 7861 3918

Date: 31/03/2014 04:15:00 Supplied by www.sharenet.co.za                     
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