Update On Mozambique Opportunity And Withdrawal Of Cautionary Announcement 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”) UPDATE ON MOZAMBIQUE OPPORTUNITY AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT 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 Gestão Das Participações 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 parties. 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. Johannesburg 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 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.