Commencement of Development Operations – Lagia Oil Field 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”) COMMENCEMENT OF DEVELOPMENT OPERATIONS – LAGIA OIL FIELD SacOil Holdings Limited, through its subsidiary Mena International Petroleum Company Limited ("Mena"), is pleased to announce the commencement of field development operations at its 100% owned Lagia oil field in Sinai, onshore Egypt. Mena has contracted Schlumberger Egypt to conduct an initial phase of development, which includes the hydraulic stimulation of the Lagia 6,7,8,9 and 10 wells, specifically targeting the intersected productive Nukhul geological formation. Schlumberger is one of the leading international oil field services companies, with a proven track record of success in Egypt. Operations commenced on the 4th January 2015 and well results are expected by the end of January 2015. The Company anticipates total daily production of approximately 350 barrels of oil per day, provided the completion of operations at each of these wells is successful. In addition to these hydraulic stimulation operations, a thermal recovery process is being planned for the first half of 2015, which should further enhance oil production and recovery of the reserves from the Lagia oil field. SacOil is preparing and planning a second phase of development operations to start by June 2015, which includes the drilling of up to five additional wells in the Lagia oil field. More details of this phased development, as well as progress on the current operations, will be announced in due course. JSE Sponsor PSG Capital Proprietary Limited 6 January 2015 For further information please contact: SacOil Holdings Limited Bradley Cerff +27 (0)11 575 7232 finnCap Limited (Nominated Adviser and Broker) Matthew Robinson / Christopher Raggett +44 (0) 20 7220 0500 FirstEnergy Capital (Financial Adviser and Joint Broker UK) Travis Inlow +44 (0) 20 7448 0200 Instinctif Partners London (UK Investor Relations) David Simonson / Anca Spiridon +44 (0)20 7457 2020 Instinctif Partners Johannesburg (SA Investor Relations) Nicholas Williams / Tshepo Mophiring +27 (0)11 447 3030 Date: 06/01/2015 10:00:00 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.