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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/22/12 -- Africa Oil Corp. ("Africa Oil" or the "Company") (TSX VENTURE:AOI) (OMX:AOI) is pleased to announce that it has completed the Kenyan portion of the previously announced (July 23, 2012) farmout agreement with Marathon Oil Corporation ("Marathon Oil") whereby Marathon Oil acquired an interest in two of Africa Oil's Kenyan exploration blocks.

Under the terms of the farmout agreement, Marathon Oil acquired a 50% interest in Block 9 and a 15% interest in Block 12A, both in Kenya. Africa Oil will maintain operatorship in Block 9, but Marathon Oil has the right to assume operatorship if a commercial discovery is made. The resulting interest in the Kenyan exploration blocks are as follows:

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Block 9 (Kenya)      Africa Oil 50% Marathon Oil 50%                        
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Block 12A (Kenya)    Africa Oil 20% Marathon Oil 15%   Tullow 65% (Operator)
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Net Working Interests are subject to back in rights or carried working interests, if any, of the respective governments or national oil companies of the host governments.

In consideration for the assignment of these interests, Marathon Oil paid Africa Oil an entry payment of US$32 million which includes reimbursement for prior expenditures, and has agreed to fund Africa Oil's working interest share of future joint venture expenditures on these blocks to a maximum of US$25 million, anticipated to be spent over the next three years.

Keith Hill, Africa Oil's President and CEO, stated, "We are very pleased to welcome Marathon Oil as a partner with their stature and long history of success in the oil and gas business. We look forward to working together to expand on the success we have had in our East Africa exploration program to date. The consideration to be received from Marathon Oil will allow us to both accelerate the exploration in the blocks that Marathon Oil is farming into as well as provide additional funding to the Company for the accelerated exploration program on the Tertiary rift trend being executed in partnership with Tullow Oil. East Africa is rapidly becoming the most prospective oil and gas province in the world and the large, strategic land portfolio we hold ensures we will be at the center of industry activity."

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya, Ethiopia and Mali as well as Puntland (Somalia) through its 45% equity interest in Horn Petroleum Corporation. Africa Oil's East African holdings are in within a world-class exploration play fairway with a total gross land package in this prolific region in excess of 300,000 square kilometers. The East African Rift Basin system is one of the last of the great rift basins to be explored. New discoveries have been announced on all sides of Africa Oil's virtually unexplored land position including the major Albert Graben oil discovery in neighboring Uganda. Africa Oil's recent Ngamia-1 discovery extends the Albert Graben play into Kenya where Africa Oil along with partner Tullow holds a dominant acreage position. Newly acquired seismic and gravity data show robust leads and prospects throughout Africa Oil's project areas. The Company is listed on the TSX Venture Exchange and on First North at NASDAQ OMX-Stockholm under the symbol "AOI".

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