Africa Energy Corp (HPMCF)

[Tamtam]

AEC Pancontinental agreement on 10% Namibia Farm-in terminated

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Pancontinental Oil & Gas (“Pancontinental”) refers to the ASX release dated 30 November
2016 headed “Africa Energy Corp. Farms into Namibia PEL37” (“AEC Farmin Release”)
concerning an agreement between Africa Energy Corp. (“AEC”) and Pancontinental under
which AEC, subject to certain conditions, would farmin to Pancontinental’s 30% interest in
Namibian offshore exploration licence PEL 37 (“AEC Farmin Agreement”).
On 16 January 2017, Pancontinental received advice from AEC that it (AEC) wished to
restructure the AEC Farmin Agreement reported in the AEC Farmin Release.
Unfortunately Pancontinental and AEC have not been able to conclude a mutually satisfactory
revised agreement within the given period for negotiation and consequently the agreement
referred to in the AEC Farmin Release has lapsed.