Africa Energy Corp (HPMCF)

[dat_51or]

Horn's Year End Report...

March 26, 2013 (HRN–TSXV)… Horn Petroleum Corporation (“Horn” or the “Company”) is pleased to announce its financial and operating results for the year ended December 31, 2012.



· During the year ended December 31, 2012, Horn increased its investment in intangible exploration assets by $34.3 million. The majority of the costs incurred during 2012 related to drilling the Shabeel-1 and Shabeel North-1 exploration wells in the Dharoor Valley block. The remaining expenditures are PSA related expenditures and general and administrative costs. The Company and its Partners fulfilled the initial exploration period work commitments under the Dharoor Valley and Nugaal Valley PSAs with the drilling of the Shabeel wells.



· While the Company was disappointed that the first two exploration wells in Puntland (Somalia) did not flow oil, the Company remains highly encouraged that all of the critical elements exist for oil accumulations. Horn recently completed demobilization of the drilling rig and associated equipment and both well sites have been restored to original condition.



· Horn and its partners have entered into the next exploration period in both the Dharoor Valley and Nugaal Valley PSA’s which each carry a commitment to drill one exploration well in each block by October 2015.



· Efforts are now focused on making preparations for a seismic acquisition campaign in the Dharoor Valley area which will include a regional seismic reconnaissance grid in the previously unexplored eastern portion of the basin as well as prospect specific seismic to delineate a drilling candidate in the western portion of the basin where an active petroleum system was confirmed by the recent drilling at the Shabeel-1 and Shabeel North-1 locations.



· As at December 31, 2012, the Company had cash of $9.5 million and working capital of $4.4 million as compared to cash of $27.6 million and working capital of $25.9 million at December 31, 2011. The Company’s liquidity and capital resource position has been reduced during 2012 primarily due to expenditures incurred on the drilling of the Shabeel-1 and Shabeel North-1 exploration wells offset partially by the non-brokered private placement which raised CAD$15.0 million in June 2012.



· Horn continues to investigate potential joint venture partnerships and also is reviewing new venture opportunities in the region.



Horn President and CEO, David Grellman, commented, “We remain very encouraged by the exploration potential of our Jurassic rift basins in Puntland. We have committed to the next exploration phase in both PSAs and plan to aggressively explore both areas to confirm this potential. We are also optimistic that the political progress in Somalia will continue and allow oil and gas exploration in the region to expand.”

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