ERHC Energy Inc (ERHE)

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Exile Resources update

Acquisition

TORONTO, ONTARIO--(Marketwire - Jan. 30, 2012) -


NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES


Exile Resources Inc. ("Exile") (TSX VENTURE:ERI) is pleased to provide an
update on the proposed acquisition by Exile of the upstream exploration and
production division of Oando PLC.


At a special meeting of shareholders of Exile held on December 29th 2011 (the
"Meeting"), shareholder approval was received in connection with the proposed
acquisition by Exile of the upstream exploration and production division of
Oando PLC (the "Acquisition"), and certain related matters (collectively, the
"Restructuring"). In connection with the Restructuring, Exile proposes to
undertake a series of transactions pursuant to a plan of arrangement (the
"Arrangement") which involves, among other matters:


a. the consolidation of all of the outstanding common shares ("Common
Shares") of Exile on the basis of one new Common Share for every 16.28
old Common Shares then outstanding (the "Consolidation");

b. the issuance to the shareholders of Exile of two share purchase warrants
of Exile for every 16.28 Common Shares of Exile held immediately prior
to the Arrangement, one share purchase warrant exercisable to acquire
one post Consolidated Common Share of Exile at an exercise price of
Cdn$1.50 per share for a period of 12 months, and the second share
purchase warrant exercisable to acquire one post Consolidated Common
Share of Exile at an exercise price of Cdn$2.00 per share for a period
of 24 months;

c. the change of name of Exile to "Oando Energy Resources Inc."; and

d. the appointment of two additional directors to the board of directors of
Exile - Messrs. Omamofe Boyo and Olapade Durotoye.


As consideration for the Acquisition, Exile shall issue 100,339,052 post
Consolidated Common Shares to Oando PLC. In addition, in connection with the
Acquisition, Mr. Jubril Adewale Tinubu will be appointed as a new director and
Chairman of Exile, on closing of the Acquisition.


Existing Exile shareholders are anticipated to hold approximately 5.4% of the
post Consolidated Common Shares of the new company immediately following the
closing of the Restructuring, based on the assumptions set forth in the
management information circular of Exile dated as of November 28, 2011 and sent
to shareholders in connection with the Meeting (the "Circular"). The balance of
the Common Shares will be held by Oando immediately post closing.


The new company will be focused on Nigeria and have a broad suite of
producing, development and exploration properties with initial production of
approximately 5,300 BOPD. The new company has been specifically structured to
take advantage of the current opportunities for indigenous companies in the
country, which has the largest population in Africa, and significant oil and
gas resources. The management team will comprise primarily Nigerian Nationals.
For further details, please refer to the Circular as available on SEDAR at
www.sedar.com.


The Restructuring remains subject to approval by the Toronto Stock Exchange
("TSX"), which approval is subject to the resulting company satisfying all of
the original listing requirements of the TSX.


We would like to thank our shareholders for their patience and support during
the completion of this highly complex but exciting new direction for Exile.


Forward-Looking Statements


Certain information set forth in this news release may contain
forward-looking statements that involve substantial known and unknown risks and
uncertainties. These forward-looking statements are subject to numerous risks
and uncertainties, certain of which are beyond the control of Exile and Oando
PLC, including, but not limited to, the impact of general economic conditions,
industry conditions and dependence upon regulatory approvals. Readers are
cautioned that the assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on forward-looking
statements.


NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.


FOR FURTHER INFORMATION PLEASE CONTACT:

Exile Resources Inc.
Tony Henshaw
President and CEO
[phone]
[e-mail]
or
Exile Resources Inc.
David Feick
Investor Relations
[phone]
[e-mail]
www.Exileresources.com
or
Oando PLC
Jubril Adewale Tinubu
Group Chief Executive Officer
[phone]
[e-mail]
or
Oando PLC
Tokunboh Akindele
Investor Relations
[phone], Ext 6396
[e-mail]
www.oandoplc.com


(END) Dow Jones Newswires

January 30, 2012 15:30 ET (20:30 GMT)

013012 20:30 -- GMT