Replies to post #64 on Africa Oil Corp

[sno43wolf]

Raytec brings Encanto holdings to 14.76%


2009-08-24 16:36 ET - News Release

Mr. Brian Thurston reports

RAYTEC FINALIZES AGREEMENTS WITH ENCANTO POTASH CORP. AND ACQUIRES SHARES

Raytec Metals Corp. has closed its previously announced transactions with Encanto Potash Corp. Raytec has transferred all of its interests in its potash properties in Saskatchewan to Encanto's operating subsidiary in exchange for 19,846,525 common shares of Encanto, at a deemed total value of 25 cents per share ($4,961,631 in total). As a result, Raytec now owns 19,846,525 common shares of Encanto representing approximately 14.76 per cent of the common shares of Encanto. Raytec has acquired the common shares of Encanto for investment purposes.

Raytec will also incur $6.5-million in expenditures on Encanto's existing potash properties and Raytec's potash properties by Dec. 31, 2009, to earn a 51-per-cent interest in the potash properties. Encanto will have the option to repurchase the 51-per-cent Raytec interest in the potash properties for 26 million common shares of Encanto. If this option is exercised, Raytec will own a total of up to 45,846,525 shares of Encanto which will be equal to an estimated 28.57 per cent of Encanto's issued shares based on its current issued share capital.

The company will file a report describing the above transactions with applicable securities regulators, a copy of which will be available under the company's profile on SEDAR. For further information, or to obtain a copy of the early warning report, please contact Brian Thurston, president and chief executive officer, at 604-688-6410.

[sno43wolf]

AUG/25/09

Raytec Metals enters LOI for Lion Petroleum acquisition


2009-08-25 11:42 ET - News Release

Mr. Brian Thurston reports

RAYTEC TO ACQUIRE LION PETROLEUM CORP.

Raytec Metals Corp. has entered into a binding letter of intent with Lion Petroleum Corp., subject to certain conditions and completion of due diligence process. Lion is a privately held oil and gas exploration company based in Vancouver, B.C., with an exploration office in Nairobi, Kenya. Lion's principal assets are blocks 1 and 2B, both highly prospective exploration blocks in northeastern Kenya.

Blocks 1 and 2B

Lion is party to production sharing contracts (PSC) with the government of the Republic of Kenya, relating to blocks 1 and 2B. The PSCs grant Lion a 100-per-cent interest in the respective blocks, subject only to an 18-per-cent back-in right in favour of the Kenyan government.

Block 1 covers an area of approximately 31,781 square kilometres forming part of the western portion of the Mandera-Lugh basin that occupies part of the northeastern territory of Kenya and extends into Somalia and Ethiopia. Lion has entered into a farm-in agreement with East African Exploration Ltd. (EAX) of Dubai, UAE, on the block 1 concession. EAX may earn a 50-per-cent interest in block 1 by conducting a work program (minimum 600 kilometres of 2-D seismic) and making all the financial commitments required of Lion to the Kenyan government under the PSC.