PetroNor E&P ASA

Related Party Transaction • Aug 13, 2014

AGREEMENTS SIGNED TO CONVERT INTERNATIONAL PETROLEUM LIMITED LOAN AMOUNTS

AGREEMENTS SIGNED TO CONVERT INTERNATIONAL PETROLEUM LIMITED LOAN AMOUNTS

13 August 2014 - African Petroleum Corporation Limited

("African Petroleum Corporation" or the "Company") has

signed agreements with International Petroleum Limited

("IOP") regarding the conversion of US$13 million owed

by IOP to the Company into fully paid IOP ordinary

shares.

In May 2011 the Company provided a US$10 million loan

facility to IOP and in April 2013 the Company paid a

refundable exclusivity deposit to IOP of US$1,235,000.

These amounts together with accrued interest and

commitment fees total US$13 million and are now due

and payable by IOP to the Company. Due to the

financial position of IOP it has been unable to repay

the full amounts owed and accordingly the Company

fully impaired the total amount owed in its 2013

financial statements.

As announced by IOP on 12 August 2014, it is now in

the process of completing the sale of its Russian

assets. Upon conclusion of the sale IOP will make a

cash repayment of US$559,090 to African Petroleum

Corporation and all other outstanding monies owed to

the Company will convert into fully paid ordinary

shares of IOP at a price of A$0.06 per share.

Additionally, African Petroleum Corporation will be

granted 5 million IOP share options exercisable at

A$0.06 per share within 24 months from issue date.

Following the loan conversion, African Petroleum

Corporation is expected to hold 233,890,450 ordinary

shares in IOP representing a holding of approximately

14%.

IOP is listed on the National Stock Exchange of

Australia ("NSX") and had a market capitalisation of

A$71 million prior to suspension of trading in March

2013. The securities of IOP are expected to be

restored to trading on the NSX upon completion of the

Russian assets sale and settlement of IOP's creditors.

Dr Stuart Lake, African Petroleum Corporation's CEO

commented: "We are pleased with the result of the

negotiations with International Petroleum, the

objective of which was to recover as much value from

this situation as possible, and we are confident that

we have achieved this. IOP is now in a strong

position to complete the sale of its Russian assets

and move forward with its international portfolio of

exploration and production licences. IOP will now

focus on its highly prospective assets in Niger and

has recently revised its exploration programme to

incorporate new technology (FTG Full Tensor

Gradiometry) in order to high grade the prospectivity

at low cost; a process recently completed with great

success by Tullow in Uganda and Africa Oil in Kenya.

Additionally, African Petroleum Corporation has the

right to appoint one member to the IOP board to

oversee our substantial investment in the company."

For further information, please contact:

Stuart Lake, Chief Executive Officer

Stephen West, Finance Director

Tel: +44 20 3435 7700

Angeline Hicks, Company Secretary

Tel: + 61 401 489 883

Media Contacts:

For UK and International media:

Mark Antelme/Charlie Stewart, Bell Pottinger

Tel: +44 207 861 3800

For Norwegian media:

Geir Arne Drangeid, First House

Tel: +47 913 10 458

Geir Gjervan, First House

Tel: +47 908 79 108

About African Petroleum Corporation

African Petroleum Corporation is a dynamic,

independent oil and gas exploration company operating

eight licences in four countries offshore West Africa.

The Company's assets are located in fast-emerging

hydrocarbon basins, principally the West African

Transform Margin, where several discoveries have been

made in recent years, including African Petroleum

Corporation's Narina-1 discovery in February 2012,

which proved a working hydrocarbon system in the

Liberian basin. With a combined net acreage position

of 28,295km2 through its licences in Côte d'Ivoire,

Liberia, Senegal and Sierra Leone, the Company has

matured its portfolio rapidly, acquiring more than

15,000km2 of 3D seismic data and successfully drilling

three wells, one of which was the first hydrocarbons

discovery in the offshore Liberian deep-water basin.

For more information about African Petroleum

Corporation, please see www.africanpetroleum.com.au

This information is subject to disclosure requirements

pursuant to section 5-12 of the Norwegian Securities

Trading Act.