Africa Oil Corp. is pleased to report that it has received Ministerial consent in connection with the previously announced Farmout Agreement with Agriterra Ltd. (formerly White Nile Ltd.) and the deal has now closed. Under the Farmout Agreement, Africa Oil Ethiopia B.V. ("AOEBV"), a wholly-owned subsidiary of Africa Oil, has acquired an 80% participating interest in, and operatorship of, the South Omo Block in Ethiopia.

South Omo represents a new opportunity for Africa Oil to secure a highly prospective block in the Omo Rift Valley of south-western Ethiopia. The block spans 29,465 square kilometres and is within the Tertiary age East African Rift, just north of Lake Turkana, Kenya and within the same petroleum system as the Company's Kenya Block 10BB and Tullow's Uganda discoveries.

Pursuant to the Farmout Agreement AOEBV will pay 80% of past costs incurred by Agriterra, to a maximum of US$2,517,000, to earn its 80% participating interest. The payment of these past costs will be set-off against future cash calls made to Agriterra by AOEBV in respect of Agriterra's 20% Participating Interest. AOEBV will also fund 100% of the costs associated with a work program comprised of 500 kilometres of 2D seismic, a field geology program, and a surface geochemistry program. Total cost exposure for this work program is estimated at $6.5 MM USD with the majority of these costs to be incurred in the first half of 2011.

Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya, Ethiopia and Puntland (Somalia). Africa Oil's East African holdings are in what is considered a truly world-class exploration play fairway. The Company's total gross land package in this prolific region is approaching 250,000 square kilometers - an area roughly the size of Great Britain. The East African Rift Basin system is one of the last of the great rift basins to be explored. New discoveries have been announced on all sides of Africa Oil's virtually unexplored land position including the major Tullow Albert Graben oil discovery in neighbouring Uganda. Similar to the Albert Graben play model, Africa Oil's concessions have older wells, a legacy database, and host numerous oil seeps indicating a proven petroleum system. Good quality existing seismic show robust leads and prospects throughout Africa Oil's project areas. The Company is listed on the TSX Venture Exchange under the symbol "AOI".