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A AfricaOil NEWS RELEASE Corp. AFRICA OIL ANNOUNCES STRONG FIRST QUARTER 2021 FINANCIAL RESULTS AND THE SIGNING OF A NEW FACILITY TO REFINANCE ITS EXISTING TERM LOAN ● May 13 , 2021 ( AOI - TSX , AOI - Nasdaq - Stockholm ) - Africa Oil Corp. ( “ Africa Oil " , " AOC " or the " Company " ) is pleased to announce its financial and operating results for the three months ended March 31 , 2021. The Company is also pleased to announce that it has achieved one of its primary objectives for 2021 with the signing of a new term loan agreement ( " Corporate Facility " ) , to refinance its existing term facility ( " Term Loan " ) that is due to mature in January 2022. This achieves significant reduction in borrowing costs , strengthens the balance sheet and improves the Company's liquidity position . Highlights ● ● Suite 2000 885 West Georgia Street Vancouver , B.C. Canada V6C 3E8 Ph . 604-689-7842 africaoilcorp@namdo.com africaoilcorp.com First quarter net income of $ 38.9 million and end of quarter cash balance of $ 29.4 million . Selected Prime's first quarter 2021 results net to Africa Oil's 50 % shareholding * : average daily working interest ( " W.I " ) production of 27,700 barrels of oil equivalent per day ( " boepd ) and economic entitlement production of 30,300 boepd ( 84 % light and medium crude oil and 16 % conventional natural gas ) 2 , ³ ; O O EBITDA of $ 143.1 million and cash flow from operations of $ 85.9 million for the quarter ; and end of quarter cash position of $ 165.3 million . Africa Oil published its 2020 year - end reserves report ( NI 51-101 ) confirming working interest 2P reserves replacement ratio of 117 % . Strong reservoir performances with positive technical revisions and resource transfers of 12.2 MMboe , compared to a production of 10.5 MMboe net to Africa Oil's 50 % shareholding in Prime , reiterating the quality of AOC's producing assets . The Corporate Facility is for an amount of up to $ 150 million , out of which $ 130 million is committed at signing , with an uncommitted accordion option for an additional $ 20 million and has a three - year term . Interest is payable at a rate of LIBOR plus a margin of 6.5 % in the first year increasing to 7.0 % in the second year and 7.5 % in the third year . Subject to the satisfaction of customary conditions precedent , the Corporate Facility will be available by end of July 2021 and the proceeds will be used to repay the Term Loan and for general corporate purposes . Africa Oil President and CEO Keith Hill commented : " I am delighted with the strong support from our banking syndicate , a clear endorsement of our investment case and high - quality assets . As well as the immediate benefits of lower borrowing costs and improved liquidity , this refinancing strengthens our banking relationships , a strategic advantage as we seek to acquire additional producing assets in this attractive market and progress our South Lokichar project in Kenya . We also look forward to the results from our high impact Venus and Gazania exploration wells as we progress Brulpadda and Luiperd discoveries towards development . " * Important information : Africa Oil's interest in Prime is accounted for as an investment in joint venture . Refer to Note 1 on page 4 for further details . Please also refer to other notes on page 4 for important information on the material presented .