Africa Oil Corp. reports that an insider of the Company has agreed to provide a loan to Africa Oil in the amount of Cdn $2 million. In addition, an arm’s length third party has agreed to provide a loan to Africa Oil in the amount of Cdn $1 million. Both loans are at an interest rate of prime plus 2% and will be used for short term working capital purposes. Both loans have an initial term of 6 months and may be re-paid in part or full at anytime without penalty. Pursuant to the loan agreements, the lenders will collectively receive bonus payments of shares of Africa Oil totaling 160,428 common shares, subject to regulatory approval. These shares will be subject to a four month and one day hold period.
The above mentioned loans are in addition to the Cdn $4 million loan announced on September 8, 2008.