Africa Energy Corp. has received governmental approval and closed the previously announced farmout transactions on Block 2B offshore South Africa. The Company has transferred operatorship and an aggregate 62.5% participating interest in the Exploration Right for Block 2B in consideration for a carry through the next exploration well, Gazania-1, which is expected to spud by the end of 2021. Africa Energy retains a 27.5% participating interest in Block 2B. Africa Energy has farmed-out a 50% participating interest and transferred operatorship in Block 2B to Azinam Limited ("Azinam"). In consideration for the assignment of this interest, Azinam paid AfricaEnergy $0.8 million at close, which includes reimbursement of costs incurred prior to completion. In addition, Azinam will pay a disproportionate amount of the Gazania-1 exploration well and other joint venture costs. To support this obligation, Azinam paid a second US$1.5 million deposit to Africa Energy at close and is required to place additional funds in escrow prior to signing a rig contract. Azinam is a private Southern Africa-focused oil and gas exploration company supported by Seapulse Ltd., a vehicle backed by Robert Friedland and Seacrest. At the same time, Africa Energy has also farmed-out a 12.5% participating interest in Block 2B to Panoro Energy ASA ("Panoro"). In consideration for the assignment of this interest, subject to Azinam placing the required funds in escrow as noted above, Panoro will pay a disproportionate amount of the Gazania-1 exploration well costs. Panoro is an Africa-focused independent oil and gas exploration and production company listed on the Oslo Stock Exchange.