Africa - Tower Resources plc, the AIM listed oil and gas company with its focus on Africa, announces a financing update and an intention to raise gross proceeds of approximately GBP50,000 through a subscription of approximately 20 millionnew ordinary shares of 0.001 pence each at a subscription price of 0.25 pence per Subscription Share which is a premium of 2% to the closing price of the Company's shares on 23 June 2021.

The Company's Chairman Jeremy Asher has indicated his willingness to subscribe to the Subscription Shares.

Admission of the Subscription Shares to trading on AIM is expected to take place at 08:00 on or around 1 July 2021.

Financing Update

As previously disclosed, the Company is in negotiations with several parties to finance some or all of the NJOM-3 well, which it hopes will be concluded soon. The Company also understands that HMRC has not sought permission to appeal the Upper-Tier Tax Tribunal's judgement of 20 May 2021 upholding the First Tier Tribunal (FTT)'s judgement in the Company's favour in respect of its VAT position. While the Company has not yet received confirmation from HMRC of the implications of that decision, the Company's directors are hopeful that the Company might soon resume receiving VAT refunds as it did previously, including accumulated unpaid refunds, by the Company's calculation, of at least GBP275,000.

The timing and outcome of negotiations over the NJOM-3 well financing remain unpredictable, and if successful may (or may not) still require a modest increase in the Company's working capital, but whether this would be the case and the amount will not be known until the negotiations are finalized.

The Company has agreed with Pegasus Petroleum Limited ('Pegasus', whose ultimate beneficial owner is the Company's Chairman Jeremy Asher) that the loan agreement between Pegasus and the Company will be modified with the effect that the higher royalty share for Pegasus, which was previously agreed to come into force if the loan was not repaid by 15 July, 2021, will now only come into force if the loan is not repaid by 15 August 2021.

Background to the Subscription

The proceeds of the Company's placing in January 2021 were intended to repay the Company's working capital loan from Shard Merchant Capital and to fund the Company's working capital requirements to end of June. In view of the possibility of the Company receiving funds from other sources over the coming months, the Company does not wish to make a further substantial placing for working capital purposes until it has a better view of whether such a placing is necessary or for how much. However, the Company's working capital does need a small supplement given that the end of June has now been reached. Therefore the Company is proposing to issue a small number of shares via subscription at the current market price with a small premium.

Contact:

Tel: +202 2785 0023

Fax: +202 2591 8044

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