Addax Petroleum Announces Exercise of Over-Allotment Option

Addax Petroleum Corporation (TSX: AXC) reports that its underwriting syndicate has elected to exercise the over-allotment option to purchase 1,750,000 subscription receipts at the price of $27.25 per subscription receipt resulting in additional gross proceeds of CDN $47,687,500. Each subscription receipt represents the right to receive one common share in the share capital of Addax Petroleum, without payment of any additional consideration. Closing of the over-allotment option is scheduled to occur on August 30, 2006.P> The over-allotment option was granted in connection with the recent offering of 13,000,000 subscription receipts. After the exercise of the over-allotment option, Addax Petroleum will have issued 14,750,000 subscription receipts pursuant to the offering for gross proceeds of CDN $401,937,500. The aggregate subscription proceeds, together with interest thereon, will be held in escrow by Computershare Trust Company of Canada and invested in short-term obligations of, or guaranteed by, the Government of Canada (and other approved instruments) pending completing of the acquisition of certain subsidiaries and other assets of Pan-Ocean Energy Corporation Limited (the "Acquisition"), which was announced on July 20, 2006 and is expected to close on or about September 7, 2006. In connection with the completion of the Acquisition, the escrowed funds will be released to Addax Petroleum and the outstanding subscription receipts will be converted into Addax Petroleum common shares.

The common shares of Addax Petroleum trade on the Toronto Stock Exchange under the symbol "AXC". The subscription receipts of Addax Petroleum trade on the Toronto Stock Exchange under the symbol "AXC.R"

The offering was underwritten by a syndicate led by RBC Capital Markets, Merrill Lynch Canada Inc. and Scotia Capital Inc., and included CIBC World Markets Inc., TD Securities Inc., National Bank Financial Inc., UBS Securities Canada Inc., BNP Paribas (Canada) Securities Inc., FirstEnergy Capital Corp., Canaccord Capital Corporation and Peters & Co. Limited.


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