FirstAfrica Oil's $53.9 Million Placing to be Delayed

On October 4, 2006 FirstAfrica announced its intention to raise new equity funds of up to US$53.9 million (before expenses) to enable further development of the EOV Field and provide working capital for the Group by way of a placing to Qualifying Investors. The extraordinary general meeting scheduled for today at 10:00am to approve, inter alia, the issue of up to 5,734,042,400 new ordinary shares will go ahead as planned despite the Placing not being finalized and the placing price announced. The closing of the Placing is expected to be delayed for up to two weeks pending the following:

--the finalization of the audit of the Company's reserves by Netherland and Sewell Inc.; and

--agreement in principal on a US$25.0 million debt facility, for which discussions are continuing.

Due to the board's cash management policies and confidence in completing the Placing it believes that the Company can continue to trade.

If the resolution required to effect the 1 for 50 share consolidation is approved at the extraordinary general meeting convened for 11:00 am today then the Company will proceed with the share consolidation only following the finalization of the Placing and the issue of new ordinary shares.


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