FirstAfrica Oil Issues New Ordinary Shares

FirstAfrica announces that having sent notices on June 7, 2006 and June 14, 2006 to holders of loan notes in the Company ("Loan Notes"), requiring them to convert their Loan Notes and the accrued interest thereon into new ordinary shares of 0.1p of the Company ("Ordinary Shares") at 4p per share, the Company has received the remaining certificate in respect of the Loan Notes which convert into 2,638,217 new Ordinary Shares. Application has been made to the London Stock Exchange plc for these shares to be admitted to trading on AIM with admission expected on September 1, 2006.

Due to an administrative error with respect to the loan note conversions announced on June 29, 2006 the number of new Ordinary Shares of 68,965,153 as announced was incorrect. The actual number of shares issued was 68,075,130. Therefore as of September 1, 2006 the number of new ordinary shares in issue will be 2,675,694,302.