Investor Update

Future Plans and Adjusted Timeline Tsimiroro Field ☐ - - - MADAGASCAR OIL Conduct FTG and drilling, based on 2010 ERT and drilling results, to add to Contingent Resources Design FTG program for 2011 following analysis of 2010 results. Drill 20 new wells in 2011 and 2012. Budget US$6 million for 2011 and 2012 FTG and drilling delineation work program. Initiate the steam flood pilot to de-risk the reservoir performance and demonstrate commerciality Projected start now delayed from Q4 2011 to Q3 2012. Production response estimated in 12 to 18 months Remaining pilot capital cost estimated at US$30 million and 18 months' cost of operations at US$12 million Full field production, if pilot is successful, is anticipated to commence in 2016 to 2017 with rates dependent on the ultimate resource volumes and pilot performance Current Contingent Resource most likely case sees 87,500 bbls/day gross - Current Contingent and Prospective most likely case forecasts >150,000 bbls/day P50 level for US$70 and $80/bbl Brent scenario - Generates NPV10 of US$1.1 to $1.5 billion based on the Contingent Resources Generates NPV10 of US$2.1 to $3.5 billion based on the Contingent and Prospective Resources Engineering (Source: NSAI CPR: First figure based $70/bbl Brent in CPR. Second figure adjusted to $80/bbl Brent price per MOIL) Engineering and Construction Government Delay Jan 10 Jan 11 17 June 2011 Drilling and Construction Jan 12 Current end of 3rd exploration phase extended to 16 Aug 2013 Investor Update Steam Flood Start Pilot Operation Jan 13 Analysis Jan 14 Extension to 16 Aug 2014 (extension to February 2015 possible) 13

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