Sept 16 news release: Rationale for the AcquisitionRationale for the Acquisition Under the terms of the Share Purchase Agreement, SacOil has agreed to purchase all of the ordinary shares of MIP and thereby acquire the Company's interest in the Lagia Project, which represents substantially all of the assets of MENA. The purchase price is US$14,100,000, payable as to US$1,857,319 in cash, the indirect assumption by the Purchaser of US$2,242,681 in liabilities of MENA Opco which will remain unpaid at closing and the issuance of an aggregate of US$10,000,000 in value of ordinary shares of the Purchaser (the "Consideration Shares"), subject to adjustment in accordance with the terms of the Purchase Agreement. The deemed value of each Consideration Share is ZAR0.582, being the volume weighted average trading price of the Consideration Shares on the Johannesburg Stock Exchange for the 30 day period immediately prior to the date of the Purchase Agreement, which has been converted to US dollars at a ratio of ZAR10.681:US$1.00 being the average of the South African Reserve Bank's published average 10:30 a.m. rate for the 30 Business Days immediately prior to the date of the Purchase Agreement. The Company anticipates that this will result in an aggregate of 183,666,947 Consideration Shares being issued to the Company, subject to adjustment in accordance with the terms of the Purchase Agreement. After completion of the Transaction, the Company will have no further direct or indirect interest in the Lagia Project. The Consideration Shares will be subject to a four month hold period pursuant to the terms of the Share Purchase Agreement.