24 August 2016

Operational Update - Block 2A, Kenya

Commencement of 2D seismic survey and acquisition of drilling rig

Essel Group Middle East ("EGME") and Simba Energy Inc. are pleased to provide the following operational updates on the development of Block 2A in Wajir, Kenya.

2D Seismic Survey

EGME and Simba Energy can confirm that work has commenced on the 2D seismic survey of Block 2A. The testing will cover an area of approximately 535km and roughly 400km has already been cleared in preparation for shooting. Survey production has been completed on over half of the testing area and the technical team has started shooting.

The survey is being carried out by AGS Oilfield Services Ltd and it will identify and evaluate areas with hydrocarbon potential in Block 2A. The two specific aims for the seismic survey are to pinpoint the optimum locations for drilling and to estimate depths and volumes for primary and secondary targets.

Rig Acquisition

In addition to this news, EGME also announces it has entered into a definitive agreement to acquire a new skid mounted drilling rig.

The AC-VFD drilling rig possesses power of 2,000 HP (1,470kW) and it will be used by the company during its oil exploration activity on Block 2A.

Essel Group also announces that DNV GL, the world-leading classification society and risk management company, has been appointed as a third party observer to oversee the process of the purchase and the delivery of the rig.

Gagan Goel, Managing Director of EGME and Chairman of Simba Energy, said, "The work on the seismic survey and the acquisition of this drilling rig is further evidence of the progress we are making in developing our portfolio of oil assets. The testing is ongoing and we remain extremely confident in the prospects for Block 2A. We look forward to working with DNV GL on bringing the rig into operation. "

-ENDS-

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About Essel Group Middle East

Essel Group Middle East ("EGME") is a diversified natural resources company with a focus on the exploration, development and production of oil, gas and mining assets. The group targets assets in proven basins with near-term production potential and it has operations in Kenya, Guinea, Ghana, Liberia, Chad and Eritrea. EGME is backed by Essel Group, a global conglomerate with a 40-year history spanning numerous industries including the media, packaging, entertainment, infrastructure, education and metals. For further information, please visit www.esselgroupme.com.

About Simba Energy:

Simba Energy Inc. provides investors with well positioned exposure to oil and gas exploration in key areas of Africa with active onshore production sharing contracts ("PSCs") in Kenya and Guinea and PSCs under continuing negotiation in Chad, Liberia and Ghana. Simba's mission is to focus on onshore oil and gas potential in areas that are under-developed or not previously exploited. For further information, please visit http://www.simbaenergy.ca/

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