PRESS RELEASE 1st November, 2004 AWARD OF PETROLEUM LICENCE, BLOCK Q - BIOKO REPUBLIC OF EQUATORIAL GUINEA The Ministry of Mines, Industry and Energy of the Republic of Equatorial Guinea, is pleased to announce that a new petroleum Production Sharing Contract (PSC) was signed on 1st November 2004 by PetroSA, the national oil company of the Republic of South Africa and GEPetrol, the national oil company of Equatorial Guinea, for Block Q, offshore Bioko. The award will be effective on ratification of the PSC. Block Q covers 2160 sq.kms. and comprises grid blocks E-15, F-15 and G-15. The area is undrilled but is covered by 3D seismic data which was acquired by GESeis, the seismic joint venture between GEPetrol and Terra Energy Services. The PSC follows the normal commercial model, which includes a mandatory work programme, and has GEPetrol as Administrative Operator and PetroSA as Technical Operator. The Minister of Mines, Industry and Energy, H.E. Atanasio Ela Ntugu Nsa said: “This award represents important progress in the exploration of the Douala Basin which to date in Equatorial Guinea, has only one exploration well. It also reflects the very positive relations between Equatorial Guinea and South Africa and I look forward to a successful cooperative venture”.