Lion Petroleum Target of Takeover

Taipan Resources Inc. out of Canada could enter Africa if a merger it has proposed goes through. The company entered into an agreement for a proposed merger with Lion Petroleum Corp.

If the merger goes through Taipan Resources will gain access to two blocks in Kenya, Block 1 and Block 2B. In consideration for the merger, Taipan will provide Lion Petroleum Corp. with irrevocable bank guarantees to fund the required work program on Block 2B and commitments on Block 1. In addition, the current shareholders and convertible bridge loan holders of Lion Petroleum Corp. will receive 20,124,817 shares of Taipan common stock, representing 39.1% of the outstanding shares of common stock of Taipan in the post-merger corporation.

Lion currently holds a 20% working interest in Block 1 which is operated by Afren Plc, and a 100% working interest in Block 2B. Total net unrisked prospective resources on the blocks are 528 million boe based upon the NI 51-101 report prepared by Sproule Associates Ltd. and Afren Plc management estimates.

Charles Watson, director of Taipan, commented, "Lion's Block 1 and Block 2B onshore Kenya are highly prospective, world-class, oil and gas exploration blocks. Kenya is at an early and exciting stage in the development of the country's hydrocarbon resources post the first major oil discovery in Kenya, the Ngamia-1 well, announced by Tullow Oil Plc and Africa Oil Corporation in March."