Vanoil Forms Strategic Partnership and Issues Placement

Vanoil Energy Ltd. has formed a strategic partnership with Global Mining Management Corp. (GMM), a private Vancouver-based company that provides management services for Ivanhoe Capital Corp., Ivanhoe Energy Inc., and Rowena Energy Inc., among others. The partnership is designed to strengthen the Vanoil’s ability to raise funds and provides the company with an experienced oil and gas team who have participated in the growth, financing, and development of global natural resources companies worldwide.

The company has also issued a non-brokered private placement of up to 33.333 million units at a price of $0.60 per non-brokered unit for aggregate gross proceeds of up to $20.0 million. Each unit will comprise one common share of the company and one whole non-transferable share purchase warrant. Each Warrant will entitle the holder to purchase one share at a price of $1.00 for a period of 24 months following closing. The warrant will be subject to accelerated expiry if, at any time after the date that is four months and one day of the closing, the company's Shares trade on the TSX Venture at a price of $1.50 or more for the preceding 20 consecutive trading days.

Completion of the offering and the payment of any finder's fees remain subject to the receipt of all necessary regulatory approvals, including the approval of the Exchange. In addition, the securities issued pursuant to the NB Offering will be subject to a four month hold period from the date they are issued.

The first tranche of the NB Offering is expected to close by the end of June 2012.

The proceeds of the NB Offering will be used for the continued exploration and development of Vanoil’s Kenyan oil and gas properties, completion of a PSA with the Rwanda and for general working capital purposes.

As part of this strategic partnership there have been a few new appointments to its senior management. Jonathan Dubois-Phillips has been executive VP-Finance. He is currently  MD- Finance with Ivanhoe Capital Corp. Tosan Omatsola was named VP-Exploration. Omatsola was co-founder of Rowena Energy.

Vanoil also said that Matthew Hornor was named executive VP-International Legal and Business Affairs. Hornor holds senior management positions with several Ivanhoe Capital affiliated companies, and has extensive experience with natural resource projects in Africa. Anthony Abbenante is now the VP Corporate Development. He also holds management positions in other Ivanhoe Capital Corporation affiliated companies.

Mr. James Passin, President and CEO of Vanoil, stated, "We at Vanoil are delighted to form this strategic partnership with the experienced team at GMM, and we welcome the contributions incoming management will make to the Company's future success. Together we intend to move Vanoil forward and create a significant oil company primarily focused on the African Continent."