EnerGulf Resources Inc. has been granted a hydrocarbon exploration and production concession covering the Lotshi Block in the "Les Zones du Bassin Cotier" (ZBC) in the Democratic Republic of Congo (DRC). The company had previously signed a Memorandum of Understanding (MoU) with the government covering the block and the latest agreement is a culmination of the MoU. The Lotshi Block covers approximately 475 square kilometers of the ZBC in the onshore coastal salt basin of western DRC and is similar to the highly prospective area of neighboring Cabinda area of Angola.

Under the terms of the agreement EnerGulf has agreed to pay a signature bonus to the DRC government of $500,000 for a 90% interest in the 5 year exploration license and will provide a bank guarantee of an additional $500,000 towards the work program on the block. Additionally, EnerGulf will be the operator of the block and will carry Cohydro, the state-owned-oil company of the DRC, for a 10% interest in the block.

The company plans to offer more detailed information regarding the geology, hydrocarbon potential, and its proposed work program of the Lotshi Block in the coming weeks. Additionally, EnerGulf is in continuing negotiations for further acreage in the ZBC and will provide information as events warrant.

Commenting on the signing of the license, Jeff Greenblum, EnerGulf Chairman of the Board stated, "The signing of the Lotshi Block concession is an important step for EnerGulf as it moves our business plan into its next and exciting phase. We will continue to seek out opportunities of interest while now beginning an aggressive exploration program on this highly prospective property. We thank the Government of the DRC and look forward to continued discussions regarding other areas of the ZBC and to working with them towards successful exploration efforts in the Congo Salt Basin."