7 March 2013 GB00B7KFPB91/GBP/PLUS-exn CAP ENERGY LIMITED ("Cap" or the "Company") Acquisition of Interests in Guinea-Bissau Cap Energy Limited, a company listed on the ISDX Growth Market focused on upstream oil and gas exploration in sub-Saharan Africa, is pleased to announce that it has acquired its first asset since the Company's restructuring in 2012 by entering into an agreement to acquire a majority shareholding in a company which holds interests in two offshore Guinea-Bissau exploration licences. Acquisition of Interests in Guinea-Bissau On 28 February 2013, Cap agreed to acquire shares ("Shares") in Sphere Petroleum Corporation (BVI) ("Sphere BVI"), a company which holds interests in two oil and gas exploration licences offshore Guinea-Bissau. The Shares were acquired from Sphere Petroleum QSC ("Sphere"), which has retained a minority shareholding of approximately 14% in Sphere BVI. The licences relate to Block 1 (Corvina) and Block 5B (Becuda). Completion of the acquisition is subject to certain conditions being satisfied by Sphere, however it is expected to take place by 31 March 2013 ("Completion"). Block 1 (Corvina) The Block 1 licence area covers 4,800 square kilometers offshore Guinea-Bissau in shallow waters ranging up to 100 metres and is located directly west of the billion barrel Dome Flore discovery in the Joint Administration Zone ("AGC") between Guinea Bissau and Senegal, and north of Svenska Petroleum's Sinapa discovery which has an OIP P50 estimate of 240 mmbbls. 23 known salt domes exist south of the Dome Flore discovery and historical well DRO-1 drilled in Block 1 identified structural traps formed by salt diapirs. Block 1 is geologically analogous to the Dome Flore and Sinapa discoveries and the regional studies carried out by Sphere, including the correlations with 14 wells drilled in the region, indicate the likelihood of an existing petroleum system. Sphere's reinterpretation of historic seismic has already identified 9 leads in Block 1. The acquisition of 1,500 square kilometers of new 2D seismic data will be undertaken shortly by the licence operator, Lime Petroleum Guinea-Bissau ("Lime"). Cap expects that the new data will confirm the attractiveness of the block, giving the opportunity for a more precise quantification of the possible hydrocarbon resources. An update on the resource prospectivity of Block 1 is expected by Q2 2013. Sphere BVI has a 35% cost interest and a 28% equity interest in Block 1 pursuant to a joint venture agreement with Empresa Nacional de Pesquisa e Exploracao Petroliferas, E.P. ("Petroguin"), the national petroleum company of The Republic of Guinea-Bissau, and Lime. Under the joint venture agreement, Petroguin has a 0% cost interest and a 20% equity interest in Block 1 and Lime has a 65% cost interest and a 52% equity interest in Block 1. Block 5B (Becuda) The Block 5B licence area covers 5,500 square kilometers offshore Guinea-Bissau in water depths ranging between 200 - 4,000 metres. Historic 2D seismic data indicates large leads in potential Cretaceous reservoirs. The operator, Lime, is currently evaluating new 2D seismic results in addition to the reprocessing of historic 2D data. An update on resource prospectivity in Block 5B is expected by Q3 2013. In respect of Block 5B, Sphere BVI has a 35% cost interest and a 31.5% equity interest, also pursuant to a joint venture agreement with Petroguin and Lime. Petroguin has a 0% cost interest and a 10% equity interest in Block 5B and Lime has a 65% cost interest and a 58.5 % equity interest in Block 5B. Consideration The initial consideration for the acquisition of the Shares was USD100,000 which was satisfied in cash from the Company's existing resources. Further consideration of USD0.5 million will be payable by the Company on Completion and a further USD 0.5 million will be paid on or prior to 30 June 2013. In addition, Cap has agreed, in due course, to settle Sphere's share of historic costs incurred in respect of the licences, up to a maximum of approximately USD1.9 million, as well as a certain percentage of interest costs relating to Sphere BVI's ongoing obligations in respect of the licences. The additional consideration is expected to be satisfied from loans made to Cap by certain Directors of the Company. Further details of these loans will be announced at Completion. Tim Hearley, Cap's Chairman, commented: "This acquisition in Guinea-Bissau marks a significant first step in achieving our strategic objectives. We are very pleased with this development and are on track to further broaden our presence in the sub-Saharan region as we expand our portfolio." The Directors of Cap Energy Limited are responsible for the contents of this announcement. For further information please contact: Tim Hearley, Chairman Tel: +44 (0) 7850 390998 Email: [ tim.hearley@capenergyplc.com ] Lina Haidar, Chief Executive Officer Tel: +44 (0) 207 491 9196 Email: [ lina.haidar@capenergyplc.com ] Corporate Adviser: Mark Anwyl and Duncan Vasey Peterhouse Corporate Finance Limited Tel: +44 (0) 20 7220 9796 Email: [ duncan@pcorpfin.com ] Public Relations: Ian Proud Associates Ian Proud Tel: + 44 (0) 7956 909418 Email: [ ianproud@IP-Associates.demon.co.uk ] CAP Energy 25 Dover Street London W1S 4LX Tel: +44 (0) 207 491 9196 Email: [ info@capenergyplc.com ]