("Aladdin" or the "Company") Fornebu, 28th October 2014

Midcost Ltd (MCL) and Aladdin Oil & Gas ASA (AOG) has agreed to terminate their partnership understandings as agreed and unanimously passed by the EGM of Aladdin on 29 August 2014. AOG and MCL agreed to amicably end their joint relationship with no intention of claiming damage from each other. AOG, shareholders and MCL are in agreement to make all efforts possible to cooperate in future and potential opportunities in particular the transactions initiated by MCL in Sudan and elsewhere that are proven to be beneficial.

Finally, again this change in the arrangements has been amicably agreed by the Company AOG and MCL who will continue to co-operate on opportunities putting in place appropriate arrangements on a deal by deal basis appropriate to the circumstances.

Directorate changes

Lady Olga Maitland and Mr Claude Gueant have each resigned as directors of the Company and Mrs Stine Fjell has withdrawn her resignation from the Company. Accordingly the Board consists of Mr John Shaw, Mr Bjorn Ursin-Holm and Mrs Stine Fjell.

For further information, please contact:

John R. Shaw, Chairman of the Board
E-mail: john.r.shaw@araca.no
Phone: +47 35 60 00 00