KAROO ENERGY PLC                                
                           ("Karoo Energy" or the "Company")                       

                                    ISSUE OF EQUITY                                

    14 January 2016

    Karoo Energy plc announces that it has placed 2,333,333 ordinary shares of
    0.25p each in the Company at a price of 3p per share, raising £70,000. The
    funds will be used for ongoing administrative expenses, and advancing its
    opportunities in Botswana through Equatorial Oil and Gas plc, the Company's
    86.95% owned subsidiary.

    The new ordinary shares rank pari passu with the existing ordinary shares.

    Following this placing there are now 150,658,837 ordinary shares in issue, of
    which the directors are interested in a total of 8,194,212 ordinary shares,
    representing 5.44% of the Company's issued share capital.

    The Directors of Karoo Energy plc accept responsibility for the content of this
    announcement.

    ENQUIRIES:

    Company
    Noel Lyons
    020 3130 0674

    Corporate Adviser
    Peterhouse Corporate Finance Limited
    Guy Miller / Mark Anwyl
    Telephone: 020 7220 9796