Simba Energy Inc. announced that it has signed an exclusive Letter of Intent (LOI) to farmout its Production Sharing Contract (PSC) for Blocs 1 & 2 in onshore Guinea with a private investor group based in Calgary, Alberta. The Investor Group can earn up to a 45% interest in Simba's Guinea PSC with a total investment of USD 6,500,000. The principal commercial terms of the farmout LOI are: After execution of the LOI, Simba will receive USD 700,000 for cost recovery.

Upon completion of the Definitive Agreement(s), the Investor Group will spend USD 3,800,000 for an airborne FTG (Full Tensor Gravity Gradiometry) survey that will cover a minimum of 9,000 kms2. This total initial expenditure of USD 4,500,000 will earn the Investor Group a 25% interest in Simba's Guinea PSC. The Investor Group has the option to earn an additional 20% interest by carrying out a 2D seismic program with a minimum expenditure of USD 2,000,000 to bring the blocks to drill ready status.

Upon completion and interpretation of seismic results, both parties mutually agree to either drill a first exploration well, with each party responsible for its own share of costs, or; to farmout the project to other third parties on mutually acceptable terms.