TXO plc : Investment in East African Oil Company Limited

TXO PLC
("TXO" or the "Company")

INVESTMENT IN EAST AFRICAN OIL COMPANY LIMITED

The Board of TXO Plc ("TXO") announces today that it has made available a £50,000 convertible loan facility (the "Loan") to East African Oil Company Limited ("EAO").

EAO was incorporated in 2005 by founder investors with a wide-spread of technical experience and investing history in the oil and gas sector. The intention was to create a vehicle for participating in the increase in oil and gas exploration activities within Sub-Saharan Africa, including Uganda, Kenya, Tanzania, Mozambique and Madagascar with the intent of obtaining an eventual listing on the AIM market. Although no such opportunities have been executed, EAO has amassed preliminary geophysical, geological, source rock and basin development studies data. EAO has stated to TXO that it intends to bid on certain oil and gas interests identified through recent commissioned studies by Global Explor (www.globalexplor.com) and discoveries which justify searching for petroleum within the East African Rift System in Uganda, Kenya, Zambia and Tanzania.

It is not the intention of TXO to extend their loan investment beyond the current investment. TXO has been informed that EAO is in discussions with a number of larger funding partners that have expressed interest.

The Loan has been provided to cover early stage disbursements with drawdowns agreed by TXO and EAO. EAO has accrued expenses of approximately £40,000 and nil cash balances. The Loan is for repayment 12 months from drawdown or, on the election of TXO may be converted in whole or in part into new EAO ordinary shares, at a conversion price of 2.74p per share. Prior to repayment or conversion, the Loan Note will be subject to interest at the rate of 10 per cent per annum, payable at the end of the term to TXO. Full conversion of the Loan would result in the issue of 1,836,996 new EAO ordinary shares, representing 67 per cent of the issued share capital (as enlarged thereby) of EAO.

However, EAO is seeking to allow existing shareholders to participate on the same terms as TXO's Loan. Therefore, they have been granted a free call option that will pass to TXO should EAO shareholders choose not to take it up. In addition, Empire Energy Corporation International ("Empire") (Pink Sheets: EEGC.pk) has the option to acquire 13,650,499 new shares in exchange for cash of £400,000. Full take up of shares by all parties would result in them holding the following Ordinary Shares of EAO:

Existing shareholders	909,404	5.0%
TXO	1,836,996	10.1%
Existing shareholders option take up	1,836,996	10.1%
Empire option take up	13,650,499	74.9%
	18,233,895	100%

Timothy Baldwin is a Director of EAO and is a beneficiary of a trust that holds 100,000 Ordinary Shares (representing 11 per cent of the existing share capital of the EAO). However, as he does not exercise control over the Board and his equity interest is below 20 per cent this is not a related party transaction under AIM Rule 13.

Daniel French, Finance Director of TXO commented 'We are pleased to have made available the £50,000 Loan to EAO. This transaction brings together funding partners that have invested in East Africa, geo-technical data and analysis, expertise to execute the business plan as well as multiple relationships at a high political level in respective countries.'

For further information, please contact:

TXO PLC
Tim Baldwin, Chairman [phone]

Beaumont Cornish Limited
Roland Cornish and James Biddle [phone]