Vanoil Energy Ltd. ("Vanoil" or the "Company") (TSX VENTURE:VEL) is pleased to
announce that it has received the requested seven month extension to its
Production Sharing Contract from the Kenyan Ministry of Energy. This extension
extends the contact from September 30, 2012 to April 30, 2013.


This extension allows the Company to complete analysis of 100 square kilometers
of high resolution 3D seismic data designed to geologically pin point Vanoil's
initial drill site location. The mobilization is expected to be completed in
early August and data acquisition to be started mid August and completed in
early October. It also provides adequate time for the Company's consultant,
Navigator Resource Consulting Ltd., to technically audit the available drill
rigs and complete site preparation and material mobilization prior to spudding a
planned 3,500 - 4,000 meter well in January 2013.


About Vanoil Energy Ltd.

Based in Vancouver, Canada, Vanoil is an internationally diversified resource
company that has a comprehensive portfolio of oil and gas assets in the African
countries of Kenya and Rwanda. In Kenya, Blocks 3A and 3B were acquired in
October 2007 through the signing of a Production Sharing Contract with the
Government of the Republic of Kenya. Blocks 3A and 3B, which cover 24,912 square
kilometers, are part of the vastly under-explored Cretaceous Central African
Rift Basin System, an area that may hold the next major sub-Saharan discoveries.
Vanoil's 1,631 square kilometers of oil and gas exclusive license in the East
Kivu Graben in Rwanda is at the southern extension of the Albertine Graben where
Heritage and Tullow Oil made their historic discovery in neighboring Uganda. 


On behalf of the Board of Directors

VANOIL ENERGY LTD.

James Passin, President and CEO

Disclaimer for Forward Looking Information

This news release includes forward looking statements that are subject to
assumptions, risks and uncertainties. Statements in this news release which are
not purely historical are forward looking statements, including without
limitation any statements concerning the Company's intentions, plans, estimates,
beliefs or expectations regarding the future. Although the Company believes that
any such intentions, plans, estimates, beliefs and expectations in this news
release are reasonable, there can be no assurance that any such intentions,
plans, beliefs and expectations will prove to be accurate.


The Company cautions readers that all forward looking statements, including
without limitation those relating to the Company's future operations and
business prospects, are based on assumptions none of which can be assured, and
are subject to certain risks and uncertainties that could cause actual events or
results to differ materially from those indicated in the forward looking
statements. Readers are advised to rely on their own evaluation of such risks
and uncertainties and should not place undue reliance on forward looking
statements.


Any forward looking statements are made as of the date of this news release, and
the Company assumes no obligation to update the forward looking statements, or
to update the reasons why actual events or results could or do differ from those
projected in the forward looking statements. The Company assumes no obligations
to update any forward looking statements, whether as a result of new
information, future events or otherwise.


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