17 January 2006.
Press Release

SADR Onshore Oil & Gas License Offering

Further Announcement regarding Western Sahara Licensing Oil and Gas Initiative

Following discussions with international companies, and a successful offshore licensing initiative, the Government of the Saharawi Arab Democratic Republic ('SADR'), formally announces the commencement of an onshore licensing initiative to enable international oil and gas companies to participate in the exploration of its onshore sovereign territory.

The SADR is a full member of the African Union and is the sovereign authority for the territory referred to as Western Sahara. The Polisario Front is internationally recognised as the representative of the Saharawi people.

This initiative has been undertaken in preparation for full recovery of all Saharawi territory, under the UN decolonisation process and mediation between SADR and Morocco. Previous exploration of the onshore Aaiun and Tindouf basins is largely limited to activity during the 1960\'s during colonial occupation.

Participation in onshore licensing is open to all competent and qualified companies, and has been arranged in accordance with UN legal opinion regarding commercial activities in Western Sahara.

Details of the acreage available and the licensing process are available from our website (www.sadroilandgas.com).

Emhamed Khadad, advisor to the SADR President, comments \"The SADR Government is delighted by the response to the offshore license offering and to the strong support it has received from international companies. The Government recognises the vital role energy supply will have in development of the country following independence, and accordingly the need to balance offshore programmes with more immediate onshore projects. International companies are invited to contact the SADR Petroleum Authority to discuss participation in this licensing initiative.\"