Regulatory news announcement

Update on Equatorial Oil & Gas plc

Nodding Donkey Plc

Update on Equatorial Oil & Gas plc

26 March 2013 NODDING DONKEY PLC ("Nodding Donkey" or the "Company") Update on Equatorial Oil & Gas plc Further to the announcement made on 26 September 2012 in respect of the coal bed methane farm in deal between Nodding Donkey's now 86.95% owned subsidiary, Equatorial Oil & Gas plc ("Equatorial"), and African Coal and Gas Corporation Ltd ("ACGC"), the Company is pleased to announce the following improvement to the transaction. Under the farm in transaction, Equatorial will acquire an 85% participating interest in three licences from ACGC through meeting the following annual payments and work expenditures: (1) (2) (3) (4) (5) Period Annual Work Participating Cumulative Payments Expenditures Interest Participating Earned Interest during period Period to US$ 10,000 US$750,000 31.875% 31.875% December 31 2013 Period to US$ 10,000 US$1,250,000 53.125% 85.000% December 31 2014 Totals US$ 20,000 US$2,000,000 85.000% 85.000% The principal change made to the agreement is the date of the first period in which Equatorial can earn an initial 31.875% interest, which has been put back to 31 December 2013 from 31 March 2013. INTERPRETATION OF AEROMAGNETIC DATA Equatorial Oil & Gas plc is pleased to announce the results of the aeromagnetic interpretation report on licences 165/2010, 166/2010, and 167/210, which are all located close to the border of the Western Central Kalahari sub-basin, and the Northern Belt Central Kalahari sub-basin of the Kalahari Karoo Basin in Botswana. The report concludes that in the lower half of the licence area, there is evidence of the remnants of basaltic sills covering this area. These sills or flows are very evident in the first vertical derivative and analytic signal images. On the total magnetic image they produce a stippled effect. The thickness of these flows is not known, and cannot readily be calculated from the magnetic data. In some of the areas, especially to the north, the basaltic flows may not be continuous. There are several prominent dykes which dissect the area, and many of these features follow a west-north-west trend direction. There are also several major remnantly magnetized intrusives within the interpretation area. NOEL LYONS, CHIEF EXECUTIVE OFFICER, EQUATORIAL OIL & GAS, COMMENTED: "We are encouraged by the interpretation of the aeromagnetic data on the coal bed methane farm in deal in Botswana. Drilling of the first hole will shortly commence, and we look forward to this milestone with great anticipation." The Directors of Nodding Donkey plc accept responsibility for the content of this announcement. ENQUIRIES: Company Nodding Donkey plc Conrad Windham Telephone: 020 3130 0674 Corporate Advisor Peterhouse Corporate Finance Limited Guy Miller and Mark Anwyl Telephone: 020 7220 9796