Addax Petroleum Announces Receipt Of Letter From Kurdistan Regional Government Of Iraq

CALGARY, Canada, July 22 -- Addax Petroleum Corporation (Addax Petroleum or the
Corporation) (TSX: AXC and LSE: AXC), today announced that it has received a
letter (the KRG Letter) from the Minister of Natural Resources of the Kurdistan
Regional Government (the KRG) and has confirmation from Sinopec International
Petroleum Exploration and Production Corporation (SIPC) that receipt of this
letter satisfies the condition to the offer for Addax Petroleum dated July 9,
2009 (the Offer) made by Mirror Lake Oil and Gas Company Limited, an indirect
wholly-owned subsidiary of SIPC, that Addax Petroleum obtain the KRG Letter. The
Offer is subject to a number of conditions including valid acceptances by
holders of not less than 66 2/3 per cent of Addax Petroleum shares on a fully
diluted basis and receipt of certain regulatory approvals, including the
government of The People’s Republic of China. The Offer is expected to
close in the third quarter of 2009.

About Addax Petroleum Corporation

Addax Petroleum is an international oil and gas exploration and production
company with a strategic focus on West Africa and the Middle East. Addax
Petroleum is one of the largest independent oil producers in West Africa.
Further information about Addax Petroleum is available at
http://www.addaxpetroleum.com or at http://www.sedar.com.

Reader Advisory

This announcement is for informational purposes only and does not constitute or
form part of any offer or invitation to purchase, acquire, subscribe for, sell,
dispose of or issue, or any solicitation of an offer to sell, dispose, issue
purchase, acquire or subscribe for any security. The Offer (including any
variation or extension in accordance with applicable securities laws) is being
made exclusively by means of, and subject to the terms and conditions set out in
the Offer Documentation to be delivered to Addax Petroleum shareholders and
filed with the Canadian provincial securities regulators and the UK Listing
Authority. Shareholders of Addax Petroleum should read these materials carefully
as they contain important information, including the terms and conditions of the
Offer. The Offer Documentation as well as the Addax Petroleum directors’
circular will be available electronically without charge at
http://www.sedar.com.

Reader Advisory Regarding Forward-Looking Information

Certain statements contained in this news release, including statements that
contain words such as may, will, would, could, should, anticipate, believe,
intend, expect, plan, estimate, budget, outlook, propose, project, and
statements relating to matters that are not historical fact constitute
forward-looking information within the meaning of applicable Canadian securities
legislation. In this news release, forward-looking information and statements
include: mailing of the Offer Documentation and Addax Petroleum directors’
circular, conditions that the Offer is subject to, including government
approvals, and anticipated completion of the Offer. The forward-looking
information in this news release is subject to known and unknown risks and
uncertainties and other factors and assumptions, which include, but are not
limited to: risk that the Offer will not be completed as anticipated or at all,
risk that one or more of the conditions to which the Offer is subject will not
be met, and risk of delay in completion of the Offer. In addition, Addax
Petroleum is subject to risks and uncertainties attendant with oil and gas
operations, including imprecision of reserves and resources estimates; ultimate
recovery of reserves; commodity prices; general economic, market and business
conditions; industry capacity; competitive action by other companies; refining
and market margins; the ability to produce and transport crude oil to markets;
weather and climate conditions; results of exploration and development drilling
and other related activities; fluctuation in interest rates and foreign currency
exchange rates; ability of suppliers to meet commitments; actions by
governmental authorities, including increases in taxes; decisions or approvals
of administrative tribunals; changes in environmental and other regulations;
international political events; and expected rates of return. More specifically,
production may be affected by exploration success, start-up timing and success,
facility reliability, reservoir performance and natural decline rates, water
handling and drilling progress. Capital expenditures may be affected by cost
pressures associated with new capital projects, including labour and material
supply, project management, drilling rig rates and availability and seismic
costs. The Corporation’s actual results could differ materially from those
anticipated in these forward-looking statements if the assumptions underlying
them prove incorrect, or if one or more of the uncertainties or risks described
above materializes. Risk factors are discussed in greater detail in filings made
by Addax Petroleum with the Canadian provincial securities commissions.

Readers are strongly cautioned that the above list of factors affecting
forward-looking information is not exhaustive. Further, forward-looking
statements are made as at the date they are given and, except as required by
applicable law, Addax Petroleum does not intend, and does not assume any
obligation, to update any forward-looking statements, whether as a result of new
information or otherwise. The forward-looking statements contained in this news
release are expressly qualified by this advisory.

For further information: Mr. Craig Kelly, Investor Relations, Tel.:
+41(0)22-702-95-68, craig.kelly@addaxpetroleum.com; Mr. Chad O’Hare,
Investor Relations, Tel.: +41(0)-22-702-94-10,
chad.o’hare@addaxpetroleum.com; Ms. Marie-Gabrielle Cajoly, Press
Relations, Tel.: +41(0)22-702-94-44, marie-gabrielle.cajoly@addaxpetroleum.com;
Mr. Nick Cowling, Press Relations, Tel.: +416-934-8011,
nick.cowling@)cossette.com; Mr. Mark Antelme, Press Relations, Tel.:
+44(0)-20-7337-1500, mark.antelme@pelhampr.com

SOURCE: Addax Petroleum Corporation

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