Orca Exploration Group Inc. has been advised by Swala Oil & Gas (Tanzania) plc ("Swala") that trading of its securities listed on the Dar es Salaam Stock Exchange (“DSE”) in Tanzania will be halted for trading at the request of Swala pending the release of an announcement in relation to a third-party equity investment in Swala. Swala has advised that unless the DSE decides otherwise, the securities will remain halted until the earlier of the commencement of normal trading on Monday, August 6, 2018 or when the Swala investment announcement is released to the market.

Swala has stated that its intention would be to utilize any funds raised through the equity investment and a planned US$50 million corporate bond issue (pending regulatory approval) to fund tranches 2 and 3 of the previously announced US$130 million investment in PAE PanAfrican Energy Corporation (“PAEM”), a subsidiary of Orca. The tranche 1 sale, representing 7.93% of a potential sale of 40% of PAEM, closed on January 16, 2018.