Vanoil Initiates Conciliation Process to Resolve Oil and Gas Dispute with Republic of Rwanda

Vanoil Energy Ltd. (TSX VENTURE:VEL) ("Vanoil" or the "Company"), a
Vancouver-based Canadian international oil and gas development company today
announced its intention to initiate "conciliation" discussions with the
government of the Republic of Rwanda to resolve a dispute related to the
Company's exploration and analysis of an oil and gas asset in the East African
country. Conciliation is the first-step in the commercial arbitration process
agreed to by both Vanoil and the Rwanda government to resolve any commercial
dispute.


The Company has been engaged for more than six years in an oil and gas
exploration and evaluation program in the north-western part of Rwanda, better
known as "East Kivu Graben Basin". Vanoil undertook these activities pursuant to
a Technical Evaluation Agreement ("TEA") with the Rwanda government. The TEA was
necessary to facilitate Vanoil's exploration and evaluation activities as Rwanda
lacked the requisite legal framework to promote, protect and otherwise govern
oil and gas exploration in the country.


Under the TEA, Vanoil secured a "Right of First Option" to enter into a
production-sharing contract ("PSC') with the Rwandan government in relation to
any promising oil discoveries identified in the East Kivu Graben Basin. Vanoil
has spent in excess of $3 million (USD) on its exploration activities based on
Rwanda's commitment to conclude a binding PSC with the Company. In June 2013,
after many months of negotiation for a PSC, the Rwandan government, without
notice or justification, summarily terminated negotiations and, with that,
terminated Vanoil's exclusive rights to develop the East Kivu Graben Basin.


Vanoil has selected a lawyer to participate on the three-person conciliation
panel. The Company understands that Rwanda has also selected its representative
to the conciliation panel and it is expected that a third panellist will also be
selected shortly by the parties.


About Vanoil Energy Ltd.

Vanoil is an oil and gas company with a portfolio of assets in East Africa and
the African state of the Seychelles Islands in the Indian Ocean. 


In Kenya, Vanoil holds a 100% interest in onshore Blocks 3A and 3B, acquired in
October 2007 through the signing of a Production Sharing Contract (PSC) with the
Government of the Republic of Kenya. These blocks cover 24,912 km2 between
Tullow Oil's recent oil discoveries and Apache Corp.'s offshore gas well. 


In offshore Kenya, the Company has negotiated a 10% working interest in the
highly prospective 5,110 km2 Block L9 from Dominion Petroleum Kenya Limited (a
wholly owned subsidiary of Ophir Energy plc). This block lies directly south of
Block L8 where Apache Corporation made its Mbawa gas discovery in 2012.


In the Seychelles, Vanoil has a 25% participating interest alongside partner
Afren plc in offshore Exploration Areas A and B, covering some 14,319 km2.


On behalf of the Board of VANOIL ENERGY LTD.

Aaron D'Este, President

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


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 that cannot 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Vanoil Energy Ltd.
Don Padgett
[phone] x104


Vanoil Energy Ltd.
Malcolm Burke
[phone] x108


Vanoil Energy Ltd.
Scott Rose
[phone] x 227
www.vanoil.ca


Media and investor enquiries:
FTI Consulting
Natalia Erikssen, Sara Powell
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