2009-08-15-2008-11-01-2008-11-01

Purchased 33.33% interest in Sangaw North PSC in Kurdistan region covering 121,600 gross acres.

Addax Petroleum Corp., Calgary, (Toronto, London: AXC) has acquired a 33.33% interest in the Sangaw North production-sharing contract in the Kurdistan region of Iraq. The Sangaw North license area is operated by Sterling Energy Plc and is approximately 80 kilometers southeast of Addax's Taq Taq Field. Addax will reimburse Sterling's past costs and fund seismic and drilling of the first well through funding from its existing 2009 capex budget. The contract covers approximately 121,600 gross acres (492 square kilometers). Sterling is targeting to spud an exploration well in mid-2009. Sangaw North is subject to an assignment to the Korean National Oil Corp., which, when completed, will reduce Addax's interest to 26.67%. The Kurdistan government also has the right to require that at a future date, a government-nominated entity is assigned 25% which, if exercised, will further reduce Addax's interest to 20%. Addax president and chief executive Jean Claude Gandur says, "We are pleased to expand our activities in the Kurdistan region of Iraq to include the highly prospective Sangaw North license area. Given our successful drilling campaign at Taq Taq, we intend to assist our partner to expedite exploration drilling. We believe that exploration success at Sangaw North would offer attractive synergies with the development of Taq Taq for the benefit of all the people of Iraq and our shareholders."