Zarara Announces the Disposition of Certain Assets in Mozambique and the Increase of Its Participating Interest in the Sofala Bay Block Jointly Held With Sasol.

Business Editors

DUBAI, United Arab Emirates--(BUSINESS WIRE)--Mar. 6, 2000

Zarara Oil and Gas Limited (OTCBB: ZARAF) (OFEX: ZOG.)("Zarara") announces that it has successfully disposed of its interest in the Temane Block in Mozambique through a cash sale to SASOL Petroleum International ("Sasol"), a subsidiary of Sasol Ltd. (NASDAQ:SASOY), of Johannesburg, South Africa. Efforts to market gas from the Temane Block have been frustrated by the concern about the sufficiency of the total reserve size to support the 900 Kilometer pipeline necessary to deliver gas to the potential market areas of South Africa.

Additionally, Zarara has assigned its interest in the high risk, M-10 offshore exploratory block to Sasol in exchange for an increase of Zarara's interest to 10 percent in the Sofala Bay exploratory block. Furthermore, Sasol will carry all of Zarara's cost incurred through the drilling and testing of the first exploratory well to be drilled on the Sofala Bay block later this year. All of these ownership changes are subject to Government approval.

The purpose of these transactions is to concentrate Zarara's interest in the northern portion of Mozambique's gas province where significantly larger gas accumulations are expected. Zarara currently holds 98 percent of the Buzi Block adjacent to Sofala Bay. The availability of gas from these blocks, near to the city of Beira with its port and industrial area, is expected to support an indigenous petrochemical industry which will not require long transport distances and costly, long distance pipelines.

Zarara Oil and Gas Limited is an international oil and gas exploration and development company. As part of its ongoing activities, Zarara, through its subsidiaries, is currently participating with partners in the exploration and development of natural gas reserves in Mozambique.

SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

This press release contains statements that constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements that express or involve discussions with respect to predictions, business strategy, budgets, exploration and development opportunities or projects, the expected timing of commencement of production or other expectations, beliefs, plans, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those anticipated by the Corporation. These include, but are not limited to, the risks of the oil and gas industry (for example, operating risks of exploring for, developing and producing crude oil and natural gas and the uncertainty of reserve estimates), risks in conducting foreign operations fluctuations in oil and gas prices and exchange rates, and the uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects. Additional information concerning certain of these and other factors which could affect the Corporation's operations or financial results is included under the heading "Risk Factors" in the Annual Report on Form 20-F filed by the Corporation with the Securities and Exchange Commission.