Oyster Oil and Gas Ltd. Reaches Agreement to Acquire Oil and Gas Interests in Madagascar

Suite 918-1030 West Georgia Street Vancouver, British Columbia Canada V6E 2Y3 Tel. No. (604) 628-5621 ♦ Fax No. (604) 662-7950

TSX-V Trading Symbol: OY

OYSTER OIL AND GAS LTD. REACHES AGREEMENT TO ACQUIRE OIL AND GAS INTERESTS IN MADAGASCAR

Vancouver, British Columbia – July 2, 2013 – Oyster Oil and Gas Ltd. (“Oyster”) is pleased to announce it has reached agreement with Candax Energy Inc. (TSX: CAX) to acquire its 10% Working Interest in Block 1101 onshore Madagascar (the “Transaction”). The Transaction is subject to completion of due diligence, exchange approval and approval of the Government of Madagascar.

Michael Wood, President & CEO commented: “Oyster is very pleased with this acquisition in Madagascar, which we believe holds strategically significant oil exploration potential. Together with Afren PLC, the operator, we will be undertaking a 2013-2014 work program that includes high impact exploration activity and a drilling program scheduled within the next 12 months”.

About Oyster Oil and Gas Ltd.

Oyster is an oil and gas exploration company with a focus on eastern Africa. Oyster operates four blocks onshore and offshore in the Republic of Djibouti; the blocks covering some 3.5 million acres. Oyster also has the option to acquire up to a 60% interest in the Kalum Property located in British Columbia, Canada.

For further information please contact:

Martin Bajic, Chief Financial Officer Tel: (604) 628-5621 Fax: (604) 662-7950

Neither the 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 news release.