31 October 2008

GOLD OIL ('Gold Oil' or the 'Company')

REPORT AND ACCOUNTS
FINAL RESULTS FOR THE YEAR ENDED 30 APRIL 2008

The Company is pleased to announce the publication of its Annual Report for the year ended 30 April 2008. The full report will be posted on the Company's website (www.goldoilplc.com) later today and the printed report will be mailed to shareholders today.

In addition the Company has posted the Notice of Annual General Meeting to be held at Finsgate, 5-7 Cranwood Street, London EC1V 9EE on 26 November 2008 at 11.00 a.m.

Extracts of the Annual Report are set out below along with the Notice of AGM:

1. HIGHLIGHTS
2007 and 2008 have been a period of frustration on the physical operations side of the business but with very good results on the deal side of the business. The increase in activity brought about by higher oil prices in Perú and Colombia without a concomitant increase of staff in the states' environmental departments has led to extensive delays in the Company's activities in both countries

* DNME and Gravimetric surveys were acquired on Block XXI to define the follow up well, SA-2X. The well reached its planned total depth of 5,200 feet on 18 August 2008. The Verdun and Palaeozoic were perforated and tested but there were no producible hydrocarbons from either.

* On 9 October 2008 the company acquired the whole of Plectrum Petroleum Limited from Cairn Energy plc. Cairn paid the Company $1.5 million with the Company now owning 100% of Z34. The Environmental Approval for Z34 was obtained in August 2008 and 2,000 kms of 2D seismic will be acquired before the deadline of May 2009. Interest in the area has increased with PetroTech announcing a gas discovery immediately to the south of Z34 and Shell farming into BPZ's block to the north of Z34.

* On 15 August 2008. The Company acquired the 18.05% working interest of Inversiones Petroleras in the Nancy-Burdine-Maxine fields to give a total interest to the Company of 58.5% for a total consideration of $4 million. Inversiones Petroleras was appointed Operator of the Group: now Gold.

* On 11 April 2008. The Company disposed of its remaining 11.25% interest in the onshore Ayoluengo oil field in Northern Spain to LeniGas & Oil plc for ?315,211.

* The Company acquired a 20% working interest in the Azar Block in the Putamayo Basin of Colombia. The Company was carried through the Palmera-1 work over and will be carried for half of its 20% working interest in the first exploration well on the Block. The work over on the Palmera-1 well tested 15oAPI oil at 45 bopd on natural flow and will be put on production in October this year and later a pump will be installed

* The Environmental Permit for the Rosa Blanca well was received in August 2008. Construction of a 3 well drilling platform was started in August. The Company expects to spud the first exploration well early December 2008. The Company is carried by Osage through drilling and testing of this first well.

* In October 2007, Minmet plc agreed to terminate the contractual arrangements relating to Gold's Cuban oil exploration interests between Gold and Minmet leaving Gold free to pursue its plans without the involvement of Minmet. In a separate transaction, the Company disposed of its shares in Minmet to a third party for a consideration of £2,601,000.

* On 11 August 2007, the Company disposed its equity interest in Ascent Resources plc for £101,850.

* In May 2007, Gold Oil Caribbean Limited sold certain proprietary knowledge in relation to exploration in Cuba for £1,350,000

5. CHAIRMAN'S STATEMENT
This year has been marred by the delay in issuing environmental permits for Block Z34 and San Alberto 2 well, both in Perú, the workovers of the 5 Burdine wells and the Rosa Blanca exploration well in Colombia. These delays have deferred seismic acquisition on Z34, deferred increased production from the Nancy-Burdine fields and the drilling of the Rosa Blanca exploration well. This is a problem not unique for the Company as all other operators in Perú and Colombia are also suffering. The problem is that the high oil prices have led to much more activity in both countries that has not been matched by a concomitant increase in staffing in the Environmental Agencies.

However, in Colombia the Palmera-1 well on the Azar block was worked over, the untested sand was perforated and flowed at 45 bopd of 15oAPI oil. Analysis of the test showed that by completing the well with a pump some 150 to 200 bopd should be achieved (27-36 net to the Company): similar wells in nearby blocks produce 300 bopd. The Company acquired the 18.05% working interest of Inversiones Petroleras in the prolific Nancy-Burdine-Maxine fields to give a total interest to the Company of 58.5% and operatorship for a total consideration of $4 million. This level of interest in Nancy-Burdine-Maxine means that the Company will qualify to apply for multiple licences in Colombia, once operated production reaches over 500 bopd.

In Perú, the Company drilled a second exploration well, SA-2X on the onshore Block XXI a kilometre north of SA-1X in July 2008 to test the Verdun and Palaeozoic sands. The well was located on the basis of a detailed Gravimetric survey and a DNME survey. The latter is a system of mapping the subsurface resistivity which, when interpreted, can indicate the presence of hydrocarbons. It is the first application of this process outside of Russia where it has been extensively tested. The Verdun sand was perforated to test the gas leg above an interpreted gas water contact. However, no fluid influx was achieved. It is possible that in the Verdun the structure up-dip of SA-2X could hold significant gas in-place and the Company is evaluating an inexpensive crestal well that would be a conclusive test of the gas potential of the Verdun. Log interpretation identified four zones in the Palaeozoic that were tested but failed to produce hydrocarbons. The well was plugged and abandoned on the 23 September 2008.

On the rest of Block XXI the logs run in the Minchales well drilled 50 years ago in the far south of the Block were digitised and reprocessed. The reprocessing confirmed the presence of oil in the Tertiary sands. Further north there is a large prospect identified by the airborne gravity-magnetic survey that the Company shot in 2005. The Company plans to acquire 2D seismic over the identified prospects.

Offshore Perú the Company had, in 2007, farmed out half its interest in Block Z34 to Plectrum Petroleum Limited (then Plectrum Petroleum plc). In October 2008, the company acquired Plectrum giving it a 100% interest in the block, together with a payment by Cairn to the company of $1 .5 million. The Company finally received its Environmental Permit from the Environment Ministry in August 2008. The Company is reviewing seismic boat availability to acquire and process 2,000 kilometres of 2D seismic late 2008 or early 2009. Since the Company acquired Z34 in 2006 Shell has farmed into the deep water part of BPZ's block to the north with a commitment to spend $300 million on exploration. To the south of Z34 PetroTech has announced a major gas discovery. The Z34 block is immediately to the west of four of the largest developed oil fields in Northern Perú.

In Cuba the Company has been designated as an onshore and offshore operator. However, now that Fidel Castro has retired and the European Union has lifted its human rights sanctions, the Company is planning, with the London based organisation, 'Cuba Initiative', to open high level contacts in the Cuban government to seek support for a Production Sharing Agreement (PSA) on the areas identified by the Company. The Cuba Initiative is a UK group that is backed by the UK government.

On the 12 February 2007 the Company announced that it had acquired 24.67% of the shares of Minmet Resources Plc (Minmet), an Irish mining company that is quoted on AIM. Minmet also acquired 4.99% of Gold Oil. In some of the Company's non-core areas Irish companies have a good track record of closing deals compared to British ones and as an Irish registered company with its own financial resources and management, Minmet should have been in a unique position to exploit these opportunities. These areas, as well as opportunities outside of Central and South America that were presented to Gold, would have been pursued by Minmet.

However, Minmet decided to develop its own strategy in the USA which was incompatible with Gold's interests in Cuba and so the opportunity arose to unwind the Minmet deal with Gold recapturing its exploration interests, receiving the proceeds from the placing of the 22,950,000 Gold shares previously given to Minmet and the sale of the balance of Minmet shares to a third party with substantial proceeds of £2,601,000. In July 2008 the Company placed these 22,950,000 Gold Oil shares at 8p and raised, after costs, £1,764,000.

In Spain the Company profitably disposed of its remaining interest in the Ayoluengo oil field for a final payment of ?315,211. However, the Company retains the UK Company, Ayoopco Ltd., which allows us to use its track record to continue to enhance our ability to meet the selection criteria in many South American Countries.

Looking ahead, in Perú we plan to drill a further two exploration wells on prospects in the centre and south of the block and on Block Z34, to shoot, process and interpret 2,000Km 2D seismic. In Colombia we are in the closing stages of registering the environmental permits that will allow us to work over four of the Burdine wells and thus expand production in Nancy-Burdine. The proposed work programme and budget for the Nancy-Burdine fields for 2009 includes the shooting of 43 km of 2D seismic to target three new development wells. Before the end of 2008 we will drill an exploration well on our Rosa Blanca Licence and on the Azar Block put the Palmera-1 well on long term production and drill an exploration well. In Cuba we will continue the process of acquiring a PSA for the exploration blocks identified in 2005. We will continue to seek low risk projects with potential for early cash flow as well as exploration opportunities with major upside in the region.

The profitable disposals and the placement have allowed the Company to maintain substantial financial assets so that when a good opportunity presents itself we are able to acquire and finance it. It is the Company's intention to develop further sources of funds so that the Company can grow by acquisitions and yet still maintain a strong balance sheet.

The Company now has over 6,900 km2 of exploration acreage under licence in the lowest royalty and tax regimes in Latin America.

I have praised before our small team who through their dedication, hard work and professionalism continue to add major value for the shareholders of the Company and now with the increased activity in Colombia we will be opening an office there and expanding the team by appointing a manager to run the day to day activities.

I look forward to meeting you all at our forthcoming annual general meeting at which our accounts will be laid before the Company.

Michael Burchell, Chairman, 29 October 2008

6. STATEMENT OF NET OIL RESERVES & CONTINGENT RESOURCES AS DETERMINED ON 1 JULY 2008 (AND 31 MAY 2008)
At 1 July 2008: Colombia - Nancy-1 Well: Gold Oil Net Interest 27.4%

2. NET CONTINGENT OIL RESOURCES

1. The Reserve and Resource estimates shown in this report are based upon the joint reserves and resource definitions of the Society of Petroleum Engineers
2. Reserves and Contingent Resources have been prepared by Morning Star Consultants, LCC of Houston, Texas, USA
3. Net volumes have been calculated based on Gold Oil's 58.5% Participating Interest, which after Royalty amounts to 27.4%
* Independent Expert report not available at the time of printing

Azar (Palmera-1 well)
The unaudited Operator's estimate of reserves is as shown below
Gold Oil Net Interest 18.4%

Reserves Mbbl Gold Oil's Interest

The Operator of Azar has calculated that Potential Resources of three structures could amount to 40.2 million barrels of which Gold Oil's interest could be 7.4 million barrels.

7. REVIEW OF OPERATIONS
7.1 PERÚ
Gold Oil Licence Interests in Perú at 30 April 2008

Block XXI, Onshore Perú

The Company looked at many geophysical methods of determining the location of hydrocarbons for the simple reason that seismic will not give any useful information about the Palaeozoic. As a result the Company signed a contract with a Russian company to run a survey over the area around San Alberto-1X to identify the geographical extent of the hydrocarbons logged in the well. The company has developed innovative technology that can show possible hydrocarbon traps by measuring the resistivity of the subsurface (DNME).

On the basis of that survey a location 1 kilometre north of SA-1X was selected. Although not at the highest point on the structure, where the presence of a village prevented DMNE cover, from the contractor's interpretation of results, he recommended a drilling site that had the highest chance of finding hydrocarbons.

However, the survey and its predictions were wrong and San Alberto-2X was plugged and abandoned on the 23rd September 2008. Testing of the both the Verdun and several zones in the Palaeozoic showed that the well did not contain producible hydrocarbons.

For 2009/2010 the Company is planning a 2D seismic survey and three wells on the San Alberto discovery, the Minchales discovery and the new large prospect on the centre of the Block (D).

Block Z34, Offshore Perú

No significant exploration has taken place in water depths exceeding 100 metres despite the fact that discoveries were made from 158 wildcat wells drilled in the Talara Basin prior to 1996. The Block has water depths of 100-3,000 metres and sits adjacent to producing concessions and yet has only 500 Km of 2D seismic and no wells have been drilled in water depths greater than 100 metres. The existing 2D seismic demonstrates the potential for some of the existing producing fields to extend into Z34. With the new seismic we expect to be able to define the potential for significant discoveries in the deeper water which has never been explored.

Since the Company acquired Z34 in 2006 Shell has farmed into the deep water part of BPZ's block to the north with a commitment to spend $300 million on exploration. To the south of Z34 PetroTech has announced a major gas discovery.

Onshore Gas Opportunities

The agreement with MAN-Ferrostaal was extended again on 11 October 2007 for a further year. The Company has good relations with MAN-Ferrostaal and is also in discussions with the same company for a gas project in another South American country.

7.2 COLOMBIA
Gold Oil Licence Interests in Colombia

The Company concluded a Sale and Purchase Agreement ('SPA') on the 25 of February 2008 for a 20% working interest in the Azar Block in the Putumayo Basin located to the North-East of the Company's existing Nancy, Burdine and Maxine oil fields.

The Company was carried through the workover of the Palmera 1 well which resulted in an oil discovery of 1 5oAPI that tested at 45 bopd under natural flow. In October 2008 the well will be completed and produced under natural flow for a few months to allow a down-hole pump to be designed and installed to increase production to some 150 to 200 bopd. The next exploration well, scheduled for late 2008, on the Azar Block will cost the Company 10% of the well cost for a 20% working interest.

The licence for the Azar Block was granted by Colombia's hydrocarbons agency ANH in October 2006 for an area of 51,630 Ha (or 516.3sq.km). The term of the licence is for a period of 24 years and includes a royalty payable to the ANH of 8% up to 5,000 bopd and then increasing up to 25% depending upon the level of production.

Nancy, Burdine and Maxine, Onshore Colombia

The Nancy 1 well produced 165,743 barrels between May 2007 and April 2008 and is currently producing just over 300 bopd and positive cash flow after costs and royalty of $145,589 per month (July 2008). However, the anticipated gross 2,500 bopd increase in production from the five Burdine wells has not been achieved due to the long delay in obtaining an environmental permit. A survey of Burdine 3 shows that the casing has collapsed, so the well cannot be re-entered. The whole work programme and budget for 2008, which included 43 Km of 2D Seismic, a new down-hole pump in the Nancy 1 well and re-entry and work over of the 5 Burdine wells, has not been met.

This lack of activity prompted the Company to increase its interest in the fields and take over Operatorship. The environment permit was received on September 2008 and is now being registered with the local authorities after which the workovers can commence.

The Houston based company Nutech Energy Alliance has carried out an extensive petroleum engineering study of the fields which has shown a significant increase in reserves from the currently producing reservoir but also reserves in previously unidentified and unperforated reservoirs.

The Company now plans to shoot 43 Km of 2D seismic and drill three more development wells if the licence, which expires on 3 September 2015, can be extended with Ecopetrol.

Rosa Blanca, Onshore Colombia

The Company applied for and acquired a 90% interest in the 44,392 hectare Rosa Blanca block in the northern part of the Middle Magdalena Basin, onshore Colombia on 5 June 2007.

The Company farmed out fifty percent of its interest to Osage Exploration and Development Incorporated of the United States. Osage has a significant amount of seismic and well data on the Block and their mapping of the first prospect to be drilled shows contingent resources to the Company of 133 million barrels plus three other equally large prospects. The Environmental Permit was received in August 2008 and construction of the drilling platform has commenced with the first well expected to commence in early to mid December 2008.

7.3 SPAIN
The Company has disposed of its remaining 11 .25% of the onshore Ayoluengo oil field in Northern Spain to LeniGas & Oil plc for ?315,211. In April 2008, the Company acquired the remaining 50% equity interest in Ayoopco Limited making it a wholly-owned subsidiary of the company.

7.4 CUBA
The Company has identified three very attractive offshore blocks and has been recognised as an offshore and onshore operator. The Company is working with a UK organisation the 'Cuba Initiative' whose purpose is assist British companies in getting business in Cuba. The Cuban Ambassador in London has been briefed and the Cuba Initiative team has a visit to Cuba planned for November with an active 'high level' meeting agenda. Our objective is to get approval to negotiate a Production Sharing Agreement (PSA) for the three blocks with Cupet, the State oil company for Cuba.

7.5 BRAZIL
The Company has not managed to see any commercially viable opportunities in Brazil and with the recent government manoeuvres following the discovery of the large offshore oil fields we are greatly discouraged from working there.

7.6 FARM-INS AND ACQUISITIONS
A number of acquisition opportunities were reviewed but the vendors' expectations were seen as too high.

7.7 OPEN ACREAGE AND OTHER OPPORTUNITIES
In Perú there are still some interesting blocks outside of the bidding rounds, but they are becoming increasingly difficult to obtain on reasonable terms.
In Colombia the terms for the licensing rounds, although containing some very interesting blocks, have changed to the extent that it is not worth bidding.

7.8 GLOSSARY OF TERMS AND ABBREVIATIONS

8. LOOKING AHEAD

During 2009 the Company expects to have largely completed the following work programme:
Perú
* Seismic on three structures on onshore Block XXI
* Acquire and interpret 2000Km of 2D seismic on offshore Block Z34
Colombia
* 43 Km of 2D seismic and 1-3 development wells onshore Nancy-Burdine
* 4 well re-entries onshore Nancy-Burdine
* 1 exploration well and three development wells and production. However, this depends on the success of the first exploration well, onshore Rosa Blanca
* 1 exploration well onshore Azar and completion of 1 production well * Acquisition of a new block by farm-in
Cuba
* Negotiation of an Offshore PSA

13. CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 APRIL 2008

14. CONSOLIDATED BALANCE SHEET AT 30 APRIL 2008

15. COMPANY BALANCE SHEET AS AT 30 APRIL 2008

16. STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 APRIL 2008

Share capital is the amount subscribed for shares at nominal value.

Share premium represents the excess of the amount subscribed for share capital over the nominal value of those shares net of share issue expenses.

Retained earnings represents the cumulative loss of the Group and Company attributable to equity shareholders.

17. CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2008

2. Segmental Information.
In the opinion of the Directors the Group has once class of business, being the exploration for, and development and production of, oil and gas reserves, and other related activities.
The Group's primary reporting format is determined to be the geographical segment according to the location of the oil and gas asset. There are currently three geographic reporting segments: South America and Spain, which are involved in production, development and exploration activity, and the United Kingdom being the head office.

The analysis of administrative expenses in the consolidated income statement by nature of expense:

4. Staff numbers and cost
The average number of persons employed by the group (including directors) during the year, analysed by category, were as follows: