Simba Energy Inc. announced that it has terminated negotiations with Ajax Exploration Ltd. of a definitive farmout agreement in respect of a farmout of a 66% interest and operatorship of the company's 100% owned Block 2A, onshore Kenya. The parties originally executed a memorandum of understanding which contemplated that Ajax would carry out additional exploration and drill one exploration well. The parties subsequently attempted to complete negotiations for a definitive farmout agreement but were unable to come to agreement on an acceptable program.

Accordingly, both parties have mutually decided to terminate negotiations.