Rift Valley Resources Corp. (‘Rift') executed an agreement to acquire Avatar Ocean Technology, Inc. (‘Avatar') on January 18, 2013. The transaction will be structured as an amalgamation wherein the two companies will merge on the basis of one share of the amalgamated company for each three and one half shares of Avatar and one share of the amalgamated company for each one share of Rift. On amalgamation the previous shares in Avatar and Rift will be cancelled. In connection with the deal, Avatar announced the settlement of debt in an amount of approximately $0.02 million by issuance of 961,333 common shares on a pre-amalgamated basis.

Following completion of the amalgamation, the Board of Directors of combined company will include all current directors of Rift Valley, namely: Craig Robson, William Grossholz CA and Xian Min (Sam) Peng as well as Donald Gordon, a current director of Avatar, and Donald Bragg and Yanshuang She who are neither directors of Rift Valley or Avatar prior to the amalgamation. Following the completion of the amalgamation, the combined company will be led by Craig Robson, President and Chief Executive Officer, William Grossholz, Chief Financial Officer and Secretary and Warren Rob P. Geo, Vice President Exploration.

Shareholders of Avatar approved the amalgamation at the annual general and special meeting held on February 19, 2013. The amalgamation will become effective on the date of filing of the amalgamation application with the Corporate Registry of British Columbia.