As previously announced on August 7, 2012, Duma Energy Corp. (the "Company" or "Duma") entered into a Share Exchange Agreement, dated August 7, 2012 (the "Agreement"), with each of Namibia Exploration, Inc. ("NEI"), a company organized under the laws of the state of Nevada, and the shareholders of NEI (each a "Vendor" and collectively, the "Vendors"), whereby Duma has acquired the right to acquire all of the issued and outstanding common shares in the capital of NEI from the Vendors in exchange for the issuance of up to 24,900,000 restricted common shares of Duma (each a "Share") to the Vendors on a pro-rata basis in accordance with each Vendor's percentage ownership in NEI as more particularly set forth below (the "Acquisition"). As a result of the completion of the Acquisition, NEI would become a wholly-owned subsidiary of Duma. NEI holds the rights to a 39% working interest in an onshore petroleum concession (the "Concession"), located in the Republic of Namibia, measuring approximately 5.3 million acres and covered by Petroleum Exploration License No. 0038 as issued by the Republic of Namibia Ministry of Mines and Energy.

Effective September 6, 2012 the Acquisition was completed and as a result, Duma, through NEI, has acquired and been assigned a 39% working interest (43.33% cost responsibility) in and to the Concession. Duma now holds its indirect working interest in the Concession in partnership with the National Petroleum Corporation of Namibia Ltd. ("NPC Namibia") and Hydrocarb Namibia Energy Corporation ("Hydrocarb Namibia"), a company chartered in the Republic of Namibia and which is a majority owned subsidiary of Hydrocarb Corporation ("Hydrocarb"), a company organized under the laws of the State of Nevada. Hydrocarb Namibia, as operator of the Concession, now holds at 51% working interest (56.67% cost responsibility) in the Concession and NPC Namibia now holds a 10% carried working interest in the Concession. The assignment of the 39% working interest to NEI from Hydrocarb Namibia received the approval of the government of the Republic of Namibia on August 23, 2012. A copy of the assignment agreement between the Republic of Namibia Minister of Mines and Energy, Hydrocarb Namibia and NEI as fully executed on August 23, 2012 is attached hereto as Exhibit 99.1.

Pursuant to the terms of the Agreement, Duma is required to issue the Shares, as consideration for the Acquisition, in accordance with the following milestones which must be reached within 10 years after the closing of the Acquisition (the "Closing"):

Duma will maintain 100% ownership of NEI after Closing even if one or more of the market capitalization milestones have not been attained within 10 years from the Closing. The Shares are no longer required to be delivered into escrow since Duma has already received written evidence confirming: (i) that NEI has a working interest in the Concession; (ii) that the Republic of Namibia Ministry of Mines and Energy has approved the assignment of the 39% working interest (43.33% cost responsibility) to NEI; and (iii) that NEI and Hydrocarb have entered into a standard operating agreement which will continue to be subject to approval by the government of the Republic of Namibia.

The Shares of Duma issued to the Vendors pursuant to the Agreement have not been registered under the Securities Act of 1933, as amended (the "Act"), or under the securities laws of any state in the United States, and were issued in reliance upon an exemption from registration under the Act. The securities may not be offered or sold in the United States absent registration under the Act or an applicable exemption from such registration requirements.

The information set forth above under "Item 2.01 Completion of Acquisition or Disposition of Assets" is incorporated by reference herein.

On September 6, 2012, the Company issued a press release announcing the closing of the Acquisition as described in Item 2.01 above.