MENA Hydrocarbons Inc. ("MENA" or the "Company") (TSX VENTURE:MNH) announced a
corporate update further to its news release of May 30, 2012.


Background 

As at the date of this news release, the Company had a working capital
deficiency of approximately $7.2 million. As disclosed on May 30, 2012, the
Company's limited cash resources and liquidity creates a material uncertainty
about the Company's ability to operate as a going concern in the near term.  


For the last several months, the Company has attempted to raise the necessary
funds to meet its near term operating and capital obligations without success.
Since soon after inception, the Company has attempted to manage operations and
raise capital in the face of the Arab Spring in the Middle East causing us to
suspend our exploration program in Syria, after incurring Syrian expenditures of
approximately $13 million, and proceed with a minimum work development program
for the Lagia oil field based on available funding in order to meet our near
term commitments to the governmental authorities. The prevailing capital market
conditions and near closure of the global equity and debt markets make the
raising of new capital extremely challenging, particularly for companies with
limited market liquidity and relatively high working capital deficiencies.  


Drilling operations on the Lagia oil field development have been suspended, as
planned, and the Shams 1 rig has been temporarily farmed out to allow evaluation
of data gathered in the 3 well drilling campaign. The Lagia 9 well has now been
fracked and the two previously existing Lagia 6 and 7 wells, which were drilled
in 2000, have been worked over and re-perforated. About 1,000 bbls oil have been
produced to date from these three wells and is being stored in heated tanks at
the field. Pump remediation work is being done on Lagia 9 which may enhance its
cold flow rates and the newly drilled wells Lagia 8 and 10 are awaiting pumps to
be installed, at which time they are expected to be placed on production also.
The new wells drilled confirmed the presence of heavy oil in a low permeability
reservoir which are expected to be best flowed under the steam injection
scenario. On June 12th, the first road tanker loaded with 265 bbl of crude oil
from the Lagia field was sent to the General Petroleum Company's (GPC)
facilities in Ras Gharib for processing and sale to the Egyptian Petroleum
Company (EGPC).


Strategic review process 

In light of the working capital deficiency, the Board of Directors has initiated
a process to identify, examine and consider strategic alternatives with the view
to enhancing shareholder value. Strategic alternatives may include, but are not
limited to, sale of the corporation, merger or other business combination,
recapitalization, sale of all or a portion of the Company's assets, or any
combination thereof, continued execution as its business plan, among all other
alternatives. At this time, the Board of Directors has decided not to establish
a special committee or retain a financial advisor to assist the Board of
Directors with this process but may revisit making such appointments in the
future depending on the circumstances at the time. 


It is the Company's current intention not to disclose developments with respect
to the strategic review process until the Board of Directors has approved a
specific transaction or otherwise determines that disclosure is necessary or
appropriate. The Company cautions that there are no assurances or guarantees
that the process will result in a transaction or, if a transaction is
undertaken, the terms or timing of such a transaction. The Company has not yet
set a definite schedule to complete its evaluation or process.


Share consolidation 

The Company also announced that the Board of Directors proposes to consolidate
the issued and outstanding common shares of the Company, with the final
consolidation ratio to be determined at a later date and prior to sending the
Company's notice of meeting and information circular for the shareholder meeting
to consider and approve the consolidation. 


The Board of Directors believes that the consolidation, if implemented, will
reduce its outstanding share amount to a level that will allow the Company to
move forward with other initiatives and enhance the marketability of the
Company's common shares as an investment.


Shareholder meeting 

The Board of Directors has called a shareholder meeting for July 25, 2012 to
approve, among things, the election of directors, appointment of auditors, share
consolidation, and change of name of the Company.


About MENA Hydrocarbons 

MENA Hydrocarbons is an international oil and gas company focused on growing an
asset base of production, development and high impact exploration in the Middle
East and North Africa region. In Egypt, MENA owns and operates the development
lease for the Lagia oil field, a 32 square kilometre onshore block located on
the Sinai Peninsula, directly adjacent to the Gulf of Suez. In Syria, MENA owns
a 30% participating interest in Block 9 in Syria, a 10,032 square kilometre
onshore block prospective for crude oil, natural gas and condensate. In the
United States, MENA owns 6,242 gross acres (with an 81.2% average working
interest) in Northwestern Montana with light/medium oil reserves. MENA's shares
currently trade on the TSX Venture Exchange under the symbol "MNH". 


Forward looking information 

This news release contains forward-looking information relating to the
development and appraisal of the Lagia oil field development, including
production therefrom, the appointment of a special committee and retaining a
financial advisor to assist the Board of Directors with its strategic review
process, share consolidation, holding of the shareholder meeting and other
statements that are not historical facts. Such forward-looking information is
subject to important risks, uncertainties and assumptions. The results or events
predicated in this forward-looking information may differ materially from actual
results or events. As a result, you are cautioned not to place undue reliance on
these forward-looking information. 


Forward-looking information is based on certain factors and assumptions
regarding, among other things, the Company maintaining its stock exchange
listing; the availability of capital on acceptable terms or at all and the
timing such capital is needed; the impact of increasing competition; the general
stability of the economic and political environments in which the Company
operates or owns interests; the timely receipt of any required regulatory
approvals; the ability of the Company to obtain qualified staff, equipment and
services in a timely and cost efficient manner; drilling results; the ability of
the operator of the projects which the Company has an interest in to operate the
field in a safe, efficient and effective manner; the ability of the Company to
obtain financing on acceptable terms; field production rates and decline rates;
the ability to replace and expand oil and natural gas reserves through
acquisition, development of exploration; the timing and costs of pipeline,
storage and facility construction and expansion and the ability of the Company
to secure adequate product transportation; future oil and natural gas prices;
currency, exchange and interest rates; the regulatory framework regarding
royalties, taxes and environmental matters in the jurisdictions in which the
Company operates; and the ability of the Company to successfully market its oil
and natural gas products, and other similar matters. While the Company considers
these assumptions to be reasonable based on information currently available to
it, they may prove to be incorrect. 


Forward looking-information is subject to certain factors, including risks and
uncertainties that could cause actual results to differ materially from what is
currently expected. These factors include risks associated with the Company's
ability to successfully maintain its stock exchange listing, the availability of
capital on acceptable terms or at all and the timing such capital is needed,
instability of the economic and political environments in which the Company
operates or owns interests, oil and gas exploration, development, exploitation,
production, marketing and transportation, loss of markets, volatility of
commodity prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers, inability to retain
drilling rigs and other services, incorrect assessment of the value of
acquisitions, the inability to settle the definitive terms of the farmout
arrangements, failure to realize the anticipated benefits of acquisitions,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources,
reliance on key personnel, regulatory risks and delays, including risks relating
to the acquisition of necessary licenses and permits, environmental risks and
insurance risks. 


You should not place undue importance on forward-looking information and should
not rely upon this information as of any other date. While the Company may elect
to, the Company is under no obligation and does not undertake to update this
information at any particular time, except as required by law. 


Advisories 

The Company cautions readers that the production results to date are not
necessarily indicative of long-term performance or of ultimate recovery.