NEWS RELEASE
July 11, 2011

Orca Exploration to increase gas production in Tanzania

TSX-V: ORC.A, ORC.B

TORTOLA, British Virgin Islands. Orca Exploration Group Inc. ("Orca" or the "Company") announces that it has signed an agreement with Songas Limited to increase the capacity of the Songo Songo gas field processing plant from 90 MMcfd to a potential of 110 MMcfd. This will increase the overall infrastructure capacity that processes and transports the gas to Dar es Salaam to 105 MMcfd.

With this higher system capacity the Company expects that Orca's Additional Gas sales will increase to an average of approximately 45 – 50 MMcfd from 1 July 2011 (compared with an average of 37 MMcfd in 2010) with a beneficial impact on cash flow.

This increase in Additional Gas production capacity is available for urgently needed power generation in Tanzania. The April and May long rains failed to replenish the reservoirs that the country depends on to generate up to 550 MWs of hydro power. As a consequence Tanzania's installed hydro power capacity is now dramatically reduced and an increase in reservoir levels is not expected until the advent of the short rains near the end of the year.

To address this shortfall, TANESCO recently re-commissioned a 112 MW gas fired power plant in Dar es Salaam (owned and operated by Symbion Power LLC). This will increase the total generation potentially consuming Additional Gas to 301 MWs (or approximately 66 MMcfd at peak load).

Further additions to Tanzania's generating capacity are scheduled for next year. TANESCO has contracted Jacobsen Elektro to install a new 105 MW plant (maximum demand of 22 MMCfd) in Dar es Salaam and this is forecast to be operational by the end of Q1 2012. In addition, Songas is making good progress with its Expansion Project to further increase Songo Songo infrastructure capacity to 140 MMcfd by Q1 2013.

These increases in production capacity in Tanzania come at a time of growth and strengthening of Orca's management team and Board of Directors. Orca is now well positioned to fully utilize the breadth of experience and the proven skills of a team committed to take the Company to the next level.

Orca Exploration is an international public company engaged in natural gas exploration, development and supply in Tanzania, the development of a coastal pipeline gas network in East Africa, oil and gas appraisal in Italy and the review of potential exploration opportunities in Europe and Africa. Orca Exploration trades on the TSXV under the trading symbols ORC.B and ORC.A.

For further information please contact:

W. David Lyons,
Chairman and CEO
+44-7717-100-200
wdlyons@orcaexploration.com
Nigel A. Friend, CFO
+44-7798-502316
wdlyons@orcaexploration.com
Dale Rollins, COO
+44-7768-049680
drollins@orcaexploration.com

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This document contains forward-looking statements. More particularly, this document contains statements concerning expected increases to Orca's additional gas sales and effect on cash flow and timing of commencement of operations of new 105 MW plant in Dar es Salaam. These forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Orca Exploration's control, including, but not limited to, the impact of general economic conditions in the areas in which Orca Exploration operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility, competition for, among other things, capital, drilling equipment and skilled personnel, and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations, therefore Orca Exploration's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that Orca Exploration will derive therefrom. Such forward-looking are based on certain made by Orca in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors Orca believes are appropriate in the circumstances, including, but are not limited to, the ability of Orca to add production at a consistent rate; commodity prices will not deteriorate significantly; the ability of Orca to obtain equipment in a timely manner to carry out exploration, development and exploitation activities; and future capital expenditures. The forward-looking statements contained in this press release are made as of the date hereof and Orca undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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