MOC

--  Morumbi has been invited by Isina Resource Holdings Ltd. to be partner
    of choice 
    
--  Morumbi to be first mover in geologically-resource rich Bougainville 
    
--  Bougainville is one of the worlds best endowed gold and copper
    districts; largely unexplored since the 1960's discovery of Panguna 



Morumbi Oil & Gas Inc. (TSX VENTURE:MOC) ("Morumbi" or the "Company") announces
that Isina Mining & Development Ltd., ("IMD") a wholly owned subsidiary of
Morumbi, has executed a letter of intent ("LOI") to become the Development
Partner of choice for Isina Resource Holdings Limited ("Isina Holdings") on the
mineral rich island of Bougainville, Papua New Guinea. Isina Holdings is a
landowner company representing 15 villages over traditional lands (the "Isina
Lands"). 


It is the first time in the history of Bougainville that an area, until recently
aggressively opposed to mineral exploration, has formed its own development
company and invited a foreign partner to jointly explore for and develop mineral
resources located on their traditional lands. The Company's Chairman Stephen
Shefsky and Chief Executive Officer Mark Brennan participated in the signing
ceremony which took place at Tunania village on the Isina Lands on the east
coast of Central Bougainville.


The current LOI covers approximately 5,000 hectares that extends from the East
coast up over and beyond the Crown Prince Range. Bougainville, although long
regarded as having great gold and copper potential based on early work done by
German explorers, has a unique history with respect to Mining in that no
exploration has been carried out since the 1960's. 


Satellite imagery, together with the results of a German Government sponsored
Aeromag and geochemical survey over Bougainville carried out by the Federal
Institute of Geoscience and Natural Science Hannover and published in 1990,
together with the 2007 discovery of extensive alluvial fields in the creeks and
rivers of Isina that are now being worked by villagers, single out this area for
high-priority exploration programs for gold/copper epithermal and porphyry
deposits.


Under the terms of the LOI, IMD paid Kina $10,000 (approximately CDN$ 4,000) on
execution and has agreed to pay a further Kina $3,000 (approximately CDN $1,200)
per month to Isina Holdings to help it fund certain programs.


Bougainville Geological Setting 

Bougainville is situated along an emerging gold-copper Neogene magmatic belt
from Lihir to the Solomon Islands on the south west Pacific Rim of Fire. A
number of economic gold and gold-copper deposits have been discovered on this
belt including Lihir, Panguna, Simberi and Gold Ridge. 


On Bougainville there has been no exploration activity since the 1960's on the
island which is approximately 250 km long and an average 40 km wide with a
North/South spine of ranges made up of nine volcanoes of which two (Mt. Balbi &
Mt. Bagara) remain active. The island is one of the world's best endowed gold
and copper districts; hosting the world class Panguna Mine with in excess of
40Moz gold equivalent metal surrounded by what is generally accepted as the
world's most under explored prospective district for the discovery of additional
large gold-copper deposits.


The Isina Lands lie twelve kilometers along the Crown Prince Range to the South
of Panguna. Panguna was the world's first large scale gold-copper porphyry mine,
which at its opening in 1974 treated a then unheard of 135,000 tons of ore
daily. In 1978, one of the peak production years, Panguna produced 403 million
lbs. of copper, 751,000 oz. of gold and 1.7 million oz. of silver which at
today's prices would aggregate to total sales of $2.8 billion for the year.


At the time the Panguna mine was shut down by civil unrest in 1989 it was still
producing in excess of 400,000 oz of gold per annum.


The Isina Lands, by virtue of the historical information on the area and their
geological setting in proximity to Panguna, offer unique opportunities for the
discovery of world-class high grade epithermal gold and porphyry gold-copper
deposits.


Rockwell 

The current LOI flows from the program that Morumbi acquired through the
purchase of Rockwell Exploration S.A. Rockwell has had well established and
ongoing relationships for over six years on Bougainville at the village and
Governmental level. The current LOI over Isina Lands is a product of these
strong relationships and is expected to be followed by other such arrangements
on the Island. 


Morumbi also announced that on May 30, 2011, in accordance with its stock option
plan, the board of directors of Morumbi approved the grant of an aggregate of
2,100,000 incentive stock options to certain directors, officers and consultants
of the Company. Of these options, 425,000 are exercisable on or before May 30,
2013 with the remainder being exercisable on or before May 30, 2016 each at an
exercise price of $0.33 per share.


About Morumbi 

Morumbi Oil & Gas Inc. is a public company with attractive near-term light oil
exploitation opportunities in northwest Alberta, and, through its recent
acquisition of Rockwell, it is actively undertaking programs to develop existing
assets and conducting activities to acquire additional high impact Oil/Gas and
Mineral assets. The Company trades on the TSX Venture Exchange under the symbol
"MOC". For more information about Morumbi and the Company's McKinley Property
and plans visit our website at www.morumbi.ca. 


Disclaimer 

Certain statements contained in this news release may contain forward-looking
information within the meaning of Canadian securities laws. Such forward-looking
information is identified by words such as "estimates", "intends", "expects",
"believes", "may", "will" and include, without limitation, statements regarding
the company's plan of business operations (including plans for developing
assets) and projected expenditures. There can be no assurance that such
statements will prove to be accurate; actual results and future events could
differ materially from such statements. Factors that could cause actual results
to differ materially include, among others, commodity prices, risks inherent in
the oil & gas industry, financing risks, labour risks, title disputes,
regulatory risks, currency fluctuations, competition, unexpected decline rates
in wells, changes in taxation or royalty regimes and environmental concerns.
Most of these factors are outside the control of the company. Investors are
cautioned not to put undue reliance on forward-looking information. Except as
otherwise required by applicable securities statutes or regulation, the company
expressly disclaims any intent or obligation to update publicly forward looking
information, whether as a result of new information, future events or otherwise.

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