ZNWAW Zion Oil & Gas - Warrants 12/31/2012 (MM)

Zion Oil & Gas, Inc. (Nasdaq:ZN) (Nasdaq:ZNWAW) today announced that it has extended the expiry date of its outstanding publicly traded warrants under the symbol ZNWAW (the "Warrants") to December 31, 2012 (from January 31, 2012, the expiry date provided by the original terms of the Warrants). Any and all Warrants properly exercised at $7, in accordance with the terms of the Warrants, prior to December 31, 2012, will be accepted by Zion and one share of registered common stock per Warrant will be issued to the exercising Warrant holder. Except for the extension of the Expiry Date, the terms of the Warrants remain unchanged. The new Expiry Date applies to all of Zion's currently outstanding Warrants that publicly trade under the symbol ZNWAW.

Richard Rinberg, CEO of Zion, stated, "This extension of the exercise period will provide our ZNWAW warrant holders additional time to exercise their warrants and increase their ownership participation in the Company. We hope that a substantial number of these warrants will be exercised."

WHILE ZION'S BOARD OF DIRECTORS HAS APPROVED THE EXTENSION OF THE EXPIRY DATE OF THE ZNWAW WARRANTS, NEITHER ZION NOR ANY OF ITS DIRECTORS, OFFICERS OR EMPLOYEES MAKES ANY RECOMMENDATION AS TO WHETHER TO EXERCISE THESE WARRANTS. WARRANT HOLDERS MUST MAKE THEIR OWN DECISIONS AS TO WHETHER TO EXERCISE A WARRANT.

The information above does not constitute an offer to buy or exchange securities or constitute the solicitation of an offer to sell or exchange any securities in Zion.

Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located onshore between Haifa and Tel Aviv. It currently holds three petroleum exploration licenses, the Joseph License (on approximately 83,000 acres) and the Asher-Menashe License (on approximately 79,000 acres) between Netanya, in the south, and Haifa, in the north and the Jordan Valley License (on approximately 56,000 acres), just south of the Sea of Galilee. The total license area amounts to approximately 218,000 acres.

In 2011, Zion Oil & Gas submitted applications to the Israeli Petroleum Commissioner for three further exploration areas: the Dead Sea License Application (covering an area of approximately 75,000 acres), the Asher-Joseph Permit Application (covering an area of approximately 80,000 acres) and the Zebulun Permit Application (covering an area of approximately 157,000 acres). If all of our applications are granted, the total petroleum exploration area under Zion's control would be approximately 530,000 acres.

The Zion Oil & Gas, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6850

FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding the effect of the extension of the exercise period of the "ZNWAW" warrants and Zion's operations, are forward-looking statements as defined in the "Safe Harbor" provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion's periodic reports filed with the SEC and are beyond Zion's control. These risks could cause Zion's actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements.

Zion's homepage may be found at: www.zionoil.com

CONTACT: Zion Oil & Gas, Inc.
         6510 Abrams Rd., Suite 300
         Dallas, TX 75231
         
         Mike Williams:
         Telephone: 214-221-4610
         Email: dallas@zionoil.com