Ohangwena's journey in the Nedbank Namibian Newspaper Cup came to an end after a dramatic 2-2 draw against hosts ||Kharas at Keetmanshoop on Saturday.
The match ended in controversy, with the Ohangwena coach saying the referee blew the final whistle just before ||Kharas found their last-minute equaliser.
The late goal ultimately secured ||Kharas one point, enough to see them advance to the quarter-finals.
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Ohangwena faced ||Kharas under pressure, having collected only one point from their opening two matches.
Both sides were fighting for qualification, but ||Kharas needed just a draw to finish second in the group with four points.
They now join Oshikoto, who completed a flawless group stage campaign, winning all three of their matches to top the standings.
In the encounter, Kandingua Tuundjakuje netted two goals for ||Kharas, while Max Ndilula and Jeremia Xueka each found the back of the net for Ohangwena.
Red card
Tensions boiled over in the closing stages, with Ohangwena's coach receiving a red card following protests over the late equaliser.
While Ohangwena bow out of the tournament, ||Kharas progress to face Khomas in the quarter-finals on Sunday at 13h00 at Keetmanshoop's Westdene Stadium.
Oshikoto, after maintaining their perfect run in the same group as Ohangwena and ||Kharas, will now face Erongo at 11h00 on Sunday.