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Company Information for Altona Energy Plc

AIM-ANR

www.altonaenergy.com

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Company Statement

Altona Energy Plc (‘Altona’) listed on the AIM London Stock Exchange in March 2005. Altona has a strong management team with many years experience in investment, mining and the energy industry globally.

Altona holds through its wholly owned subsidiary Arckaringa Energy Pty Ltd, a 100% interest in three exploration licences covering 2,500 sq. kms in the northern portion of the Permian Arckaringa Basin in South Australia and including three coal deposits – Westfield (EL3360), Wintinna (EL3361) and Murloocoppie (EL3362). All three deposits lie close to the Adelaide to Darwin railroad and the Stuart Highway.

Altona’s primary focus is the completion of a bankable feasibility study for an integrated 10 million barrel per year Coal to Liquid (CTL) plant with a 560 MW co-generation power facility.

Containing more than 7.5 billion tonnes of coal*, or an equivalent 7.5 billion barrels of petroleum products, these coal deposits are effectively one of the world’s largest undeveloped energy banks, capable of conversion into clean liquid fuels, low cost power and high value industrial feedstocks.

Current Operations

The Arckaringa Project
The Project ‘Base Case’ includes

a 10 Million Tonne Per Annum (MTPA) open cut mine at Wintinna
a CTL plant producing 10 Million Barrels Per Annum (MBPA) or 30 Thousand Barrels Per Day (KBPD) of liquid products, mainly zero sulphur diesel fuel
560 MW of power for export

One tonne of Wintinna coal yields a barrel of liquids plus power and industrial products – a significant order of added value beyond supplying just coal for conventional power generation.

The Based Case combines two 15KBPD Phases over a 4.5 year construction period, with a further 2.5 year Phase 3 expansion potentially increasing plant capacity to 45 KBPD and 840 MW of export power as markets develop.

The supporting mine can be developed and expanded within these timeframes. These Project parameters are based on pre-feasibility studies conducted by world class specialists in CTL plant and open cut mine design.

At over $3 Billion, the capital costs of an integrated CTL and power plant are substantial and higher than conventional oil refineries, regardless of location. A successful CTL project therefore depends crucially on locational advantages to give it a competitive edge in operating costs and marketing. Several factors are converging to make South Australia and the Arckaringa region a particularly attractive location for a CTL and power project:

Political and economic stability, which is critical to the success of long life, high capital cost projects;
Abundant and technically suitable coal resources;
The Adelaide – Darwin rail and road links;
Growing markets for fuels and power, plus industrial process inputs such as sulphur, water and chemicals.

South Australia is host to a large number of new and expanding resource projects, fostered by a rapid increase in minerals exploration. At the same time, the State’s dependence on imported diesel is rising and available power supply is officially3 forecast to fall increasingly short of demand. In addition, regional centres in the north of the State and beyond are dependent on high cost power generated from imported diesel fuel.

The Arckaringa Project will be uniquely placed to:

supply both fuel and power to new resources and industrial projects be a catalyst for regional development and employment enhance power
supply to the State grid and the National Electricity Market provide commercial grade sulphur and potentially a range of chemical feedstocks, such as naptha and nitrogen, to industry
supply water to the region from mine dewatering and plant processes, subject to appropriate environmental management and approval.

Deposits
The coal resources of the Arckaringa Basin were extensively explored in the 1980’s and several feasibility studies were subsequently completed for the Wintinna deposit as a fuel source for potential offsite base load power stations and industrial projects. Approximately 24,000 metres of drilling in 105 boreholes at 93 sites has produced a large database on the quality and quality of Wintinna coal.

The initial objective of the drilling program is to validate and upgrade the previously defined coal resource according to the current Australian code for reporting coal resources and reserves. Another primary objective is the extraction of a representative bulk sample of approximately 5 tonnes for Coal to Liquids process testing.

Other Projects Being Investigated
In addition to the CTL project, Altona are also investigating the following projects:

Underground gasification
Coal offtakes for domestic supply
Coal briquette

Geographical Spread

South Australia

Board of Directors and Key Management

Christopher Walter Lambert	Chairman
Christopher John Schrape	Managing Director
Anthony John Samaha	Financial Director
Norman Lee Kennedy	Technical Director
Phillip George Sutherland	Non Executive Director
Zheng (Michael) Qiang	Non-Executive Director

Company Address

18 Pall Mall
London, United Kingdom SW1Y 5LU


Telephone:	+44 (0)207 024 8391
Email:	admin[at]altonaresources.com
Website:	http://www.altonaenergy.com

Additional Address/Key Contact

Registered Office
Third Floor
55 Gower Street
London WC1E 6HQ

Capital

Total share on issue;358,165,784

Year End

30 June

Nominated Brokers

Evolution Securities Ltd

Nominated Advisors