19 August 2008

Altona Resources Plc (?Altona? or ?the Company?)

Signs MOU with CNOOC (Beijing) Energy Investment Co., Ltd

Altona Resources Plc, the AIM listed Australian based energy company, has entered into a Memorandum of Understanding (?MOU?) with CNOOC (Beijing) Energy Investment Co., Ltd (?CNOOC Energy?), a subsidiary of China National Offshore Oil Corporation, one of the three largest State owned oil companies in the Peoples Republic of China. 

The MOU provides the basis for CNOOC Energy and Altona to build a long-term co-operative relationship towards the development of the Company?s 10 million barrel per year coal-to-liquids (?CTL?) and 560 MW power co-generation Arckaringa Project in South Australia.    

Altona Chairman Chris Lambert said, ?We have always recognised that Altona would need a partner of major stature, given the size of the Arckaringa Project, and we are therefore delighted to have the support and interest of CNOOC Energy.  With their immense resources and capabilities, CNOOC Energy is an ideal partner for Altona to work closely with in evaluating technology, off-take, financing and construction opportunities.  The development of Arckaringa would deliver tremendous benefits to South Australia in providing a major new source of base load power and diesel to a State which has a significant looming power deficiency and currently imports all of its distillate requirements.  The MOU is a major milestone for the Company and we look forward to building a long-term relationship with CNOOC Energy?. 

**ENDS**

For further information visit www.altonaresources.com or please contact:

Notes to Editors:

About Altona

Altona Resources Plc is an Australian based energy Company that was admitted to trading on AIM in March 2005. Altona's primary focus is the completion of a bankable feasibility study for its wholly owned Arckaringa Project for an integrated 10 million barrel per year Coal to Liquid ('CTL') plant with a 560 MW co-generation power facility. 

The Company 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. These include three coal deposits, Westfield (EL3360), Wintinna (EL3361) and Murloocoppie (EL3362). All three lie close to the Adelaide to Darwin railway and the Stuart Highway. Containing more than 7.5 billion tonnes of coal (based on previous JORC standards) 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.

About Coal-to-Liquids (also see www.altonaresources.com)

CTL is a proven technology which converts coal into more environmentally clean and manageable energy sources including gas and synthetic fuels. The process involves two major stages, gasification to produce synthetic gas ("Syngas") rich in hydrogen and carbon, and a liquefication stage where the Syngas is reacted over a catalyst to produce high quality, ultraclean synthetic fuels and chemical feedstocks. 

CTL is a prime example of clean coal technology - the associated combined cycle units produce negligible sulphur oxides, significantly less nitrogen oxides and 10 - 20% less CO2 per unit of power generated than a conventional coal fired plant, whilst carbon capture and storage offers the potential to reduce the overall greenhouse gas emissions from CTL to below the "well to wheel" level of fuels derived from crude oil.

The technology is best demonstrated in South Africa, where currently 30% of the country's gasoline and diesel fuel needs are met through CTL plants  

Victoria Thomas

St Brides Media & Finance Ltd

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