Altona Resources Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production

22 July 2008

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

Extension of Memorandum of Understanding with BP Australia Pty Ltd

Altona Resources Plc, the AIM listed Australian based energy company, announces that its Memorandum of Understanding (?MOU?) with BP Australia Pty Ltd has been extended to 30 June 2009.  The MOU is a non-binding agreement to work together in evaluating the development opportunities for Altona?s Arckaringa Coal to Liquids (?CTL?) and Power project in South Australia.  The non-binding MOU includes the evaluation of CTL developments and market potential for CTL fuel products.

**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

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