Altona Energy

TIDMANR

RNS Number : 6398X

Altona Energy PLC

17 February 2012

Altona Energy Plc

('Altona' or 'the Company')

Acquisition of Coal Exploration Licences and Completion of Placing

Altona Energy Plc, the AIM listed energy company, today announces that it has conditionally agreed to acquire a 95% indirect beneficial interest in two advanced coal exploration licences located in the Xinjiang Uygur Autonomous Region of the People's Republic of China ("PRC"). The Company also announces it has entered into a conditional placing agreement with institutional investors to raise GBP1million to provide additional working capital.

Highlights of the Acquisition:

o Total coal resource of the licences is estimated to be approximately 1.17 billion tonnes under Chinese standards (not JORC compliant)

o The exploration licences are well connected to good road infrastructure and growing local and regional coal markets

o The coal is a marketable medium to high energy thermal coal

o A large portion of the coal resource is accessible by conventional truck and shovel open cut mining methods

o The consideration payable, excluding the option consideration, is approximately GBP13 million with payments conditional on the achievement of, and staged to reflect development and performance milestones.

o The exploration assets are advanced and are expected to be readily converted into Mining Licences ("ML"s).

o It is anticipated that the ML application process will commence upon completion of the transaction.

Christopher Lambert, Chairman of Altona commented:

"We are delighted to have secured these two advanced exploration licences, which we believe to have significant potential. These are advanced exploration assets that are expected to have a clear path through the mining licence application process and into production. This is a transformational move for the Company, providing the potential to move into production in the near term on a sustainable basis, and generate strong cash flows underpinning Altona's future, as it actively continues the progression of the bankable feasibility studies on its flagship Arckaringa Project in joint venture with CNOOC-NEI."

"The consideration has been favourably structured against significant performance milestones, including successfully converting each exploration licence into a mining licence and with the cash consideration only payable out of profits following the commencement of production in respect of each mining licence."

"Altona's Managing Director, Chris Schrape (formerly CEO of Griffin Coal) will be heading up the due diligence team alongside Altona Beijing office, and during this period Altona's Technical Director, Peter Fagiano, will be spear heading the Arckaringa Project with continued assistance from Chris and our Beijing office."