Altona Energy Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production 4 October 2010 Altona Energy Plc (Altona or the Company) Commencement of BFS Work Programme Altona Energy Plc, the AIM listed Australian based energy company, is pleased to announce that, following the JV Committee meetings in Beijing in September 2010 and previous consultations, the JV between Altonas subsidiary Arckaringa Energy and CNOOC-NEIA, a subsidiary of Chinese oil major China National Offshore Oil Corporation, has unanimously approved the annual budget and work programme of the Bankable Feasibility Study (BFS) outlined below, which will see the commencement of technical studies in the fourth quarter of 2010. The JV has agreed that CNOOC-NEIA will manage and operate the BFS work programme initially utilising its in-house technical resources, augmented by leading specialised consultants and actively assisted by the Altona team.

The first stage of the BFS starting in the fourth quarter of 2010 and anticipated to last 12 months, has a budget of AU$12 million, after which the second stage, which has a AU$28 million budget, will commence. The approved work programme will include: * detailed review of coal deposit geology and consideration of supplemental drilling; * groundwater investigation and verification; * groundwater management research and design; * environmental baseline studies; * open cut coal mining methodology options; and * product market research The work under this work programme will form the basis for the detailed design phase of the BFS covering mine design for an open cut mine and coal processing options (including CTL and power) for the planned mining capacity of 15 mtpa and a complete environmental management programme and approvals process. Altona Chairman Chris Lambert said, "The decisions of the JV parties and the agreement of the budget and work programme will enable CNOOC-NEIA to lead the Arckaringa project forward.

We are now moving from a conceptual and planning phase into the exciting detailed evaluation and execution phase.

The work going forward is part of the structured approach required for a BFS on a large scale clean coal conversion project." * * ENDS * * For further information visit www.altonaenergy.com or please contact: Christopher Lambert Altona Chairman Tel: +44 (0) 20 7024 8391 Christopher Schrape Altona Managing Director Tel: +44 (0) 20 7024 8391 Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177 Simon Edwards Evolution Securities Tel: +44 (0) 20 7071 4330 Tim Redfern Evolution Securities Tel: +44 (0) 20 7071 4312
Notes: Altona Energy Plc is an AIM listed Australian based energy company.

Its asset is an estimated 7.8 billion tonne coal resource (non-JORC) in the Arckaringa Basin of South Australia (JORC-compliant: 1.287 billion tonnes).

This is considered by the Board to be one of the worlds largest untapped energy banks.

Per Jacobs Engineerings study for the Company, assuming a 50% conversion of CTL fuels and 50% to synthetic gas (Syngas), Arckaringa total coal resources (both JORC and non-JORC) would represent respectively 28% and 29% of current North Sea remaining proven reserves of 10,900mb of oil and 114,800 bcf of natural gas. Altona has already accomplished a number of key phases in its development: � The Company has agreed the terms of a joint venture agreement with CNOOC-NEI, a subsidiary of Chinese oil major China National Offshore Oil Corporation, to accelerate the Arckaringa Project towards commercialisation. � Under the terms of the agreement, CNOOC-NEI will fund the bankable feasibility study (BFS) for a coal mine and an integrated value-added project. � The JV has agreed the budget for the BFS to the amount of A$40 million (�24m).

The current base case is a 10mb per year CTL plant and 560MW co-generation power facility. � CNOOC-NEI will also act as the operator and take responsibility for assessing the full potential of the coal resource, in return for a 51% interest in the exploration licences. � It is envisaged that numerous new additional projects may also be opened up to create a multi-project, multi-national business. CTL The quality of the Companys coal is suitable for conversion to synthetic gas (Syngas), using existing commercial CTL technologies.

The process involves two major stages; 1.

gasification to produce Syngas rich in hydrogen and carbon, 2.

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 countrys gasoline and diesel fuel needs are met through CTL plants.
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