Altona Energy PLC Joint Venture Agreement -2-

To maximise the future profit of the asset, meet perceived market demand and use readily available and proven technology, the JV partners have agreed that the focus of the BFS will now be on Coal-to-Methanol, coal chemical and synthetic gas production. The Company is currently reviewing its technical and operational capabilities, in light of its responsibilities to the JV, and a further update will be made in due course. Since the sad passing of Peter Fagiano in May of this year, the board has been seeking to appoint a senior project manager / technical director to act as on-the-ground liaison with the JV partners.

Information on the JV Partners

Sino-Aus is formed from two Chinese investors, who have come together for the purposes of investing in, and the development of, the Arckaringa Project. Through their direct ownership of a number of subsidiaries, namely; Shanghai Qianqi Petrochemical Engineering Limited, Shanxi Huaxiang Technology Energy Limited, and Shanxi Xuanyuan Investment Group, they bring a wealth of experience in the areas of power, coal, chemicals and real estate.

Wintask specialises in Clean Energy research, development and equipment production with a strong scientific research team.

Sino-Aus commented:

"We are excited to have the opportunity to participate in the Arckaringa project and are pleased to be making this investment at this time. As future shareholders in the project, along with Altona, we are looking forward to the forthcoming drilling programme as a key milestone in the development of the BFS."

Qinfu Zhang, executive Director of Altona and Chairman of Wintask, said:

"Since our initial investment in Altona nearly 12 months ago we have seen the impressive progress made by Michael and the team. I believe we now have the right man leading Altona as we move closer to bringing the Arckaringa project to production."

Shareholder Meeting Notice

Altona confirms that its Annual Report and Accounts for the year ended 30 June 2014 together with notice of the Annual General Meeting and a form of proxy, has been posted to shareholders.

Copies of the 2014 Annual Report and Accounts are available on the Company's website www.altonaenergy.comor from the Company's registered office at Third Floor, 55 Gower Street, London WC1E 6HQ.

The AGM is to be held at the offices of BDO LLP, 55 Baker Street, London, W1U 7EU on 16 December 2014 at 11am.

Related Party

Wintask is a related party, as defined by Rule 13 of the AIM Rules for Companies, due to its holding in Altona. Accordingly, the independent directors (being Michael Zheng and Philip Sutherland), having consulted with the Company's nominated adviser, WH Ireland Limited ("WH Ireland"), consider that the terms of the joint venture and the related party's participation are fair and reasonable in so far as the Company's shareholders are concerned.

In making their decision, the independent directors have inter alia considered the size of the related party investors' shareholding in the Company following the transaction, the undertakings made by Wintask to Altona and the joint venture and the benefits of continued support from Wintask as an investor in both Altona and the joint venture:

-- Wintask and Sino-Aus have given undertakings to the Company and WH Ireland, that during such time as they hold or beneficially own Shares in the Company: any arrangements entered into by them with any Altona, or any of its subsidiary undertakings, shall be on arm's length financial and commercial terms;

-- each of Wintask and Sino-Aus will neither propose nor vote in favour of any proposed alternations to the Company's Articles of Association which would vary the rights attaching to the Company's Shares, unless recommended to do so by all the directors of Altona;

-- each of Wintask and Sino-Aus will exercise the voting rights attaching to the Shares held or beneficially owned by them in such a way as to maintain the ability to trade the Company's Shares on AIM and to enable the Company to comply in all respects with the AIM rules; and

-- each of Wintask and Sino-Aus acknowledge the duty of the Directors for the Company to exercise the powers and authorities vested in them in the interest of all of the shareholders.

About Altona Energy

Altona is listed on the London Stock Exchange's AIM market. Its focus is firmly on the evaluation and development of the Company's coal-to-chemicals Arckaringa Project to exploit the huge coal resources, equivalent to 7.8 billion barrels, contained in three Exploration Licences covering 2,500 sq. kms in the northern portion of the Permian Arckaringa Basin in South Australia.

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This information is provided by RNS

The company news service from the London Stock Exchange

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