Investments and equity issue

RNS Number:8856S
Resmex plc
19 October 2005

19 October 2005

Resmex plc ("Resmex" or the "Company")

New investments and issue of shares

The board of Resmex announces that it has raised #1.0 million through the issue
of 50 million new ordinary shares in the Company (representing 22.3% of the
Company's issued ordinary share capital as enlarged by the issues referred to in
this announcement) at a price of 2p per share to Cambrian Mining plc
("Cambrian"). Cambrian has entered into an orderly market arrangement with the
Company in relation to such shares for a period of 12 months from their
admission to trading on AIM. Resmex has agreed to invest the funds raised from
this share issue in a co-investment with Cambrian in the ordinary shares of an
Australian company, Xtract Oil Limited ("Xtract Oil"). Xtract Oil, in
conjunction with Australia's CSIRO (Commonwealth Scientific and Industrial
Research Organisation), aims to develop commercially effective technology to
unlock oil reserves in oil shale deposits and to test the technology using oil
shale deposits in an area in Queensland, Australia in relation to which it has
an option over exploration rights. Xtract Oil has had no material trading to
date and does not have any significant assets or liabilities other than rights
to the technology referred to above.

Under an agreement it has entered with Cambrian, Resmex has agreed to pay
Cambrian A$1.0 million (#0.4 million at an exchange rate of A$2.33/#1) for half
of the ordinary shares in Xtract Oil owned by Cambrian; as a result they will
each own 9 million shares in Xtract Oil (each representing 21.7% of Xtract Oil's
issued share capital) together with options over 4.5 million Xtract Oil shares.
Resmex has also agreed to purchase from Cambrian half of any further Xtract Oil
shares which Cambrian acquires under: (i) an offer by it to acquire up to 50% of
the Xtract Oil shares not already owned by it and Resmex and under which it is
to acquire 4.2 million shares; and (ii) underwriting arrangements with Xtract
Oil under which it will subscribe for 11.8 million shares under a public offer
of shares to be made by Xtract Oil and underwrite any balance of the 20 million
shares to be offered by Xtract not subscribed under the offer. Resmex's total
commitment under these arrangements (including the initial 9 million shares
referred to above) amounts to a maximum of A$3.3 million (#1.4 million at an
exchange rate of A$2.33/#1) for 21.1 million shares in Xtract Oil representing
34.3% of Xtract Oil's share capital as enlarged by the offer.

Application has been made for the new Resmex shares referred to above, together
with 60,000 new ordinary shares issued by Resmex as a result of the exercise of
warrants at an exercise price of 1p per share, to be admitted to trading on AIM
and this is expected to occur on 24 October 2005.

The board of Resmex also announces that it has entered an agreement with
Intermin Resources Limited ("Intermin") of Australia under which Resmex is to
issue 30 million new ordinary shares (representing 13.4% of the Company's issued
ordinary share capital as enlarged by the issues referred to in this
announcement) and pay A$50,000 in cash as consideration for the assignment by
Intermin to Resmex of oil shale exploration rights over certain mining tenements
in the Toolebuc area of Queensland in Australia. The option held by Xtract Oil
referred to above is over rights currently held by Intermin relating to an area
contiguous with the tenements covered by the assignment by Intermin to Resmex.
Resmex has commissioned an expert's report on the potential oil shale reserves
in the tenements to be assigned to it and a summary of this report will be
included in an announcement which will be made by the Company when completed. It
is expected that the new Resmex shares will be issued to Intermin on completion
of the expert's report and application for their admission to AIM will be made
at that time. Intermin has agreed to enter into an orderly market arrangement
with the Company in relation to the Resmex shares to be issued to it for a
period of 12 months from their admission to trading on AIM.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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