Interim Results

9 March 2015

Altona Energy Plc

("Altona" or "the Company")

Interim Results

Altona (AIM: ANR), the AIM listed energy company, is pleased to announce its interim results for the six months ended 31 December 2014.

HIGHLIGHTS

· Joint Venture agreement signed with new joint venture partners contributing AUD$33 million

· Arckaringa Coal Chemical Joint Venture Co Pty Ltd ("JV Company") formed in November 2014 to develop the Arckaringa coal project

· JV Company received approval from the Australian Foreign Investment Review Board

· Joint venture partners exploring various options for the production of methanol and other syngas products

POST PERIOD HIGHLIGHTS

· Mr Qinfu Zhang, representative of major shareholder Wintask Group Limited, appointed Chairman and Michael Zheng appointed CEO of Altona

· Approval received from South Australian government for transfer of exploration licences into JV Company

· JV Company receives initial funding of AUD$2 million from Altona's joint venture partners

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Michael Zheng, CEO of Altona Energy, commented:

"The latter part of 2014 was a significant period of evolution for the Company with a new joint venture partnership being formed with the sole purpose of producing a BFS on our Arckaringa site. We continue to investigate the most suitable product for the site, as well as the best method to extract it. As we move towards the second quarter of 2015, we look forward to starting the initial test drilling phase."

For further information, please visit www.altonaenergy.com or contact:

About Altona

Altona is listed on the London Stock Exchange's AIM market. Its principal focus is on the evaluation and development of the Company's flagship coal-to-methanal, coal chemical and synthetic gas Arckaringa Project to exploit the significant coal resources contained in three exploration licences covering 2,500 sq. kms in the northern portion of the Permian Arckaringa Basin in South Australia. The project is designed to produce methanol and other syngas products for the Australian market and export from a resource exceeding 7.8 billion tonnes of coal (1.3 billion tonnes JORC compliant).

CHIEF EXECUTIVE'S STATEMENT

The period under review saw the Company enter into a new Joint Venture Agreement with two investment partners, thereby creating a joint venture entity, Arckaringa Coal Chemical Joint Venture Co Pty Ltd ("JV Company"), with the intention of completing a Bankable Feasibility Study ("BFS") at its Arckaringa project in Southern Australia within two years.

A milestone event was reached in February 2015 when the JV Company received AUD$2 million from Altona's joint venture partners. The importance of this cannot be underestimated, for although we have engaged in a joint venture previously, it did not reach the stage where funds had been advanced for the purpose of commencing a test drilling programme at Arckaringa.

As I mentioned at the Company's AGM in December 2014, we are investigating multiple options to find the most suitable method of producing Coal-to-Methanol (CTM) and coal chemical products, which are the preferred products following intensive research into the suitability of the site and current market demand. As a proactive partner in the JV Company it is our intention to hire a senior mining engineer in 2015 to oversee the Company's interests in the project.

Financial Review

Like-for-like losses for the Group for the six months ended 31 December 2014 was £819,000 (2013: £704,000). The Group had one-off professional fees incurred in the connection with the joint venture, totalling £130,000, as well as a provision for £225,000 in respect of the termination of Christopher Lambert, which as at 31 December 2014, had not been paid. Therefore, total loss for the period was £1,174,000.

At 31 December, the Company had cash and cash equivalents totalling £1,033,000 (30 June 2014: £1,913,000; 6 months ended 31 December 2013: £639,000). The Group incurred cash expenditure totalling £880,000 in the period, comprising £750,000 in respect of general running costs (6 months ended 31 December 2013: £830,000), plus the £130,000 one-off costs mentioned above. The principal components of the cash expenditure in the period related to professional fees, office costs, travel and salaries.

As stated at the AGM, the Company performed a review of its expenditure and overheads in the period which has resulted in a number of cost saving initiatives being implemented, including the downsizing of our London headquarters. These cost savings will be partially recognised in the 2015 final results and into 2016.

Since the year end the joint venture has benefitted from the receipt of AUD$2 million funds from our joint venture partners.

Post Balance Sheet Events

The board appointed Mr Qinfu Zhang as Chairman in January 2015, allowing me to concentrate solely on the CEO role, as we enter this challenging new phase of development. In order to strengthen the board and bolster its senior management experience, finding a suitable UK-based non-executive continues to be a priority.

Also in January, the JV Company received ministerial consent from the South Australian government to transfer the three Arckaringa Exploration Licences into this company, following the approval of the Australian Foreign Investment Review Board (FIRB) which it received in December 2014.

On 13 February, the joint venture partners being Wintask Group Limited and Sino-Aus Energy Group Limited ("Sino-Aus") paid AUD$2 million into the JV Company, with the remaining AUD$4 million of the first contribution due from Sino-Aus before the end of March 2015. This initial payment will allow the planning for the test drilling programme to commence and it is expected that this will happen soon. Also this month the Company has applied for the renewal of the three exploration licences that make up the project area.

Outlook

Our clear focus for 2015 is to progress the test drilling programme in order to remain on target to finish the BFS by the end of two years. Like all projects of this size and nature, we cannot predict the exact timing and success of future operations but, with the initial funds in place, we, along with our joint venture partners, will engage with mining and engineering experts to ensure it is only the unpredictable that could delay the programme.

We will continue to develop the project using the latest scientific methods and we remain very excited about the prospects for the Arckaringa project. We will update shareholders as we pass each milestone on this journey.

MICHAEL ZHENG

CEO

Consolidated Statement of Comprehensive Income

For the half year ended 31 December 2014

Consolidated Statements of financial position

At 31December 2014

Consolidated Statement of Cashflows

For the half year ended 31 December 2014

Consolidated Statement of Changes in Equity

For the half year ended 31 December 2014

Notes to the Interim Report

For the half year ending 31 December 2014

1. GENERAL INFORMATION

Altona Energy Plc (the "Company") is a company domiciled in England. The condensed consolidated interim financial statements of the Company for the six months ended 31 December 2014 comprise the result of the Company and its subsidiaries (together referred to as the "Group").

The condensed interim financial information for the period 1 July 2014 to 31 December 2014 is unaudited. In the opinion of the Directors the condensed interim financial information for the period presents fairly the financial position, and results from operations and cash flows for the period in conformity with the generally accepted accounting principles consistently applied. The condensed interim financial information incorporates unaudited comparative figures for the interim period 1 July 2013 to 31 December 2013 and extracts from the audited financial statements for the year to 30 June 2014.

The financial information contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006.

The comparatives for the full year ended 30 June 2014 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those financial statements was unqualified but did include a reference to the uncertainties surrounding going concern, to which the auditors drew attention by way of emphasis and did not contain a statement under s498 (2) - (3) of Companies Act 2006.

2. TAXATION

The Group has recognised a £Nil tax credit (31 December 2013: £6,000 and 30 June 2014: £80,000) in respect of the concession for research and development available to the Group. No current taxation has been provided due to losses in the period.

3. LOSS PER SHARE

The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the weighted average number of shares in issue.

As the inclusion of the potential ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive and, as such, the diluted loss per share calculation is the same as the basic loss per share.

4. TRADE AND OTHER PAYABLES

Included in accruals and other payables is an amount of £225,000 (2013: £Nil and 2014:£Nil) in respect of termination payments due to Christopher Lambert that as at 31 December 2014 remained accrued but unpaid.

5. PROVISIONS

Taxes & Social Security:

The taxes and social security provision amounting to £790,000 (30 June 2014: £790,000, 31 December 2013: £Nil) is in respect of a potential anticipated liability to HMRC for income tax not deducted and accounted for under the PAYE system, and National Insurance Contributions not accounted for. Altona has approached HMRC in respect of the anticipated liability and no substantive progress has been made since the company described the provision in its annual results for the year ended 30 June 2014 (as reported in our annual results to 30 June 2014 dated and announced 14 November 2014).

6. POST REPORTING DATE EVENTS

Since year end the joint venture company, Arckaringa Coal Chemical Joint Venture Co Pty Ltd has benefitted from the receipt of the first AUD$2 million funds from the joint venture partners.

There were no other post reporting date events to disclose.