Interim Results

Embargoed until 7am 4 February 2016

Altona Energy plc

("Altona" or "the Company")

Interim Results

Altona (AIM: ANR) is pleased to announce its unaudited interim results for the six months ended 31 December 2015.

Highlights

· Concluded the renegotiation of the JV Agreement with Sino-Aus and Wintask

· Amended JV Agreement reflects a proposed bankable feasibility study into an Underground Coal Gasification project

· Reduction of 55% in Company overheads, excluding one-off costs, compared to the comparative period

· Wintask completed first tranche contribution into JV Company

· Sino-Aus subscribed for £0.5 million of Altona shares

Qinfu Zhang, Altona's Executive Chairman, commented, "2015 was a very positive year for Altona; in the last 12 months we have re-negotiated and formalised our arrangement with our joint venture partners, significantly reduced Company overheads and also strengthened the Board. In addition, Altona has now received the subscription funds of £0.5 million from Sino-Aus and the JV Company has received the first contribution of AUD$0.6 million from Wintask. In 2016, we will commence operations at the Arckaringa site in South Australia and we believe that Altona is at a new starting point in its development."

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

About Altona Energy

Altona is listed on the London Stock Exchange's AIM market. It is focused on the evaluation and development of the Company's Arckaringa Project to exploit the significant coal resources of approximately 7.8 billion tonnes (non-JORC). The project area is covered by three exploration licences covering 2,500 sq. kms in the northern portion of the Permian Arckaringa Basin in South Australia.

Chairman's Statement

The Company enters 2016 in a positive mood, after seeing Sino-Aus Energy Group Limited ("Sino-Aus") fulfil its first subscription commitment and Wintask Group Limited ("Wintask") make its first contribution into the joint venture company in accordance with the terms of the revised joint venture agreement (the "JV Agreement").

These developments follow a six month period where various important milestones were achieved. Firstly, on 10 July 2015, the Company announced that it had successfully negotiated the renewal for a further 12 months of its three exploration licences (Nos. 4511, 4512 and 4513) with the South Australian government. At the same time the Company appointed Parsons Brinkerhoff to investigate the potential of underground coal gasification ("UCG"), at the Company's Arckaringa site in South Australia.

On 5 November, the Company announced a Deed of Variation, relating to the original JV Agreement, had been signed by the Joint Venture Partners, confirming the maximum total cash contribution of AUD$33 million by Sino-Aus and Wintask into the joint venture company, Arckaringa Coal Chemical Joint Venture Co Pty Ltd (the "JV Company"). It also confirmed the subscription terms by Sino-Aus for Altona ordinary shares, for the amount of £1.25 million in two tranches; the first of which, for £0.5 million at a price of 0.5 pence per share, was completed on 25 January 2016.

Another important milestone was the agreement by the Joint Venture Partners to use the latest technologies available to investigate the feasibility of product extraction at Arckaringa using UCG. The initial testing phase at the site will focus on the viability of UCG. If UCG extraction is deemed not to be appropriate then the Joint Venture Partners have the flexibility to explore other extraction methods.

Financial Review

The financial loss of the Group for the six months ended 31 December 2015 was £356,000 (2014: £1,174,000). As reported in our audited financial results this is the first period where the full effect of our overhead reduction efforts is demonstrated. For the six months under review, overheads were £369,000 (H1 2015: £819,000, not including non-recurring charges of £355,000, as noted below). The Directors will continue to control costs whilst the joint venture progresses the Arckaringa project.

In the prior six month period ended 31 December 2014 the Group had one-off charges totalling £355,000 comprising professional fees incurred in the connection with the joint venture, totalling £130,000, as well as a provision for £225,000 relating to a settlement agreement with a former Director. The provision of £225,000 was reversed between the interim period ended 31 December 2014 and the audited 30 June 2015 year end, after legal advice was taken. As at 31 December 2015 no payment has been made under the settlement agreement; further information is available in note 5 to the interim statement.

Post Balance Sheet Events

Since the year end, the Company has benefitted from the receipt of the first £500,000 of subscription funds from Sino-Aus, which it will use for working capital purposes and it has also announced the receipt, into the JV Company, of the initial contribution from Wintask of AUD$0.6 million.

Outlook

Following the important progress made in 2015, the Company is excited about the prospects for the coming year ahead. While the board is unable to provide an accurate timetable of events for the next six months, it hopes that by the end of Q1 it will be in a position to update shareholders with a general plan for the initial test drilling programme at Arckaringa. The board also believes that its new joint venture arrangements represent the best opportunity for Altona and its significant coal asset in Australia.

Consolidated Statement of Comprehensive Income

For the half year ended 31 December 2015

Consolidated Statements of financial position

At 31 December 2015

Consolidated Statement of Cashflows

For the half year ended 31 December 2015

Consolidated Statement of Changes in Equity

For the half year ended 31 December 2015

Notes to the Interim Report

For the half year ending 31 December 2015

1. GENERAL INFORMATION

Altona Energy Plc (the "Company") is a company registered in England. The condensed consolidated interim financial statements of the Company for the six months ended 31 December 2015 comprise the result of the Company and its subsidiaries (together referred to as the "Group") and have been prepared in accordance with the AIM Rules for Companies. As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statement" in preparing these interim financial statements.

The consolidated interim financial information for the period 1 July 2015 to 31 December 2015 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 2014 to 31 December 2014 and extracts from the audited financial statements for the year to 30 June 2015.

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 2015 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 of matter and did not contain a statement under s498 (2) - (3) of Companies Act 2006. The interim report has not been audited or reviewed by the Company's auditor. The key risks and uncertainties and critical accountancy estimates remain unchanged from 30 June 2015 and the accountancy policies adopted are consistent with those used in the preparation of its financial statements for the year ended 30 June 2015.

3. TAXATION

The Group has recognised a £12,000 tax credit (31 December 2014: £Nil and 30 June 2015: £Nil) in respect of the concession for research and development tax credits available to the Group. No current taxation has been provided due to losses in the period.

4. 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.

5. TRADE AND OTHER PAYABLES

There is an ongoing discussion between the Company and a former director regarding a settlement agreement entered into during the prior year. No provision has been made at 31 December 2015 or at 30 June 2015 because in the opinion of the Directors the conditions in the settlement agreement had not been satisfied and the Company has no constructive or legal obligation. However as at 31 December 2014 a provision had been made at the interim date but was subsequently reversed after legal advice was taken. As at 31 December 2015 no payment has been made under the settlement agreement.

6. PROVISIONS

The taxes and social security provision amounting to £790,000 (30 June 2015: £790,000, 31 December 2014: £790,000) 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. The Directors have continued to discuss the potential liability with HMRC and its professional advisors during the period under review and subsequently. The Directors have reviewed the basis of the provision made in the 2014 financial statements and consider the provision remains appropriate.

7. POST REPORTING DATE EVENTS

On 22 January 2016 the Company issued 100,000,000 ordinary shares of 0.1pence each for total subscription proceeds of £500,000.