Placing Agreement

10 October 2013

Altona Energy Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production

Altona Energy Plc (AIM: ANR)

Placing Agreement with Wintask Group Ltd

Altona Energy Plc ('Altona' or 'the Company'), the AIM listed Australian based energy company today announces that it has entered into a conditional placing agreement with Wintask Group Limited ('Wintask') for the placement of 230,000,000 ordinary shares ('the Placing Shares') at 1.4 pence per share to raise £3,220,000 before expenses ('the Placing'), to further the Company's projects and to provide additional working capital for the Company. 

The Placing Price is at a 4% premium to the closing middle market price on 9 October 2013, being the last practicable date prior to the publication of the announcement. The Placing is split into two tranches, the first tranche is for 59,700,000 shares to raise £835,800 (before expenses), which is conditional, inter alia, on admission of the Placing Shares to trading on AIM. The First tranche placing shares are to be issued on or before 31 October 2013.

Following the issue of the First Tranche Placing Shares, Wintask, shall have the right to appoint one director to the Company's Board of Directors.

The second tranche is for 170,300,000 ordinary shares to raise £2,384,200 (before expenses), which is conditional, inter alia, on the approval by shareholders to increase the Company's pre-emption rights to issue additional share capital. The Second tranche placing shares are also conditional on the admission of the Placing shares to AIM, which is expected to occur on or before 31 December 2013. Shareholders will be given the opportunity to vote on the increase in pre-emption rights at a shareholder meeting to be called in due course.

Following the completion of the First tranche shares and admission to trading of the first tranche shares the Company's total issued capital will be 621,656,853. At that time Wintask will have an interest in 59,700,000 ordinary shares of the Company, representing approximately 10% of the enlarged share capital. 

Following the completion of the second tranche shares and admission to trading of the second tranche shares the Company's total issued share capital will be 791,956,853 ordinary shares. At that time Wintask will be interested in 230,000,000 ordinary shares of the Company, representing approximately 29.0% of Altona's issued share capital enlarged by the Placing shares. The Placing Shares will rank pari passu in all respects with the Company's existing Ordinary Shares.

Altona's Executive Chairman, Chris Lambert, commented: "We are pleased to have entered into this placing with Wintask Group Limited and look forward to welcoming them as a cornerstone investor in the Company. Wintask is owned by the Chairman of a private group of manufacturing and high-tech companies, with clean coal technology patents and patents with emission reducing applications, in mainland China. The continued support in Altona from our various Chinese investors underpins their belief in the Company's strategy and this placing, once completed, will give Altona the platform to pursue the Company's goals of progressing the Arckaringa project alongside its other business wide initiatives."

About Altona Energy

Altona Energy is listed on the London Stock Exchange's AIM market. Its current focus is firmly on the evaluation and development of the Company's 49% interest in its flagship coal-to-liquids Arckaringa Project to exploit the huge 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 include a modern, combined-cycle power station adding 560Mw to the national grid and to produce clean burning fuel for Australia and the world from a resource equivalent to 7.8 billion barrels. Altona Energy has forged a Joint Venture with CNOOC New Energy Investment Co., Ltd., a subsidiary of the China National Offshore Oil Corporation (CNOOC), to complete the Project Bankable Feasibility Study and expedite the Project's development.

In addition to its Arckaringa interest, Altona Energy holds interests in two coal exploration licences in the Xinjiang Autonomous Region of the People's Republic of China. These interests are expected to provide early cash flow to enable the Company to progress the Arckaringa project and to continue to investigate additional opportunities to deploy the management team's expertise in clean energy.

**ENDS**