Altona Energy : Petroleum Exploration Licence Application Update

Altona Energy Plc

("Altona" or "the Company")

PEL Application Update

Further to the notification of 16 May 2017, the Company announces that theArckaringa Coal Chemical Joint Venture Company Pty Ltd (the "JV Company")has been in discussions with Tri-Star Petroleum Company Inc. ("Tri-Star") the new owner of Petroleum Exploration Licence ("PEL") Application 604 which overlaps Altona's three exploration licences relating to the Arckaringa project.

After several weeks of negotiations Tri-Star has informed the JV Company that it will not relinquish PEL Application 604 and has also indicated it will not consider a commercial deal whereby the JV Company would be granted access to certain areas covered by the licence application to commence test work for its proposed underground coal gasification project.

Following a request from the JV Company, the South Australian ("SA") Government has now intervened in the matter. The SA Government has always been supportive of the JV Company's plans to develop the Arkaringa coal deposits and the Board of Altona anticipates that their intervention will encourage Tri-Star to cooperate with the JV Company. However there can be no assurances that a successful outcome will be achieved for the JV Company and Altona.

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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 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 syngas products for the Australian market and export from a resource exceeding 7.8 billion tonnes of coal (1.3 billion tonnes JORC compliant).