Altona Energy Regulatory News (ANR)

12 December 2012

Altona Energy Plc

("Altona" or "the Company")

Update on the Acquisition of PRC Coal Exploration Licences

Altona, the AIM listed energy company, is pleased to update shareholders regarding its acquisition of an indirect 95% beneficial interest in an advanced coal exploration licence ("EL1"), with an option to acquire a further advanced coal exploration licence ("EL2"), both located in the Xinjiang Autonomous Region of the People's Republic of China (the "Acquisition").

The Company announced the details of the Acquisition on 2 July 2012 pursuant to the signing of the Share Purchase Agreement ("SPA").

The parties to the SPA executed a side letter on 7 December 2012 to amend the SPA, principally to extend thetimeline for the Seller to convert EL1 to a mining licence (the "EL1 Conversion Period") from 15 December 2012 to 30 June 2013. The extension of the EL1 Conversion Period was necessary because of a hiatus in decision making by national and regional authorities, pending the lead up to and outcomes of the recent 18th Party Congress in Beijing, which affected many areas of regulation including mining licensing and administration.

The SPA is also consequently amended as follows:

·; If the Seller fails to covert EL1 into a mining licenceon or before such date, either party may terminate the SPA and all rights which the Company has under the SPA upon termination remain in place.

·; As a result of the extension of the EL1 Conversion Period, the dates in relation to which the Net Operating Profit milestones for each mining licence are calculated and the dates of payment of the cash element of the consideration and for all related terms shall be extended accordingly (from 15 December in the relevant year to the following 30 June). The actual amount of the cash consideration payable to the Seller has not been amended.

All other terms and conditions of the SPA dated 27 June 2012 remain the same.

The Mining Licence application will now proceed for approval during the Conversion Period, with the aim of commencing coal production as soon as practicable thereafter at a time when mining conditions during the spring/summer period are at their best.

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

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