Carbon credit sales contract

Camco International Ltd
08 November 2006


 Camco signs carbon credit sales contract for one of China's largest CDM energy
                              efficiency projects
                                        
            Camco's principal carbon credit volumes exceed 21m tonnes
                                        

Camco International Limited ('Camco') is a leading player in the origination,
co-development, placement and management of carbon credits under the Kyoto
Protocol.

Camco is pleased to announce:

• The successful commercialisation of an energy efficiency project in China,
expected to generate 12.3m tonnes of carbon credits for the project, making it
one of the largest energy efficiency projects ever developed under the Kyoto
Protocol; and

• Camco now owns rights to acquire 21m tonnes of carbon credits at nil or low
cost.


Carbon Credit Sales Contract signed for one of China's largest CDM energy
efficiency projects

Camco has successfully facilitated an Emissions Reduction Purchase Agreement
('ERPA') for the commercialisation of carbon credits for the Jinan Iron and
Steel Group Corporation in China. The project, which has now been reclassified
from term sheet stage to ERPA stage, is expected to produce 12.3m tonnes of
carbon credits from 2007 to the end of 2012.

The project is one of the largest Clean Development Mechanism ('CDM') energy
efficiency projects developed in China and reduces greenhouse gas emissions
through the capture and utilisation of waste gasses from steelworks. Camco has
partnered with the Jinan Iron and Steel Group Corporation, one of China's
largest steel producers, to initiate and successfully navigate the entire CDM
process. Camco will assist them in securing the final validation report, project
registration and ensure the delivery of carbon credits by continuous monitoring
of the project throughout the duration of the ERPA.


Camco International CEO, Tristan Fischer, said:

'The Jinan Iron and Steel Group Corporation project is an exciting project for
Camco and highlights our commitment to improving energy efficiency in China. The
ERPA signing is an important milestone as it highlights Camco's ability to
successfully commercialise the carbon credits in our portfolio, for the benefit
of our partners.'



Principal carbon credit volumes exceed 21m tonnes

Camco's current portfolio of projects that are being developed with its partners
now stands at 100.3m tonnes, 17.5m tonnes of which now have ERPAs in place with
a further 20.9m tonnes under term sheet.

As compensation for its origination, development and commercialisation services,
Camco receives a financial return from the projects in its portfolio in one of
two ways:

• A 'carbon share' arrangement whereby Camco has rights to a certain proportion
of the carbon credits generated from a project at no cost or low cost; or
• A 'revenue share' arrangement whereby Camco is paid a percentage of the total
revenues from the sale of carbon credits.

Over two thirds of Camco's portfolio has been contracted as carbon share with
the balance as revenue share.

Of the carbon share portion of the 100.3m tonne contracted portfolio Camco
currently has rights to 21m Certified Emission Reductions ('CER') for its own
account.

Camco's reporting policy is to continue to maintain a conservative outlook on
carbon credit volumes and to pro-actively monitor and adjust the estimated
carbon credit in its portfolio to take account of project delays, changes in
scope or other impacts. As a result, Camco has disclosed in its last two trading
updates to the market the reclassification of 10.7m tonnes since the IPO in
April 2006.

Under the CDM, projects have either a seven or ten year lifespan, which may be
renewed. Camco's policy is only to report carbon credits that are expected to be
produced up to the end of the 1st Kyoto Commitment Period, which ends on the 31
December 2012. This has two main effects: first, Camco does not report carbon
credits that are produced post 2012 from projects that were designed to produce
carbon credits post 2012. Second, as projects have either a seven or ten year
lifespan, if a project is delayed the carbon credits will simply be generated at
a later stage. In the event that the carbon credits are produced post 2012,
Camco will not include those tonnes in its reporting.

Camco's projects come from a range of countries and technologies. It has
projects contracted and under development in 7 countries, being China (83%),
Russia (12%) and Kenya, Bulgaria, Latvia, Romania and Poland (5%).

Camco's current portfolio of projects use 13 different technologies including
various energy efficiency projects (54%), methane destruction and energy
production from coal bed and coal mine methane (25%), several renewable energy
technologies (12%), the utilisation of waste heat in cement production plants
(7%), and other technologies (2%).


For further information please contact:
Camco International Limited     [phone]
Tristan Fischer, Chief Executive Officer
Scott McGregor, Chief Financial Officer


PRESS
Gavin Anderson                  [phone]
Ken Cronin
Janine Brewis


ABOUT CAMCO:

Camco is a leading player in the origination, co-development, placement and
management of carbon credits under the Kyoto Protocol.

Camco works with industrial companies and utilities to identify and develop
greenhouse gas emission reduction projects, managing the entire process from
project initiation to carbon credit delivery. Camco helps maximise the volume of
credits produced and facilitate their placement with purchasers in the
international carbon market.

This 'origination to delivery' capability provides greater clarity and
management of carbon credit risks, adding value to both sellers and buyers
participating in Camco's transactions.

Camco is a market leader in carbon credit origination in some of the largest
potential markets for carbon credits.

Additional information is available at www.camco-international.com





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