Investment Update

Xtract Energy plc
10 January 2008

10 January 2008                                                         AIM: XTR

                               XTRACT ENERGY PLC
                          ('Xtract' or the 'Company')

                         INVESTMENT UPDATE - OIL SHALE

Xtract Energy Plc ('Xtract') is pleased to provide an update to investors on its
programme to develop and exploit the significant oil shale resources of its
wholly owned Australian subsidiary, Xtract Oil Ltd.

Xtract's proprietary oil shale technology is directed towards improving economic
and environmental performance compared with 'traditional' technologies.

Recent milestones that have been reached include:

   •A supplementary drilling programme was completed in Julia Creek, the
    Queensland Australia concession area, in 2007. A review of the new data in
    conjunction with existing data has been carried out by independent
    geologists Nolan and Associates Pty Ltd. The total indicated and inferred
    resources have been assessed as 2.12 billion barrels of oil in situ*, 
    comprising 240 million barrels of indicated resources and 1,875 million
    barrels of inferred resources.

   •The revised resource statement represents an increase of over 150%
    compared with the previously declared figure of 825 million barrels.

   •Advanced autoclave equipment designed to scale up the batch size for
    testing and development of Xtract's proprietary technology was commissioned
    on Monash University campus in November 2007. Samples of the resulting
    liquid hydrocarbons for distillation curve analysis are now with analytical
    laboratories.

   •Based upon the technology and resource developments and product material
    supplied, Worley Parsons, a leading Australian-based international project
    services supplier, will shortly begin expert work to evaluate the technical
    and commercial feasibility of the project.

Xtract has commenced the design of a small scale continuous reactor and,
following further testing and the completion of the feasibility study, it is
intended to file a provisional patent application for the process. Early
indications are that Xtract's proprietary technology could double the yield of
liquid hydrocarbons from oil shale and achieve superior environmental
performance compared with the traditional retorting methods**.

If successful, the technology could unlock oil shale resources beyond Australia.
In addition to ultimately seeking licence opportunities, Xtract is active in
seeking out additional oil shale resources with a current focus on North Africa.
Further announcements will follow as appropriate.

The mining and production of refinery feed-stock crude oil represents a
potentially significant and valuable source of hydrocarbon to help satisfy
future international energy demands. Oil prices are expected to continue to
provide good support to project economics.

*Based on the internationally recognised Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (The JORC Code - 2004
Edition.)

**Compared with the traditional retorting methods assumed for JORC calculations
above.

ABOUT OIL SHALE

Oil shale is an organic-rich sedimentary rock, which is different from tar
sands. In oil shale the contained kerogen has not yet been naturally transformed
into petroleum by heat and pressure. Oil shales vary considerably in their
mineral content, chemical composition, age, type of kerogen, and depositional
history, and are derived from a number of different organisms.

The oil shale at Julia Creek (Queensland, Australia) is a 40-50 million year old
sedimentary rock. Xtract's licence area is a portion of an extensive area, which
was explored for oil shale and vanadium by CSR Limited (CSR) and others between
1968 and 1988. Exploration areas were held and explored by Esso Exploration and
Shell Limited, as well as by CSR and their co-venturers. By 1979-1980, CSR had
delineated the area most likely to provide economically exploitable oil shale
reserves and appraised the resources within three possible open-cut mines. More
recently, CRA Exploration Limited re-assessed much of the area of resources
delineated by CSR, prior to relinquishing their Exploration Permits in the early
1990's.

The oil shale industry has been in existence around the world for over a hundred
years. Oil shale industries are active in China, Estonia and Brazil. However,
the traditional technologies that have been employed have been expensive and
relatively inefficient. The decline of low cost oil resources and the rising
world demand for oil have re-awakened interest in oil shale and the development
of new extraction technologies that address previous concerns.

Xtract together with Monash University and the Commonwealth Scientific and
Industrial Research Organisation of Australia (CSIRO) is undertaking an
experimental programme to develop improved extraction techniques using
representative oil shale samples. Both Monash and CSIRO have the demonstrated
capability to work on a project of this type and have an extensive track record
of industry participation and in oil shale related research.

The information in this announcement has been reviewed by Dr John E. Shirley,
Managing Director of Xtract Oil Ltd, who has a BSc and PhD in Geophysics from
the University of Tasmania, over 40 years experience in the resources and energy
sector and is a member of the Society of Petroleum Engineers.

Enquiries please contact:

Xtract Energy plc              Andy Morrison, CEO      [phone]

Smith & Williamson Corporate   David Jones             [phone]
Finance Limited                Azhic Basirov            
                               
Scott Harris                   Stephen Scott           [phone]
                               Annabel Michie

For further Information on Xtract please visit www.xtractenergy.co.uk

About Xtract Energy Plc

Xtract identifies and invests in a diversified portfolio of early stage energy
sector technologies and businesses with very significant growth potential. We
aim to work closely with the associated management teams to achieve critical
project milestones, to finance later development stages and to build and
crystallise value for all shareholders and partners.

Xtract is supported by its cornerstone investor, Cambrian Mining Plc (AIM:CBM) a
diversified resource investment house which holds approximately 50.3% of issued
share capital.

A short description of the principal assets of Xtract is set out below. These
assets are either held directly or through wholly owned subsidiaries of the
Company.

MEO Australia

MEO is focused on developing gas-to-liquids ('GTL') projects in the Timor Sea
Australia, in an area of shallow water known as Tassie Shoal. It has secured
Commonwealth Government environmental approvals for two large scale (1.8 Mtpa)
methanol plants (50 per cent. interest) and a 3 Mtpa LNG plant (100 per cent.
interest) which are adjacent to the Evans Shoal gas field.

Elko Energy

Elko is an oil & gas exploration company which has an interest in a 5,370km2
exploration and production licence in the Danish North Sea and an investment in
Dragon Energy Inc, a private Canadian company, with a development project in
Gansu Province, China.

Wasabi Energy

Wasabi is a diversified investor in renewable energy and low greenhouse emission
technologies, with interests in geothermal waste/heat, uranium exploration in
Australia's Northern Territory and biodiesel investments in Victoria.

Central Asian Interests

Xtract's Central Asian interests include a production sharing agreement with
Kyrgyzneftegaz to instigate a water injection project on the Beshkent- Togap oil
field. Xtract also holds interests in several exploration licences in the Tash
Kumyr area and in the Toktogul exploration licence.

Oil Shale
Xtract has oil shale and related petroleum product exploration rights over
mining tenements in the Julia Creek area of Queensland and has recently been
granted an exploration permit which gives rights to explore for oil shale in an
area in the South of New Zealand. It is investigating the commercial production
of hydrocarbons (crude oil) from oil shale.

Xtract is also available for trading on the open market segment of the Frankfurt
Stock Exchange (ticker R9X.FSE).



                      This information is provided by RNS
            The company news service from the London Stock Exchange