Significant Uranium acquisition and Strategic Uranium Joint Venture in Kyrgyz Republic

Monitor Energy Ltd ("MHL" or the "Company") is pleased to advise that the Company, via its wholly owned Kyrgyz Republic subsidiary, White Valley Oil LLC, has acquired 97.5% of Business Sphere LLC, a Kyrgyz registered company which wholly owns the East Kokmoinok uranium licence, containing the Kashkasu uranium deposit. The consideration for the acquisition is US\$230,000, of which the Company would be reimbursed US\$100,000 pursuant to the terms of the joint venture as described on page three of this announcement.

The Company has also entered into the Central Asian Uranium Joint Venture with uranium and gold explorer, Leopard Minerals Plc ("Leopard").

Highlights:

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• New uranium licence acquired with potential near term development of the established Kashkasu deposit, adjacent to Soviet - era uranium mining centre.
• The Kavak group of uranium deposits, near the mining village of Min Kush, consists of $\bullet$ . three historically mined deposits - Turakavak, Agulak, Sashytash and the undeveloped Kashkasu deposit.
• Extensive underground exploration results to a depth of 160m and strike length of 800m, open at depth and along strike.
• Strategic Uranium Joint Venture formed with Leopard on all uranium licences held by Monitor and Leopard in the Kyrgyz Republic, with a total area of 2,224 kms².
• Experienced uranium exploration team to manage licences

East Kokmoinok Uranium Licence (1060 MP)

The granted East Kokmoinok uranium licence (3,600 Ha) ("the Licence") is located immediately west of the historic Kavak uranium mining centre in the central Kyrgyz Republic.

The Kashkasu deposit was extensively explored up to the preparation of a mining plan but development was not proceeded with apparently due to the discovery of large sandstone hosted deposits in Kazakhstan, located closer to the Soviet nuclear industry.

Level 2, 41-43 Ord Street West Perth WA 6005 Australia PO Box 1440 West Perth WA 6872 Australia Ph: +61 8 9211 1555 Fx: +61 8 9211 5700 ABN 25 009 121 644

No data is available on production at Kavak, but 4 tailings dams are located in the area which are believed to contain approximately 2,000,000 tonnes of tailings. These tailings dams are not located on the Licence.

The Company has copies of original geological and mineralisation models, including mining block models, underground development maps and section plans.

These data indicate underground workings to a depth of approximately 160m and a strike length of approximately 800 metres. Uranium mineralisation is hosted by coal measures and adjacent sandstones. Current data indicates that the previously sampled mineralised units remain open at depth with interpretation of increasing width and grade.

Mineralised seam widths vary from 4.2-6.6m reported. Sampled grades typically vary from about 0.03-0.2% uranium, and are up to 1.4% in places.

The grades reported in this announcement are based on reports and geological plans produced by Soviet government agencies. It should be noted that based on the information to date, there has been insufficient exploration to define a Mineral Resource which is JORC compliant and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Figure 1: Exploration adit Kashkasu deposit

Proposed exploration

The Joint Venture intends to commence extensive field work on the Licence in the near term. A thorough analysis of all data on the Kashkasu deposit will be conducted so that a work programme can be planned to facilitate the conversion of Russian mining estimates to be reported pursuant to the JORC Code. A regional mapping and sampling program will also be conducted simultaneously to test for continuation of existing mineralisation and generation of new drilling targets. The aim is then to apply modern mineral exploration techniques to generate digital geological and resource models. The Joint Venture will also appoint consultants to conduct environmental and safety audits of the Licence.

Figure 2: Mineralisation outcropping at Kashkasu

Kalmaksu Uranium Licence

As previously reported, Monitor already holds a 100% interest in a granted uranium exploration licence in the north-eastern region of the Kyrgyz Republic.

The Kalmaksu licence is valid for two years between 4 May 2007 and 4 May 2009. The licence covers an area of 27,200 hectares (272 square kilometres) and is located north of Lake Issyk-Kul. It is also in close proximity to two of Monitor's four existing petroleum exploration licences, which total an area of 9,900 square kilometres.

Uranium Joint Venture with Leopard

Monitor and Leopard have signed a Heads of Agreement to place all their respective uranium licences in the Kyrgyz Republic into the Central Asian Uranium Joint Venture ("the Joint Venture").

The important parameters of the Joint Venture are:

• 1. Each party will have 50% of the Joint Venture. (See Figure 3 for licence areas).
• 1. Leopard will be the manager and provide the services of Mr James Pratt and Mr Joe Drake-Brockman, experienced uranium geologists.
• 1. All parties contribute equally to exploration expenditure.
• 4 Each party to reimburse 50% of the cost of acquisition of the respective licences, resulting in a net reimbursement to Monitor of US\$100,000.
• 1. The Joint Venture has agreed an Area of Mutual Interest being the whole of the Kyrgyz Republic for uranium and related minerals.

Leopard

Leopard is a public company which was incorporated in the United Kingdom on 8 November 2005. Leopard had common directors with Monitor with David Steinepreis, Mark Gwynne and Scott Spencer present on both company boards.

The common directors are also shareholders of Leopard following various equity raisings during 2006. The interests of Mr Steinepreis hold 5.90% of Leopard, the interests of Mr Gywnne hold 4.23% and the interests of Mr Spencer hold 0.59%. Messrs Steinepreis and Gwynne abstained from voting on the Joint Venture motion for Monitor.

Leopard Minerals was founded by Jackson Gold Ltd and Ascent Capital Pty Ltd, to acquire copper gold licenses held by Jackson Gold subsidiaries.

Leopard recognised the opportunities in uranium in the Kyrgyz Republic and in the first quarter of 2007, applied for and was granted three uranium licences. Leopard has uranium experience on its board and has subsequently appointed Dr Joe Drake- Brockman to advise on its uranium exploration.

Following the formation of the Joint Venture between Monitor and Leopard, Mr Steinepreis has resigned from the board of Monitor and Mr Spencer has resigned from the board of Leopard. Mr Steinepreis is now a resident overseas and is expanding the overseas business interests of Ascent Capital Pty Ltd and as such will be limiting his Australian directorships in the future, but will be assisting Leopard with the Joint Venture.

Leopard Minerals has contracted TVI Drilling to carry out reverse circulation and diamond drilling on its copper/gold licences and anticipates drilling to commence within the next month. TVI has suitable drill rigs in the Kyrgyz Republic to undertake uranium exploration drilling.

Through its participation in the Central Asian Uranium Joint Venture, Monitor acquires a 50% interest in the following uranium licenses:

Dzhilisu

The Dzhilisu licence (896km²) is situated in the central eastern Kyrgyz Republic. The area was explored for uranium in 1959-60 as part of a large-scale geological survey of the district and has not been explored since. Leopard has the rights to explore and develop for all minerals within this licence.

The maximum grade of reported uranium in trench samples over the mineralised zones at Dzhilisu is up to 0.269% (North Zone) and up to 0.124% (South Zone), from 994 samples collected. Surface mapping and sampling of the Main Zone has traced mineralisation for 2.1 km along strike, with widths from 3.5m to 5.5m. Trench sampling of the Main Zone reported grades up to 0.169%.

The grades reported in this announcement are based on reports and geological plans produced by Soviet government agencies. It should be noted that based on the information to date, there has been insufficient exploration to define a Mineral Resource which is JORC compliant and that is uncertain if further exploration will result in the determination of a Mineral Resource.

North and South mineralised zones bifurcate off the Main Zone and are generally 1.5-3.0m wide, with mapped strike lengths of 250m to 300m.

Dalenskove

The Dalenskoye licence area (384km²) is located in the central northern Kyrgyz Republic and was explored for uranium in 1949-1950. No exploration has been conducted since. The area is characterised by two main zones of mineralization known as Dalenskoye and Dzylbulakskoe.

The early work identified more than fifty zones of mineralization of varying length and thickness, with most zones characterized by increased uranium content at surface.

Uranium minerals were identified in one of the mineralized zones, zone #25. These are represented by pitchblende and beta-urananite, with colloform textured pitchblende reported to occur in quartz, and filled cavities in cracks, and beta-uranotile reported as "thin coats" on the host rocks.

Uriukti

The Uriukti licence area (636km²) is situated in the north east of the Kyrgyz Republic, close to the Kazakh border. The licence was explored for uranium intermittently from 1957 to 1977, but has not been explored since, with only regional geological survey work completed to date. Leopard has the right to explore and develop any mineral of economic interest within this licence.

Up to five zones of uranium anomalism occur within the licence, with uranium contents varying from 0.002 to 0.017% in the soil samples at the individual sites. All uranium anomalism is reported as being associated with structures spatially related to intrusive phases within the licence including alaskitic and porphyric granites of unkown age.

The grades reported in this announcement are based on reports and geological plans produced by Soviet government agencies. It should be noted that based on the information to date, there has been insufficient exploration to define a Mineral Resource which is JORC compliant and that is uncertain if further exploration will result in the determination of a Mineral Resource.

Leopard Uranium Technical Skills

Leopard Minerals has a strong geological and technical team consisting of both expatriate and Kyrgyz staff. Leopard owns a modern exploration vehicle fleet and mobile camp, along with an extensive inventory of equipment including uranium and radiometric measuring equipment. Significantly, it has a contract with TVI Drilling to provide drilling services in the Kyrgyz Republic. TVI currently has a number of drill rigs either located in the Kyrgyz Republic or in transit.

James Pratt

James Pratt is a geologist with over 20 years' experience in the mining and exploration industry, principally in Australia and Africa. He is Managing Director of Leopard Minerals plc. Previously Mr Pratt was Managing Director of Deep Yellow Limited, an ASX listed uranium exploration company with projects in Australia. Other positions held previously include Managing Director of Green Rock Energy Limited, a geothermal exploration company listed on the ASX. Mr Pratt is also a non-executive director of Uranium Resources Plc which holds extensive uranium projects in Tanzania which are now the subject of a farm-in and joint venture with Western Metals Ltd.

Dr Joe Drake-Brockman

Dr Drake-Brockman has over 25 years' experience in uranium exploration, principally in Australia and Africa. He currently consults to a number of listed companies including Uranium Resources plc, Western Areas Ltd and Deep Yellow Ltd, among others, Dr Drake Brockman's experience will be pivotal to bringing modern uranium exploration methodology and expertise to the Joint Venture.

Monitor Oil and Gas Exploration Update

Monitor Energy Ltd has signed a gravity data acquisition contract with PT Tunnggal Buan Utama (PTTUB) from Bogor, Indonesia, to acquire new subsurface data on its oil & gas licenses in the Kyrgyz Republic. Field operations will commence in July 07 and are anticipated to be completed this field season. Monitor and its principal contractor PTTBU, an expert company in acquiring gravity data in mountain terrains, will work with an in-country sub-contractor for the provision of logistics and manpower, thereby ensuring local content, terrain knowledge and safe operation. Monitor has identified significant closed subsurface structures in At bashi license based on re-interpretation of existing data and the new survey data are designed to enhance these for drilling prospects.

Background Information on the Kyrgyz Republic

The Kyrgyz Republic in Central Asia is a former Soviet republic which declared independence in 1991. Since independence, the country has undertaken economic and political reforms and has undergone a transition to a market orientated economy. Oil and gas exploration in the Kyrgyz Republic was severely curtailed after the country became independent in 1991 and funding under former Soviet arrangements was no longer available. Interest in oil and gas exploration has increased significantly, with Santos International Operations Pty Ltd farming into Caspian Oil & Gas Limited's projects by spending up to US\$24 million on a staged basis by June 2009.

Central Asia is becoming one of the world's emerging oil and gas regions, with substantial fields located in China, close to the southern Kyrgyz border, Kazakhstan, Uzbekistan, Tajikistan, The Chinese government has recently signed an agreement with both the Kyrgyz and Kazakh governments to build a supply pipeline from Kazakhstan through the Kyrgyz Republic to add to China's unprecedented demand for oil and gas. Exploration in the region has accelerated over the past few years, with foreign investment reaching record levels,

The Republic of the Kyrgyz Republic is considered to have outstanding exploration potential for mineral deposits, excellent infrastructure and a supportive mining fiscal regime.

The country is dominated by the Tien Shan mountain system, a major metallogenic province hosting world class mineral deposits.

It contains the giant Kumtor mine operated by Centerra Gold Ltd. Kumtor has remaining reserves and resources of around 300 tonnes of gold (9.6 million oz) (Centerra web site) and is currently the largest foreign goldmining venture in the entire former Soviet Union, demonstrating the potential for success of good working practices in the Kyrgyz Republic. A traditional of historic uranium production in the country up until the 1970s similarly demonstrates its capability to support a uranium mining industry.

There is a number of other companies with uranium interests in the Kyrgyz Republic that include:

Monaro Mining Ltd (ASX quoted)

Nimrodel Resources Ltd (ASX quoted)

Contact Uranium Ltd (ASX quoted)

Dynamite Resources Ltd (TSX quoted) which recently acquired 2 advanced uranium licences in the Kyrgyz Republic for US\$36.2M

For more information please contact the Company on $+61$ (8) 92111555.

Yours truly

Jon Roestenburg Managing Director Monitor Energy Ltd

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"The information in the report to which this statement is attached that relates to Exploration Results, is based
on information compiled by Allen J Maynard), who is a Member of The Australasian Institute of Mining and
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