TIDMTOM

RNS Number : 5173A

TomCo Energy PLC

30 March 2012

30 March 2012

TomCo Energy Plc

('TomCo' or 'the Company')

TomCo Invests US$5m in Red Leaf Resources as Part of Red Leaf's US$100m Fund Raising

TomCo Energy plc ("Tomco" or the "Company") (AIM: TOM), the AIM quoted company with oil shale assets in the state of Utah, USA, announces that it intends to make a strategic investment of US$5m (the "Investment") into Redleaf Resources Inc. ("Redleaf") as part of that company's US$100m fund raising. Redleaf is raising equity in order to fund its joint venture agreement with a major international oil company and this financing is an important step in the implementation of that joint venture.

The Investment is subject to a number of pre-conditions, including a successful GBP2,957,500 subscription by Altima Global Special Situations Master Fund Ltd ("AGSS"), Dominic Redfern ("DR") and Mark Donegan ("MD") with Tomco at 1.75p per ordinary share (the closing mid market price the day prior to this announcement) (the "Subscription"). The balance of the Investment will be financed from TomCo's existing cash resources.

This Investment will successfully finance an important strategic investment in Redleaf in part enabling Redleaf to develop its technology towards full commercial production. This is a significant milestone for TomCo in the development of its business.

AGSS, DR and MD currently own or have the right to acquire approximately 21.8% of TomCo and the Subscription will therefore constitute a related party transaction under the Aim Rules. Accordingly, the Directors consider, having consulted with its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. Following completion of the Subscription, the Related Parties will hold or have the right to acquire approximately 29.96% of Tomco.

In addition to the successful completion of the Subscription, the transaction is also conditional on all appropriate documentation being agreed between the parties.

When and if the transaction completes the Company will release a further announcement in due course.

TomCo owns two Oil Shale leases, comprising 7 blocks covering 2,918 acres (4.6 square miles) in the Uinta Basin, Utah. It has entered into a license with Red Leaf Resources Inc, which owns the EcoShaleTM extraction process, to use this unique and environmentally sensitive technology to extract oil from TomCo's leases. Founded in 2006, Red Leaf is based in Salt Lake City, Utah. Red Leaf and the major international have agreed to set up a joint venture to explore, develop and produce oil shale from Red Leaf's leases which are located 15km from TomCo's. Each of Red Leaf and the JV partner will own a 50% participating interest in the JV with the JV partner paying 80% of the Joint Venture expenses up to an aggregate JV partner expenditure of $160 million in the Early Production System Phase (the "EPS Phase") and $160 million in the Final Investment Decision and Development Phase.

Acting CEO of TomCo Paul Rankine said: "This investment cements our relationship with Redleaf and supports the further development of the Ecoshale process towards full scale commercial development."

For further enquiries please contact:

   TomCo Energy                                                             020 7766 0070

Paul Rankine, CEO

   Numis - Nominated Adviser                                            020 7260 1000

Alastair Stratton/Oliver Cardigan, Corporate Finance

   Newgate Threadneedle                                                   020 7653 9840

Graham Herring, Richard Gotla

This information is provided by RNS

The company news service from the London Stock Exchange

END

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