Italian partner for Rivara

Independent Resources PLC 25 April 2008 Independent Resources plc ('Independent Resources', 'IRG' or the 'Company') Italian multi-energy group ERG becomes partner in Rivara project April 25, 2008: ERG Power & Gas SpA, a subsidiary of the Italian energy firm ERG SpA, will help develop AIM-quoted Independent Resources' underground gas storage facility at Rivara in the Po Valley. Independent Resources has entered into a partnership agreement with ERG Power & Gas SpA ('ERG') to draw on the Italian Group's extensive experience as a reliable operator in the energy sector and to help ensure that the Rivara project meets the high technical and environmental standards required. ERG will become a 15% equity shareholder and future customer of the company owning the Rivara asset. ERG will invest €9.5 million (approximately £7.6 million) in cash into a new joint venture company ('Newco') in exchange for the 15% equity interest. IRG will transfer the Rivara asset to Newco in exchange for the 85% balance of the equity. The timing of the investment will be phased, with 25% paid upon, inter alia, establishment of Newco and entry into a shareholders agreement reflecting the terms and conditions of the partnership agreement. The balance will be drawn over time and applied to the costs of developing the Rivara asset. The transaction values IRG's 85% participation in Rivara at €53.8 million (£42.9 million). The costs of developing Rivara will be met partially from the ERG investment and partially from further funds injected by ERG and IRG pro-rata to their equity share in Newco. ERG will receive preferential rights to use its part of Rivara's future storage capacity. IRG is currently seeking environmental approvals ahead of the planned development of Rivara, a deeply buried fractured limestone structure ideally suited to efficient gas storage thanks to the presence of an active aquifer that provides constant natural water drive. Rivara has a nameplate working gas capacity of 3.2 billion cubic metres and the ability to deliver in excess of 32 million cubic metres of gas per day back into the Italian pipeline system. IRG is planning the Rivara development against a background of severe mid-winter gas supply disruptions in Italy, and has appointed the oilfield services group Schlumberger to advise on and manage the subsurface development programme. Rivara is located next to the key convergence point between Italy's gas transmission network and trans-continental pipelines, further enhancing its long-term strategic potential as a physical trading hub. IRG Executive Chairman Grayson Nash said: 'We are delighted to have reached this agreement with ERG Power & Gas. We share a common vision for this large and growing gas market and our skills and corporate profiles are particularly well-matched. ERG's long-term commitment to build on its reputation as a successful operator will enhance this exciting project. Its track record and credibility in Italy are superb, and the group's entrepreneurial spirit will allow us to go forward with confidence.' ERG Power & Gas CEO, Raffaele Tognacca, said: 'We are delighted by the agreement reached with Independent Resources, which allows our company to achieve a major step forward in implementing its growth strategy as regards the gas market.' IRG was admitted to AIM in December 2005 and is pursuing an integrated and asset-backed gas trading business in Italy with midstream components in Italy and upstream components within Italy and in North Africa. The Company aims to pursue this long-term strategy in the most environmentally-sustainable way, by incorporating from the outset the permanent geological sequestration of CO2 emissions into its future commodity production and trading. IRG has focused on developing both conventional oil and unconventional gas production, and building a profitable portfolio through wholly-owned initiatives and partnerships. Independent Resources was advised by Banca IMI, the investment bank of Intesa Sanpaolo Group, and Ashurst, the international law firm. For further information contact: Stephen Staley, Managing Director, Independent Resources plc: 01332 865 253 07771 838 753 Allan Piper, First City Financial Public Relations: 020 7242 2666 David Smith, Deloitte Corporate Finance (Nomad) 020 7007 8177 This information is provided by RNS The company news service from the London Stock Exchange