Energem - Bio-diesel project in Mocambique progresses - Sample oil produced and tested



    VANCOUVER, Sept. 27 /CNW/ - Energem Resources Inc ("Energem" or "the
Company") is pleased to announce steady progress at its 70% owned bio-diesel
project at Bilene, Gaza Province, Moçambique as follows :

    
    -  The Company has 1,000 hectares of cleared land on which trained staff
       have commenced planting the first commercial crop of jatropha to yield
       oil for bio-diesel production;

    -  The Company's pilot nursery at Xai-Xai has sufficient seedling stock
       for the planting of the first 1,000 hectares of commercial crop;

    -  Clearing and planting of a further 5,000 hectares is close to
       commencement;

    -  An on site nursery at the Bilene farm is close to completion, with
       sufficient planned capacity to produce seedling for the planting of up
       to 600 hectares per month;

    -  The Government of Mozambique have committed a further 60,000 hectares
       of suitable land to the Energem project, subject to normal conditions
       to grant of land specifically for jatropha planting and the payment of
       US$2.20 per hectare for the long term use of the land;

    -  Investigation into expansion into the Sofala Province in Moçambique
       has started where the Company has begun the process of land
       identification;

    -  Training of staff is advancing and some 200 people are now employed in
       the Gaza Province;

    -  A planned roll out of clearing and planting units comprising staff
       using mobile and fixed agricultural equipment has commenced, the first
       such unit is operational and the second is being delivered. These
       units are planned to plant 300 hectares per month and the Company
       plans to have 2 units operational at the Bilene farm by November 2007.
       These units will continue clearing and planting of the 60,000 Gaza
       Province hectares;

    -  On land planted to date since August 2007, the Company has experienced
       a 100% survival rate on trees already planted and more than 85% of
       these trees are already showing new leaf growth;

    -  A sample of oil produced from nursery planting has been tested by the
       South African Bureau of Standards, who have confirmed to the Company
       that the oil quality is in conformity with the standards set down for
       its use in bio-diesel blending in the European Union, the main
       intended market for the Company's final product.

    -  The oil yield from the sample crushed was in line with management's
       expectations.
    

    This news release contains forward-looking statements which address
future events and conditions which are subject to various risks and
uncertainties. The actual results could differ materially from those
anticipated in such forward-looking statements as a result of numerous
factors, some of which may be beyond the Company's control. These factors
include: the availability of funds; the costs and availability of fuel
products; fluctuations in fuel product sale prices; currency fluctuations;
changes in production costs; fluctuation in shipping costs; availability of
shipping; general market and industry conditions; political and regulatory
instability and risks associated with rights to title and ownership of fuel
products.
    Forward-looking statements are based on the expectations and opinions of
the Company's management on the date the statements are made. The assumptions
used in the preparation of such statements, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such, undue
reliance should not be placed on forward-looking statements.

    Energem Resources Inc. is a natural resources company listed on the
Toronto Stock Exchange with projects in the energy and mining sectors in a
number of African countries. Energem is committed to developing niche high
margin natural resource projects in Africa and is currently active in 10
countries. Ventures encompass diamond and mineral exploration, mid- and
up-stream oil and gas projects, energy and mining related manufacturing,
trading and trade finance businesses operating off a common logistics platform
and infrastructure. The company has offices and/or logistics and support
infrastructure in Johannesburg, London, Beijing and a number of African
countries.

    %SEDAR: 00002462E




For further information:

For further information: Rob Rainey in Johannesburg at telephone +27 11
372-3300, Fax +27 11 454-1673 or email: info@energem.com; Refer our website:
www.energem.com

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ENERGEM RESOURCES INC.

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