Energem Resources Inc - Announces listing on the London Stock Exchange - Alternative Investment Market (AIM)



    TSX: ENM

    VANCOUVER, Nov. 28 /CNW/ - Energem Resources Inc ("Energem" or "the
Company") is pleased to announce that it has been listed on the London Stock
Exchange AIM and is trading under the symbol ENM. The following announcement
was made in London on November 26, 2007:

    
      "Energem Resources Inc. ("Energem", "the Company" or "the Group")

                             Introduction to AIM

                            First Day of Dealings

    Energem Resources Inc., ("Energem" or the "Company"), (AIM/TSX:ENM) an
energy and biofuels company primarily engaged in the African energy sector, is
pleased to announce that its common share capital has been introduced to
trading on the AIM market of the London Stock Exchange plc ("AIM") and
dealings will commence at 08.00 GMT today. The common shares are already
listed, and will continue to be so, on the Toronto Stock Exchange ("TSX").

    Highlights:

    Energem is primarily engaged in the African energy sector with a
particular emphasis on:

    -  Mid-Stream Oil - refined oil product distribution and sales, storage
       and infrastructure development:

       -  operations in Nigeria and Malawi and a methanol blended fuel
          manufacturing and sales project in Beijing, China.

    -  Biofuels - production, sale and distribution of crude and refined
       biofuels, including:

       -  ethanol production in Kenya and a jatropha-based biodiesel
          development project in Mozambique.(*)

    -  Trading and Logistics - procurement, supply and logistics management
       to industry in sub-Saharan Africa.

    -  The Directors believe that demand and growth potential in its target
       markets is strong and that the Group is well placed in terms of its
       African expertise and experience to become a significant player in
       these markets.

    -  Through the Introduction to AIM the Directors are seeking access to
       London's capital markets and a broader investor base:

       -  no new money is being raised at this stage and no existing shares
          are being sold by the current shareholders.

    -  Major shareholders include the Board, who in aggregate own
       approximately 28% of the shares in issue, RAB Special Situations
       (Master) Fund Limited, which holds approximately 17% of the shares in
       issue and RAB Energy Fund Limited, which holds approximately 8% the
       shares in issue.

    -  Canaccord Adams Limited is acting as Nominated Adviser (NOMAD) and
       broker to Energem.
    

    (*)Jatropha is an inedible plant which grows year round in difficult and
    arid environments and its seeds can be pressed to obtain a crude oil from
    which biodiesel can be produced. Land acquired and identified by the
    Company for cultivation is not suitable for ordinary farming, does not
    involve de-forestation, extensive clearing or replacement of existing
    food crops.

    Commenting on the introduction to AIM, Brian Menell, Chairman of Energem
said: "We are delighted to complete our introduction to AIM. This represents
the successful culmination of a transformation to focus our activities into
three core areas, Mid-Stream Oil, Biofuels and Trading and Logistics, whilst
disposing of certain non-core mining and up-stream oil and gas assets.
    "We have chosen AIM and London as we believe that its institutional
investor and investment banking community has significant knowledge and
experience of the resources markets, renewable energy markets and emerging
African markets in which Energem operates."
    "Oil prices are expected to remain high whilst, at the same time, the
pressure to reduce dependency on carbon-based and non-renewable sources of
energy is likely to increase. This pressure is expected to develop the
biofuels market in which the Group is now focussed, with African countries
acting as both consumers (Kenya) and exporters (Mozambique)."

    Further information:
    Energem Resources Inc.                                    www.energem.com

    Brian Menell, Executive Chairman                       Tel. 020 7201 9620
    Jimmy Kanakakis, Chief Executive Officer
    Robert Rainey, Chief Financial Officer

    Smithfield Consultants                                 Tel. 020 7360 4900
    Reg Hoare
    Christopher Chew
    George Hudson

    Canaccord Adams Ltd.                                   Tel. 020 7050 6500
    Robert Finlay
    Chris Bowman

    Disclaimer

    This announcement is for information purposes only and does not
constitute an offer to sell or invitation to purchase any securities or the
solicitation of any vote for approval in any jurisdiction, nor shall there be
any sale, issue or transfer of the securities referred to in this announcement
in any jurisdiction in contravention of applicable law.
    Canaccord Adams Limited, which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for Energem
and no one else in connection with the Introduction and this announcement and
will not be responsible to anyone other than Energem for providing the
protections afforded to clients of Canaccord Adams Limited or for providing
advice in relation to the Introduction or the content of, or any matter or
arrangement referred to, in this announcement.
    This announcement has been prepared in accordance with English law and
information disclosed may not be the same as that which would have been
disclosed had this announcement been prepared in accordance with the laws of
any jurisdiction outside England.
    The distribution of this announcement in jurisdictions other than the
United Kingdom may be affected by the laws of relevant jurisdictions.
Therefore any persons who are subject to the laws of any jurisdiction other
than the United Kingdom will need to inform themselves about, and observe, any
applicable requirements.

    This announcement contains statements about Energem that are or may be
forward looking statements. All statements other than statements of historical
facts included in this announcement, including (without limitation) those
regarding Energem's financial position, business strategy, plans and
objectives of management for future operations or statements relating to
expectation in relation to dividends, returns or any statements preceded by,
followed by or that include the words "targets", "believes", "expects",
"aims", "intends", "plans", "will", "may", "anticipates", "would", "could" or
similar expression or their negative, are forward-looking statements. Those
forward-looking statements involve known and unknown risks, uncertainties and
other important factors beyond Energem's control that could cause the actual
results, performance, achievement or dividends paid by the Company to be
materially different from any future results, performance or achievements or
dividend payments expressed or implied by such forward-looking statements.
Those forward-looking statements are based on numerous assumptions regarding
the Company's present and future business strategies and the environment in
which the Company will operate in the future. These forward-looking statements
speak only as of the date of this announcement. The Company expressly
disclaims any obligation or undertaking to disseminate any updates or
revisions to any forward-looking statements contained in this announcement or
to reflect any change in the Company's expectations with regard to these, any
new information or any change in events, or any conditions or circumstances on
which any such statements are based, unless required to do so by the AIM Rules
or any other regulations to which it is subject.

    Reasons for Admission to AIM

    The Directors are seeking Admission to AIM in order to obtain access to
London's capital markets and a broader investor base. The Directors also
believe that the institutional investor and investment banking community in
London has significant knowledge and experience of the resources markets,
renewable energy markets and emerging African markets in which the Company
operates.

    Key Information

    The Group's interests extend to the following African countries and, most
recently, to China: Chad, Nigeria, Kenya, Democratic Republic of Congo,
Malawi, Zambia, Mozambique, Zimbabwe and South Africa.

    Mid-Stream Oil

    The Group's Mid-Stream Oil Division has constructed refined oil storage
and distribution facilities in Nigeria and Malawi. The Nigerian operation is
based around the Apapa Facility, a 66,000 tonne refined oil storage and
distribution facility in the port of Lagos with a throughput capacity of
175,000 tpm. The Apapa Facility's competitive advantage over other storage
facilities in the main port of Lagos is its ability to accommodate larger
vessels with drafts of up to 11m. These other storage facilities offer no
direct quay access for these larger vessels. The smaller Malawi operation
comprises a 1,100 tonne refined oil storage and distribution facility at
Chirimba, Blantyre with a throughput capacity of 2,200 tpm. The Group also
operates a number of retail filling stations in Malawi. In China, the Group
has recently acquired a 70 per cent. interest in a methanol blending company
and has started to develop this business.

    Biofuels

    The Group's Biofuels Division currently has two projects. In Kenya, the
Group has a 55 per cent. interest in an ethanol plant, which produces alcohol
and ethanol for the local Kenyan and Ugandan markets. In Mozambique, the Group
has a 70 per cent. interest in a new jatropha cultivation business. Jatropha
is a hardy, inedible plant which grows year round in difficult and arid
environments common to southern Africa. Jatropha seeds can be pressed to
obtain a crude oil from which biodiesel can be produced through a relatively
simple refining process. After the initial set up phase, the Group intends to
produce crude jatropha oil for onward sale and refining into biodiesel. Land
acquired and identified by Energem for jatropha cultivation is not suitable
for ordinary farming and Energem's jatropha cultivation does not require
de-forestation, any extensive clearing or the replacement of existing food
crops.
    The Group's jatropha business is intended to exploit the growing demand
for alternative fuel sources by using jatropha seeds to produce crude
biodiesel. This business is at an early stage and the priority is to set up
the initial farming operation while locating and acquiring more suitable land
to increase production.
    Jatropha oil can be produced commercially within three years of planting.
In addition, the seeds, once pressed, form a seed cake as a by-product which
can be used as a fertilizer. Once jatropha plants are mature, they are
expected to have a 35-40 year life span and produce a relatively high yield of
approximately one tonne of oil from every three tonnes of seed pressed.
Biodiesel refined from jatropha oil complies with current EU regulatory
standards EN14214 and ASTMD 675. The Director's believe that Africa's relative
proximity to Europe makes it an ideal location for jatropha cultivation. It is
estimated that Europe's anticipated biodiesel demand will exceed 10 million
tpa by 2011. This demand is largely being driven by an EU requirement for
10 per cent. of all transport fuel to be biodiesel or biodiesel blends by the
year 2020.
    The Company intends to sell crude jatropha oil to refiners in Europe for
further processing into biodiesel. At this stage, the Company does not propose
to produce biodiesel by refining crude jatropha oil.
    The jatropha business is operated through Energem Renewable Energy
Mocambique Limitada, a wholly owned Mozambique company in which Energem holds
a 70 per cent. interest. The Company's coinvestors, who hold a 30 per cent.
equity interest, have conducted research into jatropha farming in Mozambique
over a three year period. The seedling nursery at Xai-Xai has to date produced
an estimated two million seedlings which have produced 300 hectares of mature
plantation, from which the test seeds have been produced. Tests on these
seeds, carried out by the South African Bureau of Standards, indicate that
their seed oil is suitable for refining biodiesel to EU standards.
    Following on from these trials, 5,000 hectares in the Gaza province of
Mozambique is being cleared and readied for the transplanting of jatropha
seedlings. Transplanting is expected to begin during December 2007. A further
nursery at Bilene Farm has been completed and this is expected to produce
enough seedlings to plant up to 600 hectares per month. It takes approximately
18 months from transplanting the seedlings to achieving oil production. The
Directors expect that this division will be revenue producing within three
years.
    In August 2007, the government of Mozambique granted the Company the
right to use up to a further 60,000 hectares of land for jatropha cultivation.
The Company has submitted to the government its business plan for this land
and the project is currently ahead of the targets set out in its business
plan. Identification of more suitable land in other provinces in Mozambique,
such as Sufala, as well as in neighbouring countries has commenced.

    Trading & Logistics

    The Trading and Logistics Division supports the Group's other operations
as well as providing services to third parties in Africa. It has sales
representation, warehousing and other support infrastructure in the southern
DRC, Zambia, Zimbabwe, South Africa and Kenya.

    Strategy

    In late 2006, the Company conducted an extensive review of all its
business activities. As a result of this review, the Group's strategy focuses
on three principal divisions: Mid-Stream Oil, Biofuels and Trading and
Logistics, while certain non-core mining and up-stream oil and gas assets have
been or will be disposed of. This strategy is intended to simplify the
management and operation of the Group while enhancing shareholder value and
positioning the Group to achieve long term growth in its core areas.
    The Directors believe that demand and growth potential in its target
markets is strong. Oil prices are expected to remain high whilst, at the same
time, the pressure to reduce dependency on carbon-based and non-renewable
sources of energy is likely to increase. This pressure is expected to develop
the biofuels market in which the Group is now focussed, with African countries
acting as both consumers (Kenya) and exporters (Mozambique). The Directors
believe that the Group is well placed in terms of its African expertise and
experience to become a significant player in its core markets.
    Specifically, the Group aims to continue developing its Mid-Stream Oil
Division, including the methanol blending project in China, both in terms of
sales, storage capacity and potential expansion into other countries. In terms
of the Group's small downstream oil business, the Directors will continue to
monitor the progress of the Energem-branded filling stations in Malawi.
Depending on their success, the Group may seek to roll out this downstream
business in other land-locked African countries.
    In relation to Biofuels Division, the Company's immediate aim is to
secure sufficient supplies of feedstock required for long-term development of
the Kisumu Plant and to continue the development of its jatropha growing
project in Mozambique.

    Financial Summary

    Consolidated Statement Of Operations For the Nine Months Ended 30
September 2007 and 31 August 2006 (In thousands of U.S. Dollars - except share
and per share information)


    
                                                    For the 9 months ended
                                                30 September       31 August
                                                        2007            2006
                                                       $'000           $'000

    SALES                                             45,049         576,946
    COST OF SALES                                     20,836         563,740
                                                -------------   -------------
    GROSS PROFIT                                      24,213          13,206
                                                -------------   -------------
    (LOSS) BEFORE OTHER INCOME
     AND EXPENSES                                     (1,963)        (14,197)
                                                -------------   -------------
    OTHER INCOME AND (EXPENSES)                      (15,648)         11,214
                                                -------------   -------------
    (LOSS)/PROFIT BFFORE TAX AND
     NON-CONTROLLING INTERESTS                       (17,611)         (2,983)
    (PROVISION) FOR TAXATION                            (848)           (242)
    (PROVISION FOR)/RECOVERY OF FUTURE INCOME
     TAXES                                            (2,203)          4,295
                                                -------------   -------------
    (LOSS)/PROFIT BEFORE NON-CONTROLLING
     INTERESTS                                       (20,662)          1,070
    NON-CONTROLLING INTERESTS                         (6,580)          1,941
                                                -------------   -------------
    NET (LOSS)/PROFIT FOR THE PERIOD                 (27,242)          3,011
                                                -------------   -------------
    NUMBER OF COMMON SHARES IN ISSUE ('000)          175,288         156,089
    (LOSS) PER SHARE (BASIC AND DILUTED) (*)         $ (0.16)        $ (0.02)

    (*)  based on weighted average number of shares in issue.
    

    Note: On 13 November 2007, the Company resolved to relinquish all and any
rights it had in respect of diamond exploration rights in the Central African
Republic. The balance sheet carrying amount for these rights of $15.3 million
has been written off and this write off is reflected in these interim
financial statements at 30 September 2007. The Company changed its financial
year end from end November to end December in 2006 and the last quarter in
2006 comprised a four month reporting period. Comparatives included above are
for the nine month period ended as reported for 2006 and is considered
appropriate as the Company is not subject to any material seasonal or period
related activities.

    Current Trading

    The Directors believe that the Group has good growth potential in its
chosen markets and that a solid platform has already been put in place for its
Mid-Stream Oil and Biofuels Divisions.

    
    Admission Statistics
    Number of Common Shares in issue on Admission                175,288,003
    Expected market capitalisation at Admission(*)    (pnds stlg) 28,000,000

    (*)  based on the closing price on the TSX of C$0.33 cents on 22 November
         2007, converted at an exchange rate of (pnds stlg)1:C$2.05.

    Significant shareholders

    Lyndhurst Ltd                                                      27.42%
    RAB Special Situations (Master) Fund Limited                       16.93%
    RAB Energy Fund Limited                                              7.8%
    

    Directors

    Brian Menell (age 41), Executive Chairman

    Brian Menell has been Executive Chairman of the Company since January
2004. He has a background in mining, both diamonds and other minerals, having
worked for DeBeers for eight years in London, Namibia, Belgium and South
Africa. He was an executive director of AngloVaal Mining Limited from
January 1998 to June 2002 and an executive director of Norinter Financial Ltd
from June 2002 to January 2004. He holds a BA(Hons) from the University of
Pennsylvania, USA.

    Antonio Teixeira (age 46), Deputy Executive Chairman

    Antonio Teixeira has been Deputy Executive Chairman of the Company since
July 2006, before which he had been its Chief Executive Officer since May
2001. He is a self-made entrepreneur and has been involved in trading,
logistics, transport and diamond exploration activities throughout Africa for
over 25 years. He was involved in the establishment of A1 Holdings Limited and
is a director of that Company.

    Dimitri "Jimmy" Kanakakis (age 40), Chief Executive Officer

    Jimmy Kanakakis, has been an officer of the Company since May 2001 when
he was appointed Vice-President - Corporate and Legal Affairs. He was
subsequently appointed Chief Operating Officer of the Group in March 2005 and
was appointed as the Company's Chief Executive Officer in July 2006. Prior to
2001, Mr Kanakakis was legal adviser to a number of companies involved in
various commercial activities in Africa. He holds an LLB from the University
of Witwatersrand.

    Robert Rainey (age 55), Chief Financial Officer

    Robert Rainey is a qualified Chartered Accountant (SA) and has been a
director and chief financial officer of a number of listed public companies
over the past 20 years. These companies include several listed junior mining
and property owning companies engaged in gold, diamond, copper and cobalt
mining and exploration. Mr Rainey has been Chief Financial Officer of the
Company since May 2003.

    Bruce Holmes (age 34), Non Executive Director

    Bruce Holmes has been a Director since March 2001. He became a
Non-Executive Director in 2005. From March 2001 to 2005, Mr Holmes held
various positions in the Group's Trading and Logistics Division, most recently
as Chief Operating Officer. He is a director of Corporate International, a
commodity trading company.

    Anthony Clements (age 61), Non-Executive Director

    Anthony Clements has been Head of Corporate Finance at stockbrokers ODL
Securities Limited since March 2001. He was appointed as a Non-Executive
Director in July 2006. He lives in the United Kingdom and holds a BSc in
Economics from the University of London. Mr Clements is a member of the Audit
Committee and the Corporate Governance Committee. He is considered to be an
independent Non-Executive Director.

    Richard Dorfman (age 55), Non-Executive Director

    Richard Dorfman has been an independent marketing consultant since 2002
and was a marketing executive of Kirch Media from 1999 to 2002. He was
appointed as a Non-Executive Director in July 2006. He holds a Bachelor of
Arts from the American University in Washington, D.C. Mr Dorfman is a member
of the Audit Committee, the Compensation Committee and the Corporate
Governance Committee of the Company. He is considered to be an independent
Non-Executive Director.

    Peter Wray (age 56), Non-Executive Director

    Peter Wray is the founding director and chairman of two independent
strategic marketing consultancies (loyaltymatters.com and CM4P). Prior to this
Mr Wray had an international career spanning 23 years in senior executive
positions in the oil industry with Mobil Oil Corporation and BP. He was
appointed as a Non-Executive Director in June 2007. He lives in the United
Kingdom and holds a B.Soc.Sci. degree in politics and economics from
Birmingham University. Mr Wray is a member of the Audit Committee, the
Compensation Committee and the Corporate Governance Committee. He is
considered to be an independent Non-Executive Director.

    Matthew Sutcliffe (age 41), Non-Executive Director

    Matthew Sutcliffe has more than 20 years of wide ranging operational and
investment banking experience in the natural resources market. A Chartered
Mining Engineer by profession, with a Ph.D in mining engineering, he is
currently executive chairman of Alexander Mining Plc, an AIM-listed company.
He is considered to be an independent Non-Executive Director.

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

    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 an Africa focussed company listed on the
Toronto Stock Exchange and on the London Stock Exchange's AIM and the holding
company of a group of companies engaged in, mainly, several African countries
in the bio-fuels, oil and related sectors including logistics and supply to
the mining industry in South and Central Africa and development of an
up-stream oil exploration asset. 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

Organization Profile

ENERGEM RESOURCES INC.

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