Energem acquires a methanol blending project in Beijing, China

    TSX: ENM

    VANCOUVER, Sept. 10 /CNW/ - Energem Resources Inc ("Energem" or "the
Company") is pleased to announce the acquisition of a 70% controlling interest
in a methanol blending project in China ("the Project").
    The Project comprises the acquisition of proprietary intellectual
property whereby an additive which, when blended with methanol, converts
methanol into a clean burning fuel used in various large scale heating
applications in Beijing. The blended methanol produced by the Project creates
an alternative fuel which is cost effective and less pollutive than those
commonly utilised in similar heating applications. The Company has acquired
this intellectual property from its developers, who will retain a 30% equity
interest in the Project and continue to assist in the management of the
Project's manufacturing, marketing, development and roll out. The developers
of the additive have conducted a number of years research and development and
have had the additive independently tested through the Chinese Academy of
Sciences. The Chinese Government fully supports all projects that create
pollution reducing fuels.
    In consideration for the 70% interest, the Company has agreed to fund the
manufacturing, marketing and roll-out of the Project in Beijing for an amount
of up to US$4.0 million which, it is expected by management, will be
sufficient to bring the Project into commercial production and positive cash
flow by mid 2008.

    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
    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

    %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:

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