ANNOUNCEMENT 30 November 2009 BLACKHAM SIGNS AGREEMENT WITH SYNFUELS CHINA FOR DEVELOPMENT OF COAL TO LIQUID FACILITY IN WESTERN AUSTRALIA Australian energy company Blackham Resources Limited (ASX: BLK) (“Blackham” or “the Company”) has reached a significant milestone in the development of its Scaddan and Zanthus Energy Projects in Western Australian, confirming today it has signed an agreement with Synfuels China Co. Ltd (“Synfuels China”) regarding the establishment of Coal-to-Liquids (CTL) Fischer-Tropsch Diesel Facility in the Esperance Region of Western Australia based on Synfuels China technology. Under the terms of the non binding Memorandum of Understanding (MoU) Blackham and Synfuels China have agreed to conduct various technical and project related evaluation activities over the coming months, with a view to signing a formal agreement with respect to the application of Synfuels China technology to the development of the Scaddan project. It is expected the formal agreement, subject to the positive outcome of technical and project evaluation by Synfuels China, will be executed by Q2 2010. Following the project evaluation, feasibility and a formal agreement, Synfuels China would have the priority opportunity to negotiate to undertake the whole project design in Blackham’s CTL FT Diesel Facility. After the Esperance Facility is successfully started-up, Blackham and Synfuels China will establish a feasible commercial co-operation model to promote the prompt industrialisation of Synfuels China technology in Australia. Blackham’s Chairman, Mr Brett Smith stated “Coal to liquids in China is advancing at a rapid rate, faster than any other country in the world. Blackham is excited about its relationship with Synfuels China and looks forward to working closely with one of the world’s premier CTL engineering and technology firms in the development of the Esperance Regional Facility.” “Blackham intends to dry the lignite to an acceptable level for the gasifier prior to gasification. The innovative drying technology developed by Synfuels China is of significant interest to Blackham,” Mr Smith said. Synfuels China is recognised as a world-leader in the development of CTL projects, having carried out long term research and development in the coal-to-liquids field and is accumulating production experience following the commissioning of the Inner Mongolia Yitai Group Co. Ltd’s, Ordos plant and the Luan Group’s Shanxi demonstration plants. These plants are both currently operating at 4,000 barrels per day. Synfuels China’s technology is also to be used in Shenhua Group Co. Ltd’s 4,000 barrel per day FT CTL plant in Ordos, Inner Mongolia. All three of these demonstration plants are planned to be expanded to over 120,000 barrels per day within 12 months. Prior
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