Investment Update

19 September 2008 AIM: XTR XTRACT ENERGY PLC ("Xtract" or the "Company") INVESTMENT UPDATE - Morocco Xtract Energy PLC ("Xtract") is pleased to announce a joint venture agreement with Alraed Limited Investment Holding Company WLL, a company controlled by His Highness, Prince Bandar Bin Mohd. Bin Abdulrahman Al-Saud of Saudi Arabia ("HH Prince Bandar"). The joint venture has been established to evaluate and develop oil shale projects in Morocco. The joint venture company, Xtract Energy (Oil Shale) Morocco SA, has recently signed a Memorandum of Understanding with the Office National des Hydrocarbures et des Mines ("ONHYM") for the purposes of evaluation and possible development of an oil shale deposit near Tarfaya, in the south west part of Morocco. Xtract currently holds 70% of the joint venture. The agreements cement a close association between Xtract, HH Prince Bandar and ONHYM in the exploration, extraction and mining of oil shale. Xtract continues to develop its proprietary oil shale extraction technology, and the joint venture in Morocco presents a valuable opportunity to expand the potential application of this new technology and to place the Company at the forefront of oil share exploration and development in North Africa. Andy Morrison, Chief Executive of Xtract, said "We chose to work with HH Prince Bandar because of his tremendous experience of investing in the Middle East and Africa and with our joint expertise, coupled with that of ONHYM, the development prospects are very promising." HH Prince Bandar added that "Morocco is a very attractive country. The major potential in terms of oil shale resources is coupled with the highly skilled human resources available. Now with the expertise of ONHYM joined to that of our partner Xtract, we have gathered the key factors required to turn these real opportunities into successful projects." Enquiries please contact: Xtract Energy Andy Morrison, CEO +44 (0)20 7079 1798 Smith & Williamson Corporate David Jones +44 (0)20 7131 4000 Finance Limited Azhic Basirov Scott Harris Stephen Scott +44 (0)20 7653 0030 Ian Middleton For further Information on Xtract please visit About Xtract Energy Xtract identifies and invests in a diversified portfolio of early stage energy sector technologies and businesses with very significant growth potential. We aim to work closely with the associated management teams to achieve critical project milestones, to finance later development stages, and to build and crystallise value for all shareholders and partners. A short description of the principal assets of Xtract is set out below. These assets are either held directly or through wholly owned subsidiaries of the Company. MEO Australia MEO is focused on developing gas-to-liquids ("GTL") projects in the Timor Sea Australia, in an area of shallow water known as Tassie Shoal. It has secured Commonwealth Government environmental approvals for two large scale (1.8 Mtpa) methanol plants (50 per cent. interest) and a 3 Mtpa LNG plant (100 per cent. interest) which are adjacent to the Evans Shoal gas field. Elko Energy Elko is an oil & gas exploration company which has an interest in a 5,370km2 exploration and production licence in the Danish North Sea and an investment in Dragon Energy Inc, a private Canadian company, with a development project in Gansu Province, China. Wasabi Energy Wasabi is a diversified investor in renewable energy and low greenhouse emission technologies, with interests in geothermal waste/heat, uranium exploration in Australia's Northern Territory and biodiesel investments in Victoria. Central Asian Interests Xtract's Central Asian interests include a production sharing agreement with Kyrgyzneftegaz to instigate a water injection project on the Beshkent-Togap oil field. Xtract also holds interests in several exploration licences in the Tash Kumyr area and in the Toktogul exploration licence. Oil Shale Xtract has oil shale and related petroleum product exploration rights over mining tenements in the Julia Creek area of Queensland and was granted an exploration permit which gives rights to explore for oil shale in an area in the South of New Zealand. It is investigating the commercial production of hydrocarbons (crude oil) from oil shale. Xtract is also available for trading on the open market segment of the Frankfurt Stock Exchange (ticker R9X.FSE). ---END OF MESSAGE---