(24/01/07) Acceptance Tests Complete & First Revenue Announced

GTL Resources plc (AIM:GTL), the project development company focused on Ethanol
production in the US, is pleased to announce that its ethanol plant at Rochelle,
Illinois USA, which commenced production on 27 December, has completed its
acceptance tests on 16th January and has received its first revenues.

The acceptance tests, which check that the plant is capable of meeting
production expectations, were completed over the period 10th to 16th January,
during which time the plant on average exceeded the:

• Nameplate capacity of 50 million gallons per annum

• Guaranteed ethanol yield equivalent to 2.8 denatured gallons per bushel of
corn

• Guaranteed electricity and gas usages per gallon of ethanol

The plant is now being operated by Illinois River Energy (GTL's 85% owned US
subsidiary) staff following handover by the technology providers ICM and the
contractor Fagen Inc.

All production since 27th December has met quality specifications and ethanol
shipments to both the local Chicago market by truck and the New York market by
rail are proceeding to plan. Dried Distillers Grains shipments to the rapidly
expanding Far Eastern market have also commenced with attractive margins being
achieved as a result of the plant's proximity to Chicago container terminals.

The landmark receipt of the Group's first $1million of revenue was achieved on
12th January. The plant is operating profitably and its continued ability to do
so will be assisted by risk management activities. These include the use of
financial derivatives by means of which the company has limited its corn price
exposure on 95% of its nameplate corn usage for calendar 2007. At a hypothetical
$4/bushel corn for 2007 the benefits of these hedging activities would exceed
50cents/bushel with a limited exposure to higher prices outweighed by a greater
downside participation potential.

Peter Middleton, GTL's Chairman and CEO, said

"We are very excited about the completion of our first ethanol plant, and are
particularly pleased that it was achieved on schedule and to budget. Despite
current oil and corn volatility, production remains profitable. The outlook
remains strong for well managed and well located plants such as ours at
Rochelle."

 

For further information, please contact:

GTL Resources plc
Peter Middleton, Executive Chairman Tel: 020 7958 1685
Michael Brennan, Finance Director Tel: 01642 794 000

Buchanan Communications
Tim Thompson Tel: 020 7466 5000
Nick Melson

 

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