(28/06/05) Statement Re: Suspension

GTL Resources (AIM:GTL) announces that the Company is in advanced discussions to acquire a controlling interest in Illinois River Energy with a view to constructing an ethanol plant in Rochelle, Illinois, which will produce 50 million gallons of ethanol per year once construction is completed, expected in October 2006; if successful, this will lead to a reverse transaction pursuant to the Aim rules. As a consequence of GTL Resources entering into these arrangements and the Company’s recent share price appreciation, the Board has requested that the London Stock Exchange suspends trading in the Company’s shares until the nature of any future strategic collaboration can be clarified.

The total cost of the acquisition and plant construction is US$80 million, funded by US$47 million debt, which is in place, and a 60/40 debt equity split subject to a fund-raising and shareholder approval at an EGM.

Commercial contracts have been agreed and site permits for construction have been approved.

 

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