drilling to start january and macquarie 4m facilit

ASX/Media Release January 10, 2007
MACQUARIE BANK PROVIDES
ALTO WORKING CAPITAL


US oil and gas exploration company Alto Energy International Limited (ASX: AOI) is pleased to
advise that it has entered into a A$4,000,000 working capital facility with one of its major
shareholders, Macquarie Bank Limited. This facility is in addition to Alto’s successful A$2,500,000
capital raising in December, 2006 when Macquarie Bank became Alto’s third largest shareholder
(7.2%).

The new working capital facility from Macquarie will be used, subject to certain terms and
conditions, to acquire new acreage and drill in Alto’s recently acquired Oklahoma 3D joint venture
and Napoleonville 3D program in southern Louisiana.

Alto’s Managing Director, Mr James Trimble said that he was pleased to receive the additional
support from Macquarie Bank for the company’s new focus on low risk conventional plays in
Louisiana and Oklahoma.

“Capital raised in December 2006 together with cash-on-hand will be used to fund the Phase 3B
drilling program and the 3D seismic program at the Napoleonville Salt Dome. The Macquarie Bank
working capital facility will be used for our additional activities such as drilling in Oklahoma, land
acquisition and drilling at the Napoleonville Salt Dome and potentially acquiring further prospects in
southern Louisiana,” Mr Trimble said.

Over the coming six months Alto will drill five wells in the Phase 3B program and start production,
acquire 3D seismic over the Napoleonville Salt Dome, develop prospects over the Napoleonville
Salt Dome and expects to identify over 20 prospects in Oklahoma from the Foothills JV 3D seismic
program.

In the second half of 2007 Alto expects to finance, drill and commence production from the Foothills
JV Project and Napoleonville Salt Dome and acquire further interests in southern Louisiana.

“The Macquarie working capital facility, plus our existing funds, ensures that our aggressive and
disciplined growth strategy can be implemented as planned,” said Mr. Trimble.

The current status of Alto’s work program for the coming months includes:

Louisiana – Phase 3B Drilling Program
Farming into five onshore wells in Southern Louisiana. Alto has a 3.74%-10.9% working interest for
a gross exposure of 65 bcf and net exposure of 3.9 bcf, with typical flow rates of 5Mmcf/d – 15
Mmcf/d. In partnership with Legend Petroleum, the drilling program will begin in late January 2007.
Level 12, BGC Centre,
28 The Esplanade,
Perth, WA, 6000,
Australia
Phone: +61 (0) 8 9324 3011
Fax: +61 (0) 8 9324 3055
ABN 22 073 653 175




Louisiana – Napoleonville Salt Dome
Alto is acquiring a 25% working interest in 30,000 gross acres of one of the last Louisiana Salt
Domes not covered by 3D seismic. The survey began in December 2006 and recording of data is
expected to be concluded by mid-March, 2007. Interpretation of the 3D seismic data during the
second quarter of 2007 is expected to reveal direct hydrocarbon indicators. Drilling is expected to
commence in mid-2007.

Oklahoma – Foothills JV Project
Alto has acquired an interest in the Arkoma Basin in the Foothills JV Project with eight producing
formations in 3000 gross acres with an option over a further 3000 gross acres. Gross exposure is
estimated at 151 Bcf and net exposure 9.8Bcf. Alto expects up to 22 prospects for development will
be identified from the BP 3D with drilling in 2007-2009.


For further information go to www.altoenergy.com.au or contact:

Mr James Trimble
Tel. +1 (713) 829-7930
Email: [email protected] or

Mr Charles Morgan
+61 412 152534
Email: [email protected]


Certain of the statements included in this press release, which express a belief, expectation or intention, as well as regarding future financial
performance or results, or which are not historical facts, are “forward-looking” statements. These forward-looking statements are not guarantees of
future performance or events and such statements involve a number of risks, uncertainties and assumptions, including but not limited to industry
conditions, prices of crude oil and natural gas, regulatory changes, general economic conditions, interest rates, competition and other factors. Readers
are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.