announcement out

MEO AUSTRALIA ANNOUNCES MAJOR STRATEGIC ALLIANCE

Key Points:

1) Strategic alliance formed with Resource Development International Ltd ("RDI") - an entity controlled by one of Australia's wealthiest men, Professor Clive Palmer

2) RDI has extensive iron ore, steel, nickel and energy interests and is planning to raise A$5 billion and list on the Hong Kong and Australian Stock Exchanges later in 2008

3) Funding secured for forthcoming Zeus-1 exploration well
targeting multi-TCF potential gas resources in WA-361-P leaving MEO with a 25% interest

4) Majority funding for up to 9 wells (including Zeus-1) in MEO's three offshore West Australian Permits in the success case

5) Staged funding program for appraisal drilling in NT/P68-up to 4 initial wells

6) 100% funding for NT/P68 appraisal to achieve Third Party Reserve certification

7)MEO fully funded through to commercial production of upstream facilities & retain 20% interest on Tassie Shoals.

8) Raise 11.8m (cash to MEO b4 costs) by placing 21.391m shares at 0.55c to Prof. Palmer's Pvt Company- Mineralogy Ltd.