interest in major png gas project

Energy Investments Granted Rights to Participate in Major PNG Gas Project

Estimated Contingent Resource Exceeding 10Tcf

HIGHLIGHTS

Energy Investments Limited (ASX: EIV) has secured an option to participate in a potentially significant gas field development in Papua New Guinea ("PNG").

The major features of the transaction and related arrangements are:

Energy Investments PNG Pty Ltd ("EIP"), a wholly owned EIV subsidiary, has been granted the rights to acquire up to a 70% working interest in PPL 248, an onshore PNG petroleum prospecting license, held by SriGAS Energy Group Asia Limited ("SEGA") by funding a two well exploration program.

PPL 248 was granted by the PNG Minister for Petroleum and Energy ("DPE") in April 2004 as a six year
exploration license and is now in the second of its three two year work program periods.

PPL 248 covers approximately 6,000 km2 of the south-eastern Ramu Basin in the north eastern PNG Madang
province, located approximately 40kms from the provincial capital Madang with its deep sea port. A location map is attached.

The large Banam Anticline is the dominant feature in the basin with approximately 200kms2 of four-way dip
closure. Fifty kms of 2D seismic data has been acquired outlining the overall geometry and size of the anticline
which was initially delineated by surface mapping and photogeology.

The Banam anticline has a potential gas resource of 10Tcf at a POS of 50 and up to 20Tcf at POS of 10.

SEGA has submitted a new work program for the second two year period to DPE for approval incorporating the drilling of two exploration wells to a depth of approximately 9,000feet to adequately test the potential gas-bearing zones in the Banam Anticline.

EIP and SEGA are in discussions with international parties who have expressed interest in farming into the
project.

EIP may exercise its option prior to 26 November 2006 and following completion of its due diligence or at such
later date that the DPE approve SEGA's new work program.

In consideration of the grant of the option to EIP, EIV will issue 4 million fully paid ordinary shares to SEGA on
its exercise by EIP.