its all bad news , announcement just out

The Directors of Agri Energy Limited (Agri or the Company) advise that the Merger
Implementation Agreement (MIA) pursuant to which Agri was to acquire Triton Petroleum Pte
Ltd (Triton), holder of a 20% interest in Syria Block 9, has been terminated due to the failure to
satisfy the pre-conditions, in particular matters relating the re-compliance with Chapters 1 and 2
of the ASX Listing Rules.
In order to re-comply with Chapters 1 and 2 of the ASX Listing Rules the Company needed,
amongst other things, to raise sufficient funds to fund its activities for a period of two years post
completion of its acquisition of Triton. In practical terms, the Company needed to raise
approximately $5M.
At the time Agri entered into the MIA in December 2010, Syria had been politically stable for in
excess of 40 years. The Company and vendors met with a large number of potential funders in
early 2011 and received strong interest in funding the project.
The current civil unrest in Egypt, Yemen, Bahrain and Syria commenced sequentially from
February 2011. The Company was able to secure interim funding in April 2011, however the
continuing deterioration of the political situation in the region has had a negative impact on the
ability to secure the required funding, notwithstanding the best endeavours of the Company and
the vendors.
As part of the termination of the MIA, Agri has secured an indirect interest in the project via a 5%
interest in Triton as a result of the earlier working capital payment of $500,000, paid to Triton in
early 2011. Agri has agreed to contribute US$175,000 to a forthcoming rights issue that Triton is
planning to undertake, as a result of which its holding in Triton would be maintained. This
investment would give Agri shareholders an ongoing exposure to the two well back-to-back
drilling program, expected to commence in July.
As a part of the termination of the MIA, Triton nominee, Joseph Naemi, has resigned from the
board of Agri.
The Company intends to continue to develop its Australian Ethanol Business and maintain its
investment in Triton as part of a strategy to diversify its energy business. In addition Agri will
continue to pursue new projects in the energy and resources sectors by way of acquisition or
investment.