JATCORP LIMITED — Capital/Financing Update 2011

May 18, 2011

ASX/Media Release 19[th] May 2011

==> picture [83 x 84] intentionally omitted <==

JatEnergy Expands Queensland Coal Deal into Bowen Basin

• Six tenements in new deal in Bowen Basin

• Deal is on top of the original four Galilee Basin tenements

JatEnergy Limited (ASX code JAT) today announced it had concluded a revised binding offer letter to acquire six additional coal exploration permits and permit applications in the Bowen Basin, the homeland of Queensland’s coal export industry. The deal continues to include the acquisition of four Galilee Basin permits and permit applications announced early in February.

A successful purchase of the Australian coal tenements will significantly strengthen JatEnergy’s coal strategy, which was announced last year when agreement was reached to buy two coal assets in Kalimantan, Indonesia. That purchase has since been finalised.

“This latest coal deal is very important strategically. Subject to final due diligence and relevant approvals, completion of the acquisition will give JatEnergy a position in sought after areas in Australia, where the coal industry is undergoing very strong growth,” Chief Executive Officer Phil Hodgson said. “Investors have supported our first move into coal in Indonesia, and this deal strengthens JatEnergy’s expansion into Australian coal.”

JatEnergy recently raised $2 million through a public offering to support its dual energy strategy of producing biofuel and coal. The company also secured a placement of $3.32 million from a Chinese power and infrastructure company, Sheng Run. Production of environmentally friendly crude jatropha oil, a biofuel which is in strong demand by global airline operators, is continuing from plantations in central Java, Indonesia.

The revised Queensland coal deal is with two Australian private companies, Spinifex Rural Management Pty Ltd and Demycoal Pty Ltd. The following table describes the tenements now under the deal:

Co.	Area	Tenement	Sub-Blocks	Approx.	Area	Comments
				(km2)
						Adjacent to Linc Energy and
		EPC 2101	100	330		Carpentaria Exploration / Guildfordconcessions, proximate to extensive
						Guildford coal drilling activity
Spinifex Pty Ltd	Galilee Basin	EPCA 2166EPCA 1988EPCA 2020	18644	5919145		~ 15 km North of Linc Energyconcessions sold to Adani (7.8 BTJORC Resource) in the NorthEastern Galilee BasinAbuts Waratah Coal tenements. ~20 km to the east of HancockMining (7.9 BT JORC Resource)Abuts Waratah Minerology coaltenements to the North East. ~ 40km west of Bandanna South Galilee
						project (1.2 BT JORC resource)
		EPCA 2102	5	16		In the vicinity of Moranbah
		EPC 1956	6	19		About 40 km north west of Baralabacoal mine
Demycoal Pty Ltd	Bowen Basin	EPCA 2001EPCA 2117EPCA 2152(Competing)EPCA 2153(Competing)	1261116	40133652		Abuts due west of Xstrata’sRolleston mineIn between Rio Tinto’s Hail Creekmine and Xstrata’s Newlands mineCompeting application on theeastern side of the Bowen Basin 40km east of Peak Downs mineCompeting application in betweenRio Tinto’s Hail Creek mine andXstrata’s Newlands mine

Floor 6, Suite 8, 55 Miller Street, PYRMONT NSW 2009 t +61 2 9571 8300 f +61 2 9571 8200 w www.jatenergy.com

==> picture [84 x 85] intentionally omitted <==

Subject to final due diligence and board and other relevant approvals, JatEnergy has agreed to make staged payments of cash and shares to Spinifex and Demycoal to secure the permits. A total of $130,000 is payable in cash, along with the issue of 3.5 million JatEnergy shares, upon signing a full agreement and securing the ownership of all existing exploration permits. An additional $210,000 and 9 million shares becomes due as the remaining permit applications are granted and title is transferred to JatEnergy.

For further information:

JatEnergy: Phil Hodgson, Chief Executive Officer – 02 9571 8300

Media: Alan Deans, Last Word Corporate Communications – 0427 490 992

Tenement Maps

(where shown, scale has been added as an approximate guide to distances only)

==> picture [469 x 249] intentionally omitted <==

Figure 1: Non-competing tenements: Overview

==> picture [84 x 85] intentionally omitted <==

==> picture [453 x 199] intentionally omitted <==

Figure 2: North Galilee Basin tenement EPC 2101

==> picture [450 x 280] intentionally omitted <==

Figure 3: Galilee Basin tenements EPCA's 2166, 1988, 2020

==> picture [84 x 85] intentionally omitted <==

==> picture [453 x 246] intentionally omitted <==

Figure 4: North Bowen Basin tenements EPCA 2117 and EPCA 2153 (competing)

==> picture [450 x 235] intentionally omitted <==

Figure 5: Bowen Basin tenements EPCA 2102 and EPCA 2152 (Competing)

==> picture [84 x 85] intentionally omitted <==

==> picture [469 x 218] intentionally omitted <==

Figure 5: Bowen Basin tenement EPC1956

==> picture [452 x 201] intentionally omitted <==

Figure 6: South Bowen Basin tenement EPCA2001

About JatEnergy

JatEnergy is an energy company operating in Australia and Asia that has recently expanded its energy portfolio from biofuel to include coal through the purchase of two mining projects in Indonesia’s Kalimantan coal region. JatEnergy has recently announced binding agreements to purchase 10 coal exploration permits and permit applications in Queensland’s Bowen and Galilee basins.

Recent ASX/Media Releases

8 February 2011

==> picture [84 x 85] intentionally omitted <==

JATOIL IN COAL DOUBLE PLAY AFTER SIGNING QUEENSLAND DEAL

Jatoil today announced the execution of a binding letter of intent to acquire four coal exploration permits and permit applications in the Galilee Basin in central Queensland. The deal strengthens Jatoil’s dual energy strategy, which is currently being initiated through the pending acquisition of two coal assets in Kalimantan, Indonesia. http://www.asx.com.au/asxpdf/20110208/pdf/41wn8t8lf5bfpv.pdf

4 February 2011

JATOIL ESTABLISHES ENERGY TRADING DIVISION AS SALES RAMP UP

Jatoil is to trade energy commodities from this year as a core part of its business, and has strengthened its Singapore operations by appointing an experienced energy commodities trader, Nick Croom, to the boards of its Singapore subsidiaries. http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2622770

3 February 2011

JATOIL BIOFUEL PRODUCTION PASSES 200 TONNES – ALL FOR MAJOR AIRLINES Jatoil achieved production of 200 tonnes of crude jatropha oil (CJO), all of which will be shipped and used as a feedstock for keenly sought after biojet aviation fuel for use by commercial airlines.

http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2622586

23 December 2010

JATOIL COMPLETES DUE DILIGENCE ON MAJOR KALIMANTAN COAL PROJECT

Due diligence has been completed on Blackrock Resource Pty Ltd’s major Indonesian project, Katingan, on the island of Kalimantan. Assessments are continuing on several other projects in Blackrock’s portfolio. Katingan has a resource that is estimated to be between 36.4 million tonnes and 43.1 million tonnes, with more than 30 coal outcrops in the exploration permit measuring greater than 6m thickness.

http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2618912

13 December 2010

CHINESE INVESTOR BECOMES CORNERSTONE SHAREHOLDER IN JATOIL

Jatoil executed a share subscription agreement with a company owned by a Chinese electric power and road infrastructure developer, Mr Li Xipeng. Sheng Run Holdings Group (Australia) Pty Ltd has been issued 17,144,888 fully paid ordinary shares in Jatoil at $0.04 per share, to raise $685,796. The placement represents 13.04% of Jatoil’s issued capital. http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2617058

7 October 2010

JATOIL TO COMMENCE REGULAR BIOFUEL OUTPUT AFTER NEW PLANTATION PURCHASE

Jatoil plans to make regular weekly shipments of crude jatropha oil from its plantations in Central Java, Indonesia, after announcing today the purchase of more oil producing fields. The company’s 70%-owned joint venture, PT Jatoil Waterland, has bought 522 hectares of three to four year old jatropha trees near the 1,000 hectare plantation, which in July yielded Jatoil’s first shipment.

http://clients.weblink.com.au/clients/jatoil/article.asp?asx=JAT&view=2608605