METGASCO LTD — Capital/Financing Update 2007

Apr 3, 2007

MEDIA RELEASE

MOLOPO FARMS OUT CLARENCE MORETON BASIN ACREAGE 4 April 2007

Molopo Australia Limited (MPO) announces that Metgasco Limited has farmed into PEL 426 and PEL 13 (conventional) in the Clarence Moreton Basin in north-eastern New South Wales. Metgasco will operate and initially earn a 50% interest in the coalbed methane (CBM) and conventional hydrocarbon rights in PEL 426 by funding of an agreed work programme, which will involve drilling one new dual target exploration well, acquisition of new seismic, and reprocessing of existing seismic over two identified highly prospective conventional hydrocarbon structures.

Once Metgasco has earned 50%, by spending up to \$500,000, if both parties mutually agree. Metgasco may increase its interest to 75% by spending a further \$250,000 in PEL 426 on additional drilling or new seismic as agreed.

In PEL 13 Molopo has farmed out its conventional hydrocarbon interests to Metgasco. Metgasco can earn up to 50% interest by undertaking a mutually agreed work programme with an expenditure of \$300,000. Metgasco is currently completing a CBM programme for the right to earn 51% in the CBM interests in PEL 13.

PEL 426 and PEL 13 cover an area of approximately 3,450 km² and 1,200 km² respectively. Despite exploration dating back to the 1960's, the Clarence Moreton basin remains under explored and has the potential to host both coal seam gas and conventional hydrocarbon accumulations, with earlier exploration identifying a number of structures, which are as yet untested.

Molopo's Managing Director, Stephen Mitchell, stated "Farming-out Molopo's Clarence Morton acreage in both PEL 426 and PEL 13 to Metgasco, an experienced CBM operator in the region. will ensure these areas receive the resources they require, while allowing Molopo to concentrate our resources on the continued development of the Mungi Gas Field in Queensland, the appraisal of our Gloucester Basin interest in NSW and our overseas interests".

Issued by:

For further information contact:

Molopo Australia Ltd

Ric Sotelo CFO 03 9618 8722

or

Stephen Mitchell 03 9618 8722

Molopo Australia Limited is an ASX listed gas producer focused primarily on the development of coalbed methane. Molopo holds a 25% interest in several gas fields located in the Bowen Basin, Queensland, a 30% interest in CBM operations located in the Gloucester Basin (NSW), a 50% interest is a US gas project, a 100% interest in two permits in the Clarence Moreton Basin (NSW) and an interest in the Liulin CBM project in China.

Registered Office Level 14, 31 Queen Street, Melbourne, Vic. 3000, Australia GPO Box 223, Melbourne, Vic. 3001, Australia

NSW Office: Suite 1006, Level 10, 50 Clarence Street, Sydney, NSW, 2000, Australia GPO Box 7075, Sydney, NSW, 2001, Australia

Telephone: (61.3) 9618 8722 Facsimile: (61.3) 9620 2804 Website: www.molopo.com.au Email: slord@lowell.net.au

Telephone: (61 2) 9290 2267 Facsimile: (61 2) 9290 2099