Strategic Alliance Agreement

Oxford Catalysts Group PLC
07 January 2008

7th January 2008



                           OXFORD CATALYSTS GROUP PLC

                      ('Oxford Catalysts' or 'the Company')



          Waste-to-Energy Strategic Alliance to Deliver Royalty Income



Highlights

•    Strategic Alliance Agreement with Novus Energy, to develop and
     deploy technology for the production of second-generation fuel-grade alcohols
     from organic wastes

•    Strategic Alliance delivers a royalty income to Oxford Catalysts
     based on sales of fuel-grade alcohols

•    Oxford Catalysts projects revenues of up to £100,000 in 2008 from
     Strategic Alliance

•    When Novus Energy starts to bring its full-scale facilities
     on-stream, Oxford Catalysts' royalty income expected to average up to 
     $750,000 p.a. per facility

•    Novus Energy forecasts its first full-scale facility to be
     operational in 2009-2010, and to roll out dozens of facilities over the
     following five years



Oxford Catalysts Group PLC, the leading catalyst innovator for clean fuels, is
pleased to announce that it has signed a Strategic Alliance Agreement with Novus
Energy, LLC, a Minneapolis-based renewable fuels company, to develop technology
for the production of second-generation fuel-grade alcohols from organic wastes.



The Companies will pool their expertise and proprietary technologies to design
and deploy on-site units for the processing of organic wastes into fuel-grade
alcohols. Both Companies are currently working together under contract to design
and build a pilot plant unit which will demonstrate the operation of the
combined technologies during the first half of 2008.



The Alliance provides funding for Oxford Catalysts to further develop key steps
of the process, and to design subsequent large-scale facilities. Once these
plants come on stream, Oxford Catalysts will earn a royalty income based on
sales revenue of fuel-grade alcohols from each unit.



Novus Energy has announced plans to roll out dozens of on site facilities in the
US over a period of five years or so, designed to deliver clean, locally
produced and supplied renewable fuels. Novus Energy is also planning to
introduce the technology into Europe, where a similar number of facilities are
also planned. According to the Strategic Alliance Agreement, Oxford Catalysts'
role in these plans is projected to generate revenues of up to £100,000 in 2008,
rising to an average of up to $750,000 p.a. royalty income per facility
(depending on the market price for fuel-grade alcohols at the time) once the
full-scale on site units come on stream, with the first such unit expected in
2009-2010.



Fuel-grade alcohols can be made from specially grown crops, such as sugar cane
and corn, but these first-generation bio-fuels consume significant amounts of
water, land and energy in their production. Not only do they result in a limit
reduction of carbon footprint, they also compete with food production leading to
unfortunate consequences for food prices worldwide. In contrast,
second-generation bio-fuels, such as those which will be produced by the
Strategic Alliance, use organic waste instead, converting it on site into
fuel-grade alcohols that are clean, green and truly sustainable.



Novus Energy's core product, fuel-grade ethanol, can be efficiently produced
from the organic waste generated by a variety of food and agricultural
processors, landfills and municipal wastewater treatment plants. Novel,
patented, anaerobic bio-digester technology applied to the processing of the
waste at such sites will produce large volumes of methane-rich biogas, which
will then be converted into feedstock for Novus Energy's novel, patented alcohol
production technology.



Oxford Catalysts' technology will provide key links between the biogas
generation and the alcohol synthesis steps.



Roy Lipski, Chief Executive of Oxford Catalysts said:



'We are delighted to be partnering with Novus Energy, who bring complementary
technology and expertise to this exciting and innovative waste-to-energy
alliance. Together we will address the rapidly growing need for truly renewable,
clean, sustainable transport fuels, and share in the significant revenue
potential which this opportunity presents.'



John Offerman, President and Chief Technology Officer of Novus Energy said:



'In choosing a catalyst technology company to collaborate with us to develop the
challenging core processes in our RGL (Renewable Gas-to-Liquid TM) technology,
Novus Energy needed a partner that was both innovative and responsive to our
specific needs. Oxford Catalysts, we found, was the only company that met those
criteria. We look forward to a long and fruitful working relationship with them.
'



                                    - Ends -


For further information, please contact:

Roy Lipski, CEO, Oxford Catalysts                       01235 841 700
John Offerman, President, Novus Energy                  00 1 952 224 0405
Jonathan Marren / Oliver Stratton, KBC Peel Hunt        020 7418 8990
(Nomad and Broker)
Billy Clegg / Jonathon Brill, Financial Dynamics        020 7831 3113





Notes to Editors



Oxford Catalysts Group PLC, the leading catalyst innovator for clean fuels,
designs and develops specialty catalysts for the generation of clean fuels from
both conventional fossil fuels and certain renewable sources such as biomass.
Its patent-pending technology is the result of almost 20 years of research at
the University of Oxford's prestigious Wolfson Catalysis Centre, headed by
Professor Malcolm Green, one of the world's most respected inorganic chemists.
Oxford Catalysts was founded by Professor Green and Dr Xiao in October 2004 and
was admitted to trading on the AIM market of the London Stock Exchange on 26th
April 2006, having raised £15m before expenses from a solid base of
institutional investors.



Oxford Catalysts' strategy is to license its catalysts for commercial
application by entering into co-development partnerships with leading
manufacturers, producers and suppliers in the petroleum, petrochemicals, fuel
cells, biogas, steam applications and catalysis markets.



Oxford Catalysts has two key platform technologies. The first is for a novel
class of catalysts made from metal carbides which, for certain reactions, can
match or exceed the benefits of traditional precious metal catalysts at a lower
cost. Applications of these metal-carbide catalysts include the removal of
sulphur from crude oil fractions (known as hydro-desulphurisation or HDS), the
conversion of natural gas or coal into virtually sulphur-free liquid fuels via
the Fischer-Tropsch reaction (known as the GTL and CTL processes respectively),
and the transformation of biogas (waste methane) into syngas - the
building block of liquid fuels.



The second platform relates to chemical reactions involving a liquid containing
a renewable fuel, such as methanol, ethanol or glycerol, and dilute hydrogen
peroxide. The company's novel catalyst can be used to release hydrogen gas from
this liquid, instantaneously starting from room temperature. This groundbreaking
Instant Hydrogen technology has the potential to significantly accelerate the
commercial adoption of fuel cells in the portable and other mobile markets, by
providing the much needed source of cheap, safe, transportable hydrogen.



Another of the company's catalysts can be used to produce steam at temperatures
between 100oC and 800oC+ instantaneously starting from room temperature,
from a liquid fuel containing dilute hydrogen peroxide and either an alcohol,
sugar, glycerol, starch or formic acid. Such Instant Steam could have important
applications in a broad range of markets, from cleaning and disinfecting, to
green energy in the form of motive power or electricity.



www.oxfordcatalysts.com





About Novus Energy



Novus Energy, LLC, a Minnesota (U.S.A.) renewable fuels development company, was
organized in 2004 to design, fabricate and rollout high-yield fuel-grade alcohol
facilities, using organic waste materials as the fuel feedstock. The Company's
proprietary process generates methane-rich biogas from advanced anaerobic
digestion methods, and converts the biogas to ethanol and higher alcohols using
a novel renewable gas-to-liquid (RGLTM) process. The company currently has
contracts to build refineries at a North Dakota sugar beet processor, a
Minneapolis landfill, at an Idaho potato plant, and at an Iowa site converting
farm corn stover and hog waste. The first full-scale facility is expected to be
operational in 2009-2010.



www.novus-energy.com




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