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Novera Energy Ltd (NVE)

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Friday 21 October, 2005

Novera Energy Ltd

Acquisition

Novera Energy Ltd
21 October 2005

                                                            ASX/AIM ANNOUNCEMENT

21 October 2005

             Novera Energy Limited - NMRE Landfill Gas Acquisition

Novera Energy Limited (ASX: NVE; AIM: NVE) today announced that Novera Macquarie
Renewable Energy (NMRE) has acquired 7MW of landfill gas assets in the UK for a
consideration of £11 million (A$25.87 million). Details of the transaction are
included in the attached NMRE announcement.

NMRE is a 50:50 joint venture between Novera Energy and Macquarie International
Infrastructure Fund.

David Fitzsimmons, recently appointed Novera Energy Limited Chief Executive
Officer, said the acquisition represented another positive step in the
development of the Novera Group as a significant player in the world's most
advanced market for renewable energy.

'Novera is building scale across all its renewable energy assets through
development and acquisition in the UK and Europe, where legislation calls for
increasing use of renewable energy,' Mr Fitzsimmons said.

'The acquisition is expected to exceed Novera Energy's investment criteria'.

The NMRE joint venture constitutes one of Novera's three core businesses, the
other two being wind development and biomass services. Highlights of Novera's
development over the past nine months include:

   •Listing on London's Alternative Investment Market
    (AIM), in June 2005, after raising approximately £5.3 million (A$13 million)
    through the placement of 9.189 million shares at 58 pence (A$1.40) per
    share.


   • A net profit for the six months to 30 June 2005 of GBP
    0.255 million (A$0.617 million).


   •Receipt in July of a £1.2 million (A$ 2.9 million)
    cash distribution from NMRE.


   •The sale by Novera to NMRE of the Mynydd Clogau 14.5
    MW wind farm in Wales.


   •NMRE's acquisition in May of Umwelt Windrad GmbH & Co
    KG, the owner of two wind farms in Germany, and progress by Novera on wind
    farm developments in Scotland and northern England.


   •Negotiation of UK government support totalling £5
    million (A$11.9 million) for Novera's 10MW East London Sustainable Energy
    Project.


   •NMRE remains on track to pay a full year distribution
    of £3.1 million (A$7.6 million).


   •The appointment of John Brown, David Fitzsimmons and
    Michael Cairns as UK-based Chairman, CEO and Non-Executive Director
    respectively, to help align the management and governance of the company
    with its assets and growth prospects.

                                    - ENDS -

For further information please contact:

United Kingdom
Gavin Anderson : Ken Cronin / Janine Brewis               +44 (0)20 7554 1400
Australia
David Reid, Westbrook Communications +61 (0)2 9231 0922 / mobile 0417 217 157





                                                                   Media Release


21 October 2005

                  NMRE makes £11m UK landfill gas acquisition

Novera Macquarie Renewable Energy (NMRE) has acquired additional landfill gas
assets in the UK for a consideration of £11 million (A$25.87 million) excluding
transaction costs. The three assets in Norfolk, England, have 7MW generating
capacity (including 2MW to be constructed), and have an expected generating life
of more than 20 years.

NMRE - the 50:50 joint venture between Novera Energy Limited and Macquarie
International Infrastructure Fund - is acquiring 100 per cent of the share
capital of the current owners of the landfill gas assets. Each joint venture
partner has made a cash investment of approximately £2 million (A$4.7 million)
to fund the acquisition. The balance will be funded by non-recourse debt
available to NMRE under an extension of the existing loan facility arranged by
Barclays.

NMRE Chief Executive Officer, Mr Muir Miller, said with the inclusion of the
additional assets, the company now holds 144MW of capacity across landfill gas
power, wind power and hydro assets.

'This transaction further strengthens NMRE's position as the UK's second largest
landfill gas power generator,' Mr Miller said.

                                      ENDS

For further information please contact:
Muir Miller
Chief Executive Officer
NMRE
Ph: 01925 438313




                      This information is provided by RNS
            The company news service from the London Stock Exchange