News & ASX Releases

Harbinger Tops Up Holding In Emerging Australian Gas Producer - Po Valley

July 31, 2007

International private equity investor, Harbinger Capital Partners, has further increased its investment in Po Valley Energy Limited, providing the Australianpetroleum explorer with additional funds as it moves towards first gas production in Italy.

Po Valley (ASX code “PVE”) announced today it had placed a further 450,000ordinary shares with Harbinger at A$1.65 per share to raise $742,500.

Harbinger will now hold 16.2 million shares in Po Valley for a 17.9% stake.

The new funds will further assist Po Valley prepare its three lead gas fields innorthern Italy for maiden production in 2008, expand its Italian exploration in knowngas provinces and move into gas storage opportunities in Europe in partnership withthe experienced gas storage operator, Star Energy Group plc.

“The placement to Harbinger will maintain its position as our largest institutionalshareholder and bring our recent capital raising to a total of around A$8 million,” PoValley’s Chief Executive Officer, Mr Michael Masterman, said today.

“It comes at a time when Po Valley is gearing up for development investment in itsmaiden production fields and pursuing growth initiatives which have resulted in eightnew northern Italy prospects - containing 10-80 billion cubic feet of gas each - fordrilling from late next year,” Mr Masterman said.

Po Valley last month completed a placement of 4.33 million shares at A$1.65 pershare to raise A$7.136 million dollars. That placement was assigned primarily toa United States pension and insurance company, the Boston-based John HancockMutual Funds, as well as two Australian funds, the hedge group, Cranport Pty Ltdand current Po Valley major shareholder, Hunter Hall Investment Management.

The top up placement to Harbinger takes to 90.3 million, the number of ordinary PoValley shares on issue, capitalising the Australian explorer at A$144 million, basedon the its closing price on the ASX on Tuesday, 31 July, 2007, of A$1.60.

Michael Masterman Po Valley Energy 0417 851 303
Kevin Skinner Field Public Relations (08) 8234 9555 / 0414 822 631

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