SYDNEY, Australia, Nov. 10 /PRNewswire-FirstCall/ -- White Energy Company Limited (White Energy (ASX: WEC)) is pleased to announce that it has signed a joint venture agreement with an entity managed by Black River Asset Management LLC (Black River), an independently managed subsidiary of Cargill, under which White Energy and Black River will jointly develop and commercialise White Energy's coal upgrading technology throughout Africa.

White Energy and Black River will establish a special purpose company (the Company) to be held 51% by White Energy and 49% by Black River. The Company will actively originate, develop, construct and operate coal upgrading plants in Africa either on its own or in conjunction with companies in Africa having access to appropriate coal reserves and/ or power companies looking to increase their energy output. The Company will have the exclusive rights to utilise White Energy's coal upgrading technology on the African continent.

The African market represents a significant opportunity for White Energy's coal upgrading process. In addition to the traditional application of White Energy's technology, namely the upgrading of lower rank coal reserves to increase the coal's energy efficiency, there is also significant further opportunity for the Company in Africa relating to the treatment and processing of discard coal fines. The White Energy process can also be used as a means of producing stable and transportable lump coal from unwanted undersized fractions of high energy bituminous coals.

White Energy and Black River have been actively analysing the market and reviewing opportunities in Africa for some time and have already commenced discussions with a number of key players interested in working with the Company in Africa. The Company will now work to crystalise these opportunities.

Key elements of the Joint Venture are:

• The Company will be owned 51% by White Energy and 49% by Black River and will be controlled by White Energy;
• Notwithstanding the ownership of the Company, any equity contributions to the Company will be funded 66% by Black River and 34% by White Energy;
• White Energy will receive a large upfront payment from the Company immediately upon its establishment;
• Black River has committed, subject to milestones, US$70 million for its 49% interest in the Company. The majority of these funds together with White Energy's equity contribution of approximately US$31 million over time will be conditional, inter alia, upon the Company agreeing to proceed with projects that meet the Company's agreed investment criteria;
• White Energy will grant the Company an exclusive license to use its technology on the African continent;
• In addition to profit generated from its equity interest in the Company, White Energy will receive an ongoing royalty stream from projects undertaken by the Company ; and
• White Energy and Black River believe that the Joint Venture will be an attractive proposition from a public markets' perspective and will consider listing the Company in the medium term.

White Energy's managing director, Mr.