AGL Aguila Copper Corp

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF U.S. SECURITIES LAWS. 


New Zealand Energy Corp. ("NZEC") is pleased to announce that it has entered
into a letter of intent ("LOI") with AGL Upstream Gas (MOS) Pty Limited
("AGLUGM"), a wholly owned subsidiary of AGL Energy Limited ("AGL"), a company
listed on the Australian Securities Exchange, pursuant to which NZEC has agreed
to purchase AGLUGM's 50% working interest in the Alton Permit (PEP 51151). The
Alton Permit is offsetting NZEC's Eltham Permit (PEP 51150) in the Taranaki
Basin on which NZEC recently drilled and cased the Copper Moki-1 discovery well
targeting the Urenui and Mount Messenger formations (See map 1).


To view, "Map 1- Taranaki Basin", please visit the following link:
http://media3.marketwire.com/docs/map1-taranaki-basin.pdf.


NZEC has engaged AJM Petroleum Consultants ("AJM") to prepare a NI 51-101
compliant resource report. AJM identified the following in their report:




--  Five leads that in aggregate add 380 million barrels of oil equivalent
    ("mmboe") net undiscovered petroleum initially in place ("OOIP") and
    34.6 net mmboe prospective resource on NZEC's Taranaki Basin land
    holdings. Total NZEC net resources in the Taranaki Basin now include: 
    
    --  Eltham Permit: OOIP 350 mmboe with 32.1 mmboe prospective resource;
        and 
        
    --  Alton Permit: OOIP 380 mmboe net with 34.6 mmboe net prospective
        resource (all best estimates). 
        
--  The Horoi lead (see map 2) offsetting NZEC's Copper Moki-1 discovery
    well has an attributed 108.9 mmboe net OOIP and 9.4 mmboe net
    prospective resource (best estimate), making it the largest lead by
    resource potential on NZEC's Taranaki Basin land holdings. 
    
--  The Talon lead (see map 2) offsetting Origin Energy Australia's Rimu and
    Kauri producing oil and gas fields has been attributed 9.9 mmboe
    undiscovered petroleum net OOIP and 860k barrels of oil equivalent
    ("boe") net prospective resource (best estimate). 



NZEC plans to increase its proposed Taranaki Basin drilling program in 2011 from
four wells to six wells including the following wells on the Alton Permit:




--  The Talon-1 Well which is in the final stages of preparation and is
    expected to be drilled in the third quarter of 2011; and 

--  Drilling the Horoi-1 well offsetting the Copper Moki-1 well before the
    end of 2011. 



The Alton Permit acquisition adds 241 net km(2) in the Taranaki Basin,
representing a net increase of 64% as compared to NZEC's current Taranaki Basin
holdings (Eltham, 92,466 net acres and Alton, 59,600 net acres).


The LOI contemplates the purchase and sale of AGLUGM's 50% working interest in
the Alton Permit for AUD$2,000,000. The agreement between NZEC and AGLUGM
remains subject to: (a) NZEC completing due diligence; (b) the parties entering
into the definitive agreements; and (c) New Zealand's Minister of Energy
consenting to the transfer of AGLUGM's 50% interest to NZEC. Upon completion of
the transfer, NZEC will be the operator of the Alton Permit.


To view, "Map 2 - Alton Map; Permit and Leads", please visit the following link:
http://media3.marketwire.com/docs/map2-alton.pdf.


Further to the LOI, NZEC has reached an agreement ("L&M Agreement") with L&M
Energy Limited ("L&M"), the holder of the remaining 50% working interest in the
Alton Permit. Pursuant to the L&M Agreement, L&M has agreed to waive its
pre-emptive right to acquire the AGLUGM interest in the Alton Permit and
transfer its operatorship of the permit to NZEC, to take effect upon the
transfer of AGLUGM's 50% interest to NZEC. The L&M Agreement provides that NZEC
will fund 100% of L&M's costs for drilling the Talon-1 well and the first
NZD$500,000 of completion costs. 


The Alton permit LOI was entered into subsequent to the filing of NZEC's
preliminary prospectus. Details on the Alton permit will be provided in the
final prospectus. Investors should rely on the final prospectus to make their
investment decision. Subject to completing the LOI and entering into a
definitive agreement, NZEC proposes to amend the use of proceeds contemplated in
the final prospectus to include CAD$2,200,000 for acquisition costs and
CAD$6,050,000 for the drilling of two wells, including the Talon-1 exploration
well, on the Alton Permit. 


About New Zealand Energy Corp.

New Zealand Energy Corp. is an oil and natural gas company engaged in the
exploration, acquisition and development of petroleum and natural gas assets in
New Zealand.


About AGL

AGL is Australia's leading renewable energy company and is Australia's largest
private owner, operator and developer of renewable generation assets. AGL has
major investments in hydro and wind, as well as ongoing developments in key
renewable areas including solar, geothermal, biomass, bagasse and landfill gas.
AGL also operates retail, merchant energy and upstream gas businesses and has
more than three million customer accounts.


Listed on the Australian Securities Exchange (ASX:AGK) with a market
capitalisation of AUD$6.4 billion, AGL is an S&P/ASX 50 company. AGL has been
operating in Australia for more than 170 years and was one of its first listed
companies.


About L&M Energy Limited

L&M Energy Limited is a New Zealand based company dual listed on the Australian
Securities Exchange and the New Zealand Stock Exchange (ASX:LME)(NZX:LME) with a
market capitalisation of AUD$87.7 million. LME is focused on the development of
commercial coal seam gas resources and discovery of conventional oil and gas
resources. The Company holds equity interests in a number of exploration permits
in New Zealand. 


On behalf of the Board of New Zealand Energy Corp.

John Proust, Chief Executive Officer

This news release contains certain forward-looking information and
forward-looking statements within the meaning of applicable securities
legislation (collectively "forward-looking statements"). The use of any of the
words "anticipate", "continue", "estimate", "expect", "may", "will", "project",
"propose", "should", "believe" and similar expressions are intended to identify
forward-looking statements. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward-looking statements,
including without limitation, those listed under the headings "Special Note
Regarding Forward-Looking Statements" and "Risk Factors" in NZEC's preliminary
long form prospectus dated April 29, 2011 relating to NZEC's initial public
offering. NZEC believes the expectations reflected in those forward-looking
statements are reasonable, but no assurance can be given that these expectations
will prove to be correct. Such forward-looking statements included in this news
release should not be unduly relied upon. These statements speak only as of the
date of this news release and NZEC does not undertake to update any
forward-looking statements that are contained in this news release, except in
accordance with applicable securities laws. In addition, this news release may
contain forward-looking statements attributed to third party industry sources.


This news release does not constitute an offer to sell or a solicitation of an
offer to buy, nor shall there be any sale of, any securities of NZEC in any
jurisdiction in which such offer, solicitation or sale would be unlawful. The
securities offered hereunder have not and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or
the securities laws of any state of the United States of America (the "United
States") and, subject to certain exceptions, may not be offered or sold within
the United States or its territories or possessions except in transactions
exempt from registration under the U.S. Securities Act and under the securities
laws of any applicable state. This news release does not constitute an offer to
sell or a solicitation of an offer to buy any of the securities offered hereby
within the United States, its territories or possessions.

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