RAB Energy Fund Limited

Energem Resources Inc.

February 18, 2005 11:54 ET

RAB Energy Fund Limited-Announcement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RAB ENERGY FUND LIMITED

AND ENERGEM RESOURCES INC.

TSX SYMBOL: ENM

FEBRUARY 18, 2005 - 11:54 ET

RAB Energy Fund Limited-Announcement

LONDON, UNITED KINGDOM--(CCNMatthews - Feb. 18, 2005) - RAB Energy Fund
Limited ("Energy") announces that it purchased 4,800,000 common shares
(the "Shares") of Energem Resources Inc. (TSX:ENM) (the "Company") from
a selling shareholder at an aggregate purchase price of Cdn.$10,040,000.
The transaction was carried out privately and closed on February 14,
2005 (the "Private Acquisition").

Energy has ownership of and control over the securities purchased in the
Private Acquisition. The purchased securities represent approximately
3.78% of the issued and outstanding Shares on a partially diluted basis
(assuming exercise of all Warrants and other convertible securities)
("Partially Diluted Basis").

In addition, on February 16, 2005, RAB Europe Fund Limited ("Europe")
exercised its right to acquire 375,000 Shares of the Company (the
"Warrant Exercise").

Immediately after the Private Acquisition and the Warrant Exercise,
Energy owned 7,393,917 Shares, U.S.$3,500,000 Convertible Debenture and
245,000 Warrants, representing approximately 7.42% of the issued and
outstanding Shares on a Partially Diluted Basis. RAB Special Situations
LP ("Special Situations"), who may be considered a joint actor with
Energy, owned 3,587,172 Shares and 1,165,000 Warrants, representing
approximately 3.71% of the issued and outstanding Shares on a Partially
Diluted Basis and Europe, who may also be considered a joint actor with
Energy, owned 375,000 Shares, representing approximately 0.30% of the
issued and outstanding Shares on a Partially Diluted Basis.

Energy purchased Shares for investment purposes only and not with the
purpose of influencing the control or direction of the Company. Energy
together with joint actors, if any, may, subject to market conditions,
make additional investments in or dispositions of securities of the
Company in the future, including additional purchases of Shares.
However, Energy and its joint actors, if any, do not intend to acquire
20% of any class of the outstanding voting or equity securities of the
Company.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    RAB Energy Fund Limited
    Mr. Neil Warrender
    (44) 20-7389-7000
    (+44) 20 7389 7054 (FAX)
    nw@rabcap.com
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.