International TME Resources Inc. reports that Apache becomes Operator of VIC-P45 in Gippsland Basin

Dallas, Texas, Monday, April 3, 2006 — International TME Resources Inc. (ITME) is pleased to announce that Apache has signed an agreement to become the operator of VIC/P45. VIC/P45 consists of 214,896 gross acres and is located in the offshore waters of the Bass Strait in the prolific Gippsland Basin. Apache agrees to pay 100% of the cost to drill the 1st well; in return Apache will earn a 66.6667% working interest. TME owns 15% of two joint ventures that each own a 1/20 of 1 % over-riding royalty on the total acreage block.

Depending on the results from the 1st well, Apache may elect to drill a second well and pay 100% of the cost to drill the second well

In addition, Apache has undertaken to assume its share of Royalty obligations to third parties. Upon approval of this transaction by regulatory authorities, Apache will become operator of VIC/P45, and begin to select the drilling location for the 1st well. The well is planned to be drilled after a suitable drilling rig can be contracted. Apache is a well-known operator in offshore Australia, operating approximately 143 offshore wells in the past 5 years.

About The Gippsland Basin:
In excess of 4 billion barrels of oil/condensate and 12 TCF gas reserves have been discovered in the Basin since exploration drilling began in 1964, with remaining reserves estimated at 600 million barrels of oil and 5 trillion cubic feet of gas. Current production of the basin is around 140,000 barrels per day of crude and 570 million cubic feet per day of gas. At peak rates, the Gippsland Basin can deliver more than 1,000 million cubic feet a day.

About VIC/P45:
VIC/P45 consists of 214,896 gross acres. VIC/P45 is located offshore in the most prolific oil-producing basin in Australia, approximately 1 _ miles east of the Kingfish Oil Field in the Southern Gippsland Basin in the Bass Strait.

There are currently (23) producing wells in the field. The permeability in the pay section ranges between 5,000 and 40,000 millidarcies, which is extremely high. On mapping there are 14 structures on VIC/P45, which includes one oil and gas field discovery with 16 pays and over 1,000 feet of pay section and a second with one gas pay section.

Approximately $10 Million Worth Of 3D Seismic on VIC/P45
VIC/P45 is prospective for oil and gas at the top Latrobe and also at the deeper intra Latrobe and Golden Beach levels. A number of prospective features have been identified, several of which are analogous to existing Gippsland Basin discoveries. Almost the entire area of the 900 Kms2 permit is covered by a high quality 3D survey acquired and processed by BHP Billiton in early 2003 (replacement cost estimated at approx. $10 million). Further processing is proposed by the operator with respect to depth conversion calculations.

The wells drilled in the past in Vic/P45 have tested prospects in all three of the main play groups (top and intra-Latrobe and Golden Beach), with success in the intra-Latrobe and Golden Beach plays. The drilled wells are suitably positioned to help define the extent of the prospective section in the Vic/P45 area. The three hydrocarbon discoveries drilled at Anemone 1A, Archer 1 and Hermes 1 established the existence of working petroleum systems in the permit area.

Recent evaluation work has identified appraisal potential in the Archer Prospect.

Other targets include numerous structural and stratigraphic prospects and leads interpreted at intra-Latrobe, top Golden Beach and Emperor Subgroup level.

Of the prospects and leads identified by the previous operator, some four of these have been graded very high: Archer/Anemone, Scampi, Archaeopteryx and Saratoga. Apache will make the final drilling location decision, but some possible locations are below.

Errol Lead
The Errol Lead margins one of the northern boundaries of VIC/P45. Its up-dip termination is marked by a strong, structurally concordant "bright spot." This is interpreted as a direct hydrocarbon indicator (DHI) related to a possible gas accumulation. It implies the presence of an effective stratigraphic seal that provides an active stratigraphic trapping mechanism. The permit is located in a particularly "oily" part of the Gippsland Basin with significant potential for the presence an oil leg down-dip of the interpreted gas. The lead as presently defined encompasses 2.7 sq km, but its size could be substantially greater if the oil leg extends further down-dip.

Neptune & Trident Leads
Neptune and Trident are two adjacent leads defined in the central part of VIC/P45 involving interpreted coastal barrier and shoreface sandstones in structural-stratigraphic traps. The upper sandstone was intersected by Helios-1 where a 55 m section is present. Although water wet in this down-dip well location, the sandstones exhibit excellent reservoir properties with high net-to-gross reservoir and porosities that range up to 29% and average between 23% and 25%.

The high amplitudes that characterize the interpreted barrier sandstone system of the Neptune and Trident leads are intriguing and could imply the presence of hydrocarbons. The 3D seismic requires additional processing and analysis for a better understanding of the cause of the high amplitude reflections associated with potential sandstone reservoirs. Proposed well calibrated inversion and AVO modeling should help determine the variable contributions of porosity, lithology (reservoir/seal) and fluids (oil, gas or formation water).

Archer and Anemone Prospects
The Archer /Anemone Prospects represent the existing oil and gas discoveries made by the Archer-1 and Anemone-1A wells, together with deeper untested potential reservoirs. The oil discovery made in Archer-1 will be the subject of investigation to determine whether there is potential for further oil in the Archer feature, and whether an economic oil development scenario may exist.

On the basis of the new 3D data, Anemone-1A is interpreted to have drilled into the Archer fault block. Overpressure and poor quality reservoirs encountered in Anemone-1A are now interpreted as being likely to result from drilling into the fault plane. Improvements in reservoir quality may occur up-dip and away from the fault zone.

Further potential resources are associated with shallower gas accumulations proven by the Archer-1 and Anemone-1A wells, as well as potential additional gas reservoirs not tested by either well. Deeper horizons in Archer provide the opportunity to explore, at relatively low risk, for a gas resource close to infrastructure and key markets.

Summary:
VIC/P45 contains a wealth of prospects yet to be drilled, nearly all of which are associated with existing hydrocarbon discoveries. TME management ranks our ORRI under VIC/P45 very highly and anticipates that VIC/P45 may prove to be a substantial resource capable of delivering significant long term cash flow.

About TME:
The company has royalty interests in more than 4,651,695 acres located in two-world class petroleum basins in Australia, the Cooper-Eromanga Basin and the Gippsland Basin. Additional financial and management assets are currently being concentrated in acquiring additional acreage in its multi-million barrels of oil field potential in Texas named the Mega-West Field.

International
Substantial holdings have been acquired in two world class petroleum basins. The Cooper-Eromanga Basin (Onshore) located in the state of South Australia and the Gippsland Basin (Offshore) located in the Bass Straits and offshore to the State of Victoria.

Offshore
The Company has acquired royalty holdings in 370,572 acres in the Gippsland Basin. This Basin contains some of the largest fields in the world and wells that are world record Producers. One well in the Halibut Field has produced 60 million bbls. of oil -- a world record. Many TCF of natural gas have been produced from fields in this Basin.

Onshore
The Company has acquired royalty interest holdings in 4,281,123 acres in the Cooper-Eromanga Basin. To date, this Basin has produced a total of 11 Trillion cubic feet of natural gas and 450 million barrels of oil have been discovered. Since the first gas discovery in 1963, a total of 123 gas fields and 58 oil fields have been discovered.