International TME Resources Inc. reports that it has acquired a royalty interest in a second offshore oil and gas permit located in the Gippsland Basin, Bass Straits, Australia.

Dallas, Texas, Friday, February 27, 2004 - International TME Resources Inc. announces that it has acquired an oil & gas royalty interest in another offshore oil & gas permit. The permit, VIC P-54 is located in the Gippsland Geologic Basin, offshore Victoria, Australia. The permit contains 155,676 acres.

The TME royalty block is in the lowest risk area for exploration in the Basin. New 3D seismic technology is being applied to the block and several prospects have been identified. The block had a previous gas discovery called the LONGTOM which was not completed due to low gas prices and lack of gathering facilities at the time.

The Operator for the permit is Nexus Energy Limited.

Reserve estimates for prospects on the block are significant:

Longtom Field 87 BCF to 480 BCF of Gas
Logs indicate a 1,253 feet gas column in the Longtom discovery well.

South Longtom 85 BCF of Gas Recoverable

Grayling and North Grayling Combined potential Recoverable Reserves of 130 Million BBLS. of Oil

Hardyhead 18 Million BBLS. of OILRecoverable

Hussar 10 Million BBLS. of OIL Recoverable

These prospects lie within the trend of hydrocarbon migration in the north of the Basin and are analogous in structure and type to large producing fields in adjacent Esso acreage such as the TURRUM FIELD which contains 600 Million BBLS. of Oil.

Drilling on the project is anticipated to begin in the Fall of 2004. TME management believes this block could provide a significant revenue stream.

The permit now has close proximity to infrastructure such as gathering lines and terminal facilities.

TME Onshore Cooper-Eromanga Basin royalty holdings total 3,328,304 acres. Offshore royalty holdings in the Gippsland Basin now total 370,572 acres.