International TME Resources Inc. reports Oil & Gas Discoveries on both Offshore and Onshore Royalty Holdings in Australia

Dallas, Texas, Thursday, January 6, 2005 — International TME Resources Inc. (ITME) announces that the Longtom well has been drilled on the VIC P 54 Offshore permit. The well is the first of a three well program. Onshore, four wells of a 13 well program on the PEL 115 permit, have been drilled.

Offshore-VIC P 54 (Gippsland Basin)
A significant gas discovery has been made on the permit by Apache Corp. The LONGTOM well encountered high pressures and the lower section of the Emperor formation tested at a rate of 19 MMCFGPD plus 3 BBLS. condensate per MMCF of gas. The upper section of the zone is expected to produce at a similar rate from a future offset well. This is the first gas discovery for the Emperor formation in the Gippsland Basin. The Ocean Patriot rig has moved and is drilling the GRAYLING STRUCTURE which is projected to have recoverable reserves of 104 Million BBLS. of oil. The North Grayling adjacent structure is projected at 86 Million BBLS. of oil recoverable. The permit contains 155,676 acres and is located adjacent to the TURRUM FIELD with 600 Million BBLS. of recoverable oil.

Hornet
The pay zone, the Patchawarra formation, is 100 feet thick and encountered high flow rates of gas during drilling. Production testing of this well will be completed in January or February. This well is located on a separate structure on the PEL 115 permit and is a Permian gas discovery. Development drilling is planned for the structure.

Ventura
The Ventura has been completed in the Jurassic as a new oil discovery. Oil was encountered in two zones and tests indicate production rates in excess of 350 B.O.P.D. Production testing of this well is anticipated in January or February.

Canberra
Production casing was set through the Patchawarra zone. Testing of the Patchawarra zone failed to recover hydrocarbons. The well has been plugged and abandoned.

Mirage
The well is an oil discovery in the Murta formation. Oil flowed into the drill pipe at a rate of 500 B.O.P.D. Completion and production tests are scheduled to begin on January 11. The Mirage Prospect is a large, conventional anticlinal oil trap and development drilling is being planned.

The PEL 115 permit contains 273,297 acres, which is divided into six separate blocks. The blocks contain more than 30 leads and prospects with oil and gas potential. The operator for the permit is Victoria Petroleum N. L.