International TME Resources Inc. reports a Second Gas Discovery Offshore and Oil Production Onshore for its Royalty Holdings in Australia

Dallas, Texas, Thursday, January 20, 2005 — International TME Resources Inc. (ITME) announces that a second well has been drilled on the VIC P 54 Offshore permit. The Grayling well is the second of an initial three well program. Onshore, four wells of a 13 well program on the PEL 115 permit, have been drilled and have resulted in one gas and two oil discoveries.

Offshore-VIC P 54 (Gippsland Basin)
A second significant gas discovery has been made on the permit by Apache Corp. The Grayling well logging results indicate one gas column in the Intra Latrobe formation and two gas columns in the Golden Beach formation. The gas columns total 256 feet.

The Grayling well has confirmed the viability of the Golden Beach reservoirs as an exploration target on the permit. Plans include further logging and correlation with existing seismic to determine reservoir estimates for the Grayling well. The permit contains 155,676 acres.

Onshore-PEL 115 (Cooper Eromanga Basin)
Mirage
The well is an oil discovery in the Murta formation. Oil tested into production casing at a rate of 372 B.O.P.D. on a • inch choke. Plans are to free flow the well at 400 B.O.P.D. rates prior to placing on pump. With the Ventura Discovery 3 miles to the west of the Mirage Oil Field Discovery, it appears that there is a highly prospective Murta oil trend present in the southern part of the permit. Development drilling is planned for this year.

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.