$35,000,000 Offshore Well Strikes Deep Gas on International TME Resources Inc. ORRI — Est. 2,165 Feet of Gas Pay — Now Drilling Horizontal through Gas Sands

DALLAS — (BUSINESS WIRE) — July 31, 2006 — International TME Resources Inc. (OTC:ITME — News) is pleased to report that the operator of VIC/P54 states that the Longtom -3 has successfully encountered approximately 52 feet of net gas sand at the targeted level within the Admiral Formation, some 869 feet deeper than the deepest gas intersection in Longtom-2, less than 1 mile away. The Longtom-3 will now drill horizontally through the gas field.

The gas sand penetrated in the Longtom-3 pilot hole is thinner than was anticipated but this has been partially offset by the better than expected gas saturation. Initial indications of porosity and permeability in the gas sand are also encouraging. This result at Longtom-3 has increased the total gross thickness of gas intersected in the Longtom Gas Field to approximately 2,165 feet, (there is still potential for deeper gas as a gas water contact was not observed in the well). The gas has been encountered in a series of independent reservoir units.

The purpose of the Longtom 3 pilot hole was to accurately locate the deeper gas sands seen in Longtom 2 in order to facilitate well path planning of the horizontal production well. The shallower gas bearing sands seen in Longtom 1 and Longtom 2 were not anticipated to be gas bearing in the Longtom -3 pilot hole as they were expected to be intersected below the gas water contact at the well location.

The Longtom 3 pilot hole suggests that the Admiral Formation reservoir sands are laterally continuous in the vicinity of the three wells drilled on the Longtom Gas Field to date as the sands can be correlated between all three wells.

The results of the well to date indicate that amplitude effects derived from seismic (“seismic anomalies”) can be used to determine the quality and distribution of gas filled sands. The use of seismic anomalies is an important tool for optimally locating the Longtom 3 horizontal well and any future Longtom wells.

The pilot hole will now be plugged back in order for the horizontal well to be drilled laterally through the Longtom gas sands and tested as originally planned. The Longtom-3 well is a complex well and will cost approximately $35 million to drill and complete, roughly double the average cost of a Bass Strait (Gippsland Basin) well.

The well is located under VIC/P54 on TME's ORRI, which consists of 155,676 gross acres located offshore Australia in the Gippsland Basin. The Longtom-3 well spudded in the first week of July using the Ocean Patriot drilling rig.

The operator of VIC/P54 has signed the Longtom Gas Sales and Toll Processing Agreement with Santos. The agreement will enable the operator of VIC/P54 to process and sell up to 350 BCF of gas over 12 years (with an option for additional 91 BCF of gas) from the Longtom Gas Field located in Bass Strait on TME's ORRI.

The VIC/P54 is a complement to the Company's vast International asset portfolio. TME continues its focus of delivering significant long term value for our shareholders.

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 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.

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.

Texas
ITME has entered into a joint venture to develop a heavy oil and natural gas project in southwest Texas. A total of 15,000 acres, more or less have been acquired in the prospect MEGA WEST AREA. Multiple Marble Falls Reefs have been mapped at a depth of 4,200 feet and a well is planned to be drilled to offset a mapped high to two old gas wells that produced .25 BCF per well. Cores will be taken in the Trinity Oil Sands at a depth of 1,000+,- feet over an interval of more than 70 feet. These cores will provide an update to previous old cores which verified the existence of the Trinity Oil Sand oil saturation. 65% oil saturation, 30% porosity and thousands of millidarcys of permeability were measured. ITME will earn a carried 30% net profits interest in the project and will manage the operation. The company's consulting geologist projects a multi-million barrel recoverable potential for the project.