ASX AND MEDIA ANNOUNCEMENT

11 August 2009                                                                        

combustion tests positive for mmamantswe power

Integrated energy developer Aviva Corporation Limited (ASX:AVA, BSE:AVIVA) is pleased to announce the results of Milling, Combustion and Environmental testing completed at the ALS Coal Technology testing facility in Ipswich, Queensland.

Four large diameter core samples from across the coal deposit were processed at the ALS Coal Technology pilot wash plant in Newcastle to provide a 1.5 tonne coal sample for combustion testing. Key quality parameters of the test sample were:

The sample is a conservative representation of expected coal quality as preliminary results from the coal washing test work suggest a slightly higher calorific value and lower ash content.

Milling Performance

The Mmamantswe coal exhibited moderate performance in mill energy consumption, mill wear and product fineness. The mill wear is pleasing as many Southern African coals exhibit high mill wear which increases the maintenance costs of coal pulverisers in a power station.

Boiler Performance

The Mmamantswe coal is well suited for base load power generation exhibiting excellent ignitability and flame stability at full load. Burnout efficiency was good and correspondingly the carbon remaining in the ash was very low making the ash suitable for concrete and ash applications.

Environmental Performance

The Mmamantswe coal exhibited excellent environmental performance in key parameters.  Emissions of sulphur dioxide (SO₂) are low, dust collection efficiency is very high and leachate levels in the ash will not pose a risk to groundwater.

The low sulphur emission is a major advantage for Mmamantswe as it is likely relevant emission standards can met without flue gas desulphurisation (FGD).  We estimate this would give Mmamantswe a capital advantage of $US0.5billion as well as significant water and operating cost savings compared to a similar plant utilising FGD.  Eskom is incorporating FGD in its new build projects across the border in the Waterberg.

Mr Reed said the combustion performance results will facilitate boiler engineering and completion of the EIA for the project.  The success of these tests is a significant step forward for Mmamantswe and places it amongst the lead projects for consideration as an Independent Power Producer in the Southern African Power Pool.

CONTACTS:                                      Issued by:
Lindsay Reed                                    Amanda Reid

Aviva                                                  Purple Communications

Chief Executive Officer                   Tel: +61 (0) 8 6314 6300

Tel: +61 (0) 8 9367 2344                    Mob: 0424 839 062 

ABOUT AVIVA

Aviva is an integrated energy company listed on the Australian Stock Exchange (ASX:AVA) and the Botswana Stock Exchange with its head office in Perth. The company is growing a portfolio of integrated energy assets. Aviva?s most advanced asset is the Coolimba Power project in Western Australia.

Mmamantswe Power is a 1,000MW base load power development north of Gabarone in Botswana. The project is located on the South African border and within the SAPP transmission grid. It is close to major industrial loads in South Africa.  The project has the advantage of low cost fuel, low sulphur emissions, ample water resources, nearby infrastructure and a highly rated investment destination in Botswana.

Coolimba Power is a 400MW base load power project in the Mid West region of Western Australia. It conveniently located in the northern half of the SWIS power grid to take advantage of demand growth both in the SWIS and from new resource projects in the Mid West. The location has the advantage of low cost fuel, available water, adjacent infrastructure, existing mining lease and freehold land. Coolimba has been short listed by the State retailer in its 2009 power procurement process.

Please visit: www.avivacorp.com.auCapacity by Geography/Category 2