ASX AND MEDIA ANNOUNCEMENT

7 February 2008                                                                                   

ELS 57 2008

AVIVA ANNOUNCES A COAL RESOURCE OF OVER ONE BILLION TONNES AT MMAMANTSWE   

Integrated energy company Aviva Corporation Limited (ASX:AVA), today announces an initial resource estimate of 1.287 billion tonnes of coal at the Mmamantswe Coal Project in Botswana.

The result is a major resource boost for Aviva, and is more than double the 600Mt target proposed in April 2007 when the prospecting licences were granted.

Aviva CEO, Mr Lindsay Reed, said the initial resource estimate highlighted the potential of the project, where Aviva has been investigating the merit of a 1,500MW power station.

“The resource estimate affirms the Mmamantswe Project as very low strip ratio open pit thermal coal deposit, with the potential to supply the six million tonnes per annum required to support the 1,500MW power project,” Mr Reed said.

“The in situ tonnage of 1.3 billion tonnes significantly exceeds the 600 million target set by the company, and is a major milestone in the development of the project,” he said.

Coal quality is in line with expectations, and testwork confirms that around half the ash is removed at high relative densities of 1.8-1.9.

The average overburden cover in the resource area suggests a stripping ratio of around 1 bcm/tonne of in-situ coal.

Drilling revealed that the volume of the coal basin was larger than targeted because the thickness of the carbonaceous sequence persisted further to the west than anticipated. Coal quality test work results received to date confirm the coal content of the carbonaceous sequence also persists to the west.

The coal quality test work confirms Aviva’s expectation that the coal would be amenable to beneficiation at a relatively high cut point. Cumulative floats in the 1.8 to 1.9 relative density range show 50% reduction in ash at a 40-50% yield. The calorific value of the coal in these cumulative floats ranged from 18-20 GJ/tonne which is at the high end of the company’s expectation. Particularly pleasing is the sulphur content of 0.84% which is reduced to less than 0.5% in the cumulative floats.

The resource estimate is based on a 32 hole 3500m drill program. Of these holes 23 intersected coal and have been utilised in the resource volume calculation. Coal quality test work results for 13 of these holes were used to model the coal quality parameters. Coal quality results from another nine holes are now available and will be incorporated in the resource model. It is expected that these results will upgrade some of the resource from the Inferred to Indicated category. A drill hole location map,   table of drill holes, description of coal zoning and break down of the resource estimate by zone is appended to this release.

A new drilling program to upgrade the deposit to reserve is currently being planned to commence in late March. The program will comprise 150-250 holes and will be designed to upgrade the resource to reserve status. The drill program will increase the density of coal quality information across the deposit, enable coal preparation test work and design to be completed and provide a composite sample of a representative washed product for combustion test work to enable boiler design.

For further information, please call:

Lindsay Reed                                                   Robert Kirtlan

Aviva                                                                Aviva

Chief Executive Officer                         Director

Tel: +61 (0) 8 9367 2344                                    Tel: +61 (0) 8 9367 2344

Issued by:

Warrick Hazeldene   Purple Communications  Tel: +61 (0) 8 9485 1254  

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