Infrastrata has made applications for exploration licences in Germany and Spain.

The process required to acquire mining rights over a salt dome in North West Germany is underway and further evaluation work is undergoing. Infrastrata has an 80% interest in this joint venture alongside a local partner which holds a 20% interest.

In Spain the Andalucía Official Gazette published an announcement for an exploration licence application by a subsidiary of the Company, Portland Gas ESP SL. The Company is awaiting the outcome of the application.

On the 29 July 2010 Infrastrata announced that the Company is in the process of setting up agreements with ECORP, the main terms which are subject to due diligence and formal agreements being agreed, are as follows:

Germany
It is proposed that eCORP will acquire 80% of the share capital of the project company in return for funding the project to first gas operations, should the project proceed to development. The transaction is subject to the agreement of Infrastrata’s local project partner. Infrastrata’s share in the project will then reduce from 80% to 16%. In addition to the funding outlined above, eCORP will refund Infrastrata’s share of back-costs of the project estimated at £0.15 million. Under the terms of the proposed agreement Infrastrata will reimburse eCORP for Infrastrata’s share of the development and construction costs within 90 days of first gas storage operations in order to retain its 16% interest. The project company recently submitted an application for an exploration licence over a salt dome in NW Germany. Infrastrata and its local partner will work with eCORP to identify further energy storage projects within an Area of Mutual Interest (“AMI”) covering Germany and The Netherlands. If other projects were to be approved by eCORP, Infrastrata would retain a 12% interest on similar terms. Infrastrata will provide the project company with technical services under an agreement in connection with the development of the projects.

Spain
It is proposed that eCORP will acquire 100% of the share capital of the project company. Under the terms of the agreement eCORP will refund Infrastrata’s share of back-costs of the project estimated at £0.25 million. Infrastrata will retain an option until 90 days after the commencement of gas storage operations to “buy-back” a 20% interest in the project in return for paying a pro-rata share of the development and construction costs. The project company submitted an application for an exploration licence in Andalucía in 2008. Infrastrata will work with eCORP to identify further salt gas storage projects within a further AMI covering Spain and France. If other projects were to be approved by eCORP, Infrastrata would retain an option to “buy-back” a 15% interest on similar terms. Infrastrata will provide eCORP with technical services under an agreement in connection with the development of the projects.