Cal Tech Becomes an Eight Percent Shareholder of the Company; Alchemy Acquires Patent and Technology Rights Developed with NASA/Jet Propulsion Laboratories.

PHOENIX -- Alchemy Enterprises Ltd. (OTCBB: ACHM) announced today that it has executed a License Agreement to acquire exclusive rights to certain fuel cell system patents and technologies developed in conjunction with NASA/Jet Propulsion Laboratories ("JPL"), and the California Institute of Technology ("Cal Tech").

As the managing partner of JPL, Cal Tech, under the terms of the License Agreement, has now become an eight percent (8%) shareholder of Alchemy. JPL is a Federally Funded Research and Development Center sponsored by the National Aeronautics and Space Administration ("NASA") and is operated by Cal Tech. Cal Tech will also receive a nominal annual fee.

As stated in our May 25, 2006, news release, NASA and Alchemy have been working together on a JPL Task Plan to develop, test and bring to commercialization Alchemy's Electric Power Cell technology. The company has now acquired the exclusive worldwide rights developed under the JPL Task Plan, and subsequent technologies and other rights, including, the Fuel Cell Power System with Advanced Hydrogen Storage technology.

Under this agreement, Cal Tech has taken on the responsibility to prepare, file, prosecute and maintain any and all patent applications and patents within the Exclusively Licensed Patent Rights and the Improvement Patent Rights related to the Power Cell Technologies.

Jonathan R. Read, president and CEO of Alchemy Enterprises, stated, "Establishing exclusive worldwide rights to these highly advanced technologies being developed by Jet Propulsion Labs only increases our stature in the alternative energy industry and has moved us forward in our business plan initiatives." Read continued, "Having Cal Tech as a shareholder of our company and prosecute the patents on our behalf is a positive stable move that is a significant vote of trust in our team and technology. Our working relationship with NASA and JPL has only strengthened through this agreement."

About Alchemy Enterprises Ltd.

Alchemy Enterprises Ltd. is an alternative energy company that is developing a new electric power cell technology that it believes will generate and manage electricity to power a broad range of applications, buses, and cars. Working in a research and development partnership with NASA's Jet Propulsion Laboratories, the patent-pending electric power cell technology, if developed and tested, may provide a clean, environmentally friendly, re-usable source for electric power and fuel.

For additional information, please visit: www.alchemy-energy.com.

Forward-Looking Statement:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company's SEC filings. These risks and uncertainties could cause the company's actual results to differ materially from those indicated in the forward-looking statements.