Daleco Resources Corporation's Sierra Kaolin(TM) Product Development Trials News and Results.

WEST CHESTER, Pa. -- Gary J. Novinskie, President of Daleco Resources Corporation (OTCBB:DLOV), announced today that its wholly owned subsidiary, Clean Age Minerals, Inc. (Clean Age) in conjunction with Tecumseh Professional Associates, Inc. (Tecumseh), has completed paper coating trials of its Sierra Kaolin (SK) composite material using a cylindrical laboratory coater (CLC) at Western Michigan University (WMU). The SK composite material was tested side-by-side against premium calcined kaolinite clay and premium ground calcium carbonate coating materials and the performance of the SK material indicate that the SK product is a viable pigment option for coating applications. The SK products are 90 to 97 brightness fine particle size composite pigments. The paper coating trials and ongoing architectural paint pigment trials are being conducted as necessary steps for the commercialization of its Sierra Kaolin[TM] deposit located in southwest New Mexico.

Steve Roche, CEO of Tecumseh, as project operations manager and partner of Clean Age, reported that as part of the commercialization efforts, Ginn Mineral Technology, Inc. (Ginn) of Sandersville, Georgia continues to assist in the development of the Sierra Kaolin[TM] process technology and product development. Ginn is a leader in processing technology and commercial product development for a variety of minerals including kaolinite and has been actively involved in the kaolin industry both domestically and internationally for over a decade. As part of its ongoing work, Ginn has formulated coating pigments using the SK material and provided technical oversight during the CLC paper coating trials at WMU. Based on its CLC Coating Study, Ginn concluded that the SK material is a viable replacement or extender for premium, more expensive calcined kaolinite clay in light weight coating (LWC) applications. All of the LWC formulations using the SK material produced excellent results with improvements in optical properties, i.e., sheet brightness and lower coating shade properties (lower b values). With the exception of one SK composite material formulation, opacity of the SK coating was superior to the control pigments. Ginn also concluded that the SK material could extend fine ground calcium carbonate in solid bleached sulfate board (SBS) coatings with comparable results. With the favorable results achieved in the CLC paper coating trials, Ginn recommends conducting print tests on the LWC and SBS coated products to absolutely confirm the performance of SK products.

Ginn is also providing technical oversight for pigment trials using SK hydrous and calcined materials in architectural coatings. The actual pigment trials are currently being conducted by DL Laboratories of Brooklyn, New York. Results of the SK pigment trials are expected in two weeks. If favorable results are achieved from the pigment trials, a minimum of four commercial products will have been produced and tested using the SK composite material.

Mr. Roche added that the consulting firm of Pincock, Allen, and Holt is nearing completion of the SK Mine pit design and Tecumseh personnel continue to work out the details of the mine plan and continue to populate the US Forest Service Plan of Operation document (mine permit application) as technical information is developed and becomes available. The next phase of the SK property development will include building economic models for the mining, processing, transportation, marketing, and sales of SK products.

In conclusion, Mr. Roche, after receiving reports from Ginn, is of the opinion that the SK composite material has been successfully formulated into several commercial products that have better optical properties and lower processing costs than currently available materials.

Daleco Resources is a resource company with operating subsidiaries active in oil and gas, minerals, and environmental remediation technology.

Safe harbor for Forward-looking Statements: Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in the future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product price volatility, product demand, market competition, and risk inherent in the Company's operations, imprecision in estimating product reserves and the Company's ability to replace and expand its holdings.