Daleco Resources Corporation Advances Kaolin Project.

WEST CHESTER, Pa. -- Daleco Resources Corporation (OTC.BB:DLOV)

Stephan V. Benediktson, Chief Executive Officer of Daleco Resources Corporation, announced today that the analysis efforts pertaining to its Sierra Kaolin(TM) deposit located in New Mexico have progressed successfully and the Company, through its wholly-owned subsidiary, Clean Age Minerals, Inc., is proceeding with its plans to commercialize its mineral interests.

Richard A. Thibault, President of Clean Age Minerals, reported that as part of the confirmation analysis efforts by Company and its operational partner, Tecumseh Professional Associates, Inc., a 16 hole drill core program was conducted targeting an area of approximately 30 acres out of the 2,720 acres held. The geographic location of the core drill program was selected to coincide with the area of the kaolin deposit most likely to be subjected to initial development.

As a result of the core drilling program, approximately 1,442 feet of subsurface material (drill core) was recovered from the deposit. Mr. Thibault stated, that the sample analysis work on this subsurface material, which has been ongoing for the past several months, has been concluded. As part of these efforts, the drill core from each hole was broken down into two foot sample lengths which produced over 600 samples. Each of these samples underwent detailed testing at three different laboratories.

The sample preparation and physical properties where done by Mineral and Resource Technology of Albuquerque, NM; X-Ray diffraction work was performed by the University of Indiana at Bloomington, IN and a suite of chemical analyses was completed by ACME Laboratories of Vancouver, BC. Roughly twenty thousand analyses were performed and this data now comprises the Company's extensive Sierra Kaolin(TM) data base. This large set of data confirmed the physical, chemical and high commercial quality of the kaolin deposit. The data base is now being interpreted to better understand the depositional characteristics of the ore body to facilitate the mine design and the process flow sheet.

As a result of the encouraging test results obtained, the consulting firm of Pincock, Allen & Holt has been retained to develop a computerized geological and resource model using all of the Company's recent and past data collected on the property. Pincock, Allen & Holt has conducted its site visit and has commenced the compilation of the required technical data for their work. It is anticipated that this modeling work will be completed by the end of August.

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.