Daleco Resources Corporation and Zinkan Enterprises Inc. Form Joint Venture to Manufacture and Market New Product Called ZeoCast.

WEST CHESTER, Pa. -- Daleco Resources Corporation's (DLOV:OTCBB) wholly owned subsidiary, Clean Age Minerals Inc., (CAMI) of West Chester, PA, and Zinkan Enterprises Inc., (ZEI) of Twinsburg, OH, have entered into a preliminary joint venture agreement to form the ZeoCast Joint Venture, LLC. This new enterprise will involve the development of CAMI's Zeolite deposit near Marfa in Presidio County, Texas and the joint creation of a Zeolite based mineral product to be called ZeoCast.

CAMI will initially commit up to three million tons of Zeolite reserves from some twenty acres of its 5,200 acre lease area. CAMI has an ongoing, predevelopment program in progress on its Zeolite mineral deposit to define the reserve base. In the last quarter 2006, twenty-seven core holes were drilled for a total of 2,390 feet to provide additional geological and mineralogical information in support of future applications of Zeolite in the industrial, agricultural and environmental remediation industries.

ZEI will fund an expansion of the existing mining operations and processing capacity to manufacture ZeoCast and will provide the requisite transportation and marketing services. ZEI will also provide technical expertise for the final product specifications.

The final joint venture agreement will incorporate a defined lease area within the Marfa Zeolite deposit, and the equipment and processing plant requirements to produce the ZeoCast product. It is anticipated that all details will be finalized by the end of January, 2007. Production startup is dependent on the timing of orders and the time required to build-up a reserve inventory of ZeoCast.

Zinkan Enterprises Inc. manufactures a wide variety of specialty chemicals to serve the needs of mining, industrial and commercial customers. Zinkan has terminals through out the United States and serves the needs of customers worldwide.

Daleco Resources Corporation is a natural resource company with holdings in oil and gas and minerals. Clean Age Minerals holds industrial mineral interests in Texas, New Mexico and Utah.

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.