Daleco Resources Establishes Relationship for the Development of Its Sierra Kaolin Deposit.

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

Dov Amir, Chairman of the Board and Chief Executive Officer, announced today that the Company and its wholly owned subsidiary, C.A. Properties, Inc. ("CAP") have finalized its contemplated Operating License with Tecumseh Industrial Minerals, LLC a wholly owned subsidiary of Tecumseh professional Associates, Inc. of Albuquerque, New Mexico. The Operating License covers the site operations and the development of Company's Kaolin mineral deposit located in Sierra County, New Mexico. Mr. Amir stated that the Operating License builds upon the Memorandum of Understanding executed by the companies on November 30, 2004 and defines their ongoing operational relationships.

Robert Martin, President of CAP, stated that the execution of the Operating License puts in place the working document that will govern the efforts of the parties to commercialize the Company's potential 200 million ton Kaolin deposit. Mr. Martin added that the extensive analytical work performed over the last few years by CAP's consultants and which is now being confirmed by Tecumseh, have made it the primary focus for development. He noted that the Company's Kaolin products will be marketed under the trademark name, Sierra Kaolin(TM).

Tecumseh Professional Associates, Inc. is a multi-disciplined privately held company involved in the environmental, energy, facility operations and real estate industries providing high-quality technical, management, contracting and planning services throughout the United States and Puerto Rico.

Daleco Resources Corporation is an international asset and technology aggregation and monetization company with operating subsidiaries active in oil and gas, timber, minerals and technology. Through its subsidiaries, Daleco has interests domestically in the States of Alabama, Oklahoma, New Mexico, Pennsylvania, Texas, Utah and West Virginia and internationally in Guyana, South America.

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, which 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, risk inherent in the Company's domestic and international operations, imprecision in estimating product reserves and the Company's ability to replace and expand its holdings.