Daleco Resources Signs Letter of Intent with Data Base Control Systems Inc.

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

Dov Amir, Chairman of the Board and Chief Executive Officer, announced today that the Company has signed a Letter of Intent covering the sales of its information technology holdings to Data Base Control Systems Inc. ("DBCSI") located in Orem, Utah. Mr. Amir stated that significant level of expertise that DBCSI has in the area of information data base management and their commercial exploitation was a natural fit for the data base related technology holdings of Daleco. While the specific terms of the transaction were not disclosed, the Company did indicate that the transaction would involve an all-registered stock consideration and that it is investigating the distribution of a portion of the shares it receives to its shareholders as a Special Dividend. The closing of the transaction is targeted for the fourth quarter of 2004.

Gary Novinskie, President of Daleco, stated that the placement of the Company's technology holdings with DBCSI offers Daleco the opportunity to realize the untapped value in these assets. He noted that the sale of the holdings, which were acquired and /or developed in 2001, is consistent with the Company's business philosophy of accumulating quality assets and then seeking out high quality entities to further their commercialization either through joint development or through the direct sale of the holding where the transactions can be structure to permit the Company to participate in the potential upside form the ongoing activities. The anticipated transaction with DBCSI is just that type of opportunity.

Frank Davis, Chairman of Data Base Control Systems Inc. stated that transaction with Daleco represents an unique opportunity for his Company which has been active in the data mining and networking industry since 2002. He noted that DBCSI has an extensive background in the development and successful commercial implementation of data mining technology. Furthermore it has placed certain of its developed core "crawl" technologies with major participants within the industry and is aggressively pursuing commercial applications for its patent pending ACT technology within the private and governmental sectors.

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.

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.