News Releases

CALGARY, ALBERTA--Enerchem International Inc. ("Enerchem") and
Newalta Income Fund ("Newalta") are pleased to announce that
Enerchem and Newalta have entered into a Joint Venture Agreement
("Agreement") to exploit a broad range of opportunities to
enhance the performance of both Enerchem and Newalta.

Newalta has a network of 34 facilities throughout western Canada
which process oilfield and industrial wastes and produce products
for sale.  Enerchem manufacturers and distributes a broad range
of chemicals and hydrocarbon based fluids to provide advanced
solutions to the oil and gas industry throughout western Canada.
Newalta's extensive facility network and infrastructure combined
with Enerchem's highly experienced sales and technical support
staff and customer relationships will provide an excellent
opportunity to improve customer service, reduce costs and
increase revenues.  In addition, the marketing of Newalta's
products to Enerchem's customers and the recycling of Enerchem's
by-products by Newalta both provide substantial opportunities to
further improve performance.

"This agreement is consistent with our initiative to create
additional value from our existing facility network and
infrastructure in western Canada and we are very optimistic that
tangible results will be realized," stated Alan Cadotte,
President and Chief Executive Officer of Newalta Income Fund.

Mr. Larry B. Phillips, President and Chief Executive Officer of
Enerchem stated, "We are extremely excited about being associated
with a company like Newalta.  This association will allow the
companies to explore business opportunities that will provide
strong financial benefits to the investors of Newalta and
Enerchem".

This document may contain forward-looking statements, relating to
Enerchem and Newalta's operations or to the environment in which
they operates, which are based on Enerchem and Newalta's
operations, estimates, forecasts and projections.  These
statements are not guarantees of future performance and involve
risks and uncertainties that are difficult to predict, or are
beyond Enerchem and Newalta's control.   A number of important
factors, including commodity prices and volumes as well as others
set forth in other public filings, could cause actual outcomes
and results to differ materially from those expressed in these
forward-looking statements. Consequently, readers should not
place any undue reliance on such forward-looking statements. In
addition, these forward-looking statements relate to the date on
which they are made.  Enerchem and Newalta disclaim any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.