Outgoing chairman Eddie Smith and fellow nightwatchman director Doug Jendry stepped down from their positions today, with Smith remaining an active director, based at the company's Victoria Park office, which will act as a branch office.

Smith and Jendry engineered a boardroom coup last month after long-aggrieved shareholders revolted after becoming fed up with the antics of the previous management and board of directors.

Smith welcomed new chairman Joe Mercorella on board, with 'his reputation of not being a "gonna" bulldust-type person and is known as a person who can and will provide sensible and effective leadership.'

'He is committed to delivering to shareholders increases in their investment. As a long term shareholder himself, Joe fully appreciates the concerns of Kalrez shareholders,' said Smith.

Smith paid tribute to Jendry saying 'that during his short tenure the company resolved the Seram cash default position, moved offices, realised capital and secured funding for the future ongoing operations in Indonesia. Also during this time the Kalrez share price increased 150%.'

'Doug gave Kalrez his time to assist the company now, as I term it to "turn the corner" whilst being a fulltime executive with other public companies,' he said.

In his statement, Smith said he wanted to reassure shareholders he had not been pushed and in a company of Kalrez' size, there can only be one "boss". Smith said he intended to support and assist to bring about the benefits Kalrez shareholders deserved.

The new registered office of Kalrez Energy is Suite 33, 168 Melbourne Street, North Adelaide SA 5006. Ph: 08 8239 1344 Fax: 08 8239 1744