ALPINE, Utah--(BUSINESS WIRE)--Interline Resources Corporation (OTC:IRCE - News): On October 17, 2007 the Supreme Court of Queensland, Australia dismissed a summary judgment motion filed by Nationwide Oil against Interline Resources Corporation in connection with the Interline’s lawsuit against Nationwide for past due royalties. As a result of the dismissal, Interline will be able to proceed to the trial of its action early next year.

The company’s attorney Tim Williams explained that Interline designed, manufactured and installed a used oil refinery for Nationwide in Witherall Park, New South Wales in 1998. Since its start-up and operation, the plant had processed in excess of 50 million gallons of used oil. Under the terms of the Licensing agreement, Nationwide is obligated to pay Interline a 6¢ per gallon royalty on all finished products sold. Nationwide has refused to do so, claiming that the plant failed to operate properly and therefore owed no royalties. In July of 2000 Interline sued Nationwide to recover these royalties, plus 18% interest on the accruing balance, along with an order compelling them to make future royalty payments.

Mr. Williams noted the 8 year litigation period has been slow and costly. However, in 2005, Interline worked out a funding agreement with IMF Funding Ltd., an Australia company, which funds plaintiff lawsuits. Under the Agreement, IMF fronts all of the legal costs of the action, and receives 1/3 of any judgment or settlement awarded to Interline, in the same manner as US attorneys take contingency cases. Mr. Williams stated that without this arrangement, Interline would not have been able to proceed with this action.

Mr. Williams stated it has always been difficult to explain Nationwide’s position that it didn’t owe the company royalties when the plant has successfully processed millions of gallons over a 9 year period. Nationwide Oil Pty Ltd. is owned by Transpacific Industries Group Ltd Management Ltd., the largest integrated waste materials conglomerate in Australia, with annual gross sales of 1.2 billion AUS.

Note: The statements released by Interline that are not purely historical are considered to be forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within Interline's control. These factors include, but are not limited to, economic conditions generally and in the markets in which Interline may participate, competition within Interline's markets and failure by Interline to successfully develop business relationships.