Source: Guildford Coal Limited                      Date: 13 April, 2011

Guildford Coal Limited has signed a Call Option Deed with certain affiliated funds of Och-Ziff Capital Management Group LLC with respect to Terra Energy LLC. On March 31, Guildford announced the acquisition of a 20% stake in Terra Energy LLC with the option to increase its shareholding to 70%. Terra Energy LLC holds a 100% interest in 6 exploration permits that are prospective for thermal and coking coal in the South Gobi and Middle Gobi regions.

Drilling on these tenements is expected to commence this month and the first mining license is expected before the end of 2011. The Call Option Deed provides the Och-Ziff Funds with the right to acquire a 25% stake in Terra Energy LLC for AUD25 million in cash. Should the option be exercised by the Och-Ziff Funds, Terra Energy LLC will be in a strong financial position to fund the development of its Mongolian coal projects.