Source: C @ Limited                  Date: 25 May, 2011

Perth-based C @ Limited has commenced an exploration program on the Mongolian coal licenses it currently has under an option agreement, and has mobilized a rig to commence drilling in South Gobi province. The option agreement, announced 20 April, has a 10-week due diligence period that started on May 6.

The company says it has made significant progress on its due diligence, which has been extended to include the exploration program which is expected to gain a greater level of understanding of the prospectivity of the licenses, along with validating due diligence material provided by the license holder.

C @ Limited and its local partner Trinity Mongolia Pty Ltd have reviewed the data on the eight licenses since signing the agreement providing confidence to move ahead. The exploration program will include up to 5,900 meters of diamond core drilling and up to 1,200 meters of trenching on both the South Gobi and Uvurkhangay province licenses. A reputable drilling contractor has been appointed.

The company will undertake geophysical logging on all drill holes and coal sampling from the exploration program will be transported to the SGS laboratory in Ulaanbaatar for quality testing. C @ Limited expects the drilling program to be complete within five weeks with an additional two weeks for completion of any remaining coal samples for quality testing. Due diligence work also includes a legal review of the licenses which is expected to be completed shortly.