Source: Guildford Coal                       Date: 27 July, 2011

Guildford Coal has completed the exercise to increase its stake in its Mongolian subsidiary Terra Energy LLC from 20% to 70%.  Non-Executive Chairman Craig Ransley has said the move was taken because of the positive results generated from exploration to date on the South Gobi coking and thermal coal project and the Middle Gobi thermal coal project. “The highly prospective Terra Energy LLC projects have the potential to define large scale thermal and coking coal mineral resources and represent an opportunity for Guildford to become producer within 12 months,” he said.

Guildford continues to conduct due diligence on a number of additional tenements in Mongolia which have synergies with and complement the existing project portfolio.