Source: Proactive Investors               Date: August 17, 2011

Initial extractions at the Nuurstei site indicate a high-quality resource that could have a dramatic affect on the industry and Mongolia as a supplier. The site is being develop by Enkhgoviin Chuluu LLC, a joint venture between Xanadu Mining and Noble Group.

“The initial coal quality results from the first hole at Nuurstei are very encouraging, with subsequent drilling confirming the discovery of a potentially significant new coking coal province in Northern Mongolia within reasonable distance of the Erdenet rail network,” said Xanadu Chairman Brian Thorton.

Analysis was made with diamond drill holes at Nuurstei, confirming the coals reported outstanding quality. Since then, four diamond holes stretching 1,393 meters deep have been made. Results regarding the coals “washability,” coking, and plastometrics will be available shortly, said a corporate representative

The Nuurstei sites is 3,000 hectares, located in a recently identified coking coal basin between Murun and Erdenet in northern Mongolia. The development of Nuurstei is Enkhgoviin Chuluu's first venture for coking coal and iron ore opportunities. The conglomerate committed USD 1.5 million for exploration.