Source: Hunnu Coal                       Date: 10 August, 2010

Hunnu Coal has said the results of the recently completed exploration drilling program at the Unst Khudag Coal Mine and surrounding licenses in Mongolia have been “extremely encouraging”. The company has also announced the immediate commencement of an extensive drilling program to further expand the Unst Khudag Coal Mine.

A total of 34 drill holes have been completed, 28 of which are located on the existing mining license and six others on the adjoining exploration license.  All but three drill holes intersected coal seams, with single seams thicknesses up to 25.6 meters less than six meters from the surface. The coal analyses revealed high quality thermal coal.

Unst Khudag has an exploration target of 250Mt to 500Mt.  Off-take agreements are currently being negotiated with Mongolian and Chinese thermal coal users.