Source: Hunnu Coal                    Date: 23 September, 2010

Hunnu Coal has upped the pace of drilling at its coal projects in Mongolia with 11 rigs operating on various projects, aimed at generating initial JORC resources.

Hunnu has completed 71 drill holes for 6,022 meters at the Unst Khudag mine, where four drilling rigs are currently operating. Initial JORC resources are expected to be completed for both the Unst Khudag Mine and the Har Toirom discovery within it in the last quarter of 2010, with Hunnu estimating an exploration target of 250Mt to 500Mt of coal for the Project.

The company has completed 20 drill holes for 3,654 meters at the Tsant Uul Coking Coal Project, where five drilling rigs are currently operating. A JORC resource study for Tsant Uul is expected to be completed before the end of this year with scoping and development studies to commence early in 2011, with Hunnu estimating an exploration target of 50Mt to 100Mt of coal.

Hunnu has completed 15 drill holes for 2,132 metres at Tenuun-2, with two rigs operating. In total, Hunnu has completed 106 drill holes for 11,808 meters of drilling.