Source: Hunnu Coal                       Date: 08 December, 2010

Mongolia-focused Hunnu Coal has reported an initial JORC measured, indicated and inferred resource estimate of 324 million tons to a depth of 140 meters for the new Har Toirom coal discovery, which is located adjacent to the Unst Khudag Coal Deposit in Mongolia. This is a significant boost to the company's aim of becoming a major force in the exploration and development of coking and thermal coal deposits in the world class South Gobi and Middle Gobi coal regions.

Resource modelling is now progressing on the Unst Khudag Deposit, which will be released in the coming weeks. A total of 209 drill holes have been completed there, resulting in a total of 17,435 meters of drilling, including 8,877 meters of drill core. The company is negotiating off-take agreements with potential buyers.

The discussions on construction of a power plant on site are progressing positively, with identification of a suitable consultant to undertake a feasibility study. Transportation and logistics studies for delivering Unst Khudag coal to the Mongolian Chinese border are at an advanced level.