Source: Hunnu Coal                           Date: 10 February, 2011

Hunnu Coal has announced an initial Coal Resource to JORC Code reporting standards for the Tsant Uul Coking Coal Project, “ideally and strategically located for the development of a coal mine”, being within 40 km of the giant Tavan Tolgoi Coking Coal Field in the South Gobi Province of southern Mongolia.

The key points in the report are:

·  Initial Coal Resource of approximately 90Mt, with 61Mt in the Measured and Indicated JORC categories (34Mt Measured, 27Mt Indicated).

·  Operating road coal haulage to China peripheral to project.

·  Proposed rail line to China peripheral to project.

·  Extensive drilling program under way, with six drilling rigs operating on site. An additional two drilling rigs are being mobilized to site.

·  With further drilling considerable potential exists to both expand and increase the Coal Resource at the Tsant Uul Project.

·  The process for the application of a Mining License has commenced. Hunnu is completing a study with the aim of generating initial production in the latter half of 2011.

Hunnu Coal now has total coal resources to JORC Code reporting standards of over 400Mt across its projects, with new resources currently being estimated for both the Unst Khudag and Tenuun-2 Projects. The company has a 90% interest in the Tsant Uul Coking Coal Project, which covers over 59,000Ha. It has now completed a total of 28,029 meters of drilling for 187 drill holes targeting coking coal.