Churchill appeals Administrative Tribunal decision

Churchill Appeals Administrative Tribunal Decision

(March 10, 2011)--Churchill Mining announces that it has appealed against the decision of the Administrative Tribunal in Samarinda, East Kalimantan, read out on 3 March 2011, relating to the revocation of the four mining licences that comprise the East Kutai Coal Project (EKCP).

Notice of Appeal

Under Indonesian law, a notice of appeal against a decision of the Administrative Tribunal is to be filed within 14 calendar days from the date of the decision. The appeal notice against the decision of the Administrative Tribunal was lodged on 9 March 2011 with the Administrative Tribunal in Samarinda, East Kalimantan by lawyers acting for the licence holders. The appeal will be heard by the Administrative High Court in Jakarta. It may take several months after the lodgement of the notice of appeal, before the Administrative High Court in Jakarta would issue its notification to the parties, which marks the beginning of the formal appeal process.

The decision of the Administrative Tribunal on 3 March 2011 relating to the revocation of the EKCP mining licenses was delivered verbally. It is expected that the full written ruling will be issued in approximately two weeks, at which time the Company will be able to review it for the purpose of preparing and filing the memorandum of appeal, containing the arguments that the Company will put forward to the Administrative High Court.

The Company's current cash at bank is US$12.2 million.

The Company will make further updates on the appeal process as and when appropriate.(ends)