Churchill provides update on dispute with Ridlatama

Churchill Mining Plc. provides an update on the dispute with members of the Ridlatama group in relation to breaches of the 2008 investors agreements entered into between Churchill's subsidiary, PT Indonesia Coal Development (ICD), and members of the Ridlatama Group.

Churchill said that its Indonesian unit ICD has received two letters from Ridlatama group companies, PT Investmine Nusa Persada (INP) and PT Investama Resources (IR), stating that ICD failed to make the initial purchase payments nominated in the Investors Agreement. As a result of this failure, INP and IR were seeking to unilaterally terminate the Investors Agreement with ICD.

ICD denies the allegations made and says that all payments due for the purchase of its interest in these companies pursuant to the terms of the Investors Agreement have been made in full.

ICD has also referred the two letters received from Investmine Nusa and Investama Resources to its solicitors in Indonesia and Singapore and received advice that the INP and IR letters have no legal merit and are ineffective.

?Accordingly ICD will take whatever action it deems necessary to fully protect its legal rights in this matter,? Churchill said.

The IR license holds approximately 6.8 percent of the JORC resource within the East Kutai Coal project. No resources have to date been identified on the INP license. (romel)