Churchill: Update on the appeal to the supreme court of Indonesia

(26 August 2011)-- Churchill advises that the Company has been unable to file its Supreme Court - Notice of Appeal this week as previously announced in its release of 19 August 2011 because the court of first instance (i.e. the Samarinda Administrative Court) has not yet provided official notification of the negative decisions relating to the four licenses that make up the East Kutai Coal Project (in which Churchill has a 75% interest).

Due to the Indonesian national holidays next week the Company expects that the Samarinda Administrative Court will provide the official notices to the Company during the week commencing 5 September 2011. The Company will move immediately upon receipt of the official notices by the Samarinda Administrative Court to file its Supreme Court notice of appeal.

The appeal was launched to seek to overturn the decision by the Administrative Tribunal in Samarinda, East Kalimantan in relation to the revocation of the four mining licenses that comprise the East Kutai Coal Project.

The Company strongly objects to the original ruling of the Administrative tribunal in Samarinda and remains committed to protecting its interest in the East Kutai Coal Project and seeking an appropriate remedy.

In addition the Company advises that its solicitors have been provided with a copy of the negative appeal decisions for the PT Ridlatama Tambang Mineral and PT Ridlatama Trade Powerindo licenses that make up the balance of the East Kutai Coal Project. (end of release)