Churchill updates E. Kalimantan CBM project

The following is an excerpt from Churchill Mining Plc?s half year report for the six months ended 31 December 2007 released on Thursday.

The Sendawar Coal Bed Methane (CBM) Project ? continues to be of interest given the increasing cost of energy inputs. The area sits in a coal basin with potential to host 5 trillion cubic feet of gas.

In September 2007 Churchill (70%) was granted a Coal Bed Methane license (?CBM License?) for the project along with joint venture partner PT Ridlatama Mining Utama (30%) ? the first of its kind to be granted by the Indonesian Government through direct appointment. The CBM license has given Churchill access to a substantial oil and gas database including seismic information and well details. This information is now being interpreted under a joint evaluation study. The company will consider the carrying value of the exploration expenditure for the Sendawar project in light of these recent developments and future plans for the region, in the year-end financial statements.

Given Churchill?s considerable focus on Indonesia the Board decided to divest 80% of the company?s South Woodie Woodie manganese project in the East Pilbara of Western Australia into a dedicated Australian company called Spitfire Resources Limited. (end of excerpt)