Coal Fe reports E. Kalimantan coal update

The following is an edited excerpt taken from Coal Fe Resources Limited quarterly report ended 31 March 2010 released on Friday.

The March Quarter. saw the Company continuing the development of the PT Pancaran Abadi project (?Abadi Project?) under the Joint Venture arrangement with PT Toba Jaya to advance the Abadi Project Kutai Kartanegara, E. Kalimantan to a production phase.

An updated coal resource estimate was also completed with consideration to JORC (December 2004) and Australian Coal Reporting Guidelines referenced by JORC and announced on 3 March 2010.

Works on the private coal stockpile and jetty and removal of overburden in the first mining pit in accordance to the designed mine plan have commenced and coal extraction is targeted in June 2010.

The Company is presently focusing on realising cashflows from the Abadi Project and will proceed with exploration activities on the remaining part of the Abadi Project as well as other projects once phase 1 of the Abadi Project is in production. (end of edited excerpt)