Coal Fe reports E. Kalimantan coal update

The following is an edited excerpt from ASX-listed mining firm Coal FE Resources on Indonesian projects, released on Wednesday.

Coal FE Resources Limited is pleased to announce that all infrastructure development at PT Pancaran Surya Abadi Coal Project (?Abadi Coal Project?) has now been completed. Presently our mining contractor, PT Toba Jaya has mobilised the necessary machineries and is currently producing from the first mine pit.

A trial shipment of 50,000 Metric Tonnes (Mt) is scheduled to be delivered to the client by 3rd week of October 2010.

Upon completion of the trial shipment, a long term supply agreement shall be negotiated and an announcement will be made accordingly.

Previously, on 3 March 2010 CES announced the increase in both the measured and combined coal resources in its Project Abadi Coal Project.

The latest phase of drilling occurred between March and May 2009. All holes were electronically logged for density, resistivity and width.

All the available data following the 2007/2008 and 2009 field work was used by Ravensgate minerals industry consultants to construct a 3D geological seam model using wireframe models depicting the seam roof, seam floor surfaces and topographic surface.(end of edited excerpt)