Cokal updates C. Kalimantan coal project

The following is an edited excerpt from Cokal Limited's quarterly report released on Friday.

Completed Purchase of additional 10 % of BBM and BBP projects - Cokal now owns 60%

As announced on 21 September 2011, global metallurgical coal group Cokal Ltd completed the purchase of an additional 10% of both the Bumi Barito Mineral (BBM) and Borneo Bara Prima (BBP) projects. The purchase of the additional equity will bring Cokal?s ownership of the two projects to 60%.

Cokal has paid US$8,000,000 plus issued 1,000,000 ordinary shares in Cokal Ltd . Under the terms of the transaction Cokal has purchased an additional 10% of the shares in the two PMA holding companies PT Bumi Barito Mineral and PT Borneo Bara Prima.

Cokal has previously confirmed high quality premium metallurgical coal at its Bumi Barito Mineral (BBM) project in the Indonesia territory of Central Kalimantan.

BBM covers an area of 19,920 ha, immediately adjacent to BHPBilliton?s Juloi tenement, and straddles the Barito River. BBP covering an area of 13,050 ha is located adjacent to BHPBilliton?s Maruwai tenement.

Exploration

BBM Project
The drilling programme for the BBM (Bumi Barito Mineral) project in Central Kalimantan was the core focus for the group during the September 2011 quarter. A base camp and four flying camps were established together with an active recruitment programme has enabled a total of four drills to be deployed during the quarter.

While good progress is being achieved on the planned drilling programme, some impact on exploration logistics was caused by heavy rain events and Ramadhan.

The drilling programme is on track to define an initial JORC compliant resource by the end of 2011.

BBP Project
BBP (Borneo Bara Prima) project north east of BBM cover 13,050ha and is adjacent to BHP Billiton?s Maruwai tenement. Geological mapping was completed during the quarter. Based on the favourable results from this work, it was decided to commence a drilling programme in the current quarter.

Drilling targets have now been defined and late in the quarter an additional two drilling rigs were secured for use on the BBP project. These rigs are ready to be deployed and resources and logistics are being organized to support the programme. It is planned to commence the programme during the month of December, 2011.

AAM and AAK Projects
Cokal has a 75% share of Anugerah Alam Katingan (AAK) and Anugerah Alam Manuhing

(AAM) projects also located in Central Province, Kalimantan, Indonesia. The AAK project area comprises 5,000m hectares and the AAM project comprises 10,000 hectares. Geological mapping of AAM was undertaken during the quarter and the results will be evaluated during the current quarter.

The company also remains active in evaluating other possible opportunities in the region. (end of edited excerpt)