Hallmarks Minerals acquires Kalimantan coal mining project

(07 April 2010)--Chapmans advises that the company?s partly-owned subsidiary, Hallmark Minerals N L, has agreed to acquire an initial 4% interest in the share capital of an overseas company controlling a start-up coal mining project in Kalimantan, Indonesia as well as a direct interest in the project which will entitle it to a fixed return per tonne of coal sold.

When sales of coal commence, Hallmark Minerals will receive a fixed sum (in effect, a royalty) of $1.20 per tonne of coal sold over the expected mine life of up to five years.

This fixed sum will be shared with other participants in the project on the first 800,000 tonnes of coal sold, with one third of that sum initially being payable to Hallmark, and thereafter it will be payable only to Hallmark Minerals.

The acquisition is being satisfied by payments totalling $400,000 and the issue of 5,000,000 shares at 2.5 cents each in Hallmark Minerals N L.

The shareholding interests in Hallmark Minerals will be: Chapmans Limited 72%,

Southern Cross Exploration N L 20%, and Others 8%. (end of release)