Kangaroo reports updated 3.15b JORC resource statement

Kangaroo Resources Limited (KRL) reported updated JORC Code Resources and Reserves Statements for its portfolio of coat projects, including the pending Pakar acquisition in East Kalimantan.

Subject to completion of the transaction with Indonesia-listed coal mining firm PT. Bayan Resources Tbk, the updated JORC Code Resource and Reserve Statements confirm KRL will have a JORC Code Total Coal Resources of 3,146Mt# for the Pakar, Mamahak and GPK Projects with a range of coal types ranging from low-rank thermal coal to semi-soft coking coal. This includes JORC Code Reserves of 442Mt1 at the Pakar Thermal Coal Project, which represents a 381% increase from the previous Statement, the company said.

The updated resource and reserve statements were completed as part of the regulatory and due diligence requirements for KRL?s transaction with Bayan Resources, which includes the acquisition of the Pakar Project.

Pakar Project

The Pakar Project has an updated JORC Code estimated Total Coal Resource of 3,019 million tonnes1, comprising 111 Mt of Measured Resources, 1,092Mt of Indicated Resources and 1,816Mt of Inferred Resources. The Total Coal Resources comprise an average coal quality with CV range of 5,215-5,230kcal/kg (adb) and 3,100-3,775kcal/kg (gar), TM range of 41.1-48.6% (ar), IM range of 12.6-18.6% (adb), ash range of 5.5-5.7% (adb), sulphur range of 0.13-0.20% (adb) and RD range of 1.36-1.48(adb).

The total coal resource includes Total Open Cut Coal Reserves comprising 442 million tonnes, of which l6Mt are Proved Coal Reserves and 426Mt are Probable Coal Reserves. The Open Cut Coal Reserves average coal quality is CV 3,35okcal/kg (gar), TM 44.7% far), ash 5.3% (ar), sulphur 0.14% far) and RD 1.42 far).

The updated JORC Statement has resulted in a 326Mt increase in the Coal Reserve category, giving the Company the confidence to consider multiple development options across the Pakar Project with Bayan Resources.

The Pakar Project contains a range of coal products that can be exploited and sold into the coal export markets, predominantly into the Indian and Chinese power generation industries.

Mamahak Project

The Mamahak Project has an updated JORC Code estimated Total Coal Resource of 10.49 million tonnes, comprising 6.85Mt Measured Resources, 3.1lMt Indicated Resources and 0.53Mt Inferred Resources. The total coal resources comprise an average coal quality with CV range of 6,991-7,793kcal/kg (adb), TM range of 2.2-4.1% far), IM range of 1.5-2.0% (adb), ash range of 6.0-14.9% (adb), sulphur range of 0.49-3.85% (adb), RD range of 1.28-1.37 (adb), and CSN range of 3.5-5.5.

Kangaroo and Bayan will commence the design of an exploration program targeting an expansion of the updated JORC Code resource estimate.

This exploration program will aim to increase the Mamahak coal resource and provide the basis for definition of reserves with a target to lifting production up to 1 million tonnes per annum of coking coal over the next 2-3 years.

GPK Project

The GPK Project has an updated JORC Code estimated Total Coal Resource of 117 million tonnes, comprising 58Mt Indicated Resources and 59Mt Inferred Resources. The total coal resources average coal quality is CV 3,854kcal/kg (gar), ash 3.3% far) and sulphur 0.1 2% (ar).

These resources are located within an area of 5,060Ha that was reduced from the previous area of 10,143Ha by partial relinquishment, as required by regulatory protocols. While the previous (December 2008) JORC Resource Statement contained more resources over a larger area, less than 60% of those resources occurred at depths less than 60m. Now over 95% (112 million tonnes) of the current resources lie at depths less than 60m.

The Company plans to conduct a drilling program at GPK targeting specific areas of the project concession with the aim of utilizing this data to increase the level of confidence in the geological model used for the current JORC Resource Statement and to subsequently prepare a JORC Reserve Statement to support the planned development of mining operations.

The Company is aiming to review the exploration programs at each of its projects following completion of the Bayan/Pakar transaction with the objective of increasing its coal resources and reserves.

KRL will be drawing on the experience and the expertise of Bayan Resources, to assist in all aspects of fast-tracking the exploration programs for the Pakar, Mamahak and GPK Projects during 2011.

KRL?s Managing Director, Mark O?Keeffe, said ?These JORC Statements provide the confidence for the Company and Bayan Resources to fast-track development and ramp-up at these projects.

KRL now has a portfolio of thermal and coking coal products, two existing production hubs with a major new project at Pakar targeted to come on stream, as well as a partner and major shareholder in Bayan Resources - one of Indonesia?s largest and most successful coal companies.

We believe that KRL is set for a very significant year in 2011, with the cash resources and assets in place to target increased production.? (romel)

Project	JORC Resources & Reserves
	Inferred Resource	Indicated Resource	Measured Resource	TOTAL Resources	Reserves
PAKAR	1,816Mt	1,092Mt	111Mt	3,019Mt	442Mt*
MAMAHAK	0.53Mt	3.11Mt	6.85Mt	10.49Mt	-
GPK	59Mt	58Mt	-	117Mt	-
TOTAL	1,875.53Mt	1,153.11Mt	117.85Mt	3,146Mt	442Mt*
Note: *JORC Resources are inclusive of JORC Reserves that comprise 16Mt of Proved Reserves and 426Mt of Probable Reserves