Release: Churchill Mining Plc: Drilling updates

(28 July 2008)--Churchill Mining PLC is pleased to announce the results of further drilling at the East Kutai Coal Project in Indonesia. Continued drilling to the south, within the RTM block, has intersected a very thick coal seam with the best intercept being 33.86 metres in thickness in drill hole RTM-098. This follows up previously reported seam intercepts of up to 25 metres in thickness in the same area.

The extent of this seam is yet to be defined but remains open to the south and further drilling will delineate the extensions of the seam in this area in the coming weeks.

In addition, access into the main areas defined as the "reserve target area", which includes the target first pit area is close to being established, with heavy equipment working to open access to allow rapid drill rig deployment into the target area. Topographic surveys also continue into previously un-surveyed areas where drilling has been completed to allow accurate resource modeling of the seams.

An updated JORC resource update is being prepared for release in August 2008. The update is being prepared by independent coal experts SMGC. East Kutai already has a JORC resource of 250 million tonnes of thermal coal.

Churchill Mining's Managing Director Paul Mazak commented: "The number of significant coal intercepts being returned from the recent drilling shows the potential of the East Kutai concession areas has not yet been fully realized. We fully expect due to the thickness of the newly discovered seam that we will be able to quickly add more tonnage to the overall East Kutai resource and take it well over the current 250 million tonnes." (end of release)