Release: Churchill Mining: Tonnage increased at East Kutai coal project

(30 January 2008)--Following 1800 metres of infill drilling and other technical work in December 2007 ? January 2008 at the East Kutai Coal Project (?EKCP?), Churchill confirms that the Company?s internal coal tonnage calculations have exceeded board expectations at the current stage of the programme.

Internal modeling by the Company?s geological team within the first sector of the initial drilling envelope of the EKCP, has identified an additional 50 million tonnes of coal, bringing the total defined to date up from the 85Mt ? 90Mt calculated in December 2007 to between 135-140 Mt of coal.

The updated geological data will be sent to independent coal geological experts SRK for review and for inclusion in the compilation of an ongoing JORC compliant Resource Statement, the work for which shall start in February 2008 and continue throughout the remainder of the year. The first stage of the JORC Statement is still expected to be completed by the end of Q1 2008. At this point in time the volume calculations do not form a JORC compliant resource and should not be considered as such.

The additional tonnages of coal interpreted have resulted from a series of infill drill holes completed since the last drilling announcement (12 December 2007) that have intercepted the known coal seams closer to the surface in the west, and added confidence to the position of the southern extensions of the seams, previously intersected in widely spaced drilling. The seams continue to the south, with drill holes to date identifying two major coal seams (between 8-14 metres in thickness) together with a number of lesser seams over a strike length of more than 6 kilometres. The seams also appear to be more gently dipping in the southern areas tested to date and the next programme of broad spaced drilling will continue to test at depth the outcropping coal occurrences in the south.

The consistent lateral extent of the coal seams, coupled with the ease of correlating the major seams during interpretation, is expected to reduce the drilling requirements to achieve the exploration targets set for 2008 of defining 500 million tonnes of JORC compliant coal Resources by the end of 2008, inclusive of a Mining Reserve of 100 million tonnes.

Paul G. Mazak, Churchill's Managing Director, commented, ?Whilst the classification of the coal occurrences by SRK will guide the drilling requirements through the next two quarters, the Company expects that the cost of the exploration and drilling at EKCP will be under budget due to the consistency of the coal seams system?. (end of release)