Release: Coal FE Resources: Abadi JORC Compliant Resource

The following is highlights of Coal FE Resources Ltd?s announcement released on June 3, 2008.

ANNOUNCEMENT HIGHLIGHTS

? Pancaran Abadi Project ? Initial JORC compliant resources completed;
? Combined Resources of 27.26 million Mt from 6 drill tested coal seams; and
? Area drilled represents 29.5% of total concession area

Following the successful completion of the drilling program on the Pancaran Abadi Project (?Abadi Project?) as announced on 16 April 2008, Coal FE Resources Limited (ASX:CES) today is pleased to announce JORC Code compliant coal resource results from the drilling and resource modelling at the Abadi Project, as summarised below:

Table 1: Coal Resource Summary
Resource Category	Metric Tonnes (Mt)
Measured	440,000
Indicated	14,578,000
Inferred	12,242,000
Combined	27,260,000

The 27.2 million Mt combined coal resource is derived from the six (6) seams found in the concession area as detailed out in Table 2.

The concession area of the Abadi Project encompasses an area of about 1,017 Hectares (ha) in Selo Lai Area, Muara Badak District, East Kalimantan, Indonesia. The detailed exploration and drilling were carried out in the south-western portion of the concession area measuring approximately 300 ha.

Ravensgate, a minerals industry consultant, has been involved on a technical basis with this project since 2006. Ravensgate latest brief was to assess the JORC compliancy of the resource estimates done over the concession by Indonesian consultants, CV Mahameru Jaya. Ravensgate then undertook a parallel resource modelling and estimation program. The data used and the application of this data is outlined below as well as the ultimate results of this study. (enf of highlights)