Release: Settlement of Mamahak coking coal project in E. Kalimantan

(Perth, 24 December, 2009)--Emerging global miner Kangaroo Resources Limited (ASX: KRL) announced on 16th December 2009 an agreement with TSX-listed mining company South Gobi Energy Resources Ltd (SGER) (TSX: SGQ) for KRL to acquire all of SGER?s mining assets in Indonesia, including their 85% interest in the Mamahak Coking Coal Project.

The Company is pleased to announce that settlement has occurred.

The Mamahak Project has a JORC resource of 10.22Mt of high-quality coking coal, extensive infrastructure capable of supporting up to 1 .5Mtpa coal production and a large 30,000 tonne coking coal stockpile ready for immediate delivery.

Overview of Mamahak Project

The Mamahak Project has the following key characteristics

SGER reported a JORC resource of 1022 million tonnes (Mt) of coking coal comprising a measured resource of 6.90Mt, an indicated resource of 3.1 6Mt, and an inferred resource of 0.16Mt.

Surface mineable thin coal seams are extensively distributed in the Haloq Formation in the Mamahak Project area, with over 75% of project surface area unexplored, allowing for potential of additional significant coal discoveries

Site infrastructure, river terminal, and stockpile and loading facilities capable of handling up to 1.5Mtpa of coal.

Coal quality indicates high energy, relatively low ash, low moisture, and moderate to high sulphur levels with the calorific value ranging between an average of 7,526 - 7,570kcal/kg (adb), with high fluidity values and reactives percentage over 95%.

SGER?s evaluation of all coal analysis to date indicates that Haloq Formation coal at Mamahak will meet or exceed the following ?Direct Ship? product coal specification with limited seam blending required at the mine sites.

Mamahak coal quality is highly reactive and expected to enhance or extend the value of selected Indonesian and Australian product coals currently being sold in coking coal blends on the World Seaborne Trade market.

The close proximity of the Mahakam River will provide a viable long-term transportation link for the export of Mamahak area coal. (end of release)