White Energy updates E. Kalimantan coal upgrading project

The following is excerpt from White Energy Company?s quarterly report released on Tuesday

Joint Venture with PT Bayan Resources (WEC 51%)

The Company continues to make steady progress on all major activities relating to the construction of the Binderless Coal Briquetting plant, Bayan Resources Tabang Mine in East Kalimantan.

Detailed engineering and design of the production plant has been completed and documents issued for construction. The process control software design is being undertaken with testing of software due to be completed by end of the year.

We have entered into a five year strategic alliance with Thiess Indonesia to build, operate and maintain White Energy?s coal upgrading plants in Indonesia. It is envisaged that the Tabang plant will be the first of a number built under this strategic alliance arrangement.

The power station (8 MW) for the Tabang plant is being delivered under a turnkey contract. The contractor has mobilized on site to commence the foundation work.

Also, the manufacture of the boiler and turbine in China is proceeding on target. All of the long lead items for the production plant have been ordered and we will receive these items on site progressively from now through to early 2008 in accordance with the procurement schedule. Site work activities completed to date include the site camp facilities, earthworks of production plant and power station, haul roads, laydown areas and drainage works. The main contractor will mobilize on site later in the year to commence construction of the production plant. (end of excerpt)