October 14, 2008

Waratah increases coal resource in Galilee Basin

Waratah Coal Inc announced the upgrading of its estimate from 1.055 billion tonnes to 1.470 billion tonnes of inferred coal resource at Waratah's South Alpha EPC 1040 permit in the Galilee Basin at Queensland in Australia.

This revised estimate comes with the inclusion of recently drilled holes and the return of vital borecore analysis. The resource lies 60 kilometres south of the 675 million tonne inferred coal resource at Waratah's North Alpha EPC 1053 project.

Highlights include
1. Highly continuous, shallow dipping coal seams
2. High quality, low sulphur thermal coal
3. 60 kilometers along strike from Waratah's 675 million tonnes North Alpha resource
4. Drilling continues to track the seam strike to the south in the South Alpha lease.

SRK Consulting, independent technical advisors to Waratah, have analysed data from 26 open core and 14 partially cored drill holes to estimate the following inferred resource category on the northern portion of the South Alpha permit.