Hunnu Coal has upgraded its JORC reportable resource estimate for the Tsant Uul Coal Project in Mongolia by 85%.

Highlights:

1. 85% increase to JORC Coal Resource at Tsant Uul

2. JORC reported Coal Resource of 167.1 million tonne

3. 93.8 million tonne classified as Measured (40.9 million tonne) and Indicated (52.9 million tonne).

4. Further upgrades to the JORC reported Coal Resource model expected in the latter half of 2011 with additional drilling completed and underway.

5. The Tsant Uul Project mining license has been granted for an initial term of 30 years with an option for twenty years extension twice, providing a total of 70 years of mining operations.

6. The Company is in advanced discussions for off-take with potential future buyers of Tsant Uul Project coal.

7. Targeting commencement of mining in the last quarter of 2011.

8. Targeting initial production of 1.5 million tonne of coal in 2012 and 3 million tonne in 2013.

9. Owner operator mining fleet currently being purchased with initial purchases including six CAT 773 Dump Trucks and a Hitachi 1200 excavator. Additional purchases underway.

10. Hunnu Coal now has Total JORC Resources across its projects of 843 million tonne.

11. Initial JORC Coal Resource currently being estimated for the Altai Nuurs Premium Hard Coking Coal Project. Altai Nuurs has an Exploration Target of 250 million tonne to 500 million tonne.