Hunnu Coal announced that it has signed a Strategic Shareholder Agreement and Memorandum Of Understanding to form a strategic partnership with Banpu Public Company Limited through its 100% owned subsidiary Banpu Minerals (Singapore) Pte Ltd.

Funding will be used to further fast track the development strategies for the Tsant Uul and Unst Khudag Coal deposits.

Key terms of the agreed partnership include

1. 30 million shares placed to Banpu Minerals (Singapore) Pte Ltd at USD 1.50 per share for USD 45 million.

2. Placement is at a 20.1% premium to Friday 4 March 2011 closing price.

3. On completion of the placement Banpu will own 12.39% of Hunnu Coal’s issued shares and will be the largest shareholder.

4. Banpu will nominate a Non-Executive Director to the Hunnu Coal Board of Directors, which will allow Banpu’s expertise in coal mining and project development to benefit Hunnu Coal at the highest level.

Banpu is a major Asian Energy Company with operations in Thailand, Indonesia, China and Australia. Banpu currently produces over 40 million tonnes of coal annually.