Hunnu Coal announces an upgraded JORC compliant resource estimate for the Unst Khudag Coal Project, Mongolia. The 100% increase takes the JORC Resource to 676 million tonnes to a depth of 150 meters.

Highlights

1. 100% increase to JORC Resources at Unst Khudag

2. JORC Resource of 676 million tonnes to a depth of 150 meters

3. 601 million tonnes t classified as Measured and Indicated

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

5. A total of 325 drill holes for 28,245 metres were utilized in the JORC Resource estimate.

6. The Company is in advanced discussions for off take with potential future buyers of Unst Khudag Project coal.

7. 100% owned rail loading spur at Choir railway station nearing completion. 3 million tonnes per annum of capacity secured on the existing Trans-Mongolian Railway

8. Feasibility study into delivery of rail to mine gate nearing completion.

9. New development concept being scoped. +20 year mine life, delivering a product at +5,000 Kilocalories to the Chinese border from the Unst Khudag Mine at a rate of 10 million tonnes to 20 million tonnes per annum

10. Hunnu Coal now has Total JORC Resources across its projects of 766Mt.

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

12. Upgraded JORC estimate currently being completed for the Tsant Uul Project which currently has a JORC Resource of 90 million tonnes.