Ncondezi Coal Company Limited a coal exploration and development company with coal assets in the Tete Province in Mozambique announced the results of the Company’s Phase I studies on the Ncondezi Project potential coal feedstock for local power generation and coal gasification.

Highlights:

1. Ncondezi’s appointed technical consultant, Hugh Brown & Associates Ltd has completed two order of magnitude studies on the suitability of Ncondezi Project middlings and low volatile coals, previously regarded as waste product, for use in local power generation and coal gasification

2. The studies demonstrate the potential technical and economic viability of producing power and syngas from these waste coal products

3. This has the potential to increase overall product yields on run of mine coal production and generate additional revenues at the Ncondezi Project

4. Preferred boiler technology for power generation identified

5. Two potential gasifier technologies identified

6. Additional feasibility work, already budgeted for, is now being undertaken to further validate local power generation and coal gasification potential, with results expected in H1 2012.

Mr Graham Mascall CEO of Ncondezi Coal Company said that “I am pleased to announce encouraging news regarding identification of a potential use for middlings and low volatile coals, previously regarded as waste, as feedstock for downstream power generation and gasification. On top of savings to the operating costs, initial results indicate the potential for significant additional revenue from the Company’s Ncondezi Project. Although this is the first in a series of studies, we anticipate positive findings on the economics of local power generation and coal gasification. This is anticipated to service a regional market that has already entered a period of power generation and fuel capacity shortfalls. In addition, further announcements regarding resource updates are expected in the next two weeks.”