SharynGol JSC has announce the successful completion of a 16,000 meter diamond drilling program with the aim of establishing a JORC standard resource over the Company's mining lease.

The drilling has proved all of the coal seams identified by historic Soviet drilling, as well as encountered several previously undiscovered coal seams, representing an important new discovery.

An international mining consultancy has been engaged to produce a three dimensional model of the coal seams. The consultant's report, which will include a revised resource estimate is expected to be released later in the year. Management anticipates that the report will demonstrate a significant increase in coal resources for the project.

Early laboratory results are encouraging with most coal samples returning calorific values of over 7,000 kilocalories per kilogram on an air dried ash free basis. This result is consistent with Management belief that much of the remaining coal resource is of type high grade thermal coal.