A new JORC-compliant estimate released by Sharyn Gol JSC for the Sharyn Gol coal project has quadrupled the resource inventory.

The result sets the scene for further development of the mine which will enhance the company's competitiveness in domestic and international coal markets.

The coal resource now totals 374 million tonnes, including 190.5 million in the measured category, 84.4 million in the indicated category and 98.9 million inferred tonnes.

The estimate shows that 337.6 million tonnes are above 300 metres from surface, which signifies continuation of open cut mining for decades to come. A new open cut area containing 220.3 million tonnes down to 300 metres has been identified adjacent to the existing open pit.

The JORC resource estimate was calculated from a significantly larger non-JORC coal inventory.

Between May and November 2010 the company engaged the professional management services of Triton Coal to assist in the design and implementation of a 17,000 metre drilling program over the Sharyn Gol lease under the guidance of international resource consultancy firm Micromine.

A drilling program focusing on two areas within the mining lease, the South West Area and the Satellite Area, was completed in late October 2010.

Adjacent exploration targets have been identified, demonstrating potential for further large increases to the existing coal resource base.

Coal quality and washability test work indicates strong potential to produce a high yield, low ash, moderate to low sulphur and high calorific value thermal coal product suitable to export to international markets.

Sharyn Gol JSC has now engaged an independent international mining consultancy group to undertake a study into the near term upgrade and expansion of the operations.

The mines are 215km north of Ulaanbaatar, strategically on a 65km-long dedicated rail spur, which was built specifically to service the mining operation, and currently mines about 50,000 tonne of coal each month which is largely sold to the domestic regional market.

www.sharyngol.com

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