Sharpe Resources Corporation
OTC Bulletin Board : SHGPF

Sharpe Resources Corporation

January 31, 2007 10:41 ET

Sharpe in Discussions With Coal Mine Operator to Pursue the Potential for Development of Open Pit and Underground Mine(s) on its 100% Owned Coal Property Located in Preston County, West Virginia

HEATHSVILLE, VIRGINIA--(CCNMatthews - Jan. 31, 2007) - SHARPE RESOURCES CORPORATION: (NEX:SHO.H)(OTCBB:SHGPF) The Company is in preliminary discussions with a coal mine operator that may become involved in the permitting and development of one or more surface and underground coal mines on Sharpe's property located in Preston County, WV. The discussions have involved a lease of 500-1,000 acres, development block, mine development with production participation via a joint venture with the mining company to pursue a development on this property.

The Company wants to be in a position to develop its own coal assets either through a joint venture via an acquisition of an operating company that has complementary coal assets and a coal marketing group to support the growth and development of these assets or through leases of development blocks within the land package.

The potential for coal bed methane gas on this property will be evaluated, however, the steam coal development potential appears to be a near and longer term solution to develop a program of lower risk revenue growth concurrently with the development of the coal gas potential.

As indicated previously, the property involves approximately six (6) separate coal seams to include the Bakerstown, Upper Freeport, Lower Freeport, Upper Kattanning and Lower Kattanning followed by the deeper Clarion coal seam. Some of the Upper Freeport coal has been mined previously on this property. Sharpe has completed an evaluation of the coal resources on the property with the help of an independent coal resource consulting firm.

The Company is evaluating the possibility of acquiring additional coal resource acreage in this area, property that adjoins Sharpe's current land position.

Sharpe Resources Corporation cautions that the statements made in this press release and other forward looking statements made on behalf of the Company may be affected by such other factors including, but not limited to market volatility, competition, and other risks detailed herein and from time to time in the Securities and Exchange Commission filings of the Company.

The TSX Venture Exchange does not accept responsibility for adequacy or accuracy of this press release.

Contact Information

  • Sharpe Resources Corporation
    Roland Larsen
    (804) 580-8107
    (804) 580-4132 (FAX)