SOURCE: Waratah Coal Inc.

October 22, 2007 08:30 ET

Waratah Coal Inc. -- Coal Resource Step-Out Drilling Campaign Begins in Galilee Basin

BRISBANE, AUSTRALIA--(Marketwire - October 22, 2007) - Waratah Coal Inc. (TSX-V: WCI) is pleased to announce that a drilling program has begun on its Alpha North EPC1053 licence in the Galilee Coal Basin in Queensland, Australia. Waratah's EPC 1053 already hosts a JORC-compliant inferred resource of 675 million tonnes of thermal coal on its northern portion. This new drilling program will initially test the unexplored area to the south of this resource, covering 140 sq kilometres.

EPC 1053 is some 37 kilometres north of Waratah's EPC 1040 which has a current JORC-compliant inferred resource of 1.055 Billion tonnes and rapidly expanding. In between Waratah's two licences is Hancock Prospecting Pty Ltd's historic resources totalling 2.1 Billion tonnes.

The Alpha North project benefits from the following:

* Large resource potential in a previously unexplored area
* Potentially high quality thermal coal products
* Proximity to substantial existing resources

Please visit www.waratahcoal.com for the North Alpha drill map.

Drilling activities commenced on 1 October 2007. This initial program of drilling has been designed in conjunction with SRK Consulting with the aim of rapidly identifying resources within the four known target seams. The first stage of the program consists of 40 - 50 holes, both open hole and partially cored, spread over a target resource area covering 140 square kilometres. The first drill rig will be joined by a second rig on 15 October 2007, with the aim of completing the initial program by the end of December.

The Galilee Basin is a known geological basin containing Permian-age high quality thermal coals which when washed produce a highly marketable export quality product. The main thrust of the Waratah Coal exploration program is to prove the continuity of the known four seams which account for the 2.1 billion tonne of coal resources on the licence to the south of Waratah's EPC 1053 North Alpha licence. This area was extensively explored in the seventies by companies including, Bridge Oil, Total, Cogema and the Shell Company.

Waratah has already confirmed the extension of these seams to the south in its EPC 1040 and further to the north within EPC 1053. Coal intersections over the four seams on the adjacent drill line in EPC 1053's northern resource show total coal thicknesses up to 30m with the thickest seam 21m.

Waratah's 100%-owned Galilee licences and applications cover 1,048 square kilometers, extending over 185 kilometres along strike to the north and south adjacent to the historical resource as well as adjacent and down dip, to the west.

EPC 1053 is one of nine EPCs and EPC applications held by Waratah in the Galilee Basin. Waratah is targeting the potential for a very large scale export thermal coal project, should large tonnages of economically mineable coal be identified. Exploration in EPC 1053 and adjacent EPC 1039 is expected to confirm Waratah Coal's Galilee tenures as one of the largest black coal resources in Australia.

The Qualified Person for this resource estimate is Mr. Patrick Hanna, Fellow of the AusIMM and Principal Coal Geology Consultant with SRK Consulting, who conducted a site visit on EPC1040 in July, 2006.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • For further information:

    Peter Lynch
    Waratah Coal
    President and CEO
    T: +61 7 3303 0692
    E-mail: Email Contact

    Henry Wright
    T: 604 681 5755
    E-mail: Email Contact