SOURCE: Waratah Coal Inc.

July 19, 2007 09:11 ET

Waratah Coal Inc. Confirms Hard Coking Coal at Nymboida Project

Extension of Coal Seam Beyond Old Mine Workings

BRISBANE, AUSTRALIA--(Marketwire - July 19, 2007) -


HIGHLIGHTS

--  Coal quality at Nymboida is premium hard coking coal, post washing
    swell of CSN 9.
    
--  Enhanced potential for an underground coking coal resource supports
    further evaluation
    
--  Seven open holes and two partially cored holes were drilled to test
    potential of the Farquhar's Creek coal seam
    
--  Farquhar's Creek coal seam intersected in all but one hole, up-dip of
    the outcrop
    
--  Farquhar's Creek coal seam thickness ranges from 0.95m to 1.1m over an
    area 1.5km by 2.5km
    

Waratah Coal Inc. ("Waratah") (TSX-V: WCI) is pleased to announce positive results of the initial drilling program and coal quality analysis at its Nymboida Project. The enhanced potential for an underground coking coal mine at its Nymboida Project supports Waratah's continuing evaluation of the project.

Based on the features of the Farquhar's Creek seam and the strata hosting it, the Farquhar's Creek seam has the potential to develop to an underground plow operation. Modern longwall plow faces are being installed in China, USA, Russia, Czech Republic and Kazakhstan to exploit coal seams down to 0.65m thickness.

The Nymboida Project is located 29km south west of the regional town of Grafton in NSW Australia. The Nymboida Coal Measures are located in the Clarence Moreton Basin. The coal measures are early to mid Triassic Bowen Basin equivalents representing a southern extension of the South East Queensland Esk Trough system and consist of carbonaceous shales, conglomerates, sandstones and coal seams. An underground coal mine operated at the site until 1979, supplying coal for the local power station.

Waratah Coal obtained the exploration rights over the area with a view to the potential for a small scale underground mine development based on potential coking coal quality.

The results prove the coal seams extend to the south of the closed mine over an area 1.5km by 2.5km. Coal quality results were obtained from two partially cored holes. The results are tabulated below.

For the Nymboida Project : Drillhole Register, click on the link below or paste the link into your browser:

http://www.usetdas.com/maps/waratahcoal/WCIdrillholeJuly19-07.pdf

-***-

Nymboida Coal Quality sample results (NB: Core recovery less than 90%)

-------------------------------------------------------------------
                        Nymboida Sample            Nymboida Sample
Sample Details          Sample: NYM 001            Sample: NYM 002
-------------------------------------------------------------------
PROXIMATE ANALYSIS
Air Dried Moisture %           1.0                        1.0
Ash %                         32.1                       39.4
Volatile Matter %             21.0                       18.0
Fixed Carbon %                45.9                       41.6
-------------------------------------------------------------------
Total Moisture % (a.r.)       15.3                       17.7
-------------------------------------------------------------------
Calorific Value MJ/kg        23.59                      21.55
Calorific Value kcal/kg       5634                       5148
-------------------------------------------------------------------
Crucible Swelling Number       8.0                        6.0
-------------------------------------------------------------------
Free Moisture % (a.r.)         2.2                        5.2
-------------------------------------------------------------------
All results reported to air dried basis unless noted
a.r. = as received basis



Nymboida NYM001 Float and Sink Analysis : Air Dried Basis (AS4156.1)

--------------------------------------------------------------------------
                                    FRACTIONAL                 CUMULATIVE
--------------------------------------------------------------------------
Relative   Crucible                                   Calorific
Density    Swelling      Mass    Moisture      Ash      Value     Mass
Fraction    Number         %         %          %       MJ/kg       %
--------------------------------------------------------------------------
 F1.50       9.0         61.8       0.4       10.6      32.52      61.8
--------------------------------------------------------------------------
 S1.50                   38.2                                     100.0
--------------------------------------------------------------------------

Nymboida NYM 002 Float and Sink Analysis : Air Dried Basis (AS4156.1)

--------------------------------------------------------------------------
                                    FRACTIONAL                 CUMULATIVE
--------------------------------------------------------------------------
Relative   Crucible                                   Calorific
Density    Swelling      Mass    Moisture      Ash      Value     Mass
Fraction    Number         %         %          %       MJ/kg       %
--------------------------------------------------------------------------
 F1.50       9.0         56.3       0.6        10.3      32.59     56.3
--------------------------------------------------------------------------
 S1.50                   43.7                                     100.0
--------------------------------------------------------------------------

-****-

Coal quality testing was conducted by ACIRL (Australian Coal Industry Research Laboratories) an approved NATA (National Association of Testing Authorities) facility, all tests have been conducted to the appropriate Australian Standard (AS). All Nymboida holes were geophysically logged by Geoscience Australia Pty Ltd using density, gamma and calliper tools.

The company will now commit substantial funding to the testing of the resource potential of the Farquhar's Creek seam to the East and North of the historic mine in order to further extend the resource potential. A network of access tracks will be prepared which allows for testing of the coal bearing strata on a regional scale, and a substantial drilling program will follow.

"The immediate focus of this program was to prove that the seam extended beyond the area of the previous mining operation and to confirm the coking coal properties we suspected," said Peter Lynch, President and CEO of Waratah Coal Inc. "We now want to step out to the north and east of the mine and are in the hope of finding further extensions of the hard coking quality Farquhar's Creek seam and potentially a thicker working section. In the area of the mine the seam ranged in thickness up to 1.6m," Lynch said.

Waratah Coal's primary project of significance continues to be the Galilee Basin in the state of Queensland. While efforts were temporarily delayed due to the area receiving an unseasonal 10 inches of rain two drilling rigs have returned to full operation. The focus of efforts is to complete a coring program as part of the effort to declare an initial resource at the project. The company has a diverse range of projects and is aiming to be drilling at least two projects in addition to the Galilee Basin.

A map of Waratah's licences including the Nymboida Project is available on its website. The Company encourages its shareholders and interested investors to visit www.waratahcoal.com. The website has been designed to provide a comprehensive overview of Waratah's current projects and the state of development which each project is at. Shareholders and investors are encouraged to register for email notification and distribution of future news releases.

Mr. Peter Lynch, BE(Min), President and CEO of Waratah Coal, is the Qualified person for the Galilee Basin Project and has approved the contents of this news release.

About Waratah

Waratah's strategy is to build shareholder value, through acquisition, exploration and development of coal projects in Australia. This strategy has being developed by a synthesis of Waratah's core skills in project evaluation, structured acquisition, exploration and project development and operations, an area where Waratah executives have significant experience. Seven coal projects have already been acquired, with more in application, and drilling programs well underway at Waratah's South Alpha project and Nymboida project. Waratah has 33.5 million shares outstanding.

On behalf of the Board of Directors,

"Peter Lynch"
President, Chief Executive Officer and Director

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

LEVEL 5, 60 EDWARD STREET
BRISBANE  QLD  4000  AUSTRALIA

To view the map associated with this press release please, click on the link below or paste the link into your browser:

http://www.usetdas.com/maps/waratahcoal/WCINymboidaMapJuly19-07.pdf

Contact Information

  • For further information please contact:
    Peter Lynch
    Telephone: +61 7 3303 0692
    Email: Email Contact

    Henry Wright
    604 681 5755
    Email: Email Contact