SOURCE: KAL Energy, Inc.

April 27, 2007 08:00 ET

KAL Energy, Inc. -- 42% Increase in Coal Price Forecast, Positive Country Outlook Boosts KAL Energy, Inc.

LONDON -- (MARKET WIRE) -- April 27, 2007 -- KAL Energy, Inc. (OTCBB: KALG) (FRANKFURT: D9T) is pleased to report a recent Bloomberg article published in the Jakarta Post on April 23rd quoted Dr. Mark Mobius, who oversees US$30 billion for Templeton Asset Management Ltd., saying that, "Asian coal prices may surge 42 percent in five years."

The article stated also quoted Deutsche Bank, Europe's biggest investment bank by revenue, saying, "The prospect of China being a net importer of thermal coal as early as 2008 has placed material upward pressure on the outlook," and the outlook "has improved significantly."

"We are pleased to see our ground level experience and internal forecasts being confirmed in these reports. Increases in regional coal pricing will have a direct and material positive impact on KAL Energy earnings going forward, enhancing our ability to delivery shareholder value," said Cameron Reynolds, KAL Energy CEO, commenting on this news.

A separate article, published in The Economist magazine on April 19th, reported a positive country outlook for Indonesia -- where KAL Energy has its estimated 192 million ton coal resource. "A healthy macroeconomic picture, supported by political stability, has been one of the key factors in the JSX's [Jakarta Stock Exchange's] recent success. Indonesian GDP growth hit a two-year high in the fourth quarter of 2006, and the central bank's key interest rate has fallen to 9% from 12.75% a year ago. Lower interest rates are widely expected to have boosted corporate results due out soon, and this may explain some of the market's recent success." The article went on to say, "The Economist Intelligence Unit expects interest rates to fall further during 2007, lowering borrowing costs both for businesses and consumers. This is reflected in our optimism that there will be a pick-up in private consumption and fixed investment growth in 2007."

"We concur with the positive in-country outlook summarized in the recent Economist article, and believe KAL Energy is well positioned to profit from this improving business climate," stated Mr. Reynolds.

The full articles are available at http://www.bloomberg.com/apps/news?pid=20601072&sid=aTOtq.gM_9vw&refer=energy http://www.economist.com/displayStory.cfm?story_id=9044419&fsrc=RSS

KAL Energy's wholly owned subsidiary, Thatcher Mining Pte. Ltd., has the rights to two coal concessions situated near the Mahakam River in North Eastern Kalimantan, Indonesia. This river is a main transportation system for transporting coal to nearby markets. Consulting Geologist, Jonathan O'Dell, has estimated that blocks 16 & 24 could contain over 192,000,000 tons of thermal coal. Today Indonesia is the leading exporter of thermal coal and export prices vary from $30.00 to $60.00 plus per ton. For more information on KAL Energy, Inc. please visit our web site at www.kalenergyinc.com

Contact Information

  • Cameron Reynolds - CEO
    KAL Energy, Inc
    93-95 Gloucester Place
    London, W1U 6JQ
    Telephone: +44 207 487 8426
    Fax: +44 207 487 8402
    US Investor Relations Line: +1-866-680-2575