SOURCE: KAL Energy, Inc.

May 16, 2007 07:45 ET

KAL Energy, Inc. -- CEO and Executive Director Complete Site Visit, Reaffirms Timing of JORC Compliant Resource Report

LONDON -- (MARKET WIRE) -- May 16, 2007 -- KAL Energy, Inc. (OTCBB: KALG) (FRANKFURT: D9T) CEO Cameron Reynolds and Executive Director Andrew Caminschi completed their comprehensive site review of KAL's coal concessions situated near the Mahakam River in North Eastern Kalimantan, Indonesia. The purpose of the review was to assess operation readiness for the previously announced JORC Compliant Report of their $2.0 million Phase 1 Exploration Program.

"We are very happy with all key aspects of the operations. Progress to date has been excellent, and the team is on track to upgrade our current geological estimates to a JORC Code 'Inferred Resource' status by mid June," stated Cameron Reynolds, KAL Energy's CEO.

Commenting on the 'all-hands meeting' completed today in Balikpapan, Andrew Caminschi, an executive director of KAL Energy's Board, commented, "All contributors -- our geologists, operational managers, independent consultants, and drilling contractors -- are clearly aligned on the goal of delivering the Phase 1 Exploration results to the market. Furthermore, each was confident of reaching this key milestone on time, and was able to demonstrate the basis for their confidence."

KAL Energy recently announced the completion of over 3000 meters of drilling of its Phase I exploration program, which includes extensive drilling, trenching, sampling and mapping of known geological structures, and exploration for unknown structures. The company has exhibited an increase in productivity due to the build up of its on site infrastructure and personnel. The company anticipates the completion of Phase I within this quarter.

The Australasian Joint Ore Reserves Committee (JORC) is the governing body of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). The JORC Code provides minimum standards for public reporting to ensure that investors and their advisers have all the information they would reasonably require for forming a reliable opinion on the results and estimates being reported. For more information see the JORC website at www.jorc.org

KAL Energy, Inc. has 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. With one of the world's largest thermal coal exporters Kaltim Prima Coal (KPC) as its neighbor, KAL energy's concessions are in a region that is known for its extensive open pit thermal coal producing mines. Indonesia has recently surpassed Australia as the world's leading thermal coal exporter, with prices varying 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

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future.

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