SOURCE: KAL Energy, Inc.

June 06, 2007 09:00 ET

KAL Energy, Inc. Concludes Drilling Program, Reaffirms Timing of JORC Report

LONDON--(Marketwire - June 6, 2007) - KAL Energy, Inc (OTCBB: KALG) (FRANKFURT: D9T) is pleased to announce that it has completed the drilling of its previously announced $2 million Phase 1 Exploration program on its Thermal Coal Project in East Kalimantan, Indonesia. This program included over 5600 meters of extensive drilling, including over 230 holes, as well as trenching, sampling and mapping of known geological structures, and exploration for unknown structures.

"The completion of the field work of Phase 1 Exploration Program represents a major achievement for KAL. We flagged this milestone to the market at start of the year -- and we have delivered on time," stated Cameron Reynolds, KAL Energy's CEO. "The team will now focus on processing and presenting the findings of the program in a JORC Compliant Resource Statement, which we expect to deliver mid June, as previously committed," Mr. Reynolds added.

The program on KAL Energy's concession in Indonesia was being conducted to determine the amount and quality of coal available, and present this in a JORC Code Compliant Resource Report. Previously disclosed Geological estimates have indicated that in excess of 192 million tons of coal with low sulfur and ash content are located at shallow depths on the concessions.

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