SOURCE: KAL Energy, Inc.

April 18, 2007 11:08 ET

KAL Energy, Inc. -- New Coal Seam Discovered on East Kalimantan Coal Concession

LONDON -- (MARKET WIRE) -- April 18, 2007 -- KAL Energy, Inc. (OTCBB: KALG) is pleased to confirm a second coal seam has been discovered on its East Kalimantan Coal Concession. The drilling results of the previously announced $2,000,000 Phase 1 exploration program indicate that the new seam is approximately 1.5m thick with extent and quality to be determined by further drilling; the new seam was not part of the original 192 million ton geological resource estimate. This additional seam can drastically increase the amount of coal that can be mined by KAL Energy on their concessions.

"The drill program is starting to better define the coal resource beyond the initially identified 4.5 meter seam and we eagerly await further results and definition over the coming months," stated Cameron Reynolds, KAL Energy's CEO. The work program, currently in progress, includes over 5,700m of deep drilling, with 57 holes planned at depths ranging from 50m to over 200m.

About KAL Energy:

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

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

  • Contact:
    KAL Energy
    1-866-680-2575

    KAL ENERGY, INC.
    Cameron Reynolds - CEO
    KAL Energy, Inc. ("KALG")
    93-95 Gloucester Place
    London
    W1U 6JQ
    Telephone: 0207 487 8426
    Fax: 0207 487 8402