SOURCE: KAL Energy, Inc.

March 21, 2007 10:35 ET

Over 1000m of Exploratory Drilling Completed on East Kalimantan Coal Concession

LONDON -- (MARKET WIRE) -- March 21, 2007 -- KAL Energy, Inc. (OTCBB: KALG) is pleased to announce the commencement of exploratory drilling on its East Kalimantan Coal Concessions. This is a key milestone of the previously announced $2,000,000 work program.

"With five drill rigs on the property, and over 1000m of exploratory drilling completed to date, we are delighted with the excellent progress demonstrated by our team," stated Cameron Reynolds, KAL Energy's CEO. The work program includes over 5700m of deep drilling, with 57 holes planned at depths ranging from 50m to over 200m. A further 46 shallow holes, over 10m in depth, have already been drilled to confirm and better define known surface coal out cropping.

Mr. Reynolds added, "Block 24 is currently hosting a workforce of 128 workers on the exploration team including 8 Geologists. The team has now completed the construction of the camp and facilities and brought the heavy equipment onsite. This enables us to expeditiously and efficiently execute our Phase 1 Exploration program. The team is confident that it will begin receiving core sample analysis results from third party labs by early April."

Previous samples have demonstrated that the quality of KAL Energy's thermal coal deposits contain very low sulphur and ash content -- suitable for electricity generation. This is consistent with other coal producing companies' deposits in the East Kalimantan province of Indonesia.

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

Cameron Reynolds -- CEO

Contact Information

  • KAL Energy, Inc. ("KALG")
    93-95 Gloucester Place
    W1U 6JQ
    Telephone: 0207 487 8426
    Fax: 0207 487 8402