Peat Resources Limited

Peat Resources Limited

June 06, 2007 11:50 ET

Peat Resources in Newfoundland

TORONTO, ONTARIO--(Marketwire - June 6, 2007) - Peat Resources Limited (the Company)(TSX VENTURE:PET) is pleased to announce completion of the first phase of its exploration program on peatland holdings in the Province of Newfoundland and Labrador. The work was undertaken for the Company by AMEC Earth and Environmental, a Division of AMEC Americas Limited.

The Company holds Peat Exploration Licenses issued by the Newfoundland and Labrador Department of Natural Resources for over 130,000 hectares of peatlands in western, central and southeastern Newfoundland. For most of these areas, the Company also holds the exploration rights for sand and gravel deposits underlying the peat.

In western Newfoundland, the Company originally held about 35,000 hectares under license. Following a preliminary assessment, the holdings were prioritized and reduced to the most promising and accessible peatland areas covering approximately 9,200 hectares, and AMEC was retained to conduct a detailed assessment. The assessed properties consist of 17 separate peatlands located close to the west coast of Newfoundland between the community of Stephenville in the north and Robinsons in the south (the St. George's Region). All the peat deposits are blanket peat bogs and most of them overlie thick sand and gravel deposits. No commercial assessment of the fuel peat potential of these bogs has been undertaken previously by any other company.

Three of the 17 peatland areas were determined to be Priority 1 because of their proximity to the Town of Stephenville. Five areas were inspected but did not receive detailed assessment due to size, cultural or access reasons. The remaining nine areas were assessed as Priority 2 sites.

- Indicated Fuel Peat Resources (Priority 1 areas)
22.57 million cubic metres

- Inferred Fuel Peat Resources (Priority 2 areas)
20.14 million cubic metres

Representative peat samples were taken for chemical, proximate and ultimate analysis. Ash content of the fuel peat ranged from 1.56% to 11.54% with an average of 3.84%; sulphur content was 0.23% to 0.46%, averaging 0.29%; calorific values were 5040-5206 Cal/Kg, averaging 5162.92 Cal/Kg.

Based on these encouraging results from the St. George's Region, the Company will continue assessment of the remaining licensed areas in western Newfoundland and extend the field program to the licensed areas in the central and southeastern parts of the island.

Peat Resources Limited was formed to explore, develop and produce peat fuel for use in electricity generating stations and other facilities that require economically competitive, environmentally favorable, and consistent quality energy supplies. The Company aims to become the principal supplier of peat fuel to the North American energy market and, following this confirmation of resources on its Newfoundland properties, will be giving particular attention to potential peat fuel applications in eastern Canada and the northeastern United States.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

Contact Information