SharynGol JSC

October 10, 2010 01:01 ET

SharynGol JSC Completes Drilling Phase of JORC Exploration Program: New Coal Seams Discovered

ULAANBAATAR, MONGOLIA--(Marketwire - October 10, 2010) - SharynGol JSC is pleased to announce the successful completion of a 16,000 meter diamond drilling program, with the aim of establishing a JORC standard resource over the Company's mining lease.

The drilling has proved all of the coal seams identified by historic Soviet drilling, as well as encountered several previously undiscovered coal seams, representing an important new discovery. An international mining consultancy has been engaged to produce a three dimensional model of the coal seams. The consultant's report, which will include a revised resource estimate, is expected to be released later in the year. Management anticipates that the report will demonstrate a significant increase in coal resources for the project.

Early laboratory results are encouraging, with most coal samples returning calorific values of over 7,000 kcal/kg on an air dried ash free basis. This result is consistent with Management's belief that much of the remaining coal resource is of type, high-grade thermal coal.

About SharynGol JSC

SharynGol JSC (MSE: SHG MO) has a coal mining operation located in Northern Mongolia. It currently owns and operates 100% of the established SharynGol Coal Mine. The Company was privatized and listed on the Mongolian Stock Exchange in 2003.

The Company has been mining coal at SharynGol for over 45 years, supplying domestic and export customers with coal for thermal and semi-coking (smokeless fuel) uses.

A dedicated rail spur links the mine to the Trans-Mongolian railroad, currently Mongolia's main railway connecting Mongolia to the major markets of Russia and China. This exclusive access to the rail spur provides the Company with a significant competitive advantage over the majority of coal mining operations in Mongolia.

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