ATH Resources plc

ATH Resources plc

August 16, 2005 02:26 ET

Skares Southern Extension Planning Application Approved

LONDON, ENGLAND--(CCNMatthews - Aug. 16, 2005) - ATH Resources plc (AIM:ATH.L), one of the UK's largest coal producers, announces that its application for planning consent for a 350,000 tonne extension to its Skares Road Opencast Coal Site has been approved. The 46 hectare extension lies within commercial forestry to the south of the current site boundary and tree felling and other site preparatory works are scheduled in September. Coal will be extracted from the same sequence of coal seams that occurs throughout the rest of the Skares Road Site and will service power generation, industrial and domestic markets.

This follows the successful acquisition of the nearby Grievehill and Glenmuckloch Opencast Coal Sites in June 2005 from which coal production is anticipated to commence in September 2005 and October 2006 respectively. The Company anticipates making an application for its 2 million tonne Muir Dean project in Fife later in 2005 and continues to seek and progress other opportunities to develop the business.

Tom Allchurch, Chief Executive of ATH Resources plc said: " The Southern Extension at Skares, together with the 810,000 tonnes of previously consented reserve at the mine will secure production and employment at Skares until October 2008".

Notes to Editors:

ATH Resources plc

ATH Resources is an AIM-listed operator of opencast coal mines in the UK with its current two operational mines, Skares Road and Garleffan, located near New Cumnock, East Ayrshire in Scotland. The Company is currently the third largest producer of coal in the UK producing approximately 1.6 million tonnes per annum. Coal was used to generate 34.7 per cent of the UK's electricity in 2003 and the Company holds coal supply contracts with four of the UK's main electricity generating companies.

The management team has been in place since 1998. It acquired the rights to operate (and subsequently acquire) the Skares Road mine with support from The Alchemy Plan and Bank of Scotland. Following ATH Resource's incorporation in October 2003, and backed by a follow on investment from The Alchemy Plan, the Company acquired the Garleffan mine in November 2003.

In addition to the Skares Road and Garleffan mines, the Company also has a number of other coal mining projects in Scotland and two through its French subsidiary, SRMMC including a series of six existing coal concessions in south-central France, covering an area of 36km2 with an estimated resource of approximately 4.5 million tonnes of recoverable coal.

ATH Resources listed on the AIM market of the London Stock Exchange in June 2004 under the symbol ATH.L

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