Oracle Coalfields plc

July 07, 2009 02:00 ET

Thar Project Update

                                           Oracle Coalfields PLC
                                            Thar Project Update
                           Positive Initial Meetings with Power Plant Operators
Oracle Coalfields PLC (PLUS: ORCP) ("Oracle" or "the Company"), is pleased to update the market that during
a  recent  visit  to  Pakistan the Company met with two local power generating  companies,  each  of  which
expressed  interest in Oracle's invitation to build 300MW mine-mouth power station fuelled by lignite  coal
produced from the Company's planned 2.5 million tonnes per annum open mine on its Block VI licence  in  the
Thar coalfield, Sindh Province, south-east Pakistan.

Both  companies are in power production, have access to funding and are capable of building  and  operating
the proposed power station.

Block  VI contains a JORC-compliant measured resource of 1.4 billion tonnes, including a Proven Reserve  of
371m  tonnes. The proven reserve occurs in a single main seam, some 20m-28m thick, which lies beneath about
150m of overburden comprising mainly unconsolidated sands and sediments that will not require blasting.

Shahrukh Khan, Chairman, Oracle Coalfields PLC commented:

"We  are  very  pleased with the positive response of these two power companies to our plans for  the  Thar
project.   They  already own power plants in Pakistan and view our plans as having a sound technical  base.
In  order  to  progress, however, they obviously require the comfort of a Bankable Feasibility Study  (BFS)
with independent verification of the numbers.  Work on the BFS is now in progress.

"During  the  visit  to  Pakistan, we also met with senior officials in the Government  of  Sindh  Mines  &
Minerals Development Department. It was very apparent from these meetings that the Government's support for
our Thar project continues to grow. It is giving active consideration to the building of a canal to provide
water  to  the  project area, undertake the groundwork necessary to link the site to the country's  railway
system and to upgrade the existing grid to 500 KV.  This is very encouraging from our perspective."

                                                                                              July 7th 2009
The Directors of the issuer accept responsibility for this announcement.


Oracle Coalfields PLC
Shahrukh Khan, Chairman
Telephone: +44 (0) 1366500722

St Helen's Capital plc
Duncan Vasey/Mark Anwyl
Telephone: 020 7628 5582

Lothbury Financial
Michael Padley, Ron Marshman
Telephone: 020 7011 9411


About Oracle:

Oracle  Coalfields plc is a London-based resource exploration and development company with an 80  per  cent
owned  subsidiary (Sindh Carbon Energy Limited) operating in Pakistan.  The Company's shares are quoted  on
the PLUS markets (symbol: ORCP).

Oracle's  flagship project is the Block VI coal project located on the Thar coalfield in the eastern  Sindh
province,  Pakistan. Block VI hosts a JORC-compliant resource of 1.4 billion tonnes of  which  371  million
tonnes are in the proven category.

The Company also owns the Indus East coal project in Pakistan where a pre-feasibility study carried out  by
Dargo Associates has confirmed a JORC-compliant inferred resource of 365 million tonnes.

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