SOURCE: Waratah Coal Inc.

March 28, 2007 09:45 ET

Waratah Coal Announces Granting of Another Coal Exploration Licence in the Galilee Basin

BRISBANE, AUSTRALIA -- (MARKET WIRE) -- March 28, 2007 -- Waratah Coal Inc. (TSX-V: WCI) is pleased to announce the granting of an additional Exploration Permit for Coal EPC 1039, called Pocky Creek in the Galilee Basin, Queensland, Australia. EPC 1039 covering 42km2, is the second license of a total of six applications forming the basis of a major regional development strategy centered on the thermal coal resources of the Galilee Basin. Waratah Coal has already started drilling on its first granted license South Alpha EPC 1040. This new tenement is part of a parcel of four applications covering the area located immediately north of a known JORC-compliant measured and indicated resource of 2.1 billion tonnes. The granting of EPC 1039 means Waratah is in position to drill-test the extensions of the four target coal seams along strike to the north.

Drilling commenced on Waratah Coal's EPC 1040 South Alpha licence, which adjoins the southern boundary of the known resource, on Friday the 9th of March. To date, a total of 10 of the planned 50 holes have been drilled, on schedule. Geophysical logging of the completed holes is scheduled to commence shortly which will allow the reporting of specific seam intersections. Please visit www.waratahcoal.com to view maps of the regional licences and applications, as well as details of the newly granted licence and the current drill program.

The Galilee Basin is known to contain Permian-age high quality thermal coals which when washed produce a highly marketable export quality product. The main thrust of the Waratah Coal exploration program is to prove the continuity of the known four seams which account for the 2.1 billion tonne resource on the licence immediately to the north of Waratah's EPC 1040 South Alpha licence, and south of Waratah's EPC 1039 Pocky Creek Licence. This area was extensively explored in the seventies by companies including, Bridge Oil, Total, Cameco and the Shell Company. The leases have remained dormant since that time with Waratah securing a significant licence position extending over 185 kilometres north-south along the strike of the coal seams, starting from the railway line along the southern boundary of EPC 1040 South Alpha.

About Waratah Coal

Waratah's strategy is to build shareholder value, through acquisition, exploration and development of coal projects in Australia. This strategy has being developed by a synthesis of Waratah's core skills in coal project evaluation, structured acquisition, exploration and project development and operations, an area where Waratah executives have significant experience. Waratah has 32.0 million shares outstanding, has approximately C$2.7 million in cash and no debt.

On behalf of the Board of Directors,

"Peter Lynch"
President, Chief Executive Officer and Director

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

WARATAH COAL INC.
LEVEL 5, 60 EDWARD STREET
BRISBANE    QLD   4000   AUSTRALIA

Contact Information

  • For further information please contact:
    Peter Lynch
    Telephone: +61 7 3303 0692
    Email: Email Contact

    Henry Wright
    604 681 5755
    Email Contact