SOURCE: Waratah Coal Inc.

May 15, 2007 09:00 ET

Waratah Coal Commences Drilling at Nymboida Coking Coal Prospect

BRISBANE, AUSTRALIA -- (MARKET WIRE) -- May 15, 2007 -- Waratah Coal Inc. (TSX-V: WCI) ("Waratah") is pleased to announce that a drilling program has begun at its 100% owned Nymboida Project, in NSW Australia. This initial program will test the potential continuity of the Farquhar's Creek coal seam beyond the localized area of historic mining activity. Historic laboratory testing of the Farquhar's Creek seam highlighted its excellent metallurgical properties.

The Nymboida Coal Project (EL 6467), located in New South Wales, has potential to produce both thermal and coking (steel-making) coal products based on information from historical mining data and existing coal exploration data for the licence and surrounding area.

The prospect generally has the potential to produce good quality coals at shallow overburden depths. Notably there has been no modern exploration activity completed within the basin examining the potential for the extraction of material via modern bulk mineable underground methods.

SRK Consulting believes the EL 6467 exploration licence controlled by Waratah Coal has the following attributes:

* Moderate resource potential in a brownfields area

* Good quality and variety of coal products

* Close proximity to infrastructure

* Capacity to achieve results quickly and efficiently.

(from SRK Consulting's August 2006 Technical Report on the Nymboida Project)

The Nymboida underground colliery operated commercially from 1948 until its closure in 1979. The historic underground mining activity was very small scale in nature only extracting 500 to 700 tonnes per week to supply the local Koolkhan Power Station. Total production is estimated at 200,000 tonnes. Covering an area of 59km2, the Nymboida project is located approximately 35km south west of the NSW region centre of Grafton. Grafton is 300km by rail to the coal export port of Brisbane, alternatively, there is the potential to barge coal to Brisbane via the Clarence River. Waratah Coal believes only a moderately-sized resource would be needed to justify mine development due to the proximity to existing infrastructure and the strong demand for coking coal. The initial drilling program includes six to eight open holes, up to two cores of the Farquhar's Creek seam and extensive surface mapping. The aim is to provide confidence that coal seam distribution required to produce at least a moderate sized resource of coking quality coal does indeed exist. A positive result will lead to a more extensive program focused on proving a resource for the purposes of mining.

Two open holes have been completed with the third hole under way. A coal seam, believed to be the continuation of the Farquhar's Creek seam was intersected in both of the first two boreholes. Accurate seam thicknesses and coal quality data will be available after geophysical logging of all the holes drilled is completed and core samples have been analysed in a NATA-approved laboratory. NATA is the National Association of Testing Authorities, which is Australia's national laboratory accreditation authority.

Waratah Coal Inc. encourages its shareholders and interested investors to visit www.waratahcoal.com. The website has been designed to provide a comprehensive overview of Waratah's current projects and the state of development which each project is at. Shareholders and investors are encouraged to register for email notification and distribution of future news releases.

About Waratah

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 project evaluation, structured acquisition, exploration and project development and operations, an area where Waratah executives have significant experience. Six coal projects have already been acquired, with more in application, and a drilling program is well underway at Waratah's South Alpha project.

Waratah has 32.0 million shares outstanding, has approximately C$2.5 million in cash and no debt.

On behalf of the Board of Directors,

"Peter Lynch"
President, Chief Executive Officer and Director
These securities have not been registered under the United States Securities Act of 1933 ("the US Securities Act") or the securities laws of any state, and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.

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