SOURCE: Waratah Coal Inc.

March 13, 2007 10:29 ET

Waratah Coal Commences Drilling at the South Alpha Project

BRISBANE, AUSTRALIA -- (MARKET WIRE) -- March 13, 2007 -- Waratah Coal Inc. (TSX-V: WCI) is pleased to announce that a drilling program has begun at its South Alpha Project in the Galilee Coal Basin in Queensland, Australia. The drilling program will test the continuity of significant coal resources on adjacent property, with sufficiently close spacing to be able to estimate inferred coal resources by July 2007. The South Alpha project benefits from the following:

* Large resource potential in a previously unexplored area
* Potentially high quality thermal coal products
* Close proximity to infrastructure
* Capacity to achieve results quickly and efficiently
(from SRK Consulting's August 2006 Technical Report on the Alpha Project)
The adjacent property hosts a reported JORC-compliant measured and indicated resource of 2.1 billion tonnes of thermal coal over a 37 kilometers strike length. Waratah's 100%-owned South Alpha licence and licence applications cover 1,048 square kilometers, extending over 185 kilometers along strike to the north and south adjacent to the historical resource as well as adjacent and down dip, to the west. Coal intersections over the four seams on the adjacent drill line on the tenement to the north averaged a total thickness of 34 meters with the thickest seam 15 meters.

Drilling activities commenced on Friday the 9th of March. Drill lines are being prepared with the first line ready to drill. Maps indicating Waratah's drilling program and its proximity to the Hancock resources can be viewed at or by contacting the Company.

This initial program of drilling has been designed in conjunction with SRK Consulting with the aim of rapidly identifying resources within the four known target seams. The first stage or the program consists of 50 holes, both open hole and partially cored spread over a target resource area covering 110 square kilometres. The first drill rig will be joined by a second rig in late April, 2007, with the aim of completing the program by the end of June 2007.

The Galilee Basin is a known geological basin containing 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. 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.

EPC 1040 is one of six EPCs and EPC applications held by Waratah in the Galilee Basin. Waratah is targeting the potential for a large scale export thermal coal project, should large tonnages of economically mineable coal be identified.

Figure 1 Waratah Coal's EPC 1040 licence showing proximity to existing low capacity rail infrastructure and drilling program underway, starting from the northern boundary.

To view Figure 1, please Click Here

Graphic Hosting Provided By Filing Services Canada Inc.

Figure 2 close in view of drill program designed by SRK Consulting to achieve National Instrument 43-101 compliant inferred resources. Completion scheduled for June 2007.

To view Figure 2, please Click Here

Graphic Hosting Provided By Filing Services Canada Inc.

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 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 $3 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.

Contact Information

  • For further information please contact:
    Investor Relations

    Peter Lynch
    Telephone: +61 7 3303 0692
    Email: Email Contact

    Henry Wright
    604 681 5755
    Email Contact