CHURCHILL MINING PLC (CHL) - Drilling Update for the East Kutai Coal Project, Indonesia

Churchill Mining is pleased to announce an update on its ongoing drilling programme at the East Kutai Coal Project in Indonesia.

• Latest drilling and exploration programme defines a coal-bearing sequence up to 16.5 km along strike 
  Initial 250Mt JORC compliant resource reported previously covers less than 6kms of the potential 16.5km strike length
• Further promising indications of coal resource quality with very low sulphur and low ash content
• Drilling completed to date covers 3,489 hectares and represents less than 10% of total coal target area
• Infill drilling programme at the potential first mine pit has commenced to advance the operation into production stage
• Second pit drilling target being identified

Churchill’s Managing Director, Paul G Mazak, commented:
“The latest round of drilling has added to the potential of the coal deposits within the East Kutai Coal Project concession areas. The discovery of a coal seam of up to 25 metres in thickness stretching over 11.5 kilometres along strike, demonstrates the scale of the coal deposits within the concession area. There is a further resource upside of up to 6 kilometres strike length to drill within the RTM tenement and we are only just about to commence detailed drilling on the newly acquired western blocks.”

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