Exploration drilling permit received for Raven Underground Coal project

Exploration drilling permit received for Raven Underground Coal project

Compliance Energy Corporation provide a progress report on the Raven Underground Coal project on Vancouver Island British Columbia.

Compliance Coal Corporation dba Comox Joint Venture (“CJV”) has just received an exploration permit from BC’s Ministry of Energy, Mines and Petroleum Resources to drill up to 53 holes (15,000 meters) on the Raven Underground Coal Project. The Raven project has 39,093,000 tonnes of measured and indicated and 59,004,000 tonnes of inferred coal resources as reported in the Company’s 43-101 Technical Report prepared by O.R. Cullingham Resource Consultant Ltd. The primary objective of this year’s exploration program is to increase the 39.0 million tonnes of measured and indicated resources by upgrading the 59.0 million tonnes of inferred resources. In addition, extensive coal quality sampling and testing will be conducted including washability, carbonization, and petrographic tests. The Raven Coal deposit is inherently a High Volatile A Bituminous metallurgical coal and the testing will help determine the ultimate wash plant process and forecasted plant yield and the coal’s suitability for sale on the international metallurgical, thermal and PCI coal markets. In addition, this summer’s program will include hydrogeological sampling including the installation of six piezometers and two pump tests. Gas desorption canisters and geotechnical samples will also be taken to assist in mine design.

The CJV is currently reviewing responses to its Requests for Proposals to complete a feasibility study on the project and will announce a successful bidder in the near future. The successful bidder will immediately begin preliminary work on the feasibility study and is targeting delivery of a final feasibility study in the second quarter of 2010 after incorporation of the results from this year’s drilling program. The Raven project has an existing elaborate network of logging roads so only a minimal amount of new road and drill pad construction will be necessary before drilling can commence. Drilling is expected to commence by June 01, 2009 and be finished in the fourth quarter of 2009.

In addition to this summer’s exploration program, the CJV has also hired AMEC Earth and Environmental to prepare an environmental assessment on the project. AMEC has initiated its environmental baseline monitoring including hydrology, surface water quality, wildlife, and fisheries. The CJV expects to file a project description with BC’s Environmental Assessment Office in June 2009 and is targeting to file an application for an environmental assessment certificate in the second quarter of 2010.

All of the activities leading up to a production decision will be funded from the $7.0 million held in the CJV’s bank account.

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