KAL Thermal Coal Resource Increased to 248 Million Tonnes

KAL Energy, Inc., a thermal coal explorer and developer, announced the publication of an updated JORC Compliant Resource Statement on its Graha Panca Karsa concession (Block 24) in East Kalimantan, Indonesia.

William Bloking, Executive Chairman and President of KAL Energy, Inc. said, “We are delighted to report not only a significant increase in the overall size of the Graha resource, but also that about 60 percent of the resource has been moved from the inferred category to the indicated category. Once we receive our exploration license extension and the necessary Forestry Department permit, we plan to conduct Phase II of our drilling program on Block 24 in order to obtain the quality and other data necessary to move resources into the reserves category, and to update project economics and mining plans.”

Attila Kovago, KAL Energy’s VP of Exploration, said, “The new JORC compliant Resource Statement is based on additional drilling data from 2007 that was not incorporated into the initial JORC Statement, a highly accurate Digital Terrain Model derived from an airborne laser topography (LIDAR) survey carried out in October 2008, and intensive geological remodeling of the deposit. The planned Stage 2 drilling program has potential to further increase tonnage by determining if any of the additional seams can be included, and by providing additional coverage of the concession area.”

“In parallel with our Phase II drilling campaign, we are also shifting our focus to converting the exploration license into an exploitation license. Currently we anticipate lodging our application before the end of the calendar year in support of our goal of receiving the exploitation license by the end of May 2009,” concluded Mr. Bloking.