OAKLANDS

Coalworks Limited announced that its Coal Resources within the Oaklands Exploration Licence (EL6861) total 822 million tonnes of subbituminous coal. Included within this are 121 million tonnes of Measured Resources. The total Oaklands resources have almost tripled since the company listed in June 2008 with JORC inferred resources of 280Mt. The total resources have been upgraded from the previously announced Indicated and Inferred Coal Resources of 760 million tonnes. Coalworks Limited holds 100% of Exploration licence EL6861 in the Oaklands Basin, situated in the Oaklands area within the Riverina District, southern New South Wales, which covers part of the Permian Oaklands-Coorabin coalfield.

Coalworks announced results from the latest drilling program at its Oaklands project, New South Wales, Australia. The program consisted of 34 holes, mainly partly cored but including 2 fully cored holes and one open hole. Best intersection was in drill hole ODH082 where a total thickness of 15.94 meters of Lane Shaft Seam was intersected (from 134.47m to 150.41m depth), including 10.0 meters at 5151 kcal/kg, (ad).

Coalworks reports initial seismic interpretations conducted by Velseis Pty Ltd have recently been received for all three survey lines conducted across the northern section of Coalworks’ Oaklands Project (EL 6861) in New South Wales, Australia, where drilling to upgrade the 760 Mt of Indicated and Inferred Resources (classified according to he JORC code) to a Measured status is being conducted. The seismic survey was highly successful in outlining the continuous draped nature of the seams on all three lines surveyed. Drill hole geological logs and down hole geophysical survey data has been used in the interpretation of the seismic data along these transects.