🕐27.01.11 - 01:27 Uhr

UNIVERSAL MAKES STRATEGIC COKING COAL EXPANSION ACQUISITION



ASX / MEDIA RELEASE ASX CODE: UNV JANUARY 27, 2011
UNIVERSAL MAKES STRATEGIC COKING COAL EXPANSION ACQUISITION Highlights New farm-in opportunity contiguous to companys Berenice coking coal project; Provides additional JORC Inferred resource of 95.5Mt. Further drilling at Berenice project confirms consistent, thick coal zone. Universal Coal plc ("Universal") is pleased to announce that it has secured an additional shallow depth farm-in opportunity contiguous to its Berenice coking coal project in the Limpopo region of South Africa.

The new Cygnus project contains an existing JORC resource of 95.5Mt and, as a result, significantly increases the current Inferred resource over the combined Berenice and Cygnus projects to 217.5Mt. The farm, Cygnus 549MS, has a JORC Inferred resource of 95.5Mt, covering an area of 1,319 hectares, increasing the initially targeted area on the Berenice project to 8,308 hectares. Drilling has recommenced on the Berenice project, where coal sequences have now been intersected in all ten (10) holes completed to date.

As reported previously, these intersections confirm a consistent 35-40m thick developed coal zone, with intersection depths ranging from 20- 200m below surface. The coal zone consists of inter-bedded bright coal and carbonaceous mudstone. In addition to the above, the final phase of drilling has also commenced on the Brakfontein thermal coal project.

The project has to date a defined JORC resource of 96.6Mt classified as Indicated and a further 29Mt classified as Inferred. Terms of Farm-in Agreement UNV receives an effective 10% in the project upon payment of R1 million (~AUD150,000) due after a 45 day DD period and lodgement of the MPRDA section 11 transfer application, ceding the right to a UNV subsidiary. UNV earns another effective 10% upon an additional R1 million (~AUD150,000) payment on registration of the section 11 transfer approval. UNV earns a full 50% on drilling an agreed portion of the Cygnus project to Measured status within 18 months of signing the acquisition agreement.

All prospecting rights for coal and other minerals are included in the Cygnus project acquisition agreement.

UNV also retains an exclusive option to purchase an additional 24% at market value at any stage after the resource on Cygnus has been classified as Measured.

This option is open for 3 years. Universal has been assisted in the expansion of its coking coal resource base by existing shareholder Natasa Mining Ltd ("Natasa").

The two companies have entered into an ongoing facilitation agreement whereby Natasa will be issued six (6) million shares in Universal subject to the successful consolidation of the Cygnus coking coal asset.

The shares will be issued in accordance with Listing Rule 7.1 and are to be escrowed for 24 months. The board of Universal Coal will be providing market updates shortly on the remaining thermal coal projects which will include production targets on our first mine to market "Kangala". www.universalcoal.com Contact Details For more information on this announcement, please contact: Dr Tony Harwood (Chairman) Ph: +27 12 460 0805 Mr Dan Robinson (Company Secretary -- Australia) Ph: +61 8 6267 0210 Media Professional Public Relations Mr James Harris / Mr Colin Hay Ph: +61 8 9388 0944
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