Riversdale Mining releases Quarterly Report July 29, 2009

Riversdale Mining (ASX: RIV) has released to the market its Quarterly Activities Report for the period ending 30 June 2009.

HIGHLIGHTS:

Mining Contract Signed

• Riversdale Mining and the Minister of Mineral Resources have signed the Mining Contract for the Benga Coal Project in Mozambique.
• The terms of the Mining Contract govern the regulatory regime under which the Benga Coal Project will be operated.
• The approval and execution of the Mining Contract has resulted in the issuance by the Government of the Mining Concession for 25 years initially.

Benga Feasibility Study

• The Feasibility Study for the Benga Coal Project has been completed by Riversdale and submitted for review and comment to Tata Steel, Riverdale’s 35% JV partner in the Benga Coal Project. Following this Review, it is envisaged that the Project will be considered by the joint venture company for development approval. It contemplates three stages of development to align with the availability of transport infrastructure and market development.
• The Study has confirmed that the project exceeds Riversdale’s required rate of return with capital costs of US$260 million for Stage 1 and an additional US$150 million for Stage 2.
• The EIA study has been subject to a public consultation process and is awaiting approval by Government in the second half of 2009.
• Progress is being made on rail access and the viability of barging coal down the Zambezi river.
• Evaluation of the Benga Power Project is continuing and is encouraging.
• The Company has also announced a Feasibility Study to evaluate large scale barging capacity on the Zambezi River capable of supporting an expanded Benga Coal Project.

Exploration in Mozambique

• The Benga tenement Coal Resource estimate of 4.0 billion tonnes comprises 1,034 Mt of Measured and Indicated Resources of which 893 Mt are under 500m depth. An initial Coal Reserve of 273 Mt has been estimated.
• Coal quality results indicate that Benga coking coals will be of premium hard coking quality.
• Drilling at Benga continues to delineate the resource to facilitate detailed mine planning and development.
• Initial findings in EL 946L are very encouraging, confirming the continuation of the same sequence of coal seams encountered in Benga, but over a much larger area.

Zululand Anthracite Colliery (ZAC)

• ROM production for the June quarter was 199,300 tonnes and 808,259 tonnes for the 2009 year.
• Saleable production totalled 182,310 tonnes for the June quarter and 706,348 for the 2009 year and is the best quarterly performance this year.
• Product sales for the 2009 year of 562,796 tonnes (2008: 670,336) reflect reduced market demand following the market downturn.
• The Ngwabe Project development is on schedule and production has commenced from the new Western Extension.

Corporate

• Cash on hand was A$290 million at 30 June 2009.
• Tony Redman was appointed as a Non-Executive Director during the quarter.

Click here to view the full announcement.

For further information, please contact:

Michael O’Keeffe
Executive Chairman
Ph: +612 8299 7900

Steve Mallyon
Managing Director
Ph: +612 8299 7900

Niall Lenahan
CFO & Company Secretary
Ph: +612 8299 7900

or

Media: Fortbridge
Bill Kemmery
Ph: +612 9331 0655
Mob: +61 400 122 449
Email: bill.kemmery@fortbridge.com