Hunnu Coal to acquire additional thermal coal project in Mongolia March 10, 2010

Hunnu Coal (ASX: HUN) has been granted an option to acquire an 80% interest in the Erdenes Thermal Coal Project (EL14733) which is located in the Dornogobi Province of south eastern Mongolia.

Highlights:

• Strategically located 56 km from an operational multi party coal loading facility on major rail line.
• Exploration work carried out in 1978 discovered coal bearing Lower Cretaceous Khukhteeg Formation distributed throughout the property.
• Test pits discovered high quality coal seams, with Q = 5,120 to 7,310 kCal/kg, S = 0.11% to 0.63%, Ash = 14% to 38.5% and Moisture content = 8.6% to 12.4%.
• A single drill hole intercepted a coal seam of eight meters in thickness from 1.5 m depth.
• The Company has an exploration target* of 40Mt to 60Mt for the Erdenes Coal Project based on existing exploration work.

The Erdenes Coal Project is located in Dornogovi province, 380 km from the capital city of Ulaanbaatar and 56 km from a bulk commodity loading rail facility at Bor Undur, which is connected to the Mongolian railway grid.

Click here to view the full announcement.

For further information, please contact:

Matthew Wood
Executive Chairman
Tel: +61 8 9200 4267
E-mail: info@hunnucoal.com

Media:
Fortbridge +61 2 9331 0655
Bill Kemmery +61 400 122 449
bill.kemmery@fortbridge.com