Hunnu Coal acquires major land position in the world class South Gobi Coal Province May 26, 2010

Hunnu Coal (ASX: HUN) has acquired a 90% interest in the Tsant Uul Coal Project. The Project is located within 40km of the giant Tavan Tolgoi Coking Coal Field in Umnugobi Province of Mongolia.

Highlights:

• Hunnu Coal is aiming to become a major force in the development of coal deposits in the world class South Gobi coal province
• Strategically located proximal to the giant Tavan Tolgoi Coking Coal Field
• Operating coking coal mines within 50km currently exporting to China
• Due diligence programme comprising seven diamond core drill holes completed. Multiple coal seams intersected with thicknesses up to 22.8 metres with partings
• Past test work indicates the potential for both coking coals and high value thermal coals
• Granted Exploration License 59,000Ha in area
• Existing haulage road to China located adjacent to project
• Proposed rail line to China located close to project
• Exploration Target* of 50Mt to 100Mt of coal
• Aggressive exploration programme planned for 2010

The Company has successfully completed a due diligence programme at the Tsant Uul Coal Project and has now acquired 90% of the project.

The Tsant Uul Coal Project covers over 59,000Ha of area in the world class South Gobi Coking Coal Province of Mongolia. The project is located only forty kilometres to the south of the giant six billion tonne Tavan Tolgoi coking and thermal coal deposit and approximately 6km from the existing coal haulage road to China.

Click here to view the full announcement.

For further information, please contact:

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

Media:
Fortbridge +61 2 9331 0655
Bill Kemmery +61 400 122 449
bill.kemmery@fortbridge.com
Luke Dean +61 414 535 433
luke.dean@fortbridge.com