6 October 2012 SIGNIFICANT UPGRADE TO JORC RESOURCE AT KINNEY COAL PROJECT Highlights: • JORC Resource on Kinney increases by 97% to 51.6Mt from 26.1Mt • 87% of the resource is in the Measured and Indicated Category • Latest drill campaign confirms high quality thermal coal in excess of 6,600 kcal/kg GAR and an average sulphur well under 1% The Board of New Horizon Coal Ltd (NHO or Company) is pleased to announce a significant upgrade to the JORC Coal Resource at its Kinney Coal Project in Utah, USA. The most recent coal resource estimate uses the full thickness of the UP Seam, results of the 2012 exploration program, and includes additional coal blocks controlled by NHO. Average coal quality is high in calorific value and low in sulphur content. Of the new total, 44.8 million tonnes (87% of the total) are measured or indicated. This upgrade coincides with a period of rapid development for the Company as it moves the Kinney Coal Project towards Bankable Feasibility and production. In addition to the stated JORC Resource upgrade, recent and upcoming highlights include: ?? Continued progress on the Kinney Coal Project Pre-Feasibility Study, with results to be released in November 2012. ?? Release of coal quality from the Company’s 2012 drilling program. Drilling results confirmed average quality of the Kinney coal to be: high calorific, low ash, and low sulphur, and comparable to typical Newcastle quality specification. ?? Marked progress towards securing an export allocation at a new, fully-permitted port on the Gulf of Mexico coast. NHO is finalising an initial allocation, an agreement for which is expected by the end of 2012. ?? Definitive negotiations with Class 1 rail carriers. NHO is working with the new, fully-permitted port facility to secure preferred haul rates from the Kinney Coal Project to the Gulf Coast. Kinney Coal Project JORC Resource Upgrade The JORC Resource upgrade to 51.6 million tonnes is the result of independent evaluation of the Kinney Coal Project by John T Boyd Company (JT Boyd). The recent coal resource determination is part of the pending Prefeasibility Study (PFS) being prepared by JT Boyd for release in November. All Coal Resources identified and confirmed by JT Boyd lies on mineral rights controlled exclusively by NHO.
HE8 Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
