abadi coal project update

16 April 2008

Abadi Coal Project Update

Coal FE Resources Limited (ASX:CES) today announced results from drilling at the Abadi project in Selo Lai
Area, Muara Badak District, East Kalimantan, Indonesia.
The twenty six holes have been drilled within a 300 hectare block. The location of the drill holes can be found
in Figure 1. Of the 26 drill holes, total depths ranged from 28 – 97.5 metres. Total drilling comprised 1,811
metres. From the drill holes there are 6 main coal seams; Seam A (A and A2), Seam B, Seam C, Seam D (D,
D1 and D2), seam E and seam F with thicknesses of 0.38 – 6.99 metres.
Figure 1: Drillhole Location
Drilling results indicate a significant step towards Coal FE achieving the Board’s target of proving an economic
resource. Twenty coal samples were analysed with dry basic analysis (adb), the range of coal quality can be
seen in the table below:
Table 1: Coal Quality Analysis Results
Sample Code Total
Moisture
(%)
(ar)
Inherent
Moisture
(%)
(adb)
Ash
Content
(%)
(adb)
Volatile
Matter
(%)
(adb)
Fixed
Carbon
(%)
(adb)
Total
Sulphur
(%)
(adb)
Gross
Calorific
Value
(Kcal/Kgr)
(adb)
BH-10,A1 Seam A 44.2 14.6 8.8 42.5 34.1 1.45 5057
BH-10,A2 Seam A 43.7 16.3 9.2 44.3 30.2 0.44 4840
BH-10,A3 Seam A 46.3 18.1 3.5 33.9 44.5 0.36 5213
BH-10,A4 Seam A 43 18.9 9.5 42 29.6 0.28 4808
Average 44.3 16.98 7.75 40.7 34.6 0.63 4979.5
BH-07a,
A1
Seam
A1
45.1 23 3.2 41.4 32.4 0.84 5213
Average 45.1 23 3.2 41.4 32.4 0.84 5213
BH-08,A2 Seam
A2
42.8 15.2 11.3 40.2 33.3 1.56 4808
Average 42.8 15.2 11.3 40.2 33.3 1.56 4808
BH-03,B1 Seam B 47.25 15.6 6.2 42.4 35.8 0.27 5020
BH-03,B2 Seam B 47.81 15.38 3.7 45.06 35.86 0.15 5037
BH-03,B3 Seam B 46.42 14.86 4.9 44.53 35.71 0.16 5207
BH-03,B4 Seam B 47.35 14.52 2.96 44.34 38.18 0.13 5212
BH-03,B5 Seam B 46.81 14.4 3.92 44.5 32.28 0.14 5214
BH-03,B6 Seam B 45.63 13.12 2.36 47.71 36.81 0.12 5616
BH-03,B7 Seam B 44.4 12.68 3.79 50.16 33.37 0.18 5767
Average 46.52 14.37 3.98 45.53 35.43 0.16 5296,14
BH-04, C Seam C 44.4 16 11.2 41.4 31.4 0.27 5017
Average 44.4 16 11.2 41.4 31.4 0.27 5017
BH-01, D1 Seam D 46.5 17.6 1.6 45.5 35.3 0.47 4825
BH-01, D2 Seam D 45.2 17.2 7.4 39.8 35.6 0.36 4844
Average 45.85 17.4 4.5 42.65 35.45 0.415 4834,5
BH-12, B1 Seam E 35.1 15.5 5.4 45.9 33.2 1.21 5394
BH-12, B2 Seam E 44.6 15.7 5.2 44.6 34.5 0.91 4772
Average 39.85 15.6 5.3 45.25 33.85 1.06 5083
BH-16, C1 Seam F 43.8 17.2 7.5 40.7 34.6 0.46 5353
BH-16, C2 Seam F 41.8 15.7 13.2 39.6 31.5 0.33 5294
Average 42.8 16.45 10.35 40.15 33.05 0.395 5323.5
From the results of 20 samples the average quality is:
Table 2: Average Coal Quality Analysis Results
Analysis Unit Basis Range
Total Moisture % wt Ar 35.1 – 47.81
Inherent Moisture % wt Adb 14.6 – 23
Ash % wt Adb 1.6 – 13.2
Volatile Matter % wt Adb 33.9 – 50.16
Fixed Carbon % wt Adb 29.6 – 44.5
Total Sulphur % wt Adb 0.12 – 1.56
Calorific Value Cal/g Adb 4754 – 5767
One of the drivers of the drill program is to detail and prove the Abadi project to meet relevant JORC measured
resource requirements. Work on a JORC compliant resource estimate is in progress by our consultants,
Ravensgate and should be completed in May 2008.
Julian Chang
Executive Director
The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Ms Liesl Kemp,
a Non Executive Director of Coal FE Resources Limited, who is a Member of the Australasian Institute of Mining and Metallurgy. She has
sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken
to qualify as a Competent Persons as defined in the 2004 Edition of the “Australian Code for Reporting of Mineral Resources and Ore
Reserves”. Ms Kemp consents to the inclusion in this report of the matters based on information in the form and context in which it
appears.
Principal Office
1/76 Canning Highway, Victoria Park, WA 6100. Phone: +61 8 9470 9156 Fax: +61 8 9470 9157 Website: www.coalferesources.com