re: Ann: Hunnu to Acquire 60% of Unst Khudag ... The Unst Khudag...

re: Ann: Hunnu to Acquire 60% of Unst Khudag ... The Unst Khudag Coal Mine is strategically located 200km from an operational multi party coal loading facility on a major rail line.

Consists of two Exploration Licenses and one Mining License covering over 59,000 hectares.

Approved Mining Plan and Feasibility Study for the mining of 98.7Mt of coal.

Hunnu is targeting first production from the Unst Khudag Coal Mine in the latter half of 2010.

Off-take agreements are currently being discussed with Mongolian and Chinese coal users.

Exploration Target of 250Mt to 500Mt.*

Past trial production of approximately 30,000t for bulk test work with potential off-take partners and local utilities.

Single coal seam with average thickness of 20 metres dipping at 0 to 5 degrees.

Coal at less than 4 metres from the surface.

Low strip ratio at less than 1:1 from startup.

Coal analysis reveals high quality thermal coal with quality parameters on average Qdaf = 6460 kCal/kg, Ash = 13.9% and Moisture content = 23.9%.