makes progress on coal exploration

Rey makes progress on coal exploration
11:23, Thursday, September 27, 2007

Sydney - Thursday - September 27: (RWE Aust Business News) - Rey
Resources (ASX:REY) has recently completed a review of all prior coal
exploration undertaken in the Fitzroy Trough of the Canning Basin,
Western Australia.
The key outcomes of this review are the recognition that the most
likely location of coal suitable for open-cut mining is on the southern
limb of the Grant Structure and the presence of previously unrecognised,
near surface, better quality coal in part of the leases, extending west
from Paradise Station.
At the Liveringa coal project Rey has committed to a drill
program that aims rapidly to generate a resource that can be used as the
basis for a feasibility study on an export quality, open cut, thermal
coal operation.
The exploration will focus on an area of higher quality coal that
was identified by Premier Mining in 1975.
The start of the drill program is dependent on final heritage
clearance and drill rig availability.
If clearance is not granted prior to the onset of the rainy
season (usually late November), drilling will commence in April 2008, as
part of a larger regional program.
Rey is also initiating scoping studies to examine the major
issues in connection with a mining development in this region.
A shareholder purchase plan (SPP) previously proposed for
September has been deferred until November.