media release - atq commences bfs at ngaka, page-2

MEDIA RELEASE 21 May 2009



ATQ COMMENCES BFS AT NGAKA
TANZANIA’S LARGEST THERMAL COAL PROJECT

400Mw Power Station/ 179Mt JORC Resource
“Clean Coal” Power & Thermal Coal Export Development
TANCOAL JV. (ATQ 70%/Tanzanian Govt. 30%)

Perth-based solid energy company Atomic Resources today commenced a Bankable Feasibility Study (BFS) to develop the Ngaka Thermal Coal Project in Tanzania, focusing on mining its JORC compliant 179 million tonne thermal coal resource, and constructing a 400Mw on-site power station from a combined Integrated Gas Combined Cycle (IGCC) gas plant and 400 mega watt (Mw) “clean coal” power station.

Atomic MD Dave Holden described the Ngaka Project as “a critical Nation-building project for Tanzania”.

“Tanzania has 40 million people with a median age of 17.8 years old. The Tanzania people need reliable, long-term “clean energy” supplies to fuel economic development and build national infrastructure and prosperity. Atomic plans to commence mining at Ngaka within 12 months of completing the BFS and anticipate initial coal production rate of 1 million tonnes per annum (Mtpa). During the 3 year construction phase for the IGCC plant production will ramp up to 2Mtpa. Project finance discussions have commenced with international investors and financial institutions in Europe, America and Australia.

Atomic, the largest private coal company in Tanzania, owns 70% of the Tancoal Joint Venture with the Tanzanian Government, created specifically to develop the vast Ngaka Thermal Coal Fields and providing a massive boost to Tanzania’s unreliable power supplies and under-developed coal mining industry and thermal coal export markets. The additional 400Wm of electricity generated by the Ngaka “Clean Coal” power station at Ngaka will increase total electricity supply in Tanzania by 40%. The Tanzanian Government regards the Ngaka project as critical to long-term national economic development.

“The project enjoys support from the International Monetary Fund (IMF) and the World Bank and we’ve had project finance discussions with several American, European and African institutions. The BFS will provide huge momentum to developing this major clean energy project that will deliver benefits to both our shareholders and the Tanzanian people.”

ENDS
Shareholder Enquiries Media Enquiries
David Holden Tony Dawe
Atomic Resources Dawe Media Group