watch the story unfold

Seems this might have slipped under the radar of most.

Check out the spike in price and vol over the past 1 month!

A month ago it was 3c Now pushing 8 omn vlo that is a sig % of the available script.

The story:

ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE: 19 MAY 2009

MINERAL RESOURCE ESTIMATE FOR HINTON NEARING COMPLETION

The Board of Xenolith Resources Limited (“Xenolith” or “Company”) is pleased to advise that preparation of an initial Mineral Resource estimate (“MRE”) for the Hinton Coal Project (“Project”) is progressing rapidly and remains on track to be completed in the coming weeks.

Results from work conducted to-date on the Project’s eastern leases (“Hinton East”) have:
• Confirmed that the known coal seams at Hinton East dip to the northeast up to a maximum of 10o (refer Figure 2);
• Confirmed that the 4 main coal seams at Hinton East have a cumulative coal thickness of approximately 20m (refer Figure 2);
• Confirmed and increased the confidence in the continuity of the Hinton East coal seams;
• Confirmed that the Hinton East coal seams demonstrate lateral stratigraphic and coal quality continuity and that the raw in situ coal is classified as being a low sulphur, High Volatile bituminous C thermal coal; and
• Confirmed that a scoping study for a low strip ratio open pit operation producing thermal coal for export is warranted.

The Project is located near the township of Hinton in Alberta, Canada (refer Figure 1) which is a well established and prolific coal exporting region of Canada, having produced over 300Mt of coal since the 1920’s and covers 4,624 hectares along strike from Canada’s largest
export thermal coal mines. Considerable drilling and exploration activities were undertaken on the Project by Esso in the 1980’s which has formed the basis for the preparation of the MRE.

Xenolith has commissioned the preparation of an initial MRE for the Project to be completed in accordance with the JORC Code and NI 43-101 by Moose Mountain Technical Services
(“MMTS”) who have had a long association with coal properties in the Hinton region and are considered to be amongst the most respected coal experts in the region. MMTS has an extensive client base of major coal companies including Teck Cominco, Mitsui, Western Canadian and Anglo Pacific.

MMTS has now reviewed all existing drilling and exploration data compiled from historical activities undertaken on the Project and this data is being used to construct a 3D Block
Model for the Project that will initially focus on Hinton East.
2
The Company intends to commission Norwest Corporation (“Norwest”) to commence a scoping study on the Project immediately following the completion of the initial MRE.
Norwest is an internationally recognised leader in providing technical services to the coal industry and specifically the preparation of feasibility studies, development and optimisation of coal mines. Norwest has provided services to a number of major coal companies
including BHP Billiton, Peabody, Sherritt, Teck Cominco, Elk Valley and Western Canadian.

The scoping study will evaluate the technical and economic viability of various mining and processing scenarios and provide indicative figures for all key project development
parameters, including operating and capital costs and potential production size/scenarios.

The Company expects that the scoping study will be completed during the September 2009 quarter, following which the Company plans to advance to a feasibility study.