With exploration and drilling continuing at Churchill Mining"s East Kutai Coal Project in Kalimantan, Indonesia, the first coal volume calculations are expected in January 2008.

Drilling totalling 3891 metres has been completed and has intercepted up to nine coal seams per hole.

There have been 36 holes drilled with the most recent bore holes having a spacing of between 750m and 1000m between centres. Target seams for a JORC-compliant resource are all dipping at less than 10 degrees and drilling rates will increase when infill block-drilling begins.

More than 250 coal outcrops have been mapped with coal thicknesses ranging up to more than 20 metres in outcrop. Mapping will continue as the drilling proceeds to assist in seam correlations and define further extensions to the coal-bearing stratigraphy.

The company believes that based on current project findings, it does not appear that the coal will require drying before it can be exported.

All exploration camps and facilities are in place and the company now has a field team of more than 100 personnel, including drilling contractor staff, 12 geologists, community liaison and local development officers, logistical support and locally sourced non-skilled personnel working on the project.

www.churchillmining.com