Hunnu Coal has upped the pace of drilling at
its coal projects in Mongolia with 11 rigs operating on various projects, aimed
at generating initial JORC resources.

Hunnu has completed 71 drill holes for 6,022 meters at the Unst Khudag mine,
where four drilling rigs are currently operating. Initial JORC resources are
expected to be completed for both the Unst Khudag Mine and the Har Toirom
discovery within it in the last quarter of 2010, with Hunnu estimating an
exploration target of 250Mt to 500Mt of coal for the Project.

The company has completed 20 drill holes for 3,654 meters at the Tsant Uul
Coking Coal Project, where five drilling rigs are currently operating. A JORC
resource study for Tsant Uul is expected to be completed before the end of this
year with scoping and development studies to commence early in 2011, with Hunnu
estimating an exploration target of 50Mt to 100Mt of coal.
Hunnu has completed 15 drill holes for 2,132 metres at Tenuun-2, with two rigs
operating. In total, Hunnu has completed 106 drill holes for 11,808 meters of
drilling.