Hunnu
Coal has reported an initial JORC measured, indicated and inferred resource
estimate of 324 million tons to a depth of 140 meters for the new Har Toirom
coal discovery, which is located adjacent to the Unst Khudag Coal Deposit in
Mongolia. This is a significant boost to the company”s aim of becoming a major
force in the exploration and development of coking and thermal coal deposits in
the world class South Gobi and Middle Gobi coal regions.

Resource
modelling is now progressing on the Unst Khudag Deposit, which will be released
in the coming weeks. A total of 209 drill holes have been completed there,
resulting in a total of 17,435 meters of drilling, including 8,877 meters of
drill core. The company is negotiating off-take agreements with potential
buyers.

The
discussions on construction of a power plant on site are progressing
positively, with identification of a suitable consultant to undertake a
feasibility study. Transportation and logistics studies for delivering Unst
Khudag coal to the Mongolian Chinese border are at an advanced level.