Hunnu Coal Ltd. has acquired a 90% interest in the Tsant Uul Coal Project
in the world class South Gobi coking coal province. The Project covers over
59,000 hectares and is located only 40 km to the south of the Tavan Tolgoi
deposit and 6km from the present coal haulage road to China.

Hunnu said due diligence at Tsant Uul has included the drilling of seven
diamond core drill holes for approximately 960 meters. Coal was intersected as
close as 7.8 meters from the surface. Core samples have been submitted for test
work and results are pending. The company is currently assessing further
acquisition opportunities in the South Gobi.