Jameson Resources Limited (ASX:JAL) Quarterly Report For The Period Ending 30 September 2009

Perth, Oct 30, 2009 AEST (ABN Newswire) - Norwest Corporation ("Norwest"), a leading international consulting group is undertaking a feasibility study on behalf of Jameson Resources Limited (ASX:JAL) to recommission the Basin Thermal Coal Mine ("Basin" or the "Project") in British Columbia. The study is targeting an initial production rate at the permitted capacity of 250,000 tonnes per annum with a rapid staged expansion to approximately 1million tonnes per annum.

Significant progress has been made during the September quarter including completion of the coal quality test work. Coal quality specifications of 6090 kcal/kg (adb), 12.5% ash, 10.8% moisture, and 0.56% sulphur were released following completion of bulk sample test work program. In addition, an evaluation on coal quality by a leading independent expert has confirmed that the Basin coal has potential for the PCI export market. PCI coals of this quality typically attract a A$10-A$15 premium on the thermal coal spot price. Other components of the recommissioning study including, mining and transportation studies are being advanced.

The Company has also announced during the quarter that it has appointed Mr T. Art Palm, a highly experienced coal mining executive to the Jameson Board of Directors. Mr Palm will take on the role of Executive Director of Operations on decision to mine.

Project Summary

Basin is located 30km northwest of Princeton, British Columbia. Compliance Energy Corporation has the right to develop and mine the coal on licences covering 2,172 ha. The mine tenements cover most of the Tulameen Syncline, of which the Province of British Columbia government has estimated the resource potential to be greater than 200Mt of coal.

Mining at the Basin Coal Mine began in 2002, but was ceased in 2006 when the provincial government abolished the use of coal power plants in British Columbia. Infrastructure remaining on site includes a coal washing process plant, crusher, road, workshop, and administration buildings. A registered Mining Permit to produce up to 250,000 tonnes of coal per year remains in place.

Norwest Corporation is undertaking a feasibility study on behalf of Jameson to recommission the Coal Mine. The study is targeting an initial production rate at the permitted capacity of 250,000 tonnes per annum with a rapid staged expansion to approximately 1million tonnes per annum. Significant progress has been made during the September quarter including plant design work, completion of open pit designs for small mine study, advancements in road and rail discussions, and completion of the coal quality test work.

Basin is the closest mainland coal project to the Western Canadian ports and has good rail and road access with significant available capacity. The existing infrastructure, including logging roads, loading facilities and rail, will significantly minimise the capital required to recommence operations.

Prospective buyers of thermal coal include international utilities and local cement manufacturers.

Discussions with both potential overseas and domestic off-take partners have been positive, with interest confirmed in the thermal coal produced from the Basin Coal Mine.

Corporate

The Company has also announced during the quarter that it has appointed Mr T. Art Palm, a highly experienced coal mining executive to the Jameson Board of Directors. Mr Palm will take on the role of Executive Director of Operations on decision to mine.

Projects

During the quarter the Company announced it had entered into a Sale Agreement to divest its Ora Banda gold assets to Winchester Resources Limited ("Winchester"). Winchester is an Australian public company which intends to raise A$2.0 million via an Initial Public Offering on the ASX.

The sale of the assets are contingent upon Winchester successfully completing an Initial Public Offering of shares on the ASX and receiving conditional approval for the admission of the Company to the Official List within six (6) months from the date of the Sale Agreement.

The terms of the Agreement are as follows;

- Payment of A$10,000 to Jameson; and

- Issue to Jameson 750,000 fully paid ordinary shares in Winchester upon listing.

The Board of Jameson considers the Ora Banda project to be a non-core asset of the Company, and the divestment will see the project receive the attention it deserves whilst allowing Jameson to focus upon the re-commissioning of the Basin thermal coal mine in British Columbia.

Winchester has been formed to acquire, explore and exploit gold and other mineral projects both in Australia and overseas.

Project Generation

The company is continuing with the evaluation of several other coal projects in Western Canada.

For the complete Jameson Resources Quarterly Report for the period ending 30 September 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/61668-ASX-JAL-466807.pdf

Contact

John Holmes Managing Director Tel: +61-8-9200-4473