Pan Asia Corporation Ltd (ASX:PZC) Drilling At Indonesian TCM Project Continues To Intersect High Quality Coal

Perth, Feb 23, 2010 AEST (ABN Newswire) - Pan Asia Corporation Ltd (ASX:PZC) are very pleased to provide the following update on drilling activities at the TCM Coal Project located in south Kalimantan, Indonesia. Drilling activities are currently focussing on the southern part of the TCM concession and immediately adjacent to the 2Mtpa ATA open pit mine operated by PT Arutmin Indonesia (part of PT Bumi Resources Tbk Group). The ATA mine typically produces a highquality thermal coal with high calorific values, moderate sulphur and low ash. The TCM drill program is targeting the down-dip position of the seams currently being mined in the ATA pit with the intention of building sufficient resources to justify the development of a mining operation. To this effect, the Company has begun investigations into the possibility of these adjacent open pit mining operations being extended into the south-western area of the TCM concession. This will be in addition to proposed underground mining operations that may occur.

Drilling remains ongoing at TCM, with seven holes drilled to date. The recently completed TCM 7 returned a total of seven (7) coal intersections over the length of the hole, with a cumulative thickness of 5.92m. TCM 7 is located 2km to the north of TCM 3 which returned a cumulative coal intersection of 6.62m, as reported to the ASX on 1 February 2010.

TCM 5 and TCM 6, drilled nearly 1 km to the east of TCM 3 and TCM 7, intersected coal at the predicted depth, however the seams appear to be thinner. TCM 6 returned a cumulative coal intersection of 2.06m from three (3) seams. TCM 2 and TCM 4 were drilled on the southern side of the Batulicin Fault in non-coal bearing formation. The location of this fault has now been better defined by this drilling.

In the short term, drilling will concentrate on infilling the area between TCM 3 and TCM 7 which will assist in making the decision to extend the neighbouring open pit into this area of TCM. This drilling will also be used to further assess the potential for underground mining based on the thick, high quality coal seams present in this area. It is intended for the drill program to continue northward, employing the same exploration drilling techniques to locate the down-dip position of the coal seams exposed in adjacent open pits.

All drilling, logging and sampling has been undertaken in accordance with industry best practice and in consideration of the JORC guidelines. All drill holes are vertical and utilise a mixture of HQ diameter open hole and triple tube coring. Coal samples are being sent to PT Intertek Utama Laboratory Services in Banjarbaru, Kalimantan. PT Intertek Utama is a fully internationally accredited coal testing laboratory.

Coal quality analysis has been received for sampled intervals in TCM 3. Gross calorific values are very high, indicating the coal can be classified as bituminous thermal coal. The upper seam contains high sulphur, however the lower seam has returned low sulphur values. It is therefore possible these two coals could be blended to produce a high quality coal with low-moderate sulphur values.

CEO Alan Hopkins said "This is now looking promising as having immediate open pit production potential as well as for subsequent underground operations. We look forward to the coming drill results."

The Company's due diligence on the balance of the parcel of projects to be acquired from Innovation West continues actively.

For the complete Pan Asia Corporation ASX Announcement including Tables and Figures, please click the link below:

http://www.abnnewswire.net/media/en/docs/62330-ASX-PZC-481318.pdf

Contact

Alan G. Hopkins Chief Executive Officer Tel: +61-8-9381-5819