East Energy Resources Limited (ASX:EER) Extracts Bulk Sample, Exploration Progressing Rapidly

Perth, July 1, 2010 AEST (ABN Newswire) - Coal exploration company East Energy Resources Limited (ASX:EER) have recently extracted a bulk sample from their Blackall Tenement (EPC 1149) with the objective of obtaining detailed assay data on the variability of the coal within a typical mining block and to complete more thorough metallurgical testing as to coal quality and ideal washability characteristics.

More than 350kg of coal has been collected from the five main economic seams at a single site from depths of between 15m and 24m below surface. The site for the bulk extraction was selected from the 2008/09 drilling as the main seams here are close to the surface and to the line of oxidation (LOX), but still display good calorific values and relatively low ash content. The individual samples were grouped into three bulk samples taken down dip across a 60m x 30m mine block.

"The Blackall resource is by its very nature a highly variable coal deposit. By taking multiple samples across a typical mine block we can get a good handle how the variable geology and coal quality might be dealt with during mining. We will also use the large quantity of sample available to complete float sink testing within the density range of 1.30 to 2.00. This will give us an indication of the optimum float density that balances yield against final product quality", said Mark Basso, Managing Director of East Energy.

The coal samples are currently at ACIRLS's Emerald lab and results are expected within the next 4 weeks.

Exploration
Drilling in the south of EPC1149 is progressing extremely well. A number of drill holes have intercepted very thick coal seams of up to 7.2 m with only minor dirt partings at relatively shallow depths.

"Rapid thickening of the seams is a characteristic of this deposit that may eventually lead to a multi-pit approach to mining, feeding a centralised coal handling and processing plant" said Peter Tighe, Exploration Manager at East Energy.

A total of 95 core holes have been drilled in the south during the current program. At this rate of progress the drilling in this area will be completed by the end of Sept 2010. By then drill hole density over the entire open cut coal area will be at less than 1km centres, sufficient to complete a JORC compliant "Indicated Resource".

Once this drilling is complete, the exploration team will move to the Northern part of EPC1149 to complete a program to enable an "Inferred Resource" to be calculated in that area. This program includes a total of 32 core holes with a resource target of 500Mt.

Contact

Mark Basso Managing Director East Energy Resources Limited Tel: +61-8-9225-5833 (Perth office) www.eastenergy.com.au