East Energy Resources Limited (ASX:EER) Receives Encouraging Coal Results From Bulk Sample Testing

Perth, Oct 8, 2010 AEST (ABN Newswire) - Coal exploration company East Energy Resources Limited (ASX:EER) recently extracted a bulk sample from their Blackall Tenement (EPC 1149) with the objective of obtaining detailed quality data on the potential product coal within a typical mining block and to complete more detailed evaluation as to coal quality and optimum washability characteristics.

More than 350kg of coal was 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 washed coal, ash levels. The individual samples were grouped into three bulk samples taken down dip across a typical 60m x 30m mine block.

The bulk sample was assessed by ALS at their Maitland NSW laboratory.

"Float sink testing of the coal seam composites from the bulk sample, over a range of densities has shown that an SG of 1.6 gives the optimum balance between the final product quality and yield", said Peter Tighe, Exploration Manager at East Energy. "The test results of the washed coal (F1.60) composites are very encouraging. They show a yield of around 70% with an average calorific value of 6,755 kcal/kg on a dry ash free basis. It is low in sulphur, has low to medium ash and moderate moisture levels. The volatile content averages between 30% and 32%, typical of many Australian bituminous coals."

The lab is now proceeding with a range of further tests including Ultimate Analysis, Trace Elements, Ash Analysis, Ash Fusibility, Hardgrove Grindability Index and Petrographic analysis.

"We are very happy with these results, especially considering the bulk sample was obtained from coal seams only 16m to 23m below the surface", said Mark Basso, Managing Director of East Energy.

Contact

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