Australian Market Report of October 27, 2010: Syngas Limited (ASX:SYS) Signed Memorandum of Understanding With China National Electric Equipment Corporation For Clinton Coal to Liquid Project

Sydney, Oct 27, 2010 AEST (ABN Newswire) - Syngas Limited (ASX:SYS) has signed a Memorandum of Understanding in Beijing with China National Electric Equipment Corporation (CNEEC) in relation to the development of the Clinton Coal to Liquid Project in South Australia. Two parties will now work towards establishing a binding agreement for CNEEC's provision of engineering, procurement and construction services to the Project. CNEEC will also assist Syngas to identify Chinese financial sources to fund, at most, 85% of Clinton Project capital. The project is expected to produce 14,600 barrels per day of mainly ultra clean diesel for over thirty years after commencing production in 2015/2016.

Kimberley Metals Limited (ASX:KBL) said today that its Sorby Hills Joint Venture with Hunan Yuguang Gold & Lead Co., Ltd has completed a 96 hole 8,560 metre Reverse Circulation and diamond drilling program at the Sorby Hills silver/lead project in WA. Drilling intersected high grade mineralisation 25 metres to the north over a hundred metre wide section at shallow depths of <30 metres from surface. Assay returned grades of 88-125 g/t Ag and 7.3%-15.4% Pb.

Southern Cross Goldfields Limited (ASX:SXG) reported initial results from first-pass Reverse Circulation drilling at its 100%-owned Marda Iron Project in Western Australia. Drilling intersects near-surface haematite and magnetite mineralisation. Assays results include 16m @ 50.5% Fe, 43m @ 35.4% Fe and 59m @ 36.8% Fe. Exploration is continuing with field mapping and sampling is planned in the coming months to define additional drilling targets.

Palace Resources Limited (ASX:PXR) has entered into an agreement to acquire a 75 per cent stake in three highly prospective Indonesian coal projects. The projects cover an approximate area of 1,970sqkm and are located close to existing roads and operating ports. Numerous coal outcrops are reported on the acquired leases. Palace will start to collect samples for metallurgical testing. An aggressive exploration program is being planned in mid-November and a maiden JORC resource announcement is expected within six months.

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