Bandanna Energy Limited (ASX:BND) Submits Environmental Referral For Springsure Creek And Arcturus To Federal Government

Brisbane, Dec 17, 2010 AEST (ABN Newswire) - Bandanna Energy Limited (ASX:BND) is pleased to announce that it has taken a further important step toward production announcing the submission of Environmental Referrals for the Arcturus and Springsure Creek projects to the Federal Government. The referrals to the Federal Department of Sustainability, Environment, Water, Population and Communities seek to have both projects considered under the Federal Environment Protection and Biodiversity Conservation Act 1999.

The submission of the referrals to the Federal Government follows the previous announcement of the commencement of the state environmental approvals process.

Bandanna has already commenced requisite flora, fauna, water and other environmental studies and is already well placed to continue the exhaustive EIS process.

Bandanna Energy's Managing Director, Dr Ray Shaw, said "the submission of the referrals to the Federal Government will seek to have the approval processes for each project managed under a Bilateral Agreement between the Federal and State Governments. The alignment of the two approval processes would allow for each of the projects to be assessed under a single streamlined environmental impact assessment process."

Dr Ray Shaw further confirmed "the commencement of the environmental approvals process for the Springsure Creek and Arcturus projects, together with the Dingo West coal project, is seen as a key step in moving from explorer to producer, and further underpins the company's involvement in the development of the Wiggins Island Coal Export Terminal at Gladstone".

Bandanna recently announced its successful allocation of 4mtpa in Stage 1 of the proposed Wiggins Island Coal Export Terminal at Gladstone. This allocation is subject to Bandanna signing a Take or Pay Agreement and WICET reaching financial close in April 2011.

Bandanna Energy has a total of JORC compliant Resources of 1.385 billion tonnes in its project portfolio making it the largest thermal JORC resource explorer listed on the ASX. Bandanna also recently released resource updates and maiden Marketable Reserve statements for Arcturus and Springsure Creek which can be viewed at http://www.bandannaenergy.com.au

On 15 December 2010 Bandanna Energy confirmed the highly successful placement of approximately 53 million shares to raise approximately A$76m which in part will provide for funding of its WICET obligations and ongoing exploration and development activities.

Dr Shaw concluded that "Bandanna Energy is now well placed both technically and financially to further the environmental assessment process and assist these projects into fruition.

The EIS will be a thorough and rigorous process undertaken in accordance with the relevant environmental legislation however Bandanna is keen to be viewed as a proactive developer embracing the high standards set by Governments which are a reflection of the modern community sentiment".

For the complete Bandanna Energy announcement including location map, please view the following link:

http://www.abnnewswire.net/media/en/docs/64840-ASX-BND-181109.pdf

Contact

Dr Ray Shaw Managing Director Bandanna Energy Limited Tel: +61-7-3041-4400 Andrew Crook Mob: +61-419-788-431 http://www.bandannaenergy.com.au