Palace Resources Ltd (ASX:PXR) Exploration Update Regarding Lumpo Coal Project in West Sumatra

Perth, Nov 29, 2011 AEST (ABN Newswire) - Palace Resources Ltd (ASX:PXR) (PINK:PRRCY) (the Company) is pleased to provide the following update regarding the Company's Lumpo coal project, in Western Sumatra, Indonesia.

To date, approximately 60% of the concession has been mapped, with three outcrops identified that may have significance in outlining the potentially coal-bearing horizon within the concession area. Exploration to date has focussed on known areas of coal occurrences, having easy access, and the exploration process will now seek to complete mapping of the remainder of the Lumpo concession area.

The Lumpo concession mapping programme has found a number of indications of a coalbearing sequence trending north-northeast through the concession and dipping to the east at varying angles, but mostly less than 25 degree. The historical data shows a number of coal occurrences to the south of the concession area, including exposures in a number of pits and excavations. Recent mapping has identified 2 coal occurrences within the concession, with an exposure of coal at 1 location being measured at 2.80 metres in thickness. Strike continuity of this coal exposure has yet to be demonstrated.

The exposures of various lithologies reviewed to date shows that coal seams occur within sequence of carbonaceous claystone, hosted by the Lemau Formation, and this carbonaceous claystone sequence has been identified at a number of locations within the concession. The implications of the various outcrop data collected to date is yet to be determined and there has been no quality analysis data returned from the laboratory at the time of this release to quantify the coal quality. However, a number of samples have been collected from the coal outcrops identified within the concession.

Mr Nicholas Clark, Managing Director of the Company, commented recently "I am pleased that after much work and effort of the company and its team in the area, the actual observance of coal within the concession area, in what appears to be a seam of reasonable thickness, supports the continuation of the mapping programme. I am very excited by the prospect of advancing to the next phases of exploration and equally as excited about the future of the company."

Contact

Nicholas Clark Managing Director Tel: +61-8-9429-2908