KAL Energy, Inc. - 8 Meter Coal Seam Discovered

LONDON, July 19  /PRNewswire-FirstCall/ -- KAL Energy, Inc. (OTC:KALG) (BULLETIN BOARD: KALG) (Frankfurt: D9T.F) is pleased to announce that it has confirmed the discovery of an 8m coal seam on one of its two thermal coal concessions in East Kalimantan Indonesia, after drilling five new holes. The seam thickness varied from 7.2m to 8.8m (24.75 ft to 29 ft) in all five holes with drilling spaced approximately 1km apart.

Cameron Reynolds, KAL Energy CEO, stated, "Results from our Block 24 thermal coal concession continues to exceed our expectations. These latest drill results are exciting because of the thickness of the seam and its location less than 6 miles from the Mahakam River; which implies low transportation costs and therefore better potential profit margins. Our geological team is currently continuing exploration and analysis to conclude whether this is part of the primary seam, which averaged approximately 4 meters, or if it is a new seam."

"The size and scope of the Block 24 resource is such that we are now selecting an internationally renowned geological consultancy to produce an updated resource statement. The new resource statement will include this most recent discovery, and any further reportable coal from the other 3 previously identified seams that did not form part of the previous JORC reports estimate of 204 million tonnes on Block 24. We are targeting for this report to be published this September," added Andrew Caminschi, KAL Energy Executive Director.

KAL Energy, Inc. has rights to two coal concessions situated near the Mahakam River in North Eastern Kalimantan, Indonesia. This river is a main transportation system for transporting coal to nearby markets. One of the concessions has a JORC Compliant Inferred Resource of 204 Million tonnes of thermal coal. With one of the world's largest thermal coal exporters Kaltim Prima Coal (KPC) as its neighbor, KAL energy's concessions are in a region that is known for its extensive open pit thermal coal producing mines and environmentally friendlier coal product. Indonesia has recently surpassed Australia as the world's leading thermal coal exporter, with prices varying from $30.00 to $60.00 plus per ton.

For more information on KAL Energy, Inc. please visit our web site at http://www.kalenergyinc.com/

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. 

DATASOURCE: KAL Energy, Inc.



CONTACT:  Mr. Cameron Reynolds, CEO of KAL Energy, Inc.,

[phone], fax, [phone], or U.S. Investor Relations Line,

[phone]



Web site:  http://www.kalenergyinc.com/ 

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