Update on Alberta Coal Corporation (3948A)

TIDMNSN

RNS Number : 3948A

Natasa Mining Limited

29 March 2012

Natasa Mining Limited

("Natasa" or the "Company")

Update on Alberta Coal Corporation

Further to the announcement made on 24 February 2012, regarding the proposed listing of the Company's wholly-owned subsidiary, Alberta Coal Corporation ("ACC"), on the Main Market of the London Stock Exchange, Natasa announces an update on its intended strategy in respect of this asset.

In order to maximise the underlying value of such a substantial coal resource, the Directors have decided to retain 100% ownership of the Fox Creek Coal Project, take it to a higher level of development and fund, out of Natasa's existing financial reserves, additional drilling, quality/processing and marketing studies to further demonstrate the project economics.

As previously announced, the Fox Creek Coal Project comprises six coal leases located in Alberta, Canada which have had substantial exploration, drilling and processing studies conducted on them in previous years. A Competent Person's Report has been prepared by an internationally recognised expert and reported in compliance with Canadian NI 43-101 requirements, which shows that the Fox Creek Coal Project contains a measured, indicated and inferred thermal coal resource of 870 million tonnes, of which 777 million tonnes are measured and indicated. Due to the change in strategy regarding the further development of this asset referred to above, this report is in the process of being updated and will be made available in due course.

It was previously announced that ACC intended to raise funds to further investigate and develop the Fox Creek Coal Project, with the intention of progressing a bankable feasibility study on the project. However, since this announcement, ACC management, in conjunction with independent coal mining and coal trading experts, have been further assessing the outlook for the Pacific Basin's seaborne thermal coal trade market.

It is the view of management, and supported by these experts, that the demand for thermal coal in the Pacific Basin is expected to grow substantially, with concurrent positive selling price movements, in the coming years. For example, India's import demand is forecast to grow from 86 million tonnes in 2011 to 400 million tonnes in 2030; and China's import demand is forecast to grow from 102 million tonnes in 2011 to 1,000 million tonnes in 2030. ACC management expect that Canada must become a significant exporter in meeting this increased demand.

The Company will provide further updates on this process in due course, as appropriate.

Enquiries:

Chrisilios Kyriakou, Executive Chairman

Natasa Mining Ltd

Telephone: [phone]

Angela Peace/ James Spinney

Strand Hanson Limited

Telephone: [phone]

Philip Haydn-Slater/Paul Dudley

HD Capital Partners LLP

Telephone: [phone]

ENDS

This information is provided by RNS

The company news service from the London Stock Exchange

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