Noble Resources Signs Coal Purchase and Finance Agreement with Pan Asia Corporation Limited (ASX:PZC)

Perth, Aug 23, 2010 AEST (ABN Newswire) - Pan Asia Corporation Limited (ASX:PZC) has, via Innovation West Pty Ltd ("Innovation West"), entered into a binding coal purchase & finance agreement with Noble Resources Pte Ltd ("Noble").

Noble has agreed to purchase 4.8 million tonnes of coal over the next four years from the Nadvara ("NDV") mine in East Kalimantan.

The Nadvara project is one of a number of projects that Pan Asia will be acquiring rights to under the acquisition of Innovation West. These projects will provide a mix of immediate cash-flow - from the provision of finance, a flagship project nearing development, advanced high potential exploration projects & a pipeline of additional project opportunities. The locking in of this financing is the last commercial item securing the rights to the package of thermal coal projects & the Company will now be moving forward expeditiously to complete the transaction.

Pan Asia CEO Alan Hopkins believes the signing of this landmark agreement with Noble will prove to be a key milestone in the development of the Company's thrust to become a significant supplier to the Asian coal market.

"Via the acquisition of Innovation West we will now not only have a significant portfolio of advanced coal projects, but with Noble as an international off-take partner, we are well placed to achieve our ambitions of becoming a significant supplier of competitively priced energy into the emerging Asian markets". Mr Hopkins said.

The completion of this arrangement with Noble now provides a very advanced & balanced package of assets being acquired as part of the Innovation West acquisition. In connection with the coal purchase agreement, Noble has provided prepayment finance of A$2 million.

"Our plan to establish a balanced package of assets providing cashflow; a flagship project nearing pre development stage that can provide a significant rerating; a number of substantial advanced exploration projects that can provide the next generation of rerating plus a pipeline of project opportunities is now nearing finalisation. This is a platform from which we can realise our objectives" Mr Hopkins advised.

The Company's rights to coal from the NDV mine form part of the IW acquisition and the preparation of notice of meeting to approve the acquisition is well advanced and an announcement on this will follow in the short term.

Rockfield Resources CEO, Pascal Skelin, Pan Asia's trading advisor, states:

"We have strong global demand from investors and coal off-takers with respect to Pan Asia's initial mine offering, Nadvara. Pan Asia's extensive on-ground relationships in Indonesia, strong corporate governance and due diligence capabilities and excellent quality assets have proven to be extremely attractive to the market. We look forward to a mutually beneficial long term relationship between Pan Asia and Noble".

CEO Alan Hopkins concluded "It is a great development for our Company to have concluded this arrangement with such a well respected company as Noble."

Contact

Alan G. Hopkins Chief Executive Officer Pan Asia Corporation Tel: +61-8-9381-5819