Study Indicates Viability Of 53Mt At Pan Asia Corporation Limited (ASX:PZC) Indonesian Coal Project

Perth, June 8, 2011 AEST (ABN Newswire) - Pan Asia Corporation Ltd (ASX:PZC) holds a 75% interest in the TCM project and commissioned KOPEX (WAR:KPX) to undertake an Independent Study ("The Study") on all key aspects.

CEO Alan Hopkins said "The completion of this study provides the Company with a roadmap to deliver the project to full production.

We now look forward to undertaking all work required to complete the Final Feasibility Stage and bringing this project into production".

Key Conclusions and Recommendations

Based on the outcomes from the Study, the indications are that the original target, with production of at least 1.5 million saleable tonnes per annum over a 15 year period (following initial construction), is considered achievable.

Based on the levels of detail in the Study, the target underground area at the TCM mine presents a viable and economic opportunity.

Additional underground reserves may exist in the North area. Current resources for the TCM concession area, dated 31 January 2011 are stated as 53,237,303 tonnes, comprising 22,418,736 tonnes of Indicated Coal Resources and 30,818,567 tonnes of Inferred Coal Resources.

The quality of coal has an average calorific value (adb) of 6534 Kcal/kg, moisture 5.65%, ash 14.24% and TS 1.16. Retreat longwall mining methods are considered most appropriate providing the best option to attain the target production levels established for the project.

Mine designs are expected to be conservative with respect to potential longwall extraction rates. Increased longwall dimensions would increase reserves, overall productivity, & project economics.

The access to the seams has been assumed to be by inclined drifts from the surface. KOPEX recommends that the option of access from an opencut highwall should be pursued as part of the future studies.

Initial indications from the geotechnical assessment are that the ground conditions will be better than those encountered at the Indominco underground mine in East Kalimantan. This is an important and positive factor to the project as there were no major geotechnical issues encountered at the Indominco mine. Based on the potential benefits as described, KOPEX recommends that the TCM project be advanced to full final feasibility stage.

The Company and KOPEX reiterate that there remains some geological risk that applies to the whole mining activity and results from the limited information from the drilling carried out to date. Additional drilling and geophysical investigation is required to increase the level of confidence of resources, improve the understanding of the magnitude and intensity of faults, frequency and location of possible seams & parting thickness variation and changes in seam gradients, which would impact on the mine design. Given the limited rock data, further test work to ascertain a full suite of rock characteristics for the coal and immediate roof strata at various locations has to be undertaken in the next phase of work as well as all gas testing.

The Company has recently commissioned this next phase of drilling and - further detailed testwork required for the completion of the Full Final Feasibility Study. The drilling results will also be utilised in the Full Final Feasibility Study to upgrade the existing JORC resource and for detailed mine planning, as well as assessing the open pit potential.

The drill programme is planned to comprise:

- 13 holes for 4270 metres to:

Progress the southern underground mining area through to Full Final Feasibility Study

Increase the level of confidence (resource and reserve estimates) in the proposed southern underground mining area.

Conduct all necessary test work (geotechnical, hydrogeological, methane gas and spontaneous combustion tests) required to commence an underground coal mining operation.

Expand resources to the east.

- Up to 9 holes for 1342 metres to target a potential open pit area.

- 3 holes for 1050 metres to test the extension of the resource to the North and a possible further underground mine.

Contact

Alan G. Hopkins Chief Executive Officer Tel: +61-8-9381-5819 http://www.panasiacorp.com.au