Press Releases

Perth, Oct 17, 2011 (ABN Newswire) - Pan Asia Corporation Limited (ASX:PZC) is very pleased to announce a preliminary JORC upgrade at its flagship TCM Coal Project in South Kalimantan, Indonesia, to 114.6 million tonnes (measured, indicated & inferred).

After completing 18 boreholes from the present phase of drilling (and a total of 35 boreholes drilled to date at TCM) the following upgrade table of JORC resources has been made: (see link at the bottom of the release)

Pan Asia Chief Executive Officer Alan Hopkins said that while the Company had always anticipated an upgrade to its JORC resources could be made during the current drilling phase, the size of the upgrade had greatly surpassed expectations.

"This massive increase in JORC resource is great news for the Company and its shareholders and surpasses our expectations," he said.

"These results cement the Company's faith in pursuing this quality asset as our flagship project".

"While Drilling is ongoing, the results to date have all but confirmed that the planned scale of operations is well supported by the proven resource. All other testwork is well advanced and is feeding into the full Feasibility Study, which is underway and scheduled for release in Q1 2012."

The interim upgraded JORC Resource calculation was undertaken by leading coal industry group Kopex Mining Contractors (part of the KOPEX Group).

PARAMETERS USED IN JORC UPGRADE

1. Completed 18 additional boreholes from current phase of drilling;

2. A total of 35 boreholes was used for the update of the resource estimation;

3. This preliminary resource update was made for the purpose of re-estimating the resource numbers and evaluating the tectonic structure of the rocks;

4. Approximately 6 boreholes remain to be done in the present drilling program;

5. All finished boreholes were geophysically logged, samples taken and sent to laboratories;

6. Profiles, logs of boreholes and seam correlations have been completed;

7. Collar coordinates have been completed;

8. Laboratory testing: quality, Geotech, gas methane- not yet completed but underway;

9. Quality model still to be updated once all quality results received;

10. Full version of resource statements to be elaborated after all drilling and laboratory testing completed.

Coal Quality Resource Summary

The coal quality model will be further updated when all the coal quality results are in for the current drill programme.

Washability tests and subsequent analysis of the results have been undertaken on a 500t bulk sample to develop a conceptual Coal Handling and Preparation Plant design. Further testwork and analysis of all quality data will lead to a specification of a saleable product, the results of this are expected later this month targeting a TS of ~1.0 with good yield.

Fundamental Change in the Calculation of Resources

Based on the better understanding of the complexity of the deposit achieved through the current drill programme, Kopex has now sub-divided resources into categories based on the following drill spacing: (see link at the bottom of the release)

For the complete Pan Asia Corporation Limited announcement including tables, please view:
http://media.abnnewswire.net/media/en/docs/ASX-PZC-561552.pdf

Contact

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