Bandanna Energy Limited (ASX:BND) Lodged Mining Lease Application For Dingo West Coal Project

Brisbane, July 20, 2011 AEST (ABN Newswire) - Bandanna Energy Limited (ASX:BND), through its wholly owned subsidiary Dingo West Coal Pty Ltd is pleased to announce that it has formally applied for a Mining Lease on EPC 881, known as Dingo West.

The Mining Lease Application (MLA 80179) covers the southern section of the EPC below the Capricorn Highway and Blackwater Rail corridor with minor provision for a rail loadout loop on the northern side of the rail corridor.

The MLA follows the recent announcement and Referral Decision from the Australian Federal Department of Sustainability, Environment, Water, Population and Communities that the Dingo West Project was not considered to be a controlled action. Based on this decision, it is proposed, subject to ratification by the Queensland Government Department of Environment and Resource Management (DERM), that the MLA be progressed with an underpinning Environmental Management Plan.

The Dingo West Project is expected to produce 1.0 mtpa of high quality, low volatile PCI coal for the export market. The Dingo West Coal Mine will be, subject to the grant of the Mining Lease, the closest coal mine to the Port of Gladstone via the Blackwater Line.

Bandanna Energy Managing Director, Dr Ray Shaw commented "This is a significant milestone for the Dingo West Project and Bandanna. This project has taken a further step toward production which will transform Bandanna from a highly successful exploration company to a near term coal miner."

"Once again, the Bandanna management team has shown their determination to meet planning timelines which, not only progress the Bandanna projects, but provide increasing confidence to shareholders and potential investors" Dr Shaw added.

Contact

Dr Ray Shaw Tel: +61-7-3041-4400 Andrew Crook Mob: +61-419-788-431 http://www.bandannaenergy.com.au