Bandanna Energy Limited (ASX:BND) Status Update for January 2012

Bandanna Energy Limited (ASX:BND) provides the following update on its activities as at 4th January 2012.

Key Points

- JORC Resources now exceed 1,620 million tonnes

Following the upgrade of the resources for the Springton domain within the Springsure Creek tenement (EPC 891) in late December 2011, Bandanna now has a JORC Total Resource inventory of 1,620.5 million tonnes. As shown on the attached table this includes 1,031.5 million tonnes of Resources identified within its 100% owned Bowen Basin tenements and a net 589 million tonnes, representing its 50% share of total resources identified within tenements of the South Galilee Coal Project. This inventory positions Bandanna as one of the largest thermal coal explorers/developers listed on the ASX. With a 4 Mtpa port allocation in Stage 1 of the Wiggins Island Coal Export Terminal in Gladstone, Bandanna has a clear pathway to significant coal production commencing in 2014.

- Termination of Strategic Process

Bandanna has now terminated the formal Strategic Review Process which was undertaken in conjunction with UBS (NYSE:UBS) during 2011. Interest by a number of third parties, particularly in Joint Venture participation in key Bowen Basin projects, will continue via discussions outside of that formal, competitive, process. As recently announced (ASX 23rd December 2011) the outcome of these discussions is expected to provide funding solutions for major project capital expenditure.

- John Pegler becomes a Non-Executive Director

Mr John Pegler joined the Board of Bandanna on 1 January 2012. John is very well known in the international and Australian coal industries. A mining engineer by training, he has worked for 39 years in open-cut and underground resource development, coal mining and processing operations, international and domestic coal marketing, project management and international procurement including, most recently, Chief Executive Officer of Central Queensland open cut coal producer Ensham Resources Pty Ltd.

Please view the following link for the Table of Bandanna's JORC Resource and Reserves, as at 23rd December 2011:
http://media.abnnewswire.net/media/en/docs/ASX-BND-186478.pdf

About Bandanna Energy Limited

Bandanna Energy Limited (ASX:BND) is uniquely positioned to become Australia's next coal producer. The company's core activities are exploration, project evaluation and development of thermal and PCI coal assets located in Queensland, Australia.

Bandanna Energy is the only ASX listed company with substantial coal assets in both the Bowen and Galilee basins subject to EIS and advanced mine studies. The company is committed to working constructively with the communities in which it operates, and delivering growing returns to shareholders, government and the community.

Bandanna Energy's Springsure Creek underground thermal coal project is scheduled to commence production in mid-2015. Bandanna is a 14% shareholder in Wiggins Island Coal Export Terminal (WICET) Stage 1 at Gladstone, with port allocation of 4Mtpa for the Springsure Creek Project, and has also secured the necessary infrastructure capacity for the integrated rail haulage of coal from the Springsure Creek Project to port.

 

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