Pan Asia Corporation Limited (ASX:PZC) Drilling Intersects Significant Coal Seams At TCM Coal Project, Kalimantan Indonesia

Perth, Feb 1, 2010 AEST (ABN Newswire) - Pan Asia Corporation Ltd (ASX:PZC) are very pleased to provide the following update on drilling activities at the TCM Coal Project located in south Kalimantan, Indonesia. Drilling activities are currently focussing on the southern part of the TCM concession and immediately adjacent to the 2Mtpa ATA open pit mine operated by PT Arutmin Indonesia (part of PT Bumi Resources Tbk Group). The ATA mine typically produces a highquality thermal coal with high calorific values, moderate sulphur and low ash. The TCM drill program is targetting the down-dip position of the seams currently being mined in the ATA pit with the intention of building sufficient resources to justify the development of a mining operation.

Two holes have been drilled at TCM to date, with the recently completed TCM 3 returning five (5) coal intersections with a cumulative thickness of 6.62m. The coal seams have few internal partings, suggesting that the coal quality analysis, expected within the coming weeks, will confirm the coal is of similar quality to that being mined in the ATA area to the west. All drilling, logging and sampling has been undertaken in accordance with industry best practice and in consideration of the JORC guidelines. All drill holes are vertical and utilise a mixture of HQ diameter open hole and triple tube coring. Coal samples are currently being sent to PT Intertek Utama Laboratory Services in Banjarbaru, Kalimantan. PT Intertek Utama is a fully internationally accredited coal testing laboratory.

TCM 2 did not return any coal intercepts as it was collared on the southern side of the Batulicin Fault.

The thickness and depth of coal seams intersected in TCM 3 are consistent with the Company's geological interpretation, based on exposed seams observed in the ATA open pit. The coal seams exposed within the ATA pit appear to dip at 100 to the east and continue from the highwall of the ATA pit into the concession area. A major structure is known to exist in the area and the drilling has now confirmed the location of this structure. Future drilling can now be planned considering the latest geological findings.

The Company will continue the drilling program at the TCM Project, initially focussing on delineating the extent of this thick coal-bearing sequence over an area of 4.5km x 1.2km in the southern part of the concession. Based on the results of the remaining four proposed holes, the Company will likely infill drill this area at a closer hole spacing to enable the calculation of a resource statement compliant with the requirements of the JORC Code. Drilling will also be undertaken further to the north, initially focussing on the area adjacent to the ATA concession boundary, where there is evidence of open pit mining over a strike length of greater than 10km. The Company aims to continue employing the same exploration techniques, using drilling, to locate the down-dip position of the coal seams exposed in these adjacent open pits.

CEO Alan Hopkins said "This is a great result from the early drilling at TCM. If we can get more results like this in the next few holes, we plan to extend the current drill program with a view to defining a resource."

For the complete Pan Asia Corporation ASX Announcement including Tables and Figures, please click the link below:

http://www.abnnewswire.net/media/en/docs/62180-ASX-PZC-479013.pdf

Contact

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