Pan Asia Corporation Limited (ASX:PZC) TCM Coal Project Continues To Provide Good Results, Calorific Values >7000 cal/g

Perth, Mar 22, 2010 AEST (ABN Newswire) - Pan Asia Corporation Limited (ASX:PZC) are very pleased to provide the following update on drilling activities at the TCM Coal Project located in South Kalimantan, Indonesia.

Ten drill holes have been completed to date, with the recently completed TCM 10 and TCM 11 drill holes also returning significant intersections of coal. TCM 10 returned a total of six (6) coal intersections over the length of the hole, with a cumulative thickness of 4.94m. TCM 11 intersected a total of nine (9) coal seams over the length of the hole, with a cumulative thickness of 7.14m.

In the short term, drilling will concentrate on the northern extension of the seams, with drilling now following a controlled pattern for future resource modelling, which will provide comprehensive data for extending the neighbouring open pit into this area of TCM. This drilling will also be used to further assess the potential for underground mining based on the thick, high quality coal seams present in this area. The drill program will employ the same exploration drilling techniques to locate the down-dip position of the coal seams exposed in adjacent open pits.

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 being sent to PT Intertek Utama Laboratory Services in Banjarbaru, Kalimantan. PT Intertek Utama is a fully internationally accredited coal testing laboratory.

Coal quality analysis results have been received for sampled intervals in TCM 7 and TCM 8. Calorific value data returned from the latest analysis confirms that the coal can be classified as bituminous thermal coal. The upper seam contains higher sulphur, however the lower seams have returned lower sulphur values. It is therefore possible that these two coals could be blended to produce a high quality coal with low-moderate sulphur values.

CEO Alan Hopkins said "The recent intercepts from the TCM drilling indicate we have a good handle on the coal geology and there is a definable continuity between the seams intersected to date. I am really encouraged by the high quality of the coal as it really is a premium coal for the thermal power industry in a number of neighbouring countries."

The Company recently advised the signing of a Memorandum of Understanding with the contracting company responsible for mining at a second open pit in the adjoining PT Arutmin ATA concession. This MOU covers the planned expansion of the main ATA open pit mine, into the TCM concession on a profit share basis with the Company being carried for capital and operating costs.

The Company's due diligence on the balance of the parcel of projects to be acquired from Innovation West is continuing.

For the complete Pan Asia Corporation announcement including tables and figures, please click the link below:

http://www.abnnewswire.net/media/en/docs/62476-ASX-PZC-484765.pdf

Contact

Pan Asia Corporation Tel: +61-8-9381-5819 Fax: +61-8-9388-3701 www.panasiacorp.com.au