Pan Asia Corporation Limited (ASX:PZC) Signed MOU With Multinational Mining Services Company And Received Commitments For A$5M Placement

Sydney, May 18, 2010 AEST (ABN Newswire) - Pan Asia Corporation Limited (ASX:PZC) are very pleased to announce that the Company has signed a Memorandum of Understanding ("MOU") with PT Kopex Mining Contractors ("KMC") and has also received commitments for its A$5,000,000 placement.

The MOU with KMC covers the Mantewe/TransCoal Minergy ("TCM") project in South Kalimantan, Indonesia. The Kopex group (WAR:KPX), of which KMC forms part, has considerable experience in underground coal mining in Indonesia and abroad and is one of the largest producers of mining technology and equipment in the world. The group will be known to Australians for having acquired Waratah Engineering late last year.

KMC, the Indonesian mining subsidiary within the group, is headquartered in Jakarta and has expertise in the planning and designing of underground coal mines, offering a range of professional consultancy services as well as having the capability to construct, develop and operate underground coal mines. The MOU also envisages the possibility of KMC providing assistance with project development financing once a preliminary review of the TCM project has been completed.

Following the recent confirmation of a JORC resource at the TCM coal project, the earlier signing of an MOU to investigate the possible expansion of the adjacent ATA open pit coal mine into the TCM concession and the recent signing of an MOU with Zhongding International Engineering Co Ltd regarding potential underground mining operations at the TCM concession, the signing of this MOU with KMC is another important step towards the optimum development of this project.

As a result, upon completion of the Company's acquisition of Innovation West and the execution of definitive transaction documents between Innovation West and PT TransCoal Minergy, the Company would have not only ultimate ownership of a minimum of 75% of the TCM project, but also a network of service providers in place to assist it on this project.

Meanwhile, the Company also confirms that it has received commitments for the A$5,000,000 placement and anticipates that all paperwork and funds will be received by Friday 21 May 2010. This will provide the Company with funds to invest in further promising projects, including the Nadvara and Perdama Maju Utama projects in East Kalimantan.

CEO Alan Hopkins commented "The signing of an MOU with a highly respected underground mining services company and the receipt of commitments for the A$5,000,000 placement strengthens the Company's plans to expedite the rapidly emerging TCM project. Additionally, it enables the Company to progress its involvement in the other highly prospective coal assets being acquired via the pending acquisition of Innovation West."

Contact

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