Pan Asia Corporation Limited (ASX:PZC) Deepens Relationship With Zhongding International Engineering Company Limited And Jiangxi Province

Sydney, June 1, 2010 AEST (ABN Newswire) - Pan Asia Corporation Ltd (ASX:PZC) are very pleased to announce the deepening of the Company's relationship with Zhongding International Engineering Co Ltd ("ZIEC") and the Jiangxi Provincial People's Government through the Company's resigning of a Memorandum of Understanding ("MOU") with senior ZIEC executives in the presence of the Governor of Jiangxi last week. The resigning occurred at a major materials and energy fair held by the Jiangxi government, at which the Company's executives were among the honoured guests.

The MOU signed last week mirrors that previously signed by PT TransCoal Minergy ("PT TCM"), as announced on 13 May 2010. As previously announced, this MOU represents a valuable opportunity to utilise ZIEC's experience in the field of underground coal mining in Indonesia and to access project development finance to further the Company's plans for underground mining operations at the TransCoal Minergy / Mantewe ("TCM") coal project in South Kalimantan. Upon completion of the Company's acquisition of Innovation West Pty Ltd and the execution of final transaction documents between Innovation West Pty Ltd and PT TransCoal Minergy, the Company would acquire ultimate ownership of a minimum of 75% of the TCM Project.

CEO Alan Hopkins commented "The strengthening of our relationship with both ZIEC and Jiangxi represents important progress in the advancement of this rapidly emerging project and an endorsement of the Company's work to date in this regard. We look forward to working together with ZIEC in considering the potential for underground mining operations at the site."

Contact

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