Pan Asia Corporation Limited (ASX:PZC) Good Results Continue From TCM Coal Project, Calorific Values >7000cal/G

Perth, Sep 17, 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.

Following on from the completion of the successful initial 12 hole programme, four additional drill holes have been completed as part of the phase 2 programme. These four holes, TCM 13, TCM 14, TCM 15 and TCM 16, have all returned significant intersections of coal. TCM 13 returned a total of six (6) coal intersections over the length of the hole, with a cumulative thickness of 4.86m. TCM 14 intersected a total four (4) coal seams over the length of the hole, with a cumulative thickness of 5.40m. TCM 15 intersected a total four (4) coal seams over the length of the hole, with a cumulative thickness of 5.30m. TCM 16 intersected a total Nine (9) coal seams over the length of the hole, with a cumulative thickness of 7.26m.

The next two holes of the phase 2 drilling will be infill drilling to the south and will include testing to obtain geotechnical, hydrological & gas information to strengthen the geological model as a precursor to mine planning. Thereafter, phase 3 drilling is planned to look at the north- western and eastern extensions of the seams, drilling on a controlled pattern that facilitates additional resource modelling. The drilling in the northwest would also provide a platform to assess additional potential for open pit operations, as well as underground mining based on the thick, high quality coal seams present in this area. The north western drilling will employ the same exploration drilling techniques to locate the down-dip position of the coal seams exposed in adjacent open pits in the same manner as was successfully undertaken in the southern area.

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 has been received for sampled intervals in TCM 13, TCM 14 and TCM 15. 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 these two coals could be blended to produce a high quality coal with low-moderate sulphur values.

CEO Alan Hopkins said "The now routine intercepts from the TCM drilling indicates 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 is a premium coal for the thermal power industry in a number of neighbouring countries"

The TCM project forms part of the assets being acquired via the acquisition of Innovation West Pty Ltd.

For the complete Pan Asia announcement including tables, please view the following link:

http://www.abnnewswire.net/media/en/docs/63738-ASX-PZC-505671.pdf

Contact

Alan G. Hopkins Chief Executive Officer Tel: +61-8-9381-5819 http://www.panasiacorp.com.au