Bandanna Energy Limited (ASX:BND) Announces Marketable Reserves Of 49.2 Million Tonnes At Springsure Creek Project

Brisbane, Oct 29, 2010 AEST (ABN Newswire) - Bandanna Energy Limited (ASX:BND), through its wholly owned subsidiary Springsure Creek Coal Pty Ltd is pleased to announce its maiden Marketable Reserve at its Springsure Creek Project in the southern Bowen Basin south of Emerald, Qld.

The JORC compliant Marketable Reserve at EPC 891 (Springsure Creek) is 49.2 million tonnes as part of a conceptual high capacity underground longwall mine designed by independent Brisbane based mining consultants Minecraft Pty Ltd. The Marketable Reserve is derived from JORC compliant Probable Reserves of 52 million tonnes and deemed "marketable" by Minecraft following extensive reviews of mining, economic and marketing data.

Minecraft have designed the longwall panels specifically targeting the high quality Aries 2 seam. Additionally Salva Resources Pty Ltd has provided significant input into marketing and product pricing for the Springsure Creek coal.

These reserves are underpinned by a recently updated total JORC compliant Resource of 324.2 million tonnes comprising Indicated Resources of 72.2 million tonnes and Inferred Resources of 252 million tonnes. The reserves and recent resource updates are considered interim as drilling has been curtailed by unusually inclement weather and is due to recommence in November 2010.

Springsure Creek is 100% owned by Bandanna's wholly owned subsidiary Springsure Creek Coal Pty Ltd. Bandanna Energy has a total of JORC compliant resources of 1.385 billion tonnes in its project portfolio.

Springsure Creek is located within Bandanna's so called "Golden Triangle" of projects and is located only 14km north of Bandanna's Arcturus project. Recently Bandanna also announced a Marketable Reserve of 44.3 mt at its Arcturus project and the securing of 4 million tonnes export capacity through Stage 1 of the Wiggins Island Coal Export Terminal(WICET) at Gladstone. Bandanna has also submitted an Expression of Interest (EOI) for a further 5 million tonnes export capacity through the WICET Stage 2 expansion in order to expand its production options.

The close proximity of the projects to each other and to that of major infrastructure is a critical factor as Bandanna Energy progresses the potential development of the province.

Bandanna has initially targeted a high quality unwashed product for the East Asia markets. The option to upgrade the product specification (and revenue component) is also under consideration.

Dr Ray Shaw, Managing Director of Bandanna Energy, declared "this maiden reserve statement at our Springsure Creek Project brings our total Marketable Reserves in the area to 93.5 million tonnes and comes on top of several recent announcements regarding our closely linked Golden Triangle projects. Bandanna continues to meet its key business milestones for resources and reserves despite delays due to onsite ground conditions.

The Reserve at Springsure Creek further vindicates Bandanna's successful participation in the WICET allocation process.

Whilst this statement is not a precursor to imminent development Bandanna Energy is now in a prefeasibility stage which will involve direct dialogue with government, community and other stakeholders and a stringent environmental and social impact assessment."

For the complete Bandanna Energy announcement including figures, please view the following link:

http://www.abnnewswire.net/media/en/docs/64054-ASX-BND-180271.pdf

Contact

Dr Ray Shaw Managing Director Bandanna Energy Limited Tel: +61-7-3041-4400 http://www.bandannaenergy.com.au