Pan Asia Corporation Limited (ASX:PZC) Completes Purchase Of Indonesian Coal Assets

Perth, Nov 30, 2010 AEST (ABN Newswire) - Emerging Australian resources company Pan Asia Corporation Limited (ASX:PZC) is a step closer to achieving its goal of becoming a major supplier to expanding Asian markets with the acquisition of a pipeline of thermal coal projects in Indonesia.

Finalised yesterday with overwhelming shareholder approval at the company's Annual General Meeting, the purchase of Innovation West Pty Ltd has given Pan Asia a balanced mix of assets, including one with immediate cashflows from a four-year, 4.8 million tonne off-take agreement with Noble Resources.

The other assets include:

- A Flagship Pre Development project in South Kalimantan (the TCM Coal Project) that has an initial JORC resource of 19.7Mt (Indicated), 11Mt (Inferred) and an exploration target of 50-70Mt

- A Flagship Exploration project, BCKP Coal Project, that has large tonnage potential with an exploration target of 50-70Mt +

- A Pipeline of other project opportunities covering each of the above categories.

CEO Alan Hopkins said finalisation of the Innovation West acquisition had put Pan Asia firmly on the path to achieving its key objective of becoming a significant coal company in Indonesia within the next three years.

"We have a solid strategy to use our Australian expertise and strong Indonesian partnerships to explore and develop these projects and identify and target new opportunities to feed on the growth markets of Asia," Mr Hopkins said.

"This strategic approach, supported by our existing cashflows from the Nadvara off-take agreement, and extensive international financial network, puts Pan Asia in a good position to achieve its' targets which will support significant re-ratings."

Shareholders at yesterday's AGM also agreed that the issued capital of the company be consolidated on the basis that:

a) every twenty (20) Ordinary Shares be consolidated into one (1) Ordinary Share;

b) every twenty (20) Performance Shares be consolidated into one (1) Performance Share and

c) every twenty (20) Options be consolidated into one (1) Option, on the terms and conditions set out in the Explanatory Statement.

Approval also was given for the Directors to allot and issue up to 5,000,000 Ordinary Shares (on a post-Consolidation basis) for at least A$0.20 per Ordinary Share to raise up to A$1,000,000.

Contact

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