Pan Asia Corporation Limited (ASX:PZC) Announce Open Pit Results at TCM Project

Perth, Aug 23, 2011 AEST (ABN Newswire) - Pan Asia Corporation is pleased to announce confirmation of a potential open pit area, from interpretation of results during its Phase 3 in-fill and resource drilling expansion programme, on its 75% owned Trans Coal Minergy coal project in South Kalimantan.

After completion of 14 drill holes, results confirm that in this high CV coal deposit, based on an expected workable strip ratio of =/<20:1, there is an open pit resource of approximately ~3 million tonnes that falls within the previously defined JORC resource estimate, undertaken by Kopex in February 2011.

The topographic survey over this potential open pit area is expected to be available within 4 weeks. Once received, detailed pit optimisations and sensitivity analysis will be commissioned followed by preliminary pit designs. Further drilling may be required to better define the extent of the open pit area. It is expected that a final design will be completed by the end of the year for inclusion in the Feasibility Study currently being undertaken by Kopex Mining Contractors.

CEO Alan Hopkins "This is extremely encouraging. A preliminary open pit mine, combined with the planned extensive underground mining operations, would bring project cashflows forward while also generating a preferred entry for underground mining."

For resource estimation the following cut-off parameters were assumed:

- Minimal thickness of 0.2 m coal seam has been taken to calculation of total coal thickness.

- Maximal value of strip ratio 20:1 was assumed for resources area calculation.

- Average thickness of coal seams used for volume of resources estimation was calculated on boreholes located inside resources area with strip ratio 20:1.

- Last/deepest coal seam taken under consideration is seam SL-1. Seam SL-2 was disregarded due to discontinuous occurrence.

- Strip ratio and overburden rocks thickness were calculated on boreholes only. It is point/linear strip ratio.

- Specific density of coal was assumed as weighted average value for whole TCM deposit.

- For purposes of this study quality model of the deposit was not analyzed.

For the complete Pan Asia Corporation announcement including figures and tables, please view:
http://media.abnnewswire.net/media/en/docs/ASX-PZC-554086.pdf

Contact

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