/NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR FOR DISSEMINATION IN THE
UNITED STATES/
TSX-V symbol: EEC
VANCOUVER, Aug. 7 /CNW/ - East Energy Corp. (the "Company" or "East Energy") (TSX-V: EEC) is pleased to report on recent progress at its Hinton Coal Property in the Foothills Region of central Alberta, underscored by the Company's National Instrument 43-101-compliant technical report on the property independently prepared by Norwest Corporation.
"The results of the 43-101 technical report reinforce our belief in the Hinton Property's strong development potential," said Howard Ratti, President and CEO of East Energy. "The high volatile bituminous low sulphur coal of the Hinton Property indicates that it is suitable for the international export thermal-coal market after beneficiation. At a time when global energy requirements are skyrocketing and thermal coal used in electricity production is in high demand, in China and other regions, there is a great need for new sources of this coal."
East Energy is continuing its preliminary evaluation of the Hinton Property and is exploring possible approaches and strategies for future development of the project.
The Hinton's Property's estimated in place coal resources, as reported in the 43-101 technical report, are as follows:
In-Place Coal Resources Suitable for Surface Mining to 12:1 Strip Ratio
------------------------------------------------------------------------
(tonnes)
--------
-------------------------------------------------------------------------
Measured Indicated Inferred
-------------------------------------------------------------------------
HV C Bituminous 47,032,000 2,557,000 161,000
(thermal)
-------------------------------------------------------------------------
In-Place Coal Resources Suitable for Surface Mining from 12:1 to
----------------------------------------------------------------
20:1 Strip Ratio
----------------
(tonnes)
--------
-------------------------------------------------------------------------
Measured Indicated Inferred
-------------------------------------------------------------------------
HV C Bituminous (thermal) 33,339,000 23,838,000 8,559,000
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Measured and Indicated Inferred
-------------------------------------------------------------------------
Total Resources 106,766,000 8,720,000
-------------------------------------------------------------------------
Strong Thermal Coal Demand
According to the US Energy Information Administration, annual growth in global coal consumption is projected to rise by an average of 2% globally, and by an average of 3% in China, through 2030. In a 2008 research report, Credit Suisse predicted that the supply deficit for thermal coal will persist, driven by China's rising imports and by demand for new power plants.
The Hinton Property is easily accessible via Alberta's Highway 40 and from a network of secondary roads. In addition, it benefits from proximity to western Alberta's rail network with links to Vancouver's Westshore Terminals and the Port of Prince Rupert, facilitating the shipping of coal to international markets.
The NI 43-101 Technical Report was independently authored by Norwest Corporation's C. Acott, P.Eng. and T. Hannah, P. Geol. and was initially announced in a press release dated July 30, 2008. The full report is also available on East Energy's web site at www.eastenergy.com. Howard Ratti, a "qualified person" as defined by National Instrument 43-101, has reviewed the contents of the Technical Report and this press release.
About East Energy
East Energy Corp. is a Canadian junior mining company engaged in the acquisition and development of coal properties in China and North America. Additional information is available on the East Energy web site at www.eastenergy.com. East Energy trades on the TSX Venture Exchange under the symbol EEC.
ON BEHALF OF THE BOARD:
"Howard Ratti"
Howard Ratti, President and CEO
This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are referred to the sections entitled "Risk Factors" in the Company's periodic filings with the British Columbia Securities Commission, which can be viewed at www.SEDAR.com.