core sector communique

Endocoal Limited [ASX:EOC] - Stockyard Creek Update

ENDOCOAL LIMITED - STOCKYARD CREEK UPDATE 

18th July 2012

1. Highlights

- Washability testing confirms potential for a coking-style coal product

- Two coal seams, each approx. 3m thick, intersected in five holes 

- Sixth hole has identified general location of coal sub-crop zone

- Upper coal seam intersected at 42.7m depth from surface

- Further exploration planned to determine both local and regional extensions

- Geological analysis and interpretation indicates the potential for coal seams to extend over a significant area

2. Stockyard Creek Project

Endocoal Limited (ASX:EOC) (Endocoal) has 100% of the Stockyard Creek Project, situated in the southern Bowen Basin region (see Fig.1: Stockyard Creek and Adjoining Tenements). 

Endocoal is pleased to report that preliminary washability and coal quality analysis on cores extracted at the Stockyard Creek Project has confirmed the presence of coal plies with strong coking properties. This follows previous ASX announcements of 3 April 2012 and 19 April 2012. Those announcements described the intersection of two coal seams each approximately 3m thick, along with coal laboratory results that indicated these seams contained coal with coking properties, based on the analysis of an initial rough core sample.