Pan Asia Corporation Limited TCM North Drilling Update - All Holes Hit Coal

Perth, Australia (ABN Newswire) - Pan Asia CEO Alan Hopkins said, 'The TCM Project continues to generate good results. This augers well for a strong development deal to be done with one of the many interested parties'.

Pan Asia Corporation Limited (ASX:PZC) is pleased to announce a progress update to the current Phase 4 Drilling Programme in the north of the TCM Project concession.

The first 6 holes of the current drilling program have been completed ahead of schedule and have all intersected the target coal seams as expected. Five (5) of these holes have been geophysically logged with the results of the sixth hole expected within a week.

Following overleaf is the table showing seam depth and thickness correlated from drill logs and geophysical logging for drill holes TCM055 - TCM059.

All holes have been cored through the target seams to obtain coal quality data. Geological interpretation of the intersected coal by the Pan Asia and Kopex geological team conforms to the known coal formation and coal quality is expected to be in line with all quality data obtained from all the drilling in the south to date.

Interpretation of coal intercepts from this latest drilling and re-optimisation to extend the current mine design further north and update the base case feasibility study is underway. It is expected that the updated mine design and financial model will be completed by early July.

The remaining 3 holes to be drilled are expected to be completed in mid-July. On completion of the programme and receipt of all coal quality analysis the technical team will interpret all drill hole data and update the geological model. A further release to the market updating the JORC resources is expected in mid-August.

The JORC resource as at 15 April 2012 is outlined as follows:

----------------------------------
                     15 APRIL 2012
----------------------------------
MEASURED (tonnes)       50,270,464
INDICATED (tonnes)      38,108,017
INFERRED (tonnes)       40,436,597
TOTAL (tonnes)         128,815,078
----------------------------------

PARAMETERS USED IN JORC UPGRADE OF 15 APRIL 2012

1. Completed 55 boreholes (typically >200m depth);

2. All finished boreholes were drilled vertically and geophysically logged at the completion of the each borehole;

3. A number of boreholes have been 'touch' cored for coal quality analysis;

4. All borehole locations were surveyed;

5. Profiles, logs of boreholes, seams correlation and collar co-ordinates completed;

6. Laboratory testing: quality, geotech, gas methane completed;

7. All data was put into an electronic database;

8. Minimum thickness of 0.20m coal is reported in the model;

9. Maximum thickness of parting included in seam thickness is 0.10m;

10. Minimum thickness of 1.00m is established for resources dedicated for potentially underground exploitation.

Based on the level of complexity of the TCM deposit, Kopex sub-divided resources into categories based on the following drill spacing:

- Measured <500m
- Indicated 500 - 1000m
- Inferred 1,000 - 2,000m


Measured Resources (current statement 15 April 2012)

The Measured Resources are summarized below and are reported in accordance with the requirements of the JORC Code (2004).

-------------------------------------------
               Area    Thickness     Tonnes
Seam           [m2]       [m]         [T]
-------------------------------------------
S1               0.00    0.23         0.000
S2          3,541,657    0.25     1,186,455
S3U         6,560,991    0.28     2,608,650
S3L         5,623,324    0.21     1,676,875
S4 (SR)     5,575,455    0.97     7,409,222
S5 (SU)     6,547,568    2.00    17,940,336
S6 (SM)     6,639,986    1.62    14,736,785
S6L (SL-1)  5,340,734    0.57     4,109,695
S7 (SL-2)   1,174,358    0.38       602,446
-------------------------------------------
Total                    6.51    50,270,464
-------------------------------------------

Indicated Resources (current statement 15 April 2012)

The Indicated Resources are summarised below and are reported in accordance with the requirements of the JORC Code (2004).

-------------------------------------------
               Area    Thickness     Tonnes
Seam           [m2]       [m]         [T]
-------------------------------------------
S1          4,564,120    0.23     1,406,662
S2          6,673,600    0.25     2,235,656
S3U         4,010,430    0.28     1,594,547
S3L         4,190,691    0.21     1,249,664
S4 (SR)     4,813,395    0.97     6,396,521
S5 (SU)     4,220,021    2.00    11,562,857
S6 (SM)     4,127,603    1.62     9,160,802
S6L (SL-1)  4,419,789    0.57     3,401,028
S7 (SL-2)   2,144,795    0.38     1,100,280
-------------------------------------------
Total                    6.51    38,108,017
-------------------------------------------

Inferred Resources (current statement 15 April 2012)
The Inferred Resources are summarised below and are reported in accordance with the requirements of the JORC Code (2004).

-------------------------------------------
               Area    Thickness     Tonnes
Seam           [m2]       [m]         [T]
-------------------------------------------
S1          5,779,964    0.23     1,781,385
S2          4,622,180    0.25     1,548,430
S3U         4,370,221    0.28     1,737,600
S3L         3,963,228    0.21     1,181,835
S4 (SR)     4,643,488    0.97     6,170,731
S5 (SU)     4,468,422    2.00    12,243,476
S6 (SM)     4,468,422    1.62     9,917,216
S6L (SL-1)  4,061,063    0.57     3,124,988
S7 (SL-2)   5,323,462    0.38     2,730,936
-------------------------------------------
Total                    6.51    40,436,597
-------------------------------------------

Coal Quality Resource Summary as at 15 April 2012Coal Quality Resource Summary as at 15 April 2012

One hundred and forty three (143) samples were analysed to confirm the coal quality data. Average coal quality results for the deposit.

To view the complete Pan Asia Corporation announcement including table showing coal quality for drill holes TCM 055 - TCM 059, Preliminary Coal Quality Analysis and for all data, please click the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-PZC-592781.pdf


Note: The Company has stated that it has an exploration target of 200 to 220 million tonnes of 6500 - 6800 CV (adb) coal for the TCM project (including the current JORC resource for the TCM coal project of 128.8Mt). The basis for this target is that the current JORC Resource of 128.8Mt has been based on drilling only part of the concession. The potential quantity & quality target is however currently conceptual in nature with insufficient exploration undertaken to define a mineral resource and it is uncertain if further exploration will result in a mineral resource.


About Pan Asia Corporation Limited:

Pan Asia Corporation Limited (ASX:PZC) is a rapidly growing resource company listed on the Australian Securities Exchange (ASX Code: PZC) with offices in Jakarta, Perth and Sydney.

The Company aims to be a major supplier of key resources into the expanding Asian markets and has a Flagship high CV thermal coal project with an initial significant JORC resource in South Kalimantan (TCM Project). The TCM Project is nearing completion of Feasibility Study (scheduled for early next quarter).

Pan Asia brings together an experienced Board and management team with a proven track record in the identification, funding and development of resources projects around the world.



Contact:

Pan Asia Corporation Limited
T: +61-8-9381-5819
F: +61-8-9388-3701
WWW: www.panasiacorp.com.au