A.B.N. 41121 969 819

Company Announcements Office Australian Stock Exchange PO Box H224, Australia Square Sydney NSW 2000 31 January 2008

1. INITIAL DRILLING RESULTS UPDATE – ABADI PROJECT; 2. ACQUISITION OF 70% INTEREST IN IRON ORE CONCESSIONS IN

EXCHANGE FOR KILISUCI PROJECT

1. Initial Drilling Results Update – Abadi Project

Coal FE Resources Limited (ASX: CES) is pleased to announce very encouraging drill results from preliminary drilling of the Abadi project. Drilling commenced in November 2007 and the program consists of 21 drillholes (figure 1). on two lines approximately paralleling the strike of the coal seams at a spacing of about 200m and line spacing of 400-800 metres. The Company has obtained results for the first six drillholes and detailed geological mapping is currently underway. Coal quality data on the coal seams drilled to date are awaited. Of the eight coal seams identified in the program, four (named seam A,B,C,D in ascending order) occur in the southwestern corner of the concession in a sub-area labelled “Block 300”, of area 300ha. Block 300 was identified as the main target area for future exploration and drilling, because the coal seams are thicker here and the land use situation more favourable. Seam orientation suggests the presence of a broad, NE-plunging, anticline. Table 1 summarises the results from the initial drilling. Of particular importance is the recording of much greater than expected thicknesses of coal in the C and D seams in the first three holes drilled on Line 1, respectively 6.35 - 7.71 m and 4.39 - 4.50m. Exploration potential is greatly enhanced by these initial results. Confidence in seam correlation on Line 1, with boreholes spaced about 200m apart, is high. The first three holes on Line 2 have returned mixed results which do not allow ready correlation of seams between drillholes, nor between drillholes and outcrop. However, two (of three) seams intersected in drillhole BH-12 are reasonably thick, at 1.91m and 2.00m.

Table 1: Drilling Summary, Abadi Coal KP Block 300 Drillhole No. Total

Depth (m)

Coal Intersections

(m)

Seam Thickness (m)

Seam Designation (as

Mapped)

BH-01 92.5 3.50-7.90 4.4 D 29.70-36.86 7.17 C 51.94-53.45 1.51 B?

79.0-80.59 1.59 A?

BH-02 75.0 2.88-7.27 4.39 D 30.95-37.83 6.88 C 53.98-55.53 1.55 B?

BH-03 97.5 9.6-14.1 4.50 D 39.85-46.20 6.35 C 64.50-65.90 1.40 B? 90.33-91.83 1.50 A?

BH-11 29.50 21.31-22.82 1.51 ?

BH-12 76.0 33.51-34.78 1.27 ? 49.59-51.50 1.91 ? 65.65-67.65 2.00 ?

BH-13 35.5 - - -

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The very encouraging thickness of the C and D seams justifies further drilling. If similar results are obtained from drillholes not yet completed, continuity of the thick C and D seams along strike will be confirmed to a high level of confidence. Erratic results on Line 2 to date indicate that much closer spacing might be required to demonstrate continuity of the thin, lower seams. , The exploration potential of the project area as been greatly enhanced. from these initial results The drilling program is still in progress and complete results should be available in February.

Figure 1: Drillhole Location Map – Abadi Project

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2. Acquisition of 70% interest in Iron Ore Concessions in Exchange for Kilisuci Project

After extensive discussion and deliberations the Board has resolved not to continue with exploration activities on the Kilisuci project. Since listing, the Company has been working towards obtaining a work permit for the concession. Part of the requirement for obtaining the permit is the preparation of a formal assessment of the social and environmental impact. The social and environmental impact report has now been completed and summarises that the recent settlement on areas surrounding the main access road to the concession area means that an alternative access road needs to be built. The cost of this exercise has had a material effect on the projected returns from the project and after careful consideration and review the Board does not consider it to be in the best interest of shareholders to proceed. The Company has released its entire shareholding of Lambang Bitara Sdn Bhd (which holds the rights to the Kilisuci Project) to its previous owners. In return, the Board is pleased to announce that the Company (through its subsidiary, PT Techventure Indocoal) has on 31 January 2008 entered into a Cooperation Agreement on joint venture (JV) basis, for a 70% interest in four (4) Indonesian companies, which currently hold exploration licenses for iron ore concessions in Central and West Sumatra, Indonesia. Details of the iron ore concessions are as follows:

Project Location JV Partner / Manager

Area (Ha)

Target Type / Comments

Andalas Mangani Perkasa

Kecamatan Rao PT Andalas Mangani Perkasa

5,116 Bedded Iron Deposit

Andalas Platina Orienta

Kecamatan Lubok Sikaping

PT Andalas Platina Orienta

2,491 Bedded Iron Deposit

Andalas Basindo Natura

Kecamatan Rao, Rao Selatan and Padang Gelugur

PT Andalas Basindo Natura

3,317 Bedded Iron Deposit

Andalas Alam Nasindo

Kecamatan Lubok Sikaping

PT Andalas Alam Nasindo

1,634 Bedded Iron Deposit

TOTAL 12,558

The concession areas can be reached by daily flight from Jakarta to Padang (1 hour and 30 minutes). From Padang the journey continues by car (four hours drive) through the sealed Trans-Sumatera highway to a village called Air Manggis (about 10 minutes by car from Lubuk Sikaping, capital city of Pasaman regency). From Air Manggis Village there is a further one hour walk to Sariak Laweh Hill. The general survey done on these concessions shows iron ore presence is indicated by magnetite content of rock boulders along slope hill, foot hill and creeks. Boulders comprise of volcanic, sedimentary metasediment and lateritic soil in some places. The primary iron ore was buried or covered by local subsidence. Assays indicated FE values of economic interest. The general survey involved the evaluation of the concessions for bedded iron deposit (BID). The Company is planning further geological mapping, rock sampling and trenching as well as an aeromagnetic and radiometric survey over the tenements, purchasing satellite

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imagery, and rock chip sampling. These exploration activities will commence beginning March 2008. Julian Cheng Executive Director The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Martin Carr, who is a Member of the Australasian Institute of Mining and Metallurgy. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Persons as defined in the 2004 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Carr consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

Principal Office 1/76 Canning Highway, Victoria Park, WA 6100. Phone: +61 8 9470 9156 Fax: +61 8 9470 9157 Website: www.coalferesources.com

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