Further Coal intersections at Comox JV's Raven Coal Project



    TSX-V TRADING SYMBOL:  CEC

    VANCOUVER, Aug. 4 /CNW/ - Compliance Energy Corporation (the "Company" or
"Compliance") is pleased to provide a further update on its activities at the
Raven Underground Coal Project on Vancouver Island, BC. Drilling continues to
intersect Seam No.1 and Seam No. 3 in areas where resources were previously
categorized as inferred. The results from the latest twelve holes, when
combined with the previous twenty holes that were reported on July 09, 2009,
will allow a significant portion of the previously reported inferred resources
(59 million tonnes) to be upgraded to either measured or indicated when the
43-101 reported resources are updated as part of the feasibility study that is
targeted for completion in the second quarter of 2010.
    Drilling is progressing very well with a total of thirty two holes and
8044 meters completed to date. A summary of the additional drilling results is
provided in Table 1 "Coal Intersections - Depth and Thickness in Meters" shown
below and all the hole locations including those previously reported are shown
on attached Figure 1 "Drill Hole Location Map".
    Seam No.3 was intersected in 11 of the 12 holes, while Seam No.1 was
intersected in 10 of the 12 holes as drill hole No.RAV-09-21 was terminated
short of Seam No.1 due to technical difficulties during the drilling process.
The Company plans to drill an additional hole in this area to verify  the
existence of Seam No.1 at this location.
    In holes where the coal was of mineable thickness (1.5 meters or
greater), Seam No.1 averaged 2.79 meters and Seam No.3 averaged 2.22 meters.
In the 43-101 report issued in 2007, Seam No.1 averaged 2.8 meters in
thickness and Seam No.3, 1.5 meters in thickness. (Note: all thicknesses
represent drill intersected thickness and have not been corrected to true
thickness).
    The Company is extremely pleased with the drilling results to date. These
results will allow the feasibility study to be completed on a much larger
resource than the current measured and indicated resource of 39 million
tonnes. Based on our current drilling progress, the Company anticipates
completing the program by mid to late August, which would be a full month
ahead of schedule.
    In addition to drilling activities, good progress is being made on
gathering environmental baseline information in preparation for filing an
environmental assessment application in the second quarter of 2010. Work on
the feasibility study has also commenced with the initial focus on preliminary
mine planning and transportation studies. Samples of Seam No.1 and No. 3 have
been taken for gas content and gas compositional analyses to assist in design
of the mine ventilation system, and rock samples have been taken for
geotechnical testing to assist in mine design. Preparations have also been
made to begin pump tests for groundwater quantity and quality.

    A summary of drilling results is as follows:

    
    Table 1 - Coal Intersections - Depth in Meters and Thickness in Meters
    -------------------------------------------------------------------------
    Drill hole              Seam 1                       Seam 3/3U(*)
    -------------------------------------------------------------------------
                   Coal Intersection Depth        Coal Intersection Depth
    -------------------------------------------------------------------------
                                   Coal Seam                      Coal Seam
                  From      To     Thickness     From     To      Thickness
                   (m)      (m)       (m)         (m)     (m)        (m)
    -------------------------------------------------------------------------
    RAV-09-016(1) 360.00  361.00     1.00       334.85  338.55  2.875/3.7(xx)
    -------------------------------------------------------------------------
    RAV-09-019    367.60  370.00     2.40       342.05  343.90      1.85
    -------------------------------------------------------------------------
    RAV-09-020    329.25  331.05     1.80       296.80  300.10      3.30
    -------------------------------------------------------------------------
    RAV-09-021     Nd       Nd        Nd        357.65  359.60  1.70/1.95(xx)
    -------------------------------------------------------------------------
    RAV-09-022    161.25  163.25     2.00       138.00  139.50      1.50
    -------------------------------------------------------------------------
    RAV-09-023    186.50  187.80     1.30       137.68  139.50      1.82
    -------------------------------------------------------------------------
    RAV-09-024    205.60  208.50  2.75/2.9(xx)  177.25  180.60  1.35/3.35(xx)
    -------------------------------------------------------------------------
    RAV-09-025             Note: Lower Seams displaced by faulting
    -------------------------------------------------------------------------
    RAV-09-026     69.10   70.80  1.55/1.7(xx)   22.85   25.35      2.50
    -------------------------------------------------------------------------
    RAV-09-027    147.38  154.80     7.42       113.74  114.68      0.94
    -------------------------------------------------------------------------
    RAV-09-030     65.15   66.75     1.60        36.20   37.35      1.15
    -------------------------------------------------------------------------
    RAV-09-031     56.58   59.97  1.09/3.39(xx)  24.20   25.00      0.80
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Drill hole             Seam 3L                         Seam 4
    -------------------------------------------------------------------------
                   Coal Intersection Depth        Coal Intersection Depth
    -------------------------------------------------------------------------
                                   Coal Seam                      Coal Seam
                  From     To      Thickness     From     To      Thickness
                   (m)     (m)        (m)         (m)     (m)        (m)
    -------------------------------------------------------------------------
    RAV-09-016(1)   -       -         -         298.00  299.40   1.15/1.4(xx)
    -------------------------------------------------------------------------
    RAV-09-019   345.10  345.92      0.82       309.30  310.10      0.80
    -------------------------------------------------------------------------
    RAV-09-020      -       -         -         261.00  261.80      0.80
    -------------------------------------------------------------------------
    RAV-09-021      -       -         -         321.25  323.15      1.90
    -------------------------------------------------------------------------
    RAV-09-022   140.75  141.75      1.00       119.85  120.75      0.90
    -------------------------------------------------------------------------
    RAV-09-023      -       -         -          55.50   56.85  1.15/1.35(xx)
    -------------------------------------------------------------------------
    RAV-09-024      -       -         -         145.75  146.95      1.20
    -------------------------------------------------------------------------
    RAV-09-025             Note: Lower Seams displaced by faulting
    -------------------------------------------------------------------------
    RAV-09-026    25.70   26.55      0.85          -       -         -
    -------------------------------------------------------------------------
    RAV-09-027      -       -         -            -       -
    -------------------------------------------------------------------------
    RAV-09-030      -       -         -            -       -         -
    -------------------------------------------------------------------------
    RAV-09-031      -       -         -            -       -         -
    -------------------------------------------------------------------------
    Note: (*)  Where Seam 3U and 3L are not well defined the interval is
               Seam 3 and is correlated with Seam 3U pending further study.
         (xx)  Coal seam thickness excluding partings/including partings
          (1)  No geophysical log for Seam 1.  Intersections are from core
               log.
          Nd - Not determined.  Hole aborted prior to intersecting Seam 1
    

    A basic geophysical logging suite of gamma, resistivity, caliper, density
and deviation have been run on all holes with sonic, dip meter, acoustic
televiewer, and neutron being run on selective holes. All coal intersections
have been cored and sampled on a ply by ply basis and the interpretation of
the coal intersections presented in Table 1 are subject to confirmation upon
receipt of coal quality information. The core samples have been sent to
Birtley Coal & Minerals Testing Division of GWIL Industries in Calgary,
Alberta for coal quality analyses and washability testing. It is expected that
coal quality composite analyses and washability data will be available in the
fall of 2009. The drilling and coal quality program is under the supervision
of Owen R. Cullingham, P. Geo., who is the Independent Qualified Person for
reporting purposes as defined in NI 43 - 101 Standards of Disclosure for
Mineral Projects.

    Compliance Energy Corporation is a coal exploration and development
company with an interest in over 75,000 acres of coal and mineral rights on
Vancouver Island BC and that owns the Basin Coal Mine near Princeton BC. The
company is currently focused on developing the Raven Coal Project for the
Comox Joint Venture, of which it has a 60% interest. Company shares trade on
the TSX Venture Exchange under the symbol CEC and investor information is
available on the Company's web page at www.complianceenergy.com.

    
    On behalf of the Board of
    COMPLIANCE ENERGY CORPORATION

    John Tapics
    Chief Executive Officer

    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    

    Note: This release contains forward-looking statements that involve risks
and uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to the documents, filed by the Company
on SEDAR at www.sedar.com, specifically the most recent reports which identify
important risk factors that could cause actual results to differ from those
contained in the forward-looking statements. The Company undertakes no
obligation to review or confirm analysts' expectations or estimates or to
release publicly any revisions to any forward-looking statements.

    
    To view "Figure 1 - Drill Hole Location Map" please see the link below:
    http://files.newswire.ca/812/Compliance_RavenCoal.pdf
    





For further information:

For further information: Greg Werbowski, Investor Relations or Rod
Shier, CFO at (604) 689-0489

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