East Energy Acquires Thermal Coal Project

    TSX-V symbol: EEC


    VANCOUVER, June 26 /CNW/ - East Energy Corp. (the "Company" or "East
Energy") (TSX-V: EEC) is pleased to announce the acquisition of 100% ownership
of the Hinton Coal Property (the "Hinton Property") in the Foothills Region of
central Alberta. The Hinton Property is a surface mineable deposit and is in a
land use area classified as category four which is the most favourable for
resource development in Alberta. The following in-place resource estimates
were reported in a NI43-101 Technical Report independently prepared for the
previous owner by Norwest Corporation, authored by Ted Hannah (P.Geol.) and
Craig Acott (P.Eng.). An updated 43-101 report will be filed within 45 days.
    East Energy acquired 100% mineral rights to the property for C$1,000,000,
which will be paid in a lump sum, plus a 5% net profits royalty on any sales
of coal from the property. A finder's fee consisting of 50,000 common shares
of East Energy is payable.

    In-Place Coal Resources Suitable for Surface Mining to 12:1 Strip Ratio
                              Measured           Indicated          Inferred
    HV C Bituminous          47,032,000          2,557,000           161,000

    In-Place Coal Resources Suitable for Surface Mining from 12:1 to 20:1
                                 Strip Ratio
                              Measured           Indicated          Inferred
    HV C Bituminous          33,339,000         23,838,000         8,559,000

                                    Measured and Indicated          Inferred
    Total Resources                            106,766,000         8,720,000

    The coal resources on the Hinton Property were estimated based on
previous exploration drilling. A total of 87 coal exploration drill holes
covering 7,067 metres (23,185 feet) were drilled in and around the area. The
high volatile bituminous low sulphur coal of the Hinton Property is part of
the Coalspur Formation. The quality of the coal on this Property indicates
that it is suitable for the international export thermal-coal market after
beneficiation. The Company is currently reviewing the best approach to
monetize this resource with the goal of further increasing shareholder value.

    Hinton Coal Property Summary

    East Energy's Hinton Coal Property is located approximately 306
kilometres (190 miles) west of Edmonton. It covers an area measuring
approximately 2,784 hectares (6,880 acres). The closest major centre is the
town of Hinton, located approximately 19 kilometres to the southeast. There
are several operating coal mines in the area.
    The property is readily 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, all of which facilitates the shipping of coal to
international destinations.
    Howard Ratti, a "qualified person" as defined by National Instrument
43-101, has reviewed the contents of the 43-101 report and this press release.
Mr. Ratti is a senior mining executive with over 30 years national and
international experience, and has a global organizational background in the
United States, Canada and the United Kingdom. Mr. Ratti is the former senior
vice-president at Luscar Ltd., Canada's largest coal company.

    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.


    "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.

For further information:

For further information: Investor Relations, (866) 437-9552,

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