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Western Mining Limited (ASX:WMN) Signs MOU to Explore Thermal Coal Tenements.

Perth, Australia, April 30, 2013 - (ABN Newswire) - The Board of Western Mining Limited (ASX:WMN) is pleased to announce that it has entered into a Memorandum of Understanding ("MOU") whereby WMN has the exclusive right to explore and if warranted mine, potentially high calorific value thermal coal tenements in South Kalimantan which are 100% owned by PT. Pancareka Utama Engineering ("PUE").

On 30 April 2013, WMN signed a MOU to conduct due diligence and detailed exploration for a period of 90 days on PUE's Exploration Licences:

- IUP No. 545/011/IUP-E/D.PE/2010 issued by the Regent of Tanah Bumbu, with a total area of 5,149 hectares ("ha"), for a period of 7 years, ending 25 January 2017; and

- 545/017/IUP-E/D.PE/2010 issued by the Regent of Tanah Bumbu, with a total area of 398.8 ha, for a period of 7 years, ending 26 January 2017.

Within Exploration License IUP No. 545/011/IUP-E/D.PE/2010, PUE is currently producing thermal coal under Production Licence IUP No. 188.45/467/DISTAMBEN/2012, which has a total area of 198.3 ha. The allocated area which WMN has the right to explore and if warranted mine is adjacent to but does not include this existing Production area.

PUE is currently producing approximately 15,000 tonnes of thermal coal per month and targeting to reach approximately 30,000 tonnes per month on Production License IUP No. 188.45/467/DISTAMBEN/2012 with typical coal specifications based on production to date as follows:

CV (adb) 6,957 Kcal/kg, Total Moisture 7.7%, Inherent Moisture 4.8%, Sulphur 0.75%, Ash 11%, Fixed Carbon 41.7% and Volatile Matter 42%.

Should the Company and PUE be satisfied with the results from the detailed exploration, PUE shall upgrade the IUP Exploration Licences to IUP Production Licences and both WMN and PUE shall execute the Joint Production and Coal Sale Agreement.

WMN's Executive Chairman Christopher J. Clower said "This MOU with PUE is another major step forward for the Company and is a progression of the Company's strategy to obtain exposure to highly prospective and scalable coal projects. We are excited to have secured an area with significant exploration upside adjacent to an existing mining operation which offers the potential for rapid commencement of mining with no forestry or infrastructure issues."


Exploration IUP's are next to an Operating Mine with Open Pit mining approach:

- Availability of geological data and drilling results in the operating mine provide excellent guidelines for exploration in the larger area of the Exploration IUP's High coal quality potential and Clean and Clear Status:

- Demonstrated high coal quality and specifications on PUE's existing Production IUP

- PUE's tenements hold exploration and/or production licences which are all on the Clean and Clear List

Accessible Logistics and Shipment Route:

- Existing haulage road, river jetty and barging operation to the off-take mother vessel

- The area has simple logistics and transportation needs, requiring 60 - 65 km road hauling on an existing haulage road, followed by short barging to the Anchorage point as well as easy accessibility for exploration and operations

- The Batulicin Project comprises the adjacent mining business areas located approximately 260 km southwest in a direct line from Banjarmasin in the province of South Kalimantan,

Borneo Island

Favourable deal structure:

- Under the deal structure, WMN will pay no upfront consideration

- WMN has 90 days sole exclusivity and the rights to conduct detailed exploration and due diligence to decide whether the tenements are attractive and have coal resources and reserves potential

- Pay per tonne of coal produced aligns the risks and rewards with favorable back-ended profit sharing approach


The PUE tenements are located in Tanah Bumbu Regency, South Kalimantan, Indonesia approximately 70km west from Batulicin, the capital of Tanah Bumbu Regency. The distance from Banjarmasin to Batulicin can be travelled by light vehicle in around 5-6 hours and from Batulicin to the concessions in around 2 hours.

The area is free of protected forest restrictions, with all the concession area falling within the category of production forest.

To view diagrams and charts, please visit:

About Western Mining Limited:

Western Manganese Limited (ASX:WMN) was incorporated on 4th June 2010 for the purpose of acquiring resource based projects, primarily in Indonesia.

WMN currently hold the rights to two promising manganese exploration tenements near Atembua in West Timor, an area regarded as an emerging manganese province. The two tenements cover an area of 4258ha. Both tenements are within 30km of Atapupu harbour.

Manganese mining in West Timor is an embryonic business with mining currently conducted along very primitive lines. There has been no systematic exploration carried out over any of the known manganese deposits. WMN plans to be the first company to utilise best practice exploration techniques to explore manganese deposits of West Timor. The Company's objective is to be the first company to delineate a JORC Code compliant Resource in West Timor.

WMN is well positioned to secure additional tenements on West Timor. During the next six months WMN will identify other tenements with above average potential. Agreements will be signed with all owners with whom WMN manage to negotiate favourable terms. WMN's objective is to acquire three more tenements during the next six months.

Three of the company's directors are based in Jakarta. Due to our Indonesian presence, members of the board are regularly introduced to iron ore, coal, base metals and gold projects. WMN is also aggressively pursuing all projects that have economic potential, particularly iron ore projects.

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Publication:ABN Newswire
Geographic Code:9INDO
Date:May 1, 2013
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