A

S X

R e l e a s e

17 July, 2012

ASX Code : AHQ ACN 149 490 535

Level 13

49-51 York Street

Sydney NSW 2000

Australia

Tele : +61 2 9299 5007

Fax : +61 2 9299 5006

www.allegiancecoal.com info@allegiancecoal.com

Coking Coal at Kilmain Project

Allegiance Coal is pleased to announce that evaluation of its past drilling at its Kilmain Project in the Bowen Basin has confirmed the presence coking coal.
The Aries 2, Castor/Pollux and Orion Seams intersected in drill holes KL01, KL02 and KL03 have been proven to have coking properties.
Detailed washability and analytical data for individual plies in all three seams have produced
Crucible Swell Numbers in the range 3 to 5.
While traditionally the southern part of the Bowen Basin has been considered as a thermal coal environment, the care and attention taken by Allegiance Coal in handling and testing its coal cores from its drilling has proven the existence of coking coal in the Aries 2, Castor/Pollux and Orion Seams.
It is important to note that 40 km north east of Kilmain at the QCT South Blackwater operation, the Laleham underground mine operated in the Pollux Seam (C seam) while the Kenmare underground mine operated in both the Aries Seam (A seam) and the Pollux Seam (C seam) producing both thermal and coking coals.
In the next phase of drilling at Kilmain, planned to commence by October 2012, samples will be taken for detailed testing of the coking properties of the coal.
The sampling of individual coal plies within each seam will enable and testing of the following properties: