Sendawar Update

23 Jun 2006 07:00

Churchill Mining plc23 June 2006 23 June 2006 CHURCHILL MINING PLC ("Churchill" or "the Company") Sendawar Coal Project, Indonesia - Update Highlights: • First phase outcrop sampling confirms presence of high calorific coal• Tender issued for 100 hole diamond drill program to begin in August The directors of Churchill Mining Plc (AIM: CHL) are pleased to announce thatfirst test results from 2 x 3kg coal outcrop samples gathered at its Sendawarcoal project in Kalimantan, Indonesia have confirmed the presence of highcalorific coal. Coal with a calorific value above 6,300 Kcal/kg is deemed to be high calorificvalue thermal coal and has a current potential sale value of approximately USD40.00 per tonne FOB (free on board, 6,300 Kcal/kg, Mahakam delta area,Samarinda, East Kalimantan), as opposed to low calorific thermal coal (