NCONDEZI COAL COMPANY LTD
("Ncondezi" or the "Company")
Results of Phase I Power Generation and Gasification Studies
Ncondezi Coal Company Limited (AIM: NCCL), a coal exploration and development company with coal assets in the Tete Province in Mozambique, today announces the results of the Companys Phase I studies on the Ncondezi Project (licences 804L & 805L) potential coal feedstock for local power generation and coal gasification.


Highlights: * Ncondezis appointed technical consultant, Hugh Brown & Associates (Pty) Ltd ("HB&A"), has completed two order of magnitude studies on the suitability of Ncondezi Project middlings and low volatile coals, previously regarded as waste product, for use in local power generation and coal gasification; * The studies demonstrate the potential technical and economic viability of producing power and syngas from these waste coal products; * This has the potential to increase overall product yields on run of mine coal production and generate additional revenues at the Ncondezi Project; * Preferred boiler technology for power generation identified; * Two potential gasifier technologies identified; and * Additional feasibility work, already budgeted for, is now being undertaken to further validate local power generation and coal gasification potential, with results expected in H1 2012.


Graham Mascall, CEO of Ncondezi Coal Company, commented: "I am pleased to announce encouraging news regarding identification of a potential use for middlings and low volatile coals, previously regarded as waste, as feedstock for downstream power generation and gasification. On top of savings to the operating costs, initial results indicate the potential for significant additional revenue from the Companys Ncondezi Project.

Although this is the first in a series of studies , we anticipate positive findings on the economics of local power generation and coal gasification.

This is anticipated to service a regional market that has already entered a period of power generation and fuel capacity shortfalls.

In addition, further announcements regarding resource updates are expected in the next two weeks.

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Philippe Polman Account Manager Direct line: +44 (0)20 7861 3921 Mobile: +44 (0)7841 672 830 Pelham Bell Pottinger 5th Floor, Holborn Gate, 330 High Holborn, London, WC1V 7QD Tel: +44 (0)20 7861 3232 Fax: +44 (0)20 7861 3233 www.pelhambellpottinger.co.uk
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