drilling at daguma off to a positive start

10 September 2008
Company Announcement


DRILLING AT DAGUMA OFF TO A POSITIVE START

Highlights

• First drill hole complete
• Coal in one discrete seam intersected for over 10m
• Drilling programme remains on schedule

The directors of Dwyka, together with their local Philippine partner MANA Resources Development Corporation, Inc. (“MRDC”), are pleased to announce a positive start to the drilling programme at the Daguma Coal Project.

Drilling commenced on 12th August and the first hole was completed on 20th August and drilled to a depth of 75.8 metres. The first drill hole (Hole no DDH-1 in Figure 1) intersected 3 coal seams with 10.35m of coal intersected in discrete robust seam. The top of the main seam was intersected at a depth of 36.6m. The hole is situated approximately 550m from the outcrop position of the main seam.

The core from the first completed hole has been logged and sampled according to JORC guidelines and the samples are currently being transported to the laboratory in Manila for coal quality analysis. Drilling of the second hole has commenced.

The current drilling programme is designed to verify previous drilling and the first 8 holes are to be located close to the identified coal outcrop, which would be the start to the open pit area of the mine.

The objective of the drilling is to identify a mineable reserve and commence mining operations.

Commenting on the progress, Melissa Sturgess, Chief Executive Officer of Dwyka said “we are delighted that not only is drilling underway on schedule, but that the first hole hit over 10m of coal. We look forward to bringing shareholders more information as drilling progresses.”

Speaking from Manila, MRDC President Mr Evaristo Narvaez, Jnr said “our local team is working continuously on the project and we are pleased to be able to report early positive results from our drilling programme.”


(The Company notes that the exploration to date has not defined a JORC compliant Mineral Resource, and that there is no certainty that further exploration will result in the determination of a JORC compliant Mineral Resource)