13 August 2008Company AnnouncementDRILLING COMMENCES AT DAGUMA...

13 August 2008
Company Announcement


DRILLING COMMENCES AT DAGUMA COAL PROJECT

Highlights

• Commencement of core drilling at Daguma
• Construction of the Daguma camp and core shed completed
• Geological mapping identifies up to 18m thick coal seam


Dwyka is pleased to announce that diamond drilling of the Daguma coal project (‘Project’), located on southern Mindanao, in The Philippines, has commenced on schedule. The drilling programme will enable Dwyka to verify historic results and further define and delineate a JORC-compliant resource.

The initial 5,000 metres of drilling will consist of 25 large diameter drill holes with an estimated depth of 200m. Approximately 500 samples will be sent to Manila for coal quality analysis.

The construction of a 15-man camp and core shed at Daguma has also been completed on schedule and within budget.

The ongoing geological mapping and interpretative desk studies have indicated that the main coal seam may reach a thickness of up to 18m in the central parts of the Daguma deposit.

The initial exploration target is to outline between 125-150 million tonnes of coal with a calorific value of between 5,300 and 5,500 kilocalories per kilogram within the coming 24 months. It is the Company’s intention to bring the Project into production during that period.


(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)



[The technical exploration and mining information contained in this Notice has been reviewed and approved by Ed Nealon. Mr Nealon is a Dwyka Resources Limited Director and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and as a qualified person under the AIM Guidance Note for Mining, Oil and Gas Companies. Mr Nealon is a member of the Australian Institute of Mining and Metallurgy. Mr Nealon consents to the inclusion in this announcement of such information in the form and context in which it appears.]