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Further Coal intersections at Comox JV's Raven Coal Project

Posted on: Tuesday, 4 August 2009, 10:52 CDT

TSX-V TRADING SYMBOL: CEC

VANCOUVER, Aug. 4 /PRNewswire-FirstCall/ - Compliance Energy Corporation (the "Company" or "Compliance") is pleased to provide a further update on its activities at the Raven Underground Coal Project on Vancouver Island, BC. Drilling continues to intersect Seam #1 and Seam # 3 in areas where resources were previously categorized as inferred. The results from the latest twelve holes, when combined with the previous twenty holes that were reported on July 09, 2009, will allow a significant portion of the previously reported inferred resources (59 million tonnes) to be upgraded to either measured or indicated when the 43-101 reported resources are updated as part of the feasibility study that is targeted for completion in the second quarter of 2010.

Drilling is progressing very well with a total of thirty two holes and 8044 meters completed to date. A summary of the additional drilling results is provided in Table 1 "Coal Intersections - Depth and Thickness in Meters" shown below and all the hole locations including those previously reported are shown on attached Figure 1 "Drill Hole Location Map".

Seam #3 was intersected in 11 of the 12 holes, while Seam #1 was intersected in 10 of the 12 holes as drill hole #RAV-09-21 was terminated short of Seam #1 due to technical difficulties during the drilling process. The Company plans to drill an additional hole in this area to verify the existence of Seam #1 at this location.

In holes where the coal was of mineable thickness (1.5 meters or greater), Seam #1 averaged 2.79 meters and Seam #3 averaged 2.22 meters. In the 43-101 report issued in 2007, Seam #1 averaged 2.8 meters in thickness and Seam #3, 1.5 meters in thickness. (Note: all thicknesses represent drill intersected thickness and have not been corrected to true thickness).

The Company is extremely pleased with the drilling results to date. These results will allow the feasibility study to be completed on a much larger resource than the current measured and indicated resource of 39 million tonnes. Based on our current drilling progress, the Company anticipates completing the program by mid to late August, which would be a full month ahead of schedule.

In addition to drilling activities, good progress is being made on gathering environmental baseline information in preparation for filing an environmental assessment application in the second quarter of 2010. Work on the feasibility study has also commenced with the initial focus on preliminary mine planning and transportation studies. Samples of Seam #1 and # 3 have been taken for gas content and gas compositional analyses to assist in design of the mine ventilation system, and rock samples have been taken for geotechnical testing to assist in mine design. Preparations have also been made to begin pump tests for groundwater quantity and quality.

A summary of drilling results is as follows:

Table 1 - Coal Intersections - Depth in Meters and Thickness in Meters ------------------------------------------------------------------------- Drill hole Seam 1 Seam 3/3U* ------------------------------------------------------------------------- Coal Intersection Depth Coal Intersection Depth ------------------------------------------------------------------------- Coal Seam Coal Seam From To Thickness From To Thickness (m) (m) (m) (m) (m) (m) ------------------------------------------------------------------------- RAV-09-016(1) 360.00 361.00 1.00 334.85 338.55 2.875/3.7** ------------------------------------------------------------------------- RAV-09-019 367.60 370.00 2.40 342.05 343.90 1.85 ------------------------------------------------------------------------- RAV-09-020 329.25 331.05 1.80 296.80 300.10 3.30 ------------------------------------------------------------------------- RAV-09-021 Nd Nd Nd 357.65 359.60 1.70/1.95** ------------------------------------------------------------------------- RAV-09-022 161.25 163.25 2.00 138.00 139.50 1.50 ------------------------------------------------------------------------- RAV-09-023 186.50 187.80 1.30 137.68 139.50 1.82 ------------------------------------------------------------------------- RAV-09-024 205.60 208.50 2.75/2.9** 177.25 180.60 1.35/3.35** ------------------------------------------------------------------------- RAV-09-025 Note: Lower Seams displaced by faulting ------------------------------------------------------------------------- RAV-09-026 69.10 70.80 1.55/1.7** 22.85 25.35 2.50 ------------------------------------------------------------------------- RAV-09-027 147.38 154.80 7.42 113.74 114.68 0.94 ------------------------------------------------------------------------- RAV-09-030 65.15 66.75 1.60 36.20 37.35 1.15 ------------------------------------------------------------------------- RAV-09-031 56.58 59.97 1.09/3.39** 24.20 25.00 0.80 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Drill hole Seam 3L Seam 4 ------------------------------------------------------------------------- Coal Intersection Depth Coal Intersection Depth ------------------------------------------------------------------------- Coal Seam Coal Seam From To Thickness From To Thickness (m) (m) (m) (m) (m) (m) ------------------------------------------------------------------------- RAV-09-016(1) - - - 298.00 299.40 1.15/1.4** ------------------------------------------------------------------------- RAV-09-019 345.10 345.92 0.82 309.30 310.10 0.80 ------------------------------------------------------------------------- RAV-09-020 - - - 261.00 261.80 0.80 ------------------------------------------------------------------------- RAV-09-021 - - - 321.25 323.15 1.90 ------------------------------------------------------------------------- RAV-09-022 140.75 141.75 1.00 119.85 120.75 0.90 ------------------------------------------------------------------------- RAV-09-023 - - - 55.50 56.85 1.15/1.35** ------------------------------------------------------------------------- RAV-09-024 - - - 145.75 146.95 1.20 ------------------------------------------------------------------------- RAV-09-025 Note: Lower Seams displaced by faulting ------------------------------------------------------------------------- RAV-09-026 25.70 26.55 0.85 - - - ------------------------------------------------------------------------- RAV-09-027 - - - - - ------------------------------------------------------------------------- RAV-09-030 - - - - - - ------------------------------------------------------------------------- RAV-09-031 - - - - - - ------------------------------------------------------------------------- Note: * Where Seam 3U and 3L are not well defined the interval is Seam 3 and is correlated with Seam 3U pending further study. ** Coal seam thickness excluding partings/including partings (1) No geophysical log for Seam 1. Intersections are from core log. Nd - Not determined. Hole aborted prior to intersecting Seam 1

A basic geophysical logging suite of gamma, resistivity, caliper, density and deviation have been run on all holes with sonic, dip meter, acoustic televiewer, and neutron being run on selective holes. All coal intersections have been cored and sampled on a ply by ply basis and the interpretation of the coal intersections presented in Table 1 are subject to confirmation upon receipt of coal quality information. The core samples have been sent to Birtley Coal Minerals Testing Division of GWIL Industries in Calgary, Alberta for coal quality analyses and washability testing. It is expected that coal quality composite analyses and washability data will be available in the fall of 2009. The drilling and coal quality program is under the supervision of Owen R. Cullingham, P. Geo., who is the Independent Qualified Person for reporting purposes as defined in NI 43 - 101 Standards of Disclosure for Mineral Projects.

Compliance Energy Corporation is a coal exploration and development company with an interest in over 75,000 acres of coal and mineral rights on Vancouver Island BC and that owns the Basin Coal Mine near Princeton BC. The company is currently focused on developing the Raven Coal Project for the Comox Joint Venture, of which it has a 60% interest. Company shares trade on the TSX Venture Exchange under the symbol CEC and investor information is available on the Company's web page at www.complianceenergy.com.

On behalf of the Board of COMPLIANCE ENERGY CORPORATION John Tapics Chief Executive Officer The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Note: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents, filed by the Company on SEDAR at www.sedar.com, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements.

To view "Figure 1 - Drill Hole Location Map" please see the link below: http://files.newswire.ca/812/Compliance_RavenCoal.pdf

SOURCE Compliance Energy Corporation

Source: PR Newswire

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