Zinergy Ltd. Increases Thermal Coal Reserves

KNOXVILLE -- Xinergy Ltd., a US Central Appalachian producer of high quality coal, today announced the completion of a definitive lease agreement with Penn Virginia Operating Co., LLC. for the tract of land known as Brier Creek. The Parcel lies adjacent and to the north of Xinergy's Raven Crest properties in Boone County, WV.

"We continue to execute our strategy of value accretive acquisitions in Central Appalachia, which includes developing our existing projects. Less than a month ago, we announced the acquisition of a metallurgical coal property, which is expected to prove to be a great addition to our portfolio of assets. It is anticipated that this lease agreement will significantly increase our thermal footprint at our Raven Crest property, allowing us to leverage our fixed costs and lower our overall lifting cost, it also provides us a sustainable, quality, permitted thermal project for the foreseeable future," said Bernie Mason, Xinergy's President.

Zinergy management believes the 13,000 - 14,000 acre Property contains approximately 11.9 million tons Measured Mineral Resources; 12.5 million tons Indicated Mineral Resources and 10.4 million tons Inferred Mineral Resources.

Published March 3, 2011, 7:19 a.m.