Celsius Resources Limited — Regulatory Filings 2012

Aug 12, 2012

==> picture [267 x 100] intentionally omitted <==

DRILLING COMMENCES ON KYRGYZSTAN COAL PROJECTS

HIGHLIGHTS

• View Resources initiates aggressive confirmatory drill program to accelerate conversion of exploration targets to JORC Resources

• Two (2) rigs mobilized to site with drilling to commence today, further drill rigs to arrive at site in coming weeks

• Drilling to test a significant portion of the Tuyuk-Kargasha license area, which has an exploration target of 382 to 475 million tonnes

View Resources Limited (ASX:VRE) ( View or the Company ) is very pleased to advise that two drill rigs have been mobilised to site and drilling will commence tomorrow at its Uzgen Basin Coal Projects, located in Central Kyrgyzstan. Further drill rigs will be mobilized to site in coming weeks.

The first phase of drilling will be carried out at the Tuyuk and Kargasha Prospects, testing the Exploration Target of 382 to 475 million tonnes of coal which has been defined for these prospects. The Company has derived a total Exploration Target for the Uzgen Basin Coal Projects of between 500 and 700 million tonnes of coal.[1] This Exploration Target is a total of the Exploration Targets for the individual Prospects as detailed in Table 1 below.

The Company plans to drill at least 5,000 metres at the Uzgen Basin Coal Projects this field season.

Planned drilling is shown on Figure 1, along with the location of historical drill holes completed in the Soviet era. A total of 60 cored drillholes for 29,920m were drilled in addition to approximately 15,000 metres of trenching and adits.

As part of the initial phase of drilling, the Company will validate and confirm the historical drilling intersections by “twinning” some of the historical holes. As historical results are expected to be confirmed the Company has sourced extensive historical drilling reports which can be digitised and used in the interpretation of the coal seams and, potentially, in the estimation of a JORC Code compliant resource.

Drilling will also be carried out to infill the historical drill holes with the aim of providing substantial samples for coal quality analysis as well as improving the definition of the coal seams with the aim, if drilling successfully intersects coal, of allowing the estimation of a JORC Code compliant resource.

1 Note, the potential quantity is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Figure 1. Geology Map of the Tuyuk-Kargasha License showing historical and planned drilling.

==> picture [536 x 623] intentionally omitted <==

----- Start of picture text -----

Kargasha
Prospect
Tuyuk
Prospect
----- End of picture text -----

Note: actual drillhole locations may change due to access, topography and results of surrounding drill holes.

Diamond core drill rig arrives on site at Tuyuk-Kargasha.

==> picture [380 x 205] intentionally omitted <==

Drilling will also test for extensions to the coal seams outside the area previously drilled. As can be seen on Figure 1 a substantial amount of the Kargasha-Tuyuk tenement has not been drilled, even though the entire tenement is underlain by Jurassic sediments and the Tuyuk Formation (the formation hosting the coal seams). Given the absence of significant deformation in the Uzgen Basin the Company’s geologists have interpreted that the coal seams should be reasonably continuous across the license area.

The Tuyuk-Kargasha tenement covers 8,000 hectares. The main coal layers are grouped into four groups, but the thickness of the individual coal layers increases from the southern part of the Prospects to the north part of the Prospects. The Tuyuk Prospect has 9 main coal seams for a total combined thickness of 8.3m and the Kargasha Prospect has 14 main seams for a total combined thickness of 15.3m, while individual seams are up to 8.7m thick in places (based on historical drilling intersections and adit mapping). As part of the Soviet era work programme a semi-industrial scale plant was constructed to carry out test work on the coking properties of the coal.

Soviet era coal plant on site at Tuyuk-Kargasha.

==> picture [362 x 227] intentionally omitted <==

ABOUT VIEW RESOURCES

View Resources (to be renamed Celsius Coal) is an Australian-based exploration company that was initially focused on the exploration, evaluation and exploitation of nickel deposits and other minerals located in Western Australia.

View recently acquired a 90% interest in the Sary Mogol and Bel Alma coal licences located in Alai Range region of southern Kyrgyzstan and has a right to acquire an 80% interest in the Tuyuk-Kargasha, Kokkia and Min Teke licences in the Uzgen Basin in Kyrgyzstan.

In addition to its existing assets, the Company continues to actively pursue new projects in the resources sector, not only in Australia and Kyrgyzstan, but elsewhere in the world, with the hope of subsequently developing mining operations on those projects.

For more information, please visit www.viewresources.com.au or contact Mr Ranko Matic, Company Secretary on +61 (08) 9226 4500.

Competent Person’s Statement

The information in this report that relates to Exploration Results, Exploration Targets, Mineral Resources or Ore Reserves is based on information compiled by Mr Grant Thomas, who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Thomas is the Managing Director of View Resources Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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. Mr Thomas consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

Exploration Targets

It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this announcement relating to Exploration Targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) and Reserve(s) have not been used in this context in this announcement. The potential quantity of coal presented in this announcement as Exploration Targets are conceptual in nature. It should be noted that there has been insufficient exploration to define a Mineral Resource which complies with the JORC code, and it is uncertain if further exploration will result in the determination of a Mineral Resource. View Resources intends to carry out an exploration programme to systematically test the Exploration Targets for each of the Prospects, which are detailed in table 1 below.

Table 1. Exploration Targets for the Kargasha, Tuyuk, Kokkia and Min-Teke Prospects

Prospect	Exploration Target (millions of tonnes of coal)	Moisture (%)	Ash (%)	Sulphur (%)	Calorific Value (kcal/kg)
Kargasha	115 – 140	0.9 – 6.0	3.0 – 10.0	0.4 – 0.9	8200 - 8700
Tuyuk	267 – 335
Kokkia	114 – 198	0.7 – 5.0	5.0 – 15.0	0.4 – 0.9	8300 - 8500
Min-Teke	5 – 27	3.0 – 10.0	10.0 – 25.0	0.4 – 0.9	6200 - 7700
Total	501 - 700