Anthracite

Hanam Canada Corp.

Naskeena Anthracite

Hanam Canada is active in coal mine development and marketing. Our most recent projects include:

Naskeena Anthracite- Terrace BC www.canadiancoal.ca
Suquash Coal Ltd., Port Hardy, BC- thermal coal for cement plants
Gething Coal Mine, Chetwynd, BC- coking coal

We have completed many coal sales and marketing assignments for clients in Canada, the US, Japan, Korea, and China. We have helped several companies do business with Canadian suppliers.

We are seeking an investment of $10 million for the start-up of a small anthracite mine and briquette plant in Terrace, British Columbia, Canada. This investment would be for 100% ownership of the project. Hanam Canada is willing to sell its coal property rights from the British Columbia government for $200,000 with favorable terms of payment. A 10% down payment is sought with further payments depending on progress milestones.

The potential mine is located south of Meadow Main Road 57 kilometers by paved highway north of Terrace. The briquette plant would be located in an existing building in Terrace. Briquette making equipment would be purchased as a package from a Chinese supplier. Coal would be packed in one tonne bags and shipped in containers to customers in China.

The cost of the plant would be $7.0 million. The briquette manufacturing plant would generate an income before interest and taxes of about $1.4 million per year. This income could double as the plant improves production and proves it can meet quality targets. The payback on the investment would be about 4 years and the annual rate of return about 25%.

The price in one tonne bags in a container ranges from $200 to $300/t at a port in Northern China depending mainly on the ash content. A briquette price forecast is $220/t FOB Fairview Container Terminal. The container freight cost between Prince Rupert and Qingdao, China is about $40/t. A direct container shuttle service has recently started between the Fairview Terminal and China.

A total of $ 890,000 has been spent on the property in the past five years. Sixteen holes totalling 1,215 meters were drilled in 2007 and 9 holes for a total of 1,310 meters in 2008. The drilling encountered several beds of variable thickness.

Hanam Canada has applied for the most promising 300 hectare area as determined by previous drilling.

Coal Resources

Coal is visible on the banks of Haddenschild Creek, about 2 kilometres west of the property, along Clear Creek, 1.5 kilometres south of the property, and on the Little Cedar River 3 kilometres south west of the property. A single hole, number 16, was drilled in 2008 about 500 meters west of the Clear Creek showing and passed through a 1.7 meter thick seam of coal at a depth of 31 meters.

G.F Monckton, the discoverer of the coal showings estimated that the coal extends along the entire lower Cedar River Valley an area of 4 X 19 kilometres. He estimated there are two workable seams with a combined thickness of 3 meters. He estimated the overall resource at 190 million tonnes. One small exploration program by Shell indicated the workable resource is less extensive than Monckton estimated but there have been subsequent coal showings in water wells drilled in the Cedar River valley.

The coal resource on Hanam's titles is estimated based on thirteen drill holes and 800 meters of trenches excavated on the property in 2007 and 2008. The coal resource explored consists of two seams. The upper seam includes multiple thin layers of coal interspersed with shale and clay. The target zone is seam 2 which is about 3 meters thick and outcrops on the west side of the Cedar River.

The seam 2 coal resource extends over an area of about 800 meters by 800 meters on the license area and is estimated at 960,000 tonnes. Taking into account the showings and drill test south of the property, a conservative estimate of the extent of the seam 2 deposit is 800 meters by 2,000 meters by one meter thick. This results in an inferred resource of 2.4 million tonnes.