ASX announcement ASX announcement 16 November 2011

Additional 60?70Mt Exploration Target Defined at The Range

Highlights

? Drilling to the west of the planned pit at The Range has intersected additional coal in the

Taroom and Lower Juandah Coal Measures ?A total Exploration Target1 of 60 ? 70Mt has been defined in 14 drill holes to the west

? Potential for additional low?strip, shallow coal to be processed in early years of production

Drilling conducted by Stanmore Coal Limited (ASX:SMR, "Stanmore Coal") in an area to the west of the planned pit at The Range has intersected additional quantities of coal. These intersections occur outside of the existing JORC Total Resource of 229Mt (151Mt Inferred + 78Mt Indicated). The exploration target1 has been estimated over two separate areas based on the targeted seams and the

availability of data.

Exploration Target Range (Mt)

Area 1 35?40

Area 2 25?30

Total 60?70

Area 1: The area immediately to the west of the current resource. This area targets the Argyle seams in the Juandah Measures as well as all the Taroom Coal Measures seam groups (A, B and C), down to a depth of 150 metres.

Area 2: The area further down dip where there are currently rotary drill holes to base the estimate. The seams targeted in this area are the Iona and Argyle in the Juandah Measures and A seam in the Taroom Measures, also to a maximum depth of 150 metres. The Juandah Coal Measures are also

found further west in Xstrata's Wandoan deposit.

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A total of 14 holes have been drilled so far with intercepts of up to 11.9m of co al to a depth of 189m.

The current target has been cut?off at 150 metres depth.

Shallow coal has been intersected within this area which has the potential to i ncrease the amount of low strip coal available for the early years of production at the currently plann ed operations. This will

be investigated further upon the declaration of a JORC Resource.

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Drilling will continue to further define the intersections obtained so far with the aim of delineating a

JORC Inferred Resource.

Managing Director Nick Jorss said, "Our drilling at The Range continues to define additional coal with the potential to further improve the economics of this project. Depending upon weather, we will continue drilling with the aim of defining an additional JORC Inferred Resource in this western area in the first quarter of 2012".

On behalf of the Board

DP Cornish

Company Secretary

3 ASX code: SMR ASX announcement For further information, please contact:

Mr Nick Jorss

Managing Director

07 3238 1000

Mr Andrew Barber

Investor Relations Manager

07 3212 9216

0418 783 701 andrew.barber@stanmorecoal.com.au

Competent Persons Statement

The information in this report relating to exploration results and coal resources is based on information compiled by Mr Troy Turner who is a member of the Australian Institute of Mining and Metallurgy and is a full time employee of Xenith Consulting Pty Ltd.
Mr Turner is a qualified geologist and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as Competent Person as defined in the
2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".
Mr Turner consents to the inclusion in the report of the matters based on the information, in the form and context in which it appears.

Note 1: Exploration Target:

All statements as to exploration targets of Stanmore Coal and statements as to potential quality and grade are conceptual in nature. There has been insufficient exploration undertaken to date to define a coal resource and identification of a resource will be totally dependent on the outcome of further exploration. Any statement contained in this document as to exploration results or exploration targets has been made consistent with the requirements of the Australasian code for reporting of exploration results, mineral resources and ore reserves ("JORC Code").

About Stanmore Coal Limited (ASX code: SMR)

Stanmore Coal is a growth focused, pure play coal exploration and development company with a number of prospective coal projects and exploration areas within Queensland's Bowen and Surat Basins. Stanmore Coal is focused on the creation of shareholder value via the identification and development of coal deposits, with a focus on the prime coal bearing regions of the east coast of Australia.
Stanmore Coal holds 100% interests in its seven coal project areas, covering over 1,080 km2 in total. These projects include significant deposits of open pit coking and thermal coal and are typically well located for export infrastructure.
Stanmore Coal Limited ACN 131 920 968 p: +61 (7) 3238 1000 | f: +61 (7) 3212 6250 | e: info@stanmorecoal.com.au | w: www.stanmorecoal.com.au

Street address: Level 11, 10 Market Street, Brisbane QLD 4000 | Postal address: GPO Box 2602, Brisbane QLD 4001

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