Bowen Coking Coal Ltd. advised that Sumitomo has confirmed that it will proceed with Phase 2 of the Hillalong Joint Venture, following the successful exploration program of Phase 1 completed earlier in the year, which resulted in a maiden JORC Resource of 43mt and confirmation that the project is able to produce a low ash, high quality coking coal. Sumitomo, a multibilliondollar Japanese conglomerate now has the ability to earn an additional 10% in the Hillalong project by funding a further AUD 5m of exploration expenditure. Sumitomo already has interests in Clermont, Rolleston and Oaky Creek mines, as well as Glencore's Hail Creek Mine which neighbours the Hillalong tenements and produces more than five million tonnes of coking coal annually. BCB and Sumitomo have agreed to vary the terms to the Farmin Agreement signed last year, in that the next stage of exploration would now be split into two equal parts: Phase 2A to fund: Four drill sites targeting the Rangal seams in the southern project area; Seven drill sites targeting the Moranbah seams on the southern nose of the Hillalong anticline; 37 kms of seismic survey covering the northern and southern project areas; and Phase 2B will be subject to further approval from Sumitomo to be determined based on the results of Phase 2A.