KAL Energy, Inc. Completes Over 2000 Meters of Drilling

    LONDON, April 13 /PRNewswire-FirstCall/ -- KAL Energy, Inc. (OTC
 Bulletin Board: KALG) is pleased to announce that in excess of 2,000 meters
 of drilling have been completed on Phase 1 of the $2 million 5,000+ meter
 work program on its Thermal Coal Project in East Kalimantan, Indonesia.
 This program includes extensive drilling, trenching, sampling and mapping
 of known geological structures, and exploration for unknown structures.
 This ongoing program is located in KAL's concessions in East Kalimantan,
 Indonesia - a region noted for its vast supply of thermal coal.
     "After drilling more than 140 holes across the area of the known seams,
 we are confident that the estimates of our geological team have been borne
 out by the drilling. We can confirm that the initially reported seam of 4.5
 meters extends over a considerable area," stated Cameron Reynolds, Kal
 Energy's CEO.
     The drill program currently taking place on KAL Energy's concession in
 Indonesia is being conducted to determine the amount and quality of coal
 available. Geological estimates have indicated that in excess of 192
 million tons of coal with low sulfur and ash content are located at shallow
 depths on the concessions. As neighboring coal concessions have exhibited
 larger reserves of coal than their prior estimates, KAL Energy may be able
 to discover a greater quantity of coal reserves available on their
 properties.
     Laboratory testing presently being undertaken on samples from the
 concession will indicate the calorific value as well as the ash and sulfur
 content of the coal located on KAL's concessions. As the calorific value of
 coal represents the amount of potential energy stored in coal, higher
 values command higher prices for exported thermal coal, especially when
 combined with low sulfur and low ash content.
     "We have undertaken a large amount of drilling on the known structures
 and expect lab analysis results within 2 weeks", added Reynolds.
     Indonesia recently surpassed Australia as the world's leading power
 station coal supplier. Additionally, coal exports from this region have
 been increasing due to increased demand. This increased demand is partially
 caused by China's decision to cut its coal exports due to its increased
 domestic use. There is also increased demand from markets such as India,
 who has increased coal imports due to weakened domestic production, India
 is also planning to have a number of new coal-fired power generation
 facilities up and running by 2009. With one of the world's largest thermal
 coal exporters Kaltim Prima Coal (KPC) expected to produce 45 million tons
 of coal this year, as its neighbor, KAL energy's concessions are in a
 region that is known for its extensive open pit thermal coal producing
 mines.
     About KAL Energy:
     KAL Energy's wholly owned subsidiary Thatcher Mining Pte. has the
 rights to several coal concessions situated near the Mahakam River in North
 Eastern Kalimantan, Indonesia. This river is a main transportation system
 for transporting coal to nearby markets. Consulting Geologist, Jonathan
 O'Dell, has estimated that blocks 16 & 24 could contain more than
 192,000,000 tons of thermal coal. Today Indonesia is the leading exporter
 of thermal coal and export prices vary from $30.00 to $60.00 plus per ton.
 For more information on KAL Energy, Inc. please visit our web site at
 www.kalenergyinc.com.
     Notice Regarding Forward-Looking Statements
     This news release contains "forward-looking statements," as that term
 is defined in Section 27A of the United States Securities Act of 1933 and
 Section 21E of the Securities Exchange Act of 1934. Statements in this
 press release which are not purely historical are forward-looking
 statements and include any statements regarding beliefs, plans,
 expectations or intentions regarding the future.
 
 

SOURCE KAL Energy Inc.