Coal

[mhlld]

Sennen Resources Ltd.: Agreement Reached with DJB Coal Pty Ltd. for Development of Middlemount, Collingwood and Onaview Coal Projects in Queensland, Australia
Thursday December 2, 12:44 pm ET


VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 2, 2004) - Mr. Ian Rozier, President of Sennen Resources Ltd. (the "Company")(TSX VENTURE:SN - News) is pleased to report that the Company, through its Australian subsidiary, Ribfield Pty Ltd., has reached an agreement with DJB Coal Pty Ltd. ("DJB Coal") of Sydney, New South Wales, Australia whereby DJB Coal has entered into a Joint Venture to finance and develop the Middlemount, Collingwood and Onaview coal deposits in Queensland, Australia.
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The historical measured coal reserves and resources at the Middlemount, Collingwood and Onaview were reported in a News Release dated January 26th 1998 and July 15th, 2004. The historical coal reserve and resource estimates were prepared by the Shell Company of Australia as part of a pre-feasibility study and the Company considers the data used for estimates to be relevant and reliable. The historical and current resource estimates and status of the three coal projects are summarized as follows;

- At Middlemount, the historical Measured Reserve was 113.3 million tonnes, with an additional Measured Resource of 254 million tonnes of low to medium volatile, low sulfur, bituminous coal. However, in accordance with National Instrument 43-101 an updated feasibility study is required to confirm the Measured Reserve and until such time as this is complete, the coal at Middlemount has been re-classified as being 367 million tonnes of Measured Resource, and occurs in two seams at less than 100m depth. The Exploration Permit for Coal ("EPC") at Middlemount has been converted to a Mineral Development Licence ("MDL").

- At Onaview, the reported Measured Resource is 172 million tonnes of recoverable, high volatile, low sulfur, thermal coal occurring in seams ranging from 4 to 8m thick. The data used for this estimate is considered relevant and reliable and consistent with JORC standards for the reporting of coal resources. The EPC at Onaview has been converted to an MDL.

- At Collingwood the historical Measured Resource estimate is 85 million tonnes, with a further Indicated Resource of 30 million tonnes of high volatile, low sulfur thermal coal as estimated by the Shell Company of Australia. The date used for these estimates is considered relevant and reliable and is considered to be in compliance with current JORC standards for the reporting of resource estimates. Application has been made to convert the Collingwood EPC to an MDL.

In the July 15th, 2004 news release the Company stated that "several entities had approached the Company with respect to potential joint ventures and operating/contract mining agreements", and that the Company was "reviewing all its options with respect to how to proceed with the development and/or sale of its coal interests". As reported in a news release dated November 26, 2004 the Company has been in discussion with various entities in the coal industry since that time and is pleased to report that it has selected DJB Coal as its partner to develop its coal properties going forward. The Company has reached comprehensive agreements with DJB Coal that cover the maintenance and rental, payments, exploration, engineering, development, and the completion of feasibility studies on all three coal projects.

Under the terms of these agreements DJB Coal has acquired an interest of 5% of Middlemount with the right to acquire a further 65% interest, and has acquired a 10% interest in Collingwood and Onaview, with the right to earn a further 60% in each of these two projects. DJB Coal will acquire these interests in return for payment of all present and future rental costs due on the Onaview deposit, the payment of all future rental amounts on the Collingwood and Middlemount projects, and will conduct all the required engineering work for the completion of bankable feasibility studies at their cost on each deposit within 5 years, being the term of the agreements. In the event that agreement is reached over the sale of the Middlemount coal property to a third party prior to the completion of a feasibility study, the Company and DJB Coal will each have a 50% interest in the proceeds from the sale.

DJB Coal, a company that was formed by a group of Australian energy industry executives, is focused specifically to look for opportunities for investment in coal. They have access to extensive knowledge about the Queensland Coal Industry as well as the international coal market. As such, DJB Coal has the worldwide industry knowledge and the contact base that Sennen needs in order to maximize its value from the Middlemount, Collingwood and Onaview coal projects. DJB Coal is controlled by David Mathew and Jeremy Barlow, both of whom have extensive experience in the Australian Coal Industry; Mr. Mathew headed up coal exploration with BHP Coal for many years and Mr. Barlow is chairman of the international coal consulting company, Barlow Jonker Pty Ltd., where recent consulting tasks have been concerned with supply capacity from China, import demand, and the identification of investment opportunities. Mr. Barlow is involved with, and is a director of, the recent coal float CH4 Gas
Limited in Australia, which owns 50% of the Moranbah Gas Project in Queensland in joint venture with BHP Coal.

Queensland is the largest coal exporting state in the world with approximately 75% of its coal production going to the export market. Queensland's coalfields have been the subject of massive export infrastructure projects that include dams, power stations, rail links and port facilities. The operating costs of Queensland coal mines make them extremely competitive with some of the lowest production costs in the world. In light of the recent increases in long term coal contract prices there is renewed worldwide interest in coal companies, particularly those with large, advanced, underdeveloped coal projects with measured resources located in areas with excellent infrastructure, such as the Middlemount, Collingwood and Onaview projects. In entering into these agreements with DJB Coal the Company is moving on the opportunity to exploit the current commodities cycle and to move these projects ahead in the next 5 years so as to increase their value and take advantage of the current
high demand for coal assets.

"In DJB Coal we have found the ideal partner that now has a significant interest in developing and marketing our coal projects in Australia and realizing their value. The ability to do this type of deal with industry leaders like DJB Coal is precisely the reason why we held on to these projects through an extremely weak cycle over the last few years", stated Ian Rozier, President of Sennen Resources Ltd. "We think the Sennen/DJB Coal arrangement is an excellent opportunity for the shareholders of the Company".

Ian Rozier, B.Sc., M.Sc., P. Eng is the Qualified Person ("QP") responsible for preparing the technical information reported in this news release.


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Contact:

Sennen Resources Ltd.
Barbara Dunfield
CFO
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