Aquarian has acquired rights to 52,000 hectares in the Riau coal basin of Sumatra, Indonesia.

The Aquarian Coal Corporation is in process of changing name from Aquarian Gold Corporation.

• Huge ground position all prospective
• Existing known deposit on part of property
• Neighbouring production to SE
• Government discovery of 850 mt on northern boundary
• 'World class' potential
• Possibility of very substantial reserves with low overburden
• 20km from navigable river
• Low ash 'envirocoal'

The three Sumatran coal basins have been significant producers of coal for over a century and contain two thirds of Indonesia 's known coal resources, with the balance located in Kalimantan, West Java, and Sulawesi .

Studies show growing demand from the Chinese power generating industry for Indonesian coal.

Coal continues to be second only to oil in meeting the world's energy needs, with most production for domestic use.

The international traded coal market has traditionally been influenced by Japanese demand. The new factor is the growth of the Chinese economy, doubling in size each 6 to 7 years. This is being reflected in increasing power demand, 70% of which is being met by coal power stations. Indonesian thermal coals are playing an important role in meeting that increase in demand. Moreover, that demand will be (a) long-term and (b) stable, generally under long term contracts. Indonesia overtook Australia as the world's leading exporter of thermal coals (mainly used for power generation) during the last year. Australia remains the biggest exporter of coking coal (mainly used in the steel industry).

Half of the world's coal reserves consist of low-rank coal, such as brown and sub-bituminous coal but the market for high-rank bituminous coal has become tight because of the sharp increase in coal shipments to China . In addition, Japan is nearly 100% dependent on imported bitumous coal and has, in the past, avoided use of low grade coals. However, a new process has been developed by Kobe Steel that upgrades brown coals (UBC process) to the same heat value as bituminous coal and with both brown and sub-bituminous coals comprising 86% of Indonesia 's output this technology may contribute significantly to Indonesia 's coal industry. Indonesia also expects to increase its own proportion of usage of coal as its energy needs rise.

Indonesia 's lower value coals are noted for their low-sulfur and low-ash content. This makes them more environmentally friendly.

In a Financial Times report (R. Bream, 2006) it is stated that 'although prices have come down slightly from the peak, coal for use in power stations - thermal coal - is still selling at about $ 50 a tonne, more than double the lows of 2002' .

The author states that a new vitality has entered the global market due to the steel boom driven by China and increasingly, high prices are encouraging the appearance of a new group of coal companies, including several Indonesian groups, which are exporting more coal to power stations in Europe as well as in Asia .

The value of Indonesian thermal coal assets has risen sharply, as reflected in a deal struck in March between Bumi Resources, Indonesia 's biggest coal exporter, and a consortium led by investment bank Renaissance Capital Asia. Bumi agreed to sell two coal subsidiaries, Kaltim Prima and Arutmin, for $3.2bn, having bought the assets in 2002 and 2003 for a total of $ 675m .

Indonesian coal is one of the growth points of the world energy/mining sectors. Transport and other factors make the demand location-specific. The upward demand trend is expected to continue. The pattern of long-term supplier-customer relationships is expected to continue. The Asian industrial revolution affects 40%+ of the world's population and if the Chinese economy slows to a 7% annual growth it will almost triple in size by 2020.

Aquarian has taken a strategic investment to position itself to take advantage of these trends, and has a size and quality of initial land position that would be difficult to replicate.

It plans to commence exploration and drilling immediately.