Negative Result in Licence Appeal

19 August 2011 CHL: AIM

CHURCHILL MINING PLC

("Churchill" or the "Company")

Negative Result in the Appeal to the Administrative High Court in Jakarta

Churchill (AIM: CHL) advises that the appeal heard by the Administrative High Court in Jakarta in relation to PT Investama Resources and PT Investmine Nusa Persada (two of the four licenses) has been dismissed.

The Company has also been informed that the appeal on the balance of the licenses for PT Ridlatama Tambang Mineral and PT Ridlatama Trade Powerindo - that make up the balance of the EKCP - (in which Churchill has a 75% interest) has also been dismissed but it has not yet received the formal delivery of that ruling. A further announcement will be made as soon as such rulings are received.

The appeal was launched to overturn the decision by the Administrative Tribunal in Samarinda, East Kalimantan in relation to the revocation of the four mining licenses that comprise the East Kutai Coal Project.

The Administrative High Court held that it agreed wholly with the legal considerations and findings of the Administrative Tribunal in Samarinda and affirmed the decision of the Administrative Tribunal. As yet no reasons have been provided by the Court.

Next steps

Churchill intends to file next week a notice of appeal to the Supreme Court of Indonesia which will be well within the 14 day period the Company has in which to action this and will update the market with further developments.

Churchill Mining's Chairman, David Quinlivan commented, "We are disappointed in the appeal decision and process. Despite this ruling, we are determined to protect our rights as a foreign investor within Indonesia and remain fully committed to protecting our interest in the East Kutai Coal Project."

At the date of this announcement, the Company's current cash at bank is US$20.6 million.

END

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