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PEAT RESOURCES LIMITED NEWS
RELEASE Trading
Symbol: PET-TSX Venture Exchange Date: August 30, 2005 Peat Resources Limited has made significant progress towards its goal of developing a peat fuel industry in northwestern Ontario. Since the release of its resource evaluation report by DST Engineering in March 2005, the company has completed work in several key technical and regulatory areas. The resource evaluation report identified over 20 million tonnes of fuel-grade peat (peat at 10% moisture content) in a Land Use Permit area centred on Upsala, about 130 km northwest of Thunder Bay. This resource is enough for 20 years’ production at 1 million tonnes/year. The company is maintaining this production target, which will be reached using a series of strategically located plants, each capable of producing approximately 200,000 tonnes/year. Location of the plants will take advantage of the clustered distribution of prospective peatlands. This arrangement will allow for the full economic development potential of the project to be realized in the Thunder Bay – Atikokan region and will minimize adverse impacts on local community infrastructure. Analytical work carried out on bulk samples from the company’s peatlands has confirmed that the fuel-grade peat is very low in sulphur content, contains no mercury, and can be produced with an energy value that is superior to the coal that is currently burned in the Thunder Bay and Atikokan generating stations. Peat Resources Limited is very sensitive to environmental concerns and has contracted several consultants and engineering firms to advise on the development of acceptable peat harvesting and processing systems. These include: - SENES Environmental Consultants has completed a methane monitoring program on the company’s peatlands; detailed results will be available in early September 2005. Peat bogs emit methane which is a greenhouse gas 21 times more harmful than carbon dioxide. The wet peat harvesting will stop the methane emissions. - MTI Holland, a specialist in wet peat harvesting techniques, is preparing recommendations for extraction systems and equipment; a report is expected in mid September, 2005. - Options for peat drying processes are being reviewed and tested by institutions in Canada, US and Europe. As part of its regulatory compliance, Peat Resources Limited has submitted an Application to Develop to the Ontario Ministry of Natural Resources (MNR). This is the first formal step in the Class Environmental Assessment process administered by MNR. In anticipation of the requirements of this process, Peat Resources Limited has already undertaken biological and drainage elevation surveys of proposed peat harvesting sites. The company has also engaged First Nations bands and local community and business leaders in consultation on its achievements and outlook for the peat fuel project. Over the next 6 – 9 months, Peat Resources Limited will continue to build on its achievements to date. With additional funding from the current public offering, the environmental assessment will be completed and extensive process engineering design work will be carried out, leading to a full feasibility report. For
more information contact: Peter
Telford, President and CEO Telephone:
(416) 862-7885 Fax:
(416) 862-7889 e-mail:
peatfuel@peatresources.com web
site:
www.peatresources.com The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.
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