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Drilling Commences at Moruple South Coal Project, Botswana

Drilling Commences at Morupule South Coal Project, Botswana 8208 Initial 4,000 metre phase one drilling commenced. 8208 Resource definition and reconnaissance drilling focus. 8208 Current project resource of 414Mt JORC inferred. 8208 Project exploration target estimated at 700 800 Million tonnes. Hodges Resources Ltd (HDG) (Hodges or the Company) is pleased to announce that it has commenced resource definition drilling at the companys Morupule South Coal Project (PL121/2010) in Botswana. The Morupule South Coal Project has a 414 million tonnes JORC inferred resource over the central northern area, with an additional estimated range of 700Mt 8208 800Mt of in situ coal within the exploration target. The resource and reconnaissance drilling program will initially consist of 34 drill holes for an approximate total of 4,000 metres and be completed by the end of 2011. Drilling will consist of reverse circulation and diamond core methods. The program will initially focus on the definition of a maiden JORC compliant inferred resource over the north western target area while subsequent drilling will be aimed at proving the continuity of coal seams in the southern area of the project. Hodges Managing Director, Mark Major said The Company is committed to increasing its resources in this area and increasing our knowledge of the coal seams geometry and physical characteristics.

We are now well advanced with the drilling at our other coal project in Botswana (Moiyabana), which allows us to efficiently utilize our experience and contractors, as we slow down at Moiyabana (moving from five rigs down to two) after the successful completion of the Phase 1 drilling programme. Infill and reconnaissance drilling will commence next week at Moiyabana. Using both reverse circulation and diamond drilling, we will complete the drilling economically as well as gather sufficient geological and coal data, to help plan our next drilling programme. Mr Major said. He also said that Hodges is keen to speed up the development of the South Morupule Coal Project as it is strategically (directly adjacent) located next to the only operating colliery and expanded coal fired power station in Botswana. It is clearly in our shareholders interests that we work efficiently to add to the existing 414 million tonne inferred JORC resource and prove8208up the potential of the 800 million tonne exploration target at this project as soon as we can. Investors and our prospective coal off take partners and power producers want to know if the Morupule South Coal Project has the potential to become a significant part of the southern Africa energy story, Mr Major said. Hodges has drilled 41 diamond holes at Moiyabana (located only 70kms from the Morupule South Coal Project) since the middle of June 2011.

It has four more holes to complete Phase 1 in order to define a maiden inferred JORC resource. Mark Major Managing Director For Further Information Please contact Mark Major should you have any queries on this announcement. Telephone (618) 9322 6412 Email For Media Enquires Please contact Fortbridge on 612 93310655 Luke Dean 61 414 535 433 Bill Kemmery 61 400 122 449.