Gujarat NRE Coke Further Strengthens Its Position in Australian Coal Sector

(September 12, 2005)

Gujarat NRE Coke is pleased to announce that it has entered into an agreement to acquire a strategic interest in Australian coal producer, Resource Pacific Holdings Limited, which is listed on the Australian Stock Exchange with a market capitalisation of approximately A$160 million.

Resource Pacific owns and operates the Newpac No. 1 Colliery situated in the Hunter Valley region of New South Wales and contains one of the largest identified semi-soft coking coal reserves in the region.

Resource Pacific will produce approximately 4 million tonnes of coal following completion of their longwall expansion and Gujarat NRE Coke will commence the purchase of coal from Newpac No. 1 Colliery in the 2006 calendar year.

Gujarat NRE Coke has acquired a 5% strategic interest in Resource Pacific for a total investment value of A$8.1 million, together with coal offtake agreement for a minimum of 5 million tonnes over next 10 years. The strategic partnership between Resource Pacific and Gujarat NRE Coke further strengthens the position of the Company in terms of long-term coal supply and market positioning.

The Vice Chairman & Managing Director of Gujarat NRE Coke, Mr Arun Jagatramka said �this strategic investment further strengthens the position of our company in the Australian coal marketplace and secures an additional reliable source of quality coal.�

�Resource Pacific is an emerging company in the Australian coal marketplace and we are excited at the opportunity to have a long term strategic relationship.�

NRE No.1 Colliery owned and operated by Gujarat NRE Australia Pty Ltd, a subsidiary of Gujarat NRE Coke has recently started production of high quality coking coal. Further, development and mining plan are being prepared at NRE Avondale Colliery recently acquired by Gujarat NRE.