CybeRelease: (OTC: KALG) Reaffirms Timing of JORC Compliant Resource Report

(CybeRelease, May 16, 2007) - Lake Harmony, Pa. - KAL Energy, Inc. (OTC BB: KALG) (Frankfurt: D9T) CEO Cameron Reynolds and Executive Director Andrew Caminschi completed their comprehensive site review of KAL’s coal concessions situated near the Mahakam River in North Eastern Kalimantan, Indonesia. The purpose of the review was to assess operation readiness for the previously announced JORC Compliant Report of their $2.0 million Phase 1 Exploration Program.

“We are very happy with all key aspects of the operations. Progress to date has been excellent, and the team is on track to upgrade our current geological estimates to a JORC Code ’Inferred Resource’ status by mid June,” stated Cameron Reynolds, KAL Energy’s CEO.

Commenting on the ’all-hands meeting’ completed today in Balikpapan, Andrew Caminschi, an executive director of KAL Energy’s Board, commented, “All contributors -- our geologists, operational managers, independent consultants, and drilling contractors -- are clearly aligned on the goal of delivering the Phase 1 Exploration results to the market. Furthermore, each was confident of reaching this key milestone on time, and was able to demonstrate the basis for their confidence.”

KAL Energy recently announced the completion of over 3000 meters of drilling of its Phase I exploration program, which includes extensive drilling, trenching, sampling and mapping of known geological structures, and exploration for unknown structures. The company has exhibited an increase in productivity due to the build up of its on site infrastructure and personnel. The company anticipates the completion of Phase I within this quarter.

The Australasian Joint Ore Reserves Committee (JORC) is the governing body of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). The JORC Code provides minimum standards for public reporting to ensure that investors and their advisers have all the information they would reasonably require for forming a reliable opinion on the results and estimates being reported. For more information see the JORC website at www.jorc.org

To read the complete release, go to http://biz.yahoo.com/iw/070516/0253780.html

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