Memorandum of Understanding signed with Lucky C...

11/01/2010
                                                                         GB00B23JN426/GBP/PLUS-exn

                                       Oracle Coalfields Plc
                                    ("Oracle" or the "Company")

Memorandum of Understanding signed with Lucky Cement Limited, a major cement manufacturer in Sindh
                                        Province, Pakistan

The Board of Oracle Coalfields PLC (PLUS: ORCP) ("Oracle" or "the Company"), the UK developer of a
1.4  billion tonne coal deposit in southern Pakistan, is pleased to announce that the Company  has
entered  into a Memorandum of Understanding ("MOU") with Lucky Cement Limited ("LUCKY"),  a  major
cement manufacturer and exporter based in Pakistan.

Brief background on LUCKY

Lucky  Cement  Limited is a subsidiary of Yunus Brothers Group ("YB Group"), one  of  the  largest
business  groups  in Pakistan and has been based in Karachi for over 50 years.  The  YB  Group  is
engaged  in  diversified manufacturing activities including textiles, and power generation.  Lucky
Cement  is  listed on the Karachi, Lahore and Islamabad stock exchanges and its Global  Depositary
Receipts  are traded on the London Stock Exchange.  LUCKY's local market capitalisation is  US$260
million equivalent.

LUCKY  is  currently the largest cement company in Pakistan and the country's largest exporter  to
the  Middle-East,  India,  Sri Lanka and Africa.  In 2009, LUCKY posted year-on-year  revenue  and
operating profit growth of 55% and 135%, respectively.

Salient features of MOU

The salient features of the MOU are as follows:

    -   Oracle's primary objective is the development of its Block VI project to supply lignite
        coal to a mine-mouth power plant(s). In addition and in the interim, the Company is also pursuing
        the potential for early cash flow from the supply of lignite coal to the local cement industry.

    -   LUCKY has expressed an interest in using the indigenous coal to be mined at Block VI,
        Tharparkar, after techno-commercial evaluation of the coal, for its cement plants.

    -   LUCKY shall subsequently assess the costing for transportation and utilisation of this
        lignite in its cement kilns with minimum effects on the pyro-process and shall try to reach a
        commercially viable solution before entering into a Coal Supply Agreement ("CSA").

    -   Oracle and LUCKY have agreed to cooperate on the exchange of relevant information and
        future planning so that they may reach a workable arrangement for Oracle through its local
        subsidiary Sindh Carbon Energy Limited ("SCEL") to supply coal to LUCKY.

    -   At  an  appropriate time mutually agreed by Oracle and LUCKY, the CSA shall be signed
        between Oracle/SCEL and LUCKY. The CSA will replace this MOU.  The CSA shall be a binding document
        between Oracle/SCEL and LUCKY.

    -   The representatives of Oracle and LUCKY shall meet at regular intervals to discuss the
        progress of the Oracle/SCEL Work Programme and also to set out a time-table for signing the CSA.
        This would likely be after the certification by Oracle/SCEL of the quality of coal they would be
        able to supply after treatment and acceptable to LUCKY at economical terms and conditions.

Shahrukh Khan, Chairman commented:

"Entering  a partnership with LUCKY, a major cement manufacturer in Pakistan, further secures  our
objective of becoming a leading supplier of coal in the country.

"In  addition  to  our  primary  objective of supplying coal to the  power  generation  market  in
Pakistan,  Oracle  is  also keen to supply local industry, particularly the  cement  industry.  We
believe  this will return significant value to shareholders and, most importantly, generate  early
cashflows.   We  will  be  working with LUCKY in the coming months to share  information  on  coal
quality,  the  mine development plans and transportation logistics for the purpose of  entering  a
Coal  Supply  Agreement (CSA).  The CSA will add impetus to the development of our coal  mine  and
allows  Oracle  to  supply  competitively priced coal to LUCKY while  the  power  plant  is  being
developed.

"There is significant demand for coal from cement manufacturers in Pakistan.  Currently, the major
manufacturers  import  coal  at  international prices.  As a result,  a  number  of  these  cement
manufacturers  are keen to switch to domestic coal supplies and are prepared to  enter  long  term
supply agreements.

"In  spite  of  the current socio-economic and political environment in Pakistan,  Oracle  remains
focused  on its goal of developing a major coal mining operation.  Last month, the Company entered
into an MOU with Karachi Electric Supply Company (KESC), a major local power utility, with the aim
of establishing a Joint Development Agreement for the development of a mine mouth power plant, and
has  now  concluded an agreement with LUCKY, a major domestic cement manufacturer.  By  so  doing,
Oracle  has  secured  a relationship with well established local companies  that  have  long  term
strategies  based on sustainable development which therefore require secure long-term supplies  of
coal. We are continuously de-risking our business with the aim of fast-tracking the development of
the Thar coal mine and generating early cashflow."

                                                                                  January 11, 2010

The Directors of Oracle are responsible for the contents of this announcement.

ENQUIRIES:

Oracle Coalfields PLC
Shahrukh Khan, Chairman
Telephone: [phone]
Email: [e-mail]

St Helens Capital Partners LLP
Duncan Vasey or Mark Anwyl
Telephone: [phone]

Lothbury Financial
Michael Padley / Ron Marshman
Telephone: [phone]
Email: [e-mail]

WEBSITE:  www.oraclecoalfields.com

About Oracle:

Oracle  Coalfields plc is a UK-based resource exploration and development company with an  80  per
cent  owned  subsidiary (Sindh Carbon Energy Limited) operating in Pakistan. The Company's  shares
are  quoted  on the PLUS markets (symbol: ORCP).  The Company's flagship project is the  Block  VI
coal  project  which  is  located on the Thar coalfield in the eastern Sindh  province,  Pakistan.
Block VI is host to a JORC compliant resource of 1.4 billion tonnes of lignite coal including  371
million tonnes in the proven category.

The  Company  also owns the Indus East coal project in Pakistan.  A pre-feasibility study  carried
out  by Dargo Associates confirmed an inferred resource for the area (in line with the JORC  Code)
of 365 million tonnes, of which the boreholes KHW-1 and KHW-2 give an indicated resource of approx
24 million tonnes.

Oracle Coalfields plc