In accordance with Listing Rule 3.1, the Eastern Corporation Limited advises that it expects to report a loss for the six months to 31 December 2007 of approximately $3 million as opposed to a loss of $1.132 million for the six months to 31 December 2006.

The higher loss is due to increased exploration and evaluation expenditure of approximately $1 million for Galilee Energy Limited, a greater operating loss in respect of the New Zealand coal mining operations of approximately $750,000 and one off costs associated with the corporate restructure which occurred in the second half of the year.