Sharpe Resources Corporation is a public Corporation with its common shares traded on the Over-The-Counter Bulletin Board under the symbol SHGP. Sharpe’s business is acquiring and developing bituminous coal, coal bed methane (CBM), and shale gas properties initially in Northern Appalachian Regions in Eastern Kentucky and Western West Virginia. Additionally, the Company has property positions in the Central Appalachian Regions of Kentucky. Sharpe conducts its acquisition and development activities through Standard Energy Company, a wholly owned Delaware subsidiary.

Introduction

Sharpe’s immediate focus is steam coal for the utility, industrial and electric power generation sectors which, in specific markets, currently is priced in the $45-$55 per ton range with operating costs, including transportation, of about $30-40 per ton.  Sharpe’s longer term focus will include high btu, low sulfur metallurgical or near metallurgical coal yielding a raw or washed product with less than 10% ash content and less than 1% sulfur.  Metallurgical coal is currently priced in the $70-$85 per ton range in the spot market with operating costs comparable to those for steam coal.

Domestically, demand in 2009 for coal has weakend, largely in response to a reduction in the electric generation and utility sectors in the East.  The build out of scrubbers by utilities should positively favor coal production in the Appalachian Regions.    

Preston County, WV, USA     

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