Overview

Thelon Capital (CVE:THC) is an exploration and development company focused on the Appalachian mining district.  Thelon’s goal is to capitalize on the global surging energy demand and construction infrastructure growth through supplying metallurgical, thermal and specialty coals. Its flagship property is the wholly owned Jellico Coal Project located in Tennessee, USA.

“The purchase of Clear Fork Mining’s Jellico project and its coal production in the prolific Appalachian Coal Basin is an important milestone for Thelon, as we build the company into a premier producer in the coal industry. We look forward to a long working relationship with this talented and experienced team.

Our company objective of becoming a million ton a year producer of High Quality Thermal, Metallurgical and Specialty coals by 2012 is now underway.

Through expansion of our operations, combined with the near term acquisition and consolidation of existing Appalachian Coal mining producers, Thelon’s knowledgeable team of local mining experts are on target to achieving this goal.”

Jason Walsh, President Thelon Capital

Chief Properties

Jellico Coal Project (100% owned) – Tennessee, USA

The Jellico Coal project is located, approximately thirty-five miles north of Knoxville Tennessee.  It has  a historical resource of 14 million tones of compliant metallurgical, thermal, and silicon metal coals currently being expanded via exploration.

• 6400 acres of fee simple land located approximately thirty-five miles north of Knoxville Tennessee
• There is a contract miner on a 640 permitted section of the Jellico property currently producing 20,000+ t/m and generating a production royalty being paid to Thelon Capital of approximately $1.8 million annually.
• Appalachian Coal prices range from $80-$90 per ton for our compliant thermal coal and $140-$185 per ton for metallurgical and specialty coal
• Property and surrounding area has well-established power, logistics, and transportation infrastructure including mine access roads, rail and Tennessee state highway 90 allowing for economical exploration and production
• All production is currently sold to existing customers within a 50 mile radius of The Jellico Property. Thelon Capital, with its road and rail access, also has the ability to transport coal to the Eastern Seaboard, or south to the Gulf Coast for International sales fulfilment
• Historical reserve and coal analysis data provided in a July 2009 report by A.R Leamon CPG TN estimate inferred coal reserves of approximately 14,000,000 tons of high quality compliant Thermal, Metallurgical and Specialty coals in place (based on historical data and not 43-101 compliant)
• Recent coal quality analysis conducted from core holes and test pits on the property have shown low sulphur, ash and high Btu values consistent with compliant Thermal and Metallurgical coals being produced from adjacent properties

LOI to Purchase A Private Tennessee Mining Co.

The Company’s coal growth and success continues with the signed LOI to purchase a private Tennessee Coal Mining company.

The company is a 30 year old Mining Company currently producing 50,000 tons of Coal per month from 3 permits, and a 4th permit will start production shortly. They currently are supplying local industrial and utility markets, with plans to take advantage of the growing USA export market.

The intended acquisition is of a 30-year old Mining Company, highlights include:

• $24 million in equipment, including wash plant, load out tipple and 7 sets of production machinery
• 23 million recoverable tons under lease
• 6.1 million tons of Blue Gem Met Coal (inclusive in recoverable tonnage)
• 4 permits in place, 3 permits pending
• Producing 50,000 t/m from 3 permits, 4th permit will increase production to 65,000 t/m
• 3 year lock up agreement with current management
• $7 million in reclamation bond

This acquisition will give Thelon Capital immediate production, and a substantial increase in cash flow, and is an important step in Thelon achieving its near term objective of becoming a million ton annual producer of high quality compliant Coals

Management

Jason M. Walsh – President, Director - Mr. Walsh has 20 years of relevant business experience. He started his entrepreneurial career at the early age of 16, in the general contracting business. Seven years later, he started a 10 year career as a stockbroker, which allowed him to gather invaluable experience in the formation and financing of venture capital companies similar to Thelon Ventures. Subsequently, he joined Thelon Ventures as president in 2003, where his previous business experience has allowed him to be instrumental in the building of the company’s substantial resource property portfolio, financing of the company’s projects and overseeing the company’s day-to-day operations

Glen MacDonald – Director, Secretary - Mr. Macdonald joined the Board of Directors in 2002. He is a professional geologist, with over 30 years of exploration & mine development experience in the mineral industry. He has designed & managed exploration campaigns worldwide for both metals & gemstones, & has concentrated primarily on Canadian diamond & gemstone exploration for the past 10 years. He has served on the Boards of numerous public companies with management roles in technical, project management & financing. Mr. Macdonald will assume technical responsibility for development of the Company’s gemstone exploration programs.

John Roozendaal, BSc geology, Director – John Roozendaal has a B.Sc in Geology and 19 years experience in the mining industry. John is founder and President of VMS Ventures Inc (VMS.V) and Harvest Gold Corp (HVG.V) ventures focused on the development of base and precious metals projects in Canada and the USA. Mr. Roozendaal has experience with various aspects of corporate governance through his involvement with private, public and governmental boards of directors.

Tim Webb, Advisory Board - Mr.Webb has served as Management and as Owner/Operator of several producing coal companiesover the past 20 years. He brings tremendous insight into Mine management and the Coal industry in the Appalachians.

Peter Watson, Advisory Board - Peter has over 25 years experience in the North American and European capital markets. Most recently as Vice President investment banking of NovaDxVentures Corp. He was instrumental in the formation and development of NovaDxsubsidiary MCoalCorp, and was a capital market advisor to Western Canadian Coal.

W.E. Brereton, M. Ss. (A), P.Eng .- Advisory Board – Mr. Brereton brings over 30 years experience in the mining business world-wide, He has initiated and/or managed a wide variety of mineral projects ranging from regional reconnaissance to detailed drill evaluation of potential ore bodies. Commodities involved include copper, lead, zinc, nickel, platinum-group elements, diamonds, silver, gold, uranium, tin, tungsten and lithium. The programs have encompassed a variety of deposit types including volcanogenic massive sulphides, sedimentary copper deposits, Archean gold-quartz lode deposits, magmatic Ni-Cu-PGE deposits, kimberlites, unconformity and vein-type uranium deposits, shale-hosted lead-zinc deposits, etc. With respect to uranium, Mr Brereton carried out extensive uranium work in the period 1977-1981, mainly in the Athabasca region of Saskatchewan and in the Northwest Territories and has never lost his interest in and enthusiasm for this particular commodity. He is also very familiar with state-of-the-art uranium exploration technologies.

Geoff Watson, Director – For the past 30 years, Geoff Watson has been involved in various aspects of the securities industry. He has been involved with institutional client management, and has assisted in the financing of many public companies. Mr. Watson has also been involved in the corporate communication and development of numerous North American public companies.