Coal Production Commences as Part of Accelerated Development Program

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Coal Production Commences as Part of Accelerated Development Program
    CALGARY, Alberta, July 20 /PRNewswire-FirstCall/ -- FEC RESOURCES INC.
(OTC Bulletin Board: FECOF, Frankfurt/Munich: FE8) ("FEC") reports that
Forum Energy Plc ("Forum"), the UK energy group with gas, oil and coal
assets in the Philippines, of which FEC Resources holds a 35% equity
interest, has announced that its coal production program has now commenced
and an aggressive acceleration program has been initiated by the groups new
Chief Executive. In a release to the London Stock Exchange this morning,
the UK energy group released news that its Naga coal mine operations in
Central Cebu have entered into commercial production.
    First sales are targeted for August and a further four shafts at Naga
are planned to raise production to circa 300,000 tonnes a year by the end
of 2008. Current regional prices are in excess of US$40 per tonne.
    Newly-appointed Forum Chief Executive Russell Harvey commented:
    "The commencement of coal production represents a major step forward in
providing early cash flow. The coal development has been accelerated to
take advantage of the infrastructure which has already been put in place.
This will maximise value to shareholders and at today's prices the
predicted revenues from Naga based upon conservative production figures,
will yield approximately US$12million per year by the end of 2008. A
similar development programme at Dalaguete, our Southern Cebu coal
contract, is planned for 2007. This is also anticipated to generate
comparable revenues at peak production."
    "We see this initial development of our reserves as the start of a
continuing revenue generating operation. With this in mind Forum has
already applied for two additional coal production licences in the Naga
area."
    President & CEO Larry W. Youell
    "Though our substantial shareholding in Forum Energy Plc we are
delighted that following their recent management changes, our gas, oil and
coal interests are being developed at an accelerated rate.
    Today's news regarding the progress Forum has made with the coal
development program is particularly pleasing, as the group has now entered
into revenue generating operations, this will in turn deliver value to the
shareholders of FEC Resources.
    Furthermore in the near future we expect to issue positive news on both
our Gold and Iron Ore assets."
     On behalf of the Board of,
     FEC Resources, Inc.
     "Larry W. Youell"
     Larry W. Youell
     President and CEO
    This release contains "forward looking statements" as per Section 21E
of the US Securities and Exchange Act of 1934, as amended. Although the
Company believes that the expectations reflected in such forward looking
statements are reasonable, it can give no assurance that such expectations
will prove to have been correct. Management is currently reviewing many
options and there is no assurance that they will not make decisions other
than those now contemplated. The Company is subject to political risks and
operational risks identified in documents filed with the Securities and
Exchange Commission, including changing and depressed oil prices,
unsuccessful drilling results, change of government and political unrest in
its main area of operations For more information please contact Larry
Youell at (403) 290-1676 e-mail info@FECResources.com or visit the FEC
Resources website at http://www.FECResources.com
SOURCE FEC Resources, Inc.
http://www.fecresources.com/
CONTACT:
Larry Youell, +1-403-290-1676, or
info@FECResources.com