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VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 9, 2010) - Thelon Capital Ltd. (TSX VENTURE:THC)(FRANKFURT:TFHC) is pleased to announce that it has signed a Letter of Agreement to lease or purchase the Jellico Coal Project, which consists of approximately 6000 acres of fee simple land in the Campbell and Claiborne counties, located approximately thirty-five miles north of Knoxville Tennessee.

Under the terms of the agreement, Thelon shall issue 3.5 million shares, and spend $750,000 (USD) on confirmation drilling to generate and complete a national instrument (NI 43-101) compliant resource report. Thelon shall issue an additional 3.5 million shares, (i) upon the signing of a definitive agreement, (ii) the successful completion, and receipt of the (NI 43-101) compliant resource report demonstrating a measured and indicated aggregate coal resource of not less than 20 million tons of sufficient quality and thickness to be conventionally mined.

Portions of the property have had extensive sampling and drilling by previous operators as recently in 2009 and it is thought to contain multiple coal seams of high quality metallurgical, as well as, compliant steam coals. DRC Coal LLC has a surface mining operation on the southern boundary of the property producing from the Blue Gem, Jellico, and Rex coal seams.

Historical reserve and coal analysis data provided in a July 2009 report by A.R Leamon CPG TN estimate inferred coal reserves of approximately 12,000,000 tons in place. Coal quality analysis conducted from core holes and test pits on the property between 1992 and 2007 have shown favorable sulfur, ash and, Btu values consistent with high quality metallurgical coals being produced in the area.

* Estimates of coal reserves are historical in nature, predate, and are noncompliant with NI 43-101. Thelon is not treating the historical estimate as current mineral resources or reserves. Thelon has not undertaken any independent investigation of the resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources, and therefore the historical estimates should not be relied upon.

The property and surrounding area has well-established power, logistics, and transportation infrastructure including mine access roads, several secondary county roads, and a railroad parallel to Tennessee state highway 90, which extends through the property.

Thelon's immediate objective is to begin the necessary drilling to define additional coal reserves, and complete a national instrument 43-101 report of measured and indicated mineable coal reserves on the property,

Glen MacDonald, P.Geo., a qualified person under national instrument 43-101, has approved the technical information contain in this news release.

There is a finders fee payable in accordance with TSX.V guidelines.

Thelon President Jason Walsh comments:

"We are very excited and grateful for this opportunity, given the recovery and continuing strength of the domestic and foreign coal markets. The state of Tennessee has a highly skilled labour force with a long and proud history of coal production in the Appalachians.

The company is committed to operate to the highest standards, environmentally, in a safe and socially responsible manner to create value for our shareholders and the people whom we shall employ in the area."

THELON CAPITAL LTD.

On behalf of the Board of Directors

Jason Walsh, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.