New South Walies-Australia

•Ashford Coking Coal (RCMandNEC50%each). •Arrawatta Coking Coal Exploration (RCM100%) •Yetman (NEC100%) •Whitehaven Coal Resources in Area–not part of this offer, but included as point of interest. Resources- • Inferred Coal Resources–18 mtonnes (Ashford) PotentialforResourcesof50Mt Medium Hard Coking Coal •+3MtAshford •+15MtAtholwood •4 Mt Whitehaven (not part of this offer) •Yetman Potential for200Mt Steaming Coal (Thermal Coal) Low Strip Ratio •ArrawattaPotentialfor400MtBrownCoalandsomeCokingCoal The details provided are only for Ashford coal. The sample tested shows a high yielding, mid volatile coal which forms a coke with an avg. coke strength. The combination of coal & coke characteristics compare with other hard coking coal exported from Australia & indicate the coal would received a price at US$105-115/tonne. Comparison of medium hard/soft coal of Ashford from hard coking coal- Coal Quality Parameters PQ Samples Previously reported avg. Hard coking coal Coke strength after reaction 53.4 Above 65 Coke yield 78.2% Product ash 7.9% 7.3% Almost Same Volatile matter 24.9% 23.6% Almost Same Inherent Moisture 1.1% 1.1% Almost Same Mean max reflectance Tba 1.14% 1.17 to 1.3% Crucible swell no. 5.5 6.5 8 to 9 Gray king coke type G5 G5 G6 Sulphur .4% .4% Almost Same Phosphorus Tba .03% Almost Same Fluidity Max 170 ddpm to 365ddpm More than 1000 ddpm Hard Groove Index 81 90 Conclusion: From the above shown analysis Ashford project coking coal (18 MT) comes under the parameters of medium hard/soft coking coal. The hard coking coal parameters denoting the coking coal quality i.e. hard groove index, coke strength, mean max reflectance, crucible swell no, grey king coke type & fluidity is higher than the Ashford project quality of coal. Hence the coal is considered as medium hard/soft coking coal. Run of Mine coal (ROM) will be beneficiated through dense medium cyclone washing & product receive will be around 7.5% Ash quality at avg. yield 72%. This coal can be blended up-to 50% with hard coking coal. Other resource development at Ashford North (6Km2) & Atholwood (40 Km2) exploration area along strike from Ashford project are on the way which will add the tonnage of resource. In view of this coking coal can be considered. Logistics: 1. Preferred short term road-rail routes available via Moree 2. Potential to reopen the line to Inverell with sufficient tonnage 3. Other route facilities are under development.