Rockwood

Scope also exists to produce a lower ash, better quality Rockwood PCI coal product (compared to that shown above from laboratory tests) through the selection of specific seams, coupled with appropriate washing strategies and coal blending techniques. This will optimise the mining and yield outcomes for the overall deposit. Other coal mined can then be sold into the anthracite market as a high energy product.

At Rockwood the drilling program will focus on exploring further to the south-east along anticline structures already
identified, as well as to more closely drill in those areas likely to be prospective for the siting of a mine operation.
It is anticipated that a further update for JORC Resource at Rockwood will be available during the June/July 2012
period.

Separately, the Company has engaged with two potential port development projects to be located at Dudgeon Point, near Mackay. The Company has lodged the necessary documentation required to support an application for 4Mtpa at each of the Brookfield and Adarni port development projects now under consideration. Rockwood and the nearby Nebo tenement have been nominated as the proposed coal sources respectively.

Mine Development

Conceptual Mine Planning Study to commence during Q2 2012, based on 3D geology structure model and coal quality model development from 2010/2011 drilling programs: 
> Evaluate potential for open cut mining and consider alternative mining methods 
> Identify infrastructure opportunities, including access to water supplies to support Rockwood development.

Port Infrastructure and Transport Logistics

The Northern Bowin Basin coal export ports: 
> Previously expressed interest as a 'Preferred Capacity Seeker' with Abbot Point port expansion process; and 
> Documents lodged with both Dudgeon Point Project Management and Adani port development projects confirming interest in acquiring port allocation at Dedgeon Point.