EPC1118 - WANDOAN PROJECT JORC COMPLIANT RESOURCE STATEMENT MARCH 2012 Author: G.M.Leblang B. Sc., F.Aus. IMM Cougar Energy Limited 30 March 2012 ABN 75 060 111 784 COUGAR ENERGY LIMITED Suite 1002, 530 Little Collins Street, Melbourne, Victoria, 3000 Australia. Telephone: +61 3 9909 7200 Facsimile: +61 3 9909 7217 Website: www.cougarenergy.com.au Email: enquiries@cougarenergy.com.au EPC1118 JORC Compliant Resource Statement Table of Contents 1. Executive Summary ........................................................................................... 4 2. Location and Tenure .......................................................................................... 5 3. Regional Geology .............................................................................................. 5 4. Geology of EPC 1118 ........................................................................................ 6 5. Exploration to Date ............................................................................................ 6 6. Coal Quality ....................................................................................................... 7 7. Suitability of the Coal Resources for underground mining ................................. 7 8. Estimation of JORC Compliant Coal Resources ................................................ 8 8.1 Modifying Factors ...................................................................................... 8 8.1.1 General ................................................................................................... 8 8.1.2 Geological Constraints............................................................................ 8 8.1.3 Land constraints ..................................................................................... 9 8.2 9. Methodology .............................................................................................. 9 Statement of Resource Estimates ................................................................... 10 10. References ...................................................................................................... 12 11. Figures ............................................................................................................. 13 12. Tables .............................................................................................................. 14 13. Appendix-1 Coal Quality Epc1118 Laboratory Test Results ............................ 15 14. Appendix-2 Extract From“Queensland Coals, Physical And Chemical Properties, Colliery And Company Information 14th Edition, 2003” .................. 16 List of Figures: 1. Qld Location Plan 2. Wandoan Region – location of coal deposits 3. EPC 1118 – Location of Exploration Drillsites 4. Permo-Triassic Stratigraphy 5. Jurassic Stratigraphy 6. Lithostratigraphy of the WalloonSub-group 7. Three dimensional view of typical coal deposit 8. Geological Section A-A’ 9. Coal Seam Isopachs and Estimated Resource Areas – MA1 Seam 10. Coal Seam Isopachs and Estimated Resource Areas – MA2 Seam 11. Coal Seam Isopachs and Estimated Resource Areas – MA3 Seam 12. Structure Contours MA1 Seam Floor 13. Structure Contours MA2 Seam Floor 14. Structure Contours MA3 Seam Floor 15. Depth to MA1 roof below average surface elevation 16. Depth to MA2 roof below average surface elevation 17. Depth to MA3 roof below average surface elevation 2 EPC1118 JORC Compliant Resource Statement List of Tables: 1. Geological data used in the Resource Estimate 2. Coal Quality data – EPC1118 3. Coal Resource Data and Categories 3 EPC1118 JORC Compliant Resource Statement 1. Executive Summary Cougar Energy Limited has commissioned Coalsearch Consultants Ptd Ltd to prepare a report summarising the methodology and results of a JORC Compliant Resource Estimate at 10th March 2011 for coal contained within EPC1118. The report describes the geological aspects of the project on a regional and local basis, describes the coal seam units involved in the Estimate, and outlines the modifying factors used in determining the coal which can be included in the Estimate under the constraints of the JORC Code. The methodology of computation of the tonnages for the Estimate is also discussed. The report also discusses the disposition of Coal Resources outlined to date with regard to eventual extraction by underground mining methods. The study has concluded with the Estimate as follows: • Indicated Resources totalling 32 million tonnes (insitu, air dried basis ) • Inferred resources totalling 328 million tonnes (insitu, air dried basis ) These tonnages are mutually exclusive. The Resources are contained in 3 mapped “sub-seams” of the Macalister Seam, named MA1, MA2, and MA3. All seams within the Resource for both Categories include seams greater than 1.5 metres thick and at depths greater than 150 metres. For a complete data collection, the reader is referred to the Annual Report EPC1118, for the period ending 24th July 2009, submitted to the Department in August 2009. 4 EPC1118 JORC Compliant Resource Statement 2. Location and Tenure The resources are contained within EPC 1118, which was granted to Cougar Energy (100 per cent) for a five year period from 24 July 2008. EPC1118 is located about 35km NNW of Miles, and 30km SSE of Wandoan, in the Western Downs area of southern Queensland Cougar acquired this area with the intention to explore for and develop Coal Resources via Underground Coal Gasification. Due to uncertainties to do with mining legislation surrounding this process in Queensland, the company wishes to evaluate alternative methods of exploitation, namely extraction of the resources via conventional underground mining methods. At the time of writing, the EPC is not underlain by any other mining title, and so has largely no competing resource interests. Location of the EPC is shown in Figures 1, 2 and 3. Cougar Energy Limited has applied for a Mineral Development License 420, covering an area coincident with EPC 1118, ( See Fig 3 and Figs 6-14). 3. Regional Geology The EPC is located in the North-Central part of the Surat Basin and contains strata of Mainly Middle Jurassic Age. It is located on the eastern flank of a major geological structure known as the Taroom Trough. The Taroom Trough is a major basement half Graben downfaulted on the eastern side. The Trough hosts rocks from Permian to Cretaceous in Age, and progressive subsidence provided a geologic environment where a very thick pile of sediments accumulated. During the Middle Jurassic, the Walloon Coal Measures were deposited in relatively quiescent conditions, in an upper delta plain environment, resulting in the deposition of thick coal seams. The stratigraphic relationships of Formations in the Permo-Triassic, and Jurassic sequences are shown in Figures 4 and 5. The lithostratigraphy of the Walloon Subgroup coal sequence is shown in Figure 6; Occurrences of coal deposits, outlined by intensive drilling in the region during the seventies and eighties, form map outlines which are commonly described as “pods”. This characteristic exists because the thick coal seams (10-12 metres) identified by exploration companies split and thin outwards, giving the impression that the mapped areas shown in Figure 2 , are discontinuous areas. Thin correlatives of the thicker seams do occur in the intervening ground, but may not have economic potential. A three dimensional representation of the style of the deposits is shown in Figure 7. Illustration of these features using actual drilling data is shown in the geological section A-A’ located on Figure 8. The coal deposits shown in Figure 2 form a belt from west of Wandoan, thence extending in a south easterly direction to point immediately north east of EPC1118, and southwards towards Miles. The reason these deposits form this “belt” is that they occur near the surface, and have been intensely investigated for open-cut coal mining by the companies holding title to these areas. Little close spaced drilling has been completed at depth, and hence the mapping of pod shaped coal deposits is not evident in the deeper extent of the coal horizon. 5 EPC1118 JORC Compliant Resource Statement The model for coal exploration in EPC1118 follows the same understanding of coal deposits in the region. It would be expected that thicker seams would exist in the area under this model, where the seams identified as forming the coal resource would be thicker by virtue of all seams “coalescing” or having only thin partings between them. Based on this model, and the observed spacing of known coal bodies a shallow depth, it could be reasonably expected that two to three such areas of thick seam occurrences based on combined sub-seams of the Macalister interval, would occur within EPC1118. Further drilling is obviously required to establish presence of such deposits. 4. Geology of EPC 1118 The Jurassic Stratigraphy of the Taroom Trough area is shown in Figure 5. The target formation for coal exploration is the Walloon Coal Measures, in particular, the Juandah Coal Measures, which is the top unit of four formations within the Walloon Coal Measures. The Juandah Coal Measures is overlain in order of decreasing age, by the Springbok Sandstone, the Westbourne Formation and the Gubberamunda Sandstone, the cumulative thickness of which is of the order 250 metres. The principal coal seam in the Juandah Coal Measures is now formally named the Macalister Seam, ( Figure 6 ) which occurs at the top of the Formation. Within EPC 1118, the seam has been divided into three recognisable sections named MA1, MA2, MA3, which can be traced in drillhole results across the area. (See Figure 8). Over a large part of the drilled area the three “sub-seams” occur as separate seams with significant partings between them. The exception to this is the results in drillholes W001 and W002, where the seams have small partings separating. The challenge for further exploration will be to locate an area where all three “sub-seams” occur without significant parting. Consistently overlying the Macalister group of seams is the Kogan seams, KG1 and KG2. These seams rarely attain significant thickness and quality to be considered in the Resource Estimation, but act as a good geological marker horizon. Geological structure of the area is indicated to be relatively free of significant faults, although drilling spacing is as yet too widely spaced to detect small faults. ( See remarks on “modifying factors”). On a regional scale, the Taroom Trough area has not been affected by significant faulting (say 50m displacements) to the same degree as the Moreton Basin in the Chinchilla-Dalby region to the east. 5. Exploration to Date Ten drillholes have been completed within the area to date, in addition to holes completed by previous explorers. All drillholes have intersected the Macalister Seam, at depths ranging from 250-300 metres. Summary results of the drilling is shown in Table 1, and a complete data compilation is available in Leblang 2009 (See References) 6 EPC1118 JORC Compliant Resource Statement Individual seam thickness for each drillhole is also posted at the drillhole locations in Coal Isopach (thickness) maps in Figures 6,9 and 12. Holes drilled within the Estimated Resource areas have all been core sampled and analysed over the Macalister coal seam intervals, with core recovery within requirements for JORC Compliance. All drilling has been supported by wireline geophysical logging, providing unambiguous identification of coal seams via density and gamma logs. Figure 3 shows location of drillholes completed by Cougar to date, proposed drilling to be completed by Cougar, and drillholes completed in the past by previous explorers. In particular, the ML series of holes completed by Marathon Petroleum, contain workable data, but no cored intervals. 6. Coal Quality Core samples for each of the seams included in the Resource Estimation have been analysed for Proximate Analysis, Total Sulphur, Relative Density and Specific Energy. All analysis data for samples obtained in EPC1118 to date is detailed in Table 2. The coal quality is typical of the Juandah Coal Measures, with raw ash variable and correlated with the aggregate thickness of stone bands. The coal has high volatiles and low sulphur. Coal from the Macalister seam, with similar coal quality attributes, is mined open cut at the Cameby Downs, Kogan Creek, Macalister, and Acland projects in the Eastern Surat Basin between Miles and Toowoomba. Of these, a beneficiated product is produced as export thermal coal in all but Kogan Creek, which supplies raw coal to the on-site Kogan Creek Power Station. The coal has excellent ash handling characteristics compared with the Tarong Coal Measures, and some Bowen Basin coals. No beneficiation testing has been completed on the coal from EPC1118 to date, however it can be expected that the coal will behave similarly to coal in nearby deposits, where float sink testing at RD 1.80 consistently returns ash contents of the order 8%, with sinks ( yield) varying in proportion to the stone band content of the coal. In other words, the inherent ash of the coal ( stone free ) is in the order 8%. Key coal properties for the coalfield, based on Xstrata’s Wandoan project, are included as Appendix 2, which is an extract of the Queensland Dept of Natural resources and Mining publication “Queensland Coals”, 2003. 7. Suitability of the Coal Resources for underground mining Comment on the economic viability of the project via underground mining is beyond the scope of this report in that significant amounts of additional exploration will be required for conceptual mine planning. It is relevant, however to make comment on some aspects of the data which may affect exploitation via underground mining. Experience in underground mining has been acquired in the Rosewood Walloon Coalfield in the Moreton Basin, largely in very small bord and pillar operations. A 7 EPC1118 JORC Compliant Resource Statement useful summary of these operations and further references is included in a Queensland Minerals & Energy report by Matheson S.G., 1993. Other aspects observed in the Walloon Coal Measures generally, include: • Overburden rocks are generally competent with range of rock strength which would pose no major difficulties for constructions of stone drives and shafts. • No significant perched aquifers occur in the overburden strata, and generally no major water flows are extracted from air lift testing of the coal seam aquifers. • Methane gas would be present in any proposed underground workings, but below levels at which ventilation would be difficult. Typical total desorpable gas contents at similar depths in the Walloon Coal Measures are in the order of 2-3 cubic metres per tonne. • Roof rocks would likely be in the strength range where conventional support would be successful, and there is no significant evidence of faulting, either normal or thrust faulting, which would present support difficulties, via excessive roof delamination. 8. Estimation of JORC Compliant Coal Resources Modifying Factors 8.1 8.1.1 General Exploration in EPC1118 was initially focussed with the intention of identifying coal resources suited to extraction using Underground Coal Gasification (UCG) technology. The company has since redirected its focus to evaluating the coal resource with conventional coal extraction in mind. The Resource evaluation has adopted geological constraints which are consistent with conventional underground mining extraction as the method for eventual exploitation, however the Resources are not intended to be regarded as “minable coal”, as a conceptual extraction plan has not yet been considered. Therefore the coal tonnage estimates are classified as Coal Resources. Further exploration drilling will be required in order for a conceptual mine design to be completed. The Estimate complies with the JORC Code categories Indicated and Inferred Resources. 8.1.2 Geological Constraints Seam Thickness All of the coal seam intersection data used for the Resource Estimate has been constrained to a minimum seam thickness of 1.5 m. Minor exceptions to this rule occur where the seam is separated from the seam above or below by a parting less than 0.5 metres thick, in which case the combined seams 8 EPC1118 JORC Compliant Resource Statement can be regarded as a single potential working section. The range of seam thickness for each seam can be accessed from Table 1. Intra seam Partings For purposes of estimation, the partings within a coal seam were constrained to be less than or equal to 0.5 metres to be included as part of the seam. Coal Seam Depth The coal seams which form the Resource occur at depths interpreted between 220 to 290m. No constraint on depth has been applied for the estimate. Coal Quality For raw coal extraction an ash content of 40% has been used as a cutoff. Ultimately, raw ash content will determine the beneficiation yield, as most of the contained ash is in the form of discrete stone partings, and the percentage of the partings is variable. As the Resources are estimated on an in-situ basis these factors are not relevant. Coal quality for each seam is detailed in Table 2. Geological Structure Whilst no significant faults have been detected by drilling in EPC1118, it is anticipated from the body of knowledge of this part of the Surat Basin where intensive drilling has been completed over the past three decades, that some faulting may be present, however not at the scale of displacements common in the Moreton Basin to the east. The degree of uncertainty will be reduced by additional drilling. At this time this factor will be addressed by contribution to an error of estimation attached to the Resource Estimate. 8.1.3 Land constraints The Resource Estimate is constrained by the western boundary of the EPC in the far north west of the resource area. ( See coal Isopachs and Resource Areas Figs 6,7 and 8 ). No other land titles, mining titles, occur within the EPC. A Strategic Cropping Trigger area is located to the east of the Resource area, ( See Figs 6-14). This area overlaps the Resource area over a very small area. It is possible that this small area may eventually restrict mining rights, but at present there is no such restriction and it has not been taken into account in Resource measurements. There are no active Native Title Claims over the area. Some easements are being proposed for rail water and pipelines in the area, but to the author’s knowledge are not finalised and hence no allowance for sterilisation has been made. Methodology 8.2 A JORC Compliant Resource is compiled primarily from data known as “Points of Observation”. In order to comply with the Code, data points must conform to the following: • Entire seam is to be core sampled and analysed for coal quality relevant to the envisaged utilisation purpose 9 EPC1118 JORC Compliant Resource Statement • Core Recovery is to be greater than 95% • The drillhole is to be geophysically logged using tools which establish the unambiguous presence and depths of coal. These logs are also required to confirm the position of any core losses. To meet this requirement, only cored drillholes ( suffixed “C”) included in Table 1 were used in the Resource Estimation. Drillholes without core sampling but where wirline logs were run were used to provide interpretive data points. Areas in which Indicated Resources can be estimated are those areas falling within a range of 500 metres from Points of Observation. (See red polygons in Figures 9,12 and 15). Seam thickness cutoffs were mapped by gridding the seam thickness data in Surfer, using a Kriging algorithm. The data was then contoured and incorporated as coal seam isopachs Areas in which Inferred Resources can be estimated are those falling within a range of 2km from each Point of Observation. (See green polygons in Figs 9, 12 and 15). Exclusions from these areas also were deducted in areas where seam thickness was less than 1.5 metres. Polygons were drawn at the spatial limits specified above for determination of the Resource areas. As a general rule, if separated polygons were generated by this process, the Estimator required at least two qualifying points of observation to constitute a Resource area. Where polygons were separated due to seam thickness cutoffs, and a valid point of observation occurred at appropriate separating distance between the polygons, separate Resource areas were accepted and combined in the Resource area for that seam. Areas of polygons were measured using Autocad tools. Seam thickness was averaged arithmetically as the areas of influence of each Point of Observation for both the Indicated and Inferred Resource areas is approximately equal. Average Relative Density was arithmetically averaged using the same logic. Total tonnage for each seam was computed from the product of: • Area of Resource polygon(s) • Average Seam thickness • Average Relative Density 9. Statement of Resource Estimates This study has estimated JORC Compliant Resources contained within EPC 1118 as at August 10, 2009. 10 EPC1118 JORC Compliant Resource Statement The study has concluded with Estimates as follows: Indicated Resources totalling 32 million tonnes (insitu, air dried basis) Inferred resources totalling 328 million tonnes (insitu, air dried basis) These tonnages are mutually exclusive. The Resources are contained in 3 mapped “sub-seams” of the Macalister Seam, named MA1, MA2, and MA3. All seams within the Resource for both Categories, include seams greater than 1.5 metres thick and at depths ranging between 220 to 290m. Data used in the computation of the above estimates, and a breakdown of tonnage estimates for each seam, with thickness and depth data, are contained in Table 3 of the report. Based on the experience of the Estimator in this particular coalfield, it would be anticipated that the in situ Coal Resource Estimates would be subject to a potential error of estimation of +/- 10 per cent. COMPLIANCE STATEMENT A statement confirming that the Resources Estimated in this report conform to the requirements of the JORC Code 2004, including Consent by the Author for Cougar Energy to issue as a Public Document, is attached to this report. Reproduction of this report either whole or in part, should not be made without the consent of the Author. G.M.Leblang B Sc, F AusIMM, MGSA 11 Date: EPC1118 JORC Compliant Resource Statement 10. References 1. LEBLANG, G.M. “Annual Report by Cougar Energy – EPC 1118 Period ending 24th July 2009” DME Confidential report. EXON, N.F. ,1976 “Geology of the Surat Basin in Queensland” BMR Bull 166, 1976 JONES G.D., & PATRICK R.B.,1981 “ Stratigraphy and Exploration Geology of the North-eastern Surat Basin “ Journal of the Coal Geology Group of the Geological Society of Australia – Surat Moreton Basin Symposium Vol 1 part 4. LEBLANG,G.M., RAYMENT, P.A., and SMYTH, M. 1981 “The Austinvale Coal Deposit – A Palaeoenvironmental Analysis” Coal Geology Vol 1 Part MATHESON,S.G. (1993). “Geology and Coal resources of the Moreton Basin, Queensland,” SWARBRICK, C.F.J. (1973) “ Stratigraphy and Economic Potential of the Injune Creek Group in the Surat Basin” GSQ Rep 79 “Queensland Coals, Physical and chemical Properties, Colliery and Company Information” 14th Ed 2003. Qld Dept Natural Resources and Mines 2. 3. 4. 5. 6. 7. 12 EPC1118 JORC Compliant Resource Statement 11. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Figures Qld Location Plan Wandoan Region – location of coal deposits EPC 1118 – Location of Exploration Drillsites Permo-Triassic Stratigraphy Jurassic Stratigraphy Lithostratigraphy of the WalloonSub-group Three dimensional view of typical coal deposit Geological Section A-A’ Coal Seam Isopachs and Estimated Resource Areas – MA1 Seam Coal Seam Isopachs and Estimated Resource Areas – MA2 Seam Coal Seam Isopachs and Estimated Resource Areas – MA3 Seam Structure Contours MA1 Seam Floor Structure Contours MA2 Seam Floor Structure Contours MA3 Seam Floor Depth to MA1 roof below average surface elevation Depth to MA2 roof below average surface elevation Depth to MA3 roof below average surface elevation 13 z Moura Moura z Monto Monto Bundaberg z Bundaberg 25° 00' 25° 00' SS SOUTH SOUTH Maryborough Maryborough z z z Taroom Taroom Gayndah Gayndah 26° 00' 26° 00' SS Wandoan Wandoan z z PACIFIC PACIFIC Gympie Gympie z Tewantin Tewantin Kingaroy z Kingaroy z EPC1118 WANDOAN WANDOANMiles EPC1118 Miles z Chinchilla Chinchilla OCEAN OCEAN Tarong Tarong Power Power Station Station Tarong Power Station Power Station Tarong Power Station Tarong Tarong 27° 00' 27° 00' SS Ck Kogan Kogan Ck Kogan Ck Kogan Kogan Ck Ck Power Power Station Station Power Station Station Power Station Power Power Dalby z Dalby BRISBANE Toowoomba z Toowoomba ( 28° 00' 28° 00' SS Swanbank Swanbank Swanbank Swanbank Swanbank Swanbank Power Power Station Station Power Station Station Power Station Power Power Millmerran Millmerran Millmerran Millmerran Millmerran Millmerran Millmerran Millmerran Power Station Power Power Station Station Station Power Power Power Station Warwick Warwick z 0 20 40 60 80 153° 153° 00' 00' EE SSO OU UTTH H 152° 152° 00' 00' EE 29° 00' 29° 00' SS AANNDD SSLL N N EEEE QUU Q W W NNEE 151° 151° 00' 00' EE 150° 150° 00' 00' EE z WALES WALES Goondiwindi Goondiwindi 100 Km 1:2,500,000 COUGAR ENERGY LIMITED EPC1118 Cairns ( ( Mt Isa WANDOAN Townsville ( ( Rockhampton COAL MEASURES LOCATION MAP 8 ! BRISBANE 0 500Km QUEENSLAND INDEX MAP COMPILED BY G. LEBLANG AUG 09 SCALE 1: 50,000 DRAFTED BY K.J.CORRIE AUG 09 Proj.:Lat Long REVISED DWG No : FIGURE 1 COLLINGWOOD WANDOAN (SUMMER HILL) WANDOAN (TURKEY HILL) 26° 00' S COLLINGWOOD CULGOWIE ELIMATTA WANDOAN (MUD CREEK) WANDOAN Wandoan ! BOTTLE TREE WANDOAN (WUBAGUL) 26° 10' S WANDOAN (BURUNGA) GULUGUBA WANDOAN (GLEN LAUREL) WOORI WANDOAN (STANLEY PARK) 26° 20' S EPC1118 TIN HUT CREEK EPC1134 26° 30' S Le ic hh ar dt DAVIES ROAD Highway Warrego Highway CAMEBY DOWNS Miles ! 26° 40' S LEGEND 150° 20' E 150° 10' E 150° 00' E 149° 50' E 149° 40' E RYWUNG 0 5 10 15 20 25 Km 1:500,000 EPC with Cougar interest EPC other companies Coal Deposits COUGAR ENERGY LIMITED EPC1118 WANDOAN WANDOAN REGION LOCATION OF COAL DEPOSITS COMPILED BY G. LEBLANG AUG 09 SCALE 1: 500,000 DRAFTED BY K.J.CORRIE AUG 09 Proj.:Lat Long REVISED K.J.CORRIE MAR 12 DWG No : FIGURE 2 000 444444000000000 Lot83 FTY1489 ( ( ( 2538 ( ( ( 2538 2538 2538 ( ( ( 355 355 ( ( ( 355 355 Cherwondah Cherwondah State Forest Forest State ( 400 400 400 400 400 400 Lot5 FT849 W001 000 333330000000 ( W025 W011 Lot28 CP885313 ( 44440 0000000 ( ( ( 444 444 ( ( 444 ( 444 ( W026 Geological Section A - A' ( W027 W012 JJuu aann ddaa hh ( ( W013 ( ML014 ML014 ML014 ML014 ML014 ( ML014 ( ( ( ( ( ( (2 ( 222 2 W002 Crr C eeee kk ( ( W014 W019 ( W016 Lot8 FT854 Lot8 FT854 Lot7 FT141 R356 R356 R356 R356 R356 ( ( ( 337 2 2 2 337 337 337 2 2 2 337 ( W021 ( W015 Lot33 FT853 ( R442 ( R442 ( R442 ( R442 ( W020 ( W017 ( R224 ( ( R224 ( ( R224 ( R224 Lot13 FT427 ( ( ( ( ( ( 33333555000 00 Lot69 FT813 ( W003 Lot56 FT841 ( W022 W0 ( W023 Lot32 FT208 ( ( ( R443 ( R443 ( ( R443 R443 Lot9 FT142 4 00 00 400 44 44 00 00 00 ( W024 ( W009 W004 Lot12 FT142 ( W018 3333355555500 000 Lot2 RP203893 ( W007 Lot10 FT142 Lot12 FT142 Lot1 RP203893 00 00 0000 444 40 4 ( W006 Lot10 AU164 Lot11 Lot66 FTY1240 ( W005 0 1,000 2,000 m 1:50,000 LEGEND R2235 R2235 R2235 R2235 R2235 Historic drill hole ( (R2235 COUGAR ENERGY LIMITED W001 Completed drill holes ( ( W001 EPC1118 WANDOAN ( W019 Proposed drill holes Seismic lines LOCATION OF EXPLORATION DRILLSITES 1: 50,000 COMPILED BY G. LEBLANG JUN 09 SCALE DRAFTED BY K.J.CORRIE JUN 09 Proj.:MGA94 (Zone 56) REVISED K.J.CORRIE AUG 09 DWG No : FIGURE 3 COUGAR ENERGY LIMITED EPC1118 WANDOAN PERMO TRIASSIC STRATIGRAPHY COMPILED BY G. LEBLANG DEC 11 SCALE DRAFTED BY K.J.CORRIE DEC 11 Proj.:Lat Long REVISED DWG No : FIGURE 4 COUGAR ENERGY LIMITED EPC1118 WANDOAN JURASSIC STRATIGRAPHY COMPILED BY G. LEBLANG MAR 12 SCALE DRAFTED BY K.J.CORRIE MAR 12 Proj.:Lat Long REVISED DWG No : FIGURE 5 COUGAR ENERGY LIMITED EPC1118 WANDOAN LITHOSTRATIGRAPHY OF THE WALLOON SUB GROUP COMPILED BY G. LEBLANG MAR 12 SCALE DRAFTED BY K.J.CORRIE MAR 12 Proj.:Lat Long REVISED DWG No : FIGURE 6 0 Vertical Exaggeration = 10:1 1,000m MAR 12 MAR 12 G. LEBLANG K.J.CORRIE COMPILED BY DRAFTED BY REVISED WANDOAN DWG No : Proj.:Lat Long SCALE FIGURE 7 THREE DIMENSIONAL VIEW OF TYPICAL COAL DEPOSIT EPC1118 COUGAR ENERGY LIMITED W001 Depth 0 W011C 5 10 Depth 15 0 20 5 25 10 30 15 35 20 40 W012C 0 25 45 35 40 60 45 Depth 5 30 50 55 W002C Depth 0 10 5 15 10 20 15 25 65 50 70 55 75 60 80 65 20 30 25 35 30 40 35 45 85 70 90 75 95 80 100 85 105 90 40 50 45 55 50 60 55 65 110 95 115 100 120 105 125 110 130 115 60 70 65 75 70 80 75 85 135 120 80 90 85 95 90 100 140 125 145 130 150 135 95 105 155 140 160 145 165 170 115 160 165 185 170 190 175 195 180 200 190 210 195 215 200 220 205 225 215 235 220 240 230 250 235 255 240 260 245 265 140 150 145 155 150 160 155 165 160 170 165 175 170 180 175 185 KG1 190 KG1 195 KG2 195 KG2 215 MA1 220 225 MA2 285 270 290 MA3 290 310 295 315 300 305 320 310 310.300 MA2 255 280 245 255 265 MA3 240 250 260 285 305 235 245 250 275 295 300 230 240 MA2 215 225 260 265 205 210 220 230 255 235 275 280 185 200 210 MA1 180 190 200 205 250 MA1 270 130 135 145 225 KG2 245 125 135 210 KG1 230 115 120 140 185 205 110 120 130 155 175 105 125 150 180 100 110 MA3 270 260 260.590 275 280 285 290 295 300 305 310 315 320 325 330 335 339.050 LEGEND KG1 Seam COUGAR ENERGY LIMITED KG2 Seam EPC1118 WANDOAN MA1 Seam MA2 Seam MA3 Seam GEOLOGICAL SECTION A - A' COMPILED BY G. LEBLANG AUG 09 SCALE DRAFTED BY K.J.CORRIE AUG 09 Proj.: REVISED 1: 2,500 DWG No : FIGURE 8 7,086,000mN W001 z 7,084,000mN 6.06m W011C z 2.08m 3.00 50 4. W012 0 2.5 0 2.48m 5. 0 4.0 3.5 0 0 z 2.26m 4.50 z W013C W002 z 7,082,000mN 5.61m 0 3.0 0 4.5 50 4. 3.50 4. 0 0 0 4.0 3.5 0 W008 3.0 0 50 2.75m 2 .5 0 3. 7,080,000mN z W009 z 1.39m W018C 3. 5 0 z 3.0 0 3.61m 7,078,000mN 3.00 2.50 ML026 z W006 208,000mE 206,000mE 202,000mE 204,000mE 50 2. 2.0 0 z 3.88m 7,076,000mN 0.94m LEGEND 4.00 0 1,000 2,000 m Coal Isopach COUGAR ENERGY LIMITED 1:50,000 Area of Estimated Indicated Resource EPC1118 MDL420 application boundary Area of Estimated Inferred Resource W006 ( Drillsite with hole number and seam thickness WANDOAN MA 1 SEAM COAL ISOPACH AND LOCATION OF INDICATED AND INFERRED COAL RESOURCE 3.88m Strategic cropping land trigger area 1: 50,000 COMPILED BY G. LEBLANG AUG 09 SCALE DRAFTED BY K.J.CORRIE AUG 09 Proj.:MGA94 (Zone 56) REVISED DWG No : FIGURE 9 7,086,000mN W001 z 7,084,000mN 5 10 0 W011C 10 10 5 78m 95 EPC1118 z 115 125m W012 0 10 102m 10 105 W002 5 0 z 111m 7,082,000mN 106m 5 10 5 100 105 10 11 z 105 z W013C 10 5 95 110 W008 100 11 5 5 91m 120 W009 z 120 5 0 11 11 110 10 100 7,080,000mN z 128m W018C z 95 115 115 110 105 100 0 11 99m 7,078,000mN W006 15 208,000mE z z 120m 1 206,000mE 202,000mE ML026 115 110 105 95 100 204,000mE 95 12 0 7,076,000mN 93m 0 LEGEND 105 Structure Contour 1,000 2,000 m COUGAR ENERGY LIMITED 1:50,000 Area of Estimated Indicated Resource EPC1118 WANDOAN MDL420 application boundary MA 1 SEAM STRUCTURE CONTOUR COAL SEAM FLOOR Area of Estimated Inferred Resource W009 ( 128m Drillsite with hole number and elevation of seam floor Strategic cropping land trigger area 1: 50,000 COMPILED BY G. LEBLANG AUG 09 SCALE DRAFTED BY K.J.CORRIE AUG 09 Proj.:MGA94 (Zone 56) REVISED DWG No : FIGURE 10 7,086,000mN W001 z 7,084,000mN EPC1118 294m W011C z 232m 5 23 255 23 230 5 W012 240 233m 260 245 z W013C W002 z z 240m 7,082,000mN 27 240 222m 0 26 5 250 0 23 255 5 23 5 27 5 24 26 0 24 5 240 27 0 W008 7,080,000mN z 0 25 265 250 286m 245 255 27 5 W009 z 28 278m 0 260 25 5 W018C 250 z 0 27 249m 260 255 275 26 7,078,000mN 5 260 265 265 27 0 208,000mE 206,000mE 204,000mE 270 275 202,000mE 265 270 0 z z 256m 5 26 26 ML026 W006 7,076,000mN 287m LEGEND 270 0 1,000 2,000 m COUGAR ENERGY LIMITED Depth Contour 1:50,000 EPC1118 Area of Estimated Indicated Resource WANDOAN MDL420 application boundary MA 1 SEAM DEPTH TO SEAM FLOOR Area of Estimated Inferred Resource W009 ( 278m Drillsite with hole number and depth to seam floor Strategic cropping land trigger area 1: 50,000 COMPILED BY G. LEBLANG AUG 09 SCALE DRAFTED BY K.J.CORRIE AUG 09 Proj.:MGA94 (Zone 56) REVISED DWG No : FIGURE 11 7,086,000mN W001 z 7,084,000mN 3.23m W011C z 1.50 0.83m 3.50 3.2 5 3.0 0 2.75 2.50 2.25 2.0 0 1.7 5 W012 3.75 z 4.00 1.63m W013C W002 z z 3.20m 7,082,000mN 4.77m 3.50 0 4.5 5 3.7 4.00 4.2 5 0 4.0 W008 7,080,000mN z 2.95m 5 3.7 W009 z 3.62m W018C 3.75 z 3.44m ML026 z W006 208,000mE 206,000mE 202,000mE 204,000mE 7,078,000mN z 3.27m 7,076,000mN 4.12m LEGEND 4.00 0 1,000 2,000 m Coal Isopach COUGAR ENERGY LIMITED 1:50,000 Area of Estimated Indicated Resource EPC1118 MDL420 application boundary Area of Estimated Inferred Resource W006 ( Drillsite with hole number and seam thickness WANDOAN MA 2 SEAM COAL ISOPACH AND LOCATION OF INDICATED AND INFERRED COAL RESOURCE 3.27m Strategic cropping land trigger area 1: 50,000 COMPILED BY G. LEBLANG AUG 09 SCALE DRAFTED BY K.J.CORRIE AUG 09 Proj.:MGA94 (Zone 56) REVISED DWG No : FIGURE 12 7,086,000mN W001 z 7,084,000mN EPC1118 74m W011C 80 85 92m 85 90 z W012 85 75 80 z 90 z 70m W013C W002 z 95 96m 84m 7,082,000mN 90 85 90 90 95 95 0 10 100 95 105 95 W008 7,080,000mN 110 z 105 86m 100 W009 z z 100 5 11 W018C 122m 95 11 0 96m 7,078,000mN 105 95 1 00 95 90 90 206,000mE 202,000mE 90 ML026 z W006 208,000mE 204,000mE 90 z 86m 7,076,000mN 88m 0 LEGEND 105 1,000 2,000 m COUGAR ENERGY LIMITED Structure Contour 1:50,000 EPC1118 Area of Estimated Indicated Resource MDL420 application boundary WANDOAN MA 2 SEAM STRUCTURE CONTOURS COAL SEAM FLOOR Area of Estimated Inferred Resource W009 ( 86m Drillsite with hole number and elevation of seam floor Strategic cropping land trigger area 1: 50,000 COMPILED BY G. LEBLANG AUG 09 SCALE DRAFTED BY K.J.CORRIE AUG 09 Proj.:MGA94 (Zone 56) REVISED DWG No : FIGURE 13 7,086,000mN W001 z 7,084,000mN EPC1118 298m W011C z 265 264m 26 0 5 26 z z 25 5 W002 z 250 255m 270 265m 5 W013C 25 26 0 W012 243m 7,082,000mN 25 0 275 260 265 28 0 255 255 270 25 0 27 5 W008 7,080,000mN z 28 5 291m 260 W009 280 265 z 284m 290 270 26 0 z 255 W018C 252m 27 5 7,078,000mN 260 285 265 265 270 28 270 0 208,000mE 206,000mE 285 275 280 202,000mE 204,000mE 275 0 z 29 ML026 W006 z 290m 7,076,000mN 292m LEGEND 270 0 1,000 2,000 m COUGAR ENERGY LIMITED Depth Contour 1:50,000 EPC1118 Area of Estimated Indicated Resource WANDOAN MDL420 application boundary MA 2 SEAM DEPTH TO SEAM FLOOR Area of Estimated Inferred Resource W009 ( 284m Drillsite with hole number and depth to seam floor Strategic cropping land trigger area 1: 50,000 COMPILED BY G. LEBLANG AUG 09 SCALE DRAFTED BY K.J.CORRIE AUG 09 Proj.:MGA94 (Zone 56) REVISED DWG No : FIGURE 14 7,086,000mN 2.50 W001 z 7,084,000mN 1.97m W011C 2.0 z 0 2.11m 2.50 2.5 0 W012 1.50 z 2.69m W013C W002 z z 1.48m 2.00 7,082,000mN 1.94m 2.50 2.00 0 1.5 7,080,000mN 2.50 W009 z 50 3.00 2.00 1. W018C 4.16m z 1.52m 7,078,000mN 1. 50 0 1,000 2,000 m Coal Isopach COUGAR ENERGY LIMITED 1:50,000 Area of Estimated Indicated Resource EPC1118 MDL420 application boundary Area of Estimated Inferred Resource W009 ( 208,000mE 206,000mE 202,000mE 204,000mE 2.50 3.00 2.00 LEGEND 7,076,000mN Drillsite with hole number and seam thickness WANDOAN MA 3 SEAM COAL ISOPACH AND LOCATION OF INDICATED AND INFERRED COAL RESOURCE 4.16m Strategic cropping land trigger area 1: 50,000 COMPILED BY G. LEBLANG AUG 09 SCALE DRAFTED BY K.J.CORRIE AUG 09 Proj.:MGA94 (Zone 56) REVISED DWG No : FIGURE 15 7,086,000mN 75 W001 75 z 7,084,000mN EPC1118 71m W011C 80 80 z W012 70 75 83m z W002 z 80 87m 7,082,000mN 76m 85 80 85 z 75 66m W013C 85 90 85 7,080,000mN 95 90 W009 z 109m 100 W018C z 90m 90 7,078,000mN 95 204,000mE Area of Estimated Indicated Resource 1,000 208,000mE 206,000mE 202,000mE 90 Structure Contour 100 100 95 0 LEGEND 7,076,000mN 2,000 m COUGAR ENERGY LIMITED 1:50,000 EPC1118 MDL420 application boundary WANDOAN MA 3 SEAM STRUCTURE CONTOURS COAL SEAM FLOOR Area of Estimated Inferred Resource W009 ( 109m Drillsite with hole number and elevation of seam floor Strategic cropping land trigger area 1: 50,000 COMPILED BY G. LEBLANG AUG 09 SCALE DRAFTED BY K.J.CORRIE AUG 09 Proj.:MGA94 (Zone 56) REVISED DWG No : FIGURE 16 285 29 0 295 300 7,086,000mN 280 30 0 W001 z 295 28 0 5 28 275 7,084,000mN EPC1118 301m 0 29 W011C 80 2 270 5 27 27 5 z 273m 285 z 260 26 270 268m W013C 5 26 z 5 W012 0 27 W002 z 265m 7,082,000mN 260 25 260 26 5 251m 5 265 270 W009 260 260 7,080,000mN z 275 265 W018C 270 z 297m 258m 7,078,000mN 260 26 208,000mE 206,000mE 202,000mE 275 270 204,000mE 5 7,076,000mN 265 0 LEGEND 270 Depth Contour 1,000 2,000 m COUGAR ENERGY LIMITED 1:50,000 EPC1118 Area of Estimated Indicated Resource WANDOAN MDL420 application boundary MA3 SEAM DEPTH TO SEAM FLOOR Area of Estimated Inferred Resource W009 ( 250m Drillsite with hole number and depth to seam floor Strategic cropping land trigger area 1: 50,000 COMPILED BY G. LEBLANG AUG 09 SCALE DRAFTED BY K.J.CORRIE AUG 09 Proj.:MGA94 (Zone 56) REVISED DWG No : FIGURE 17 EPC1118 JORC Compliant Resource Statement 12. Tables 1. Geological data used in the Resource Estimate 2. Coal Quality data – EPC1118 3. Coal Resource Data and Categories 14 TABLE 1 - GEOLOGICAL DATA USED IN RESOURCE ESTIMATE NOTE: DRILLHOLES SUFFIXED WITH "C" ONLY, HAVE BEEN USED AS "POINTS OF OBSERVATION" FOR COAL QUANTITY AND QUALITY THE REMAINDER HAVE BEEN USED TO CONTRIBUTE TO MODELLING OF GEOLOGICAL STRUCTURE AND DEMONSTRATE CONTINUITY Hole ML026 W001 W002C W004 W006 W008 W009 W011C W012C W013C W018C Seam MA1 MA1 MA1 MA1 MA1 MA1 MA1 MA1 MA1 MA1 MA1 MEasting 203868.29 200762.29 203091.08 203894.87 206451.06 208597.36 206409.06 201429.88 202230.68 201514.68 203894.97 MNorthing 7075969.59 7084221.09 7082293.89 7078648.21 7076508.61 7079981.10 7079183.91 7083599.59 7082775.29 7082416.69 7078643.91 Collar Roof Floor From To Thick DEPTH ROOF BELOW Core_Loss MA1 THK Elevation Elevation Elevation AVG ELEVATION INDIC INF 380.00 94.02 93.08 285.98 286.92 0.94 268.98 0 372.00 84.11 78.05 287.89 293.95 6.06 278.89 0 327.30 111.33 105.72 215.97 221.58 5.61 251.67 0 5.61 348.10 102.63 96.99 245.47 251.11 5.64 260.37 0 376.10 124.14 120.26 251.96 255.84 3.88 238.86 0 376.20 93.41 90.66 282.79 285.54 2.75 269.59 0 406.00 129.10 127.71 276.90 278.29 1.39 233.90 0 356.80 126.78 124.70 230.02 232.10 2.08 236.22 0 2.08 334.40 103.78 101.52 230.62 232.88 2.26 259.22 0 2.26 351.50 113.57 111.09 237.93 240.41 2.48 249.43 0 2.48 348.00 102.67 99.06 245.33 248.94 3.61 260.33 0 AVG= 3.11 Roof Floor From To Thick DEPTH ROOF BELOW Core_Loss Collar MA2 THK Elevation Elevation Elevation AVG ELEVATION INDIC INF ML026 MA2 203868.29 7075969.59 380.00 91.70 87.58 288.30 292.42 4.12 271.30 0 W001 MA2 200762.29 7084221.09 372.00 77.56 74.33 294.44 297.67 3.23 285.44 0 W002C MA2 203091.08 7082293.89 327.30 88.88 84.11 238.42 243.19 4.77 274.12 0 4.77 W004 MA2 203894.87 7078648.21 348.10 96.99 95.31 251.11 252.79 1.68 266.01 0 W006 MA2 206451.06 7076508.61 376.10 89.62 86.35 286.48 289.75 3.27 273.38 0 W008 MA2 208597.36 7079981.10 376.20 88.45 85.50 287.75 290.70 2.95 274.55 0 W009 MA2 206409.06 7079183.91 406.00 125.59 121.97 280.41 284.03 3.62 237.41 0 W011C * MA2 201429.88 7083599.59 356.80 93.18 92.35 263.62 264.45 0.83 269.82 0 W012C MA2 202230.68 7082775.29 334.40 71.45 69.82 262.95 264.58 1.63 291.55 0 1.63 W013C MA2 201514.68 7082416.69 351.50 99.40 96.20 252.10 255.30 3.20 263.60 0 3.20 W018C MA2 203894.97 7078643.91 348.00 99.06 95.62 248.94 252.38 3.44 263.94 0 AVG= 3.2 * excluded from resource estimate based on thickness < 1.5 metres, and ash >40% Hole Seam MEasting Seam MEasting R.D. INF INDIC ASH % INF 5.61 1.52 1.52 32.09 32.09 2.08 2.26 2.48 3.61 3.21 1.51 1.59 1.49 1.51 1.59 1.49 1.41 1.50 30.80 34.3 30.30 30.80 34.3 30.30 19.01 1.53 MNorthing Roof Floor From To Thick DEPTH ROOF BELOW Core_Loss Collar MA3 THK Elevation Elevation Elevation AVG ELEVATION INDIC INF W001 MA3 200762.29 7084221.09 372.00 73.18 71.21 298.82 300.79 1.97 289.82 0 W002C MA3 203091.08 7082293.89 327.30 78.27 76.33 249.03 250.97 1.94 284.73 0 1.94 W004 MA3 203894.87 7078648.21 348.10 92.83 90.72 255.27 257.38 2.11 270.17 0 W009 MA3 206409.06 7079183.91 406.00 112.72 108.56 293.28 297.44 4.16 250.28 0 W011C MA3 201429.88 7083599.59 356.80 85.60 83.49 271.20 273.31 2.11 277.40 0 2.11 W012C MA3 202230.68 7082775.29 334.40 69.14 66.45 265.26 267.95 2.69 293.86 0 2.69 W013C @ MA3 201514.68 7082416.69 351.50 88.13 86.65 263.37 264.85 1.48 274.87 0 W018C MA3 203894.97 7078643.91 348.00 91.89 90.37 256.11 257.63 1.52 271.11 0 AVG = 2.25 @ excluded from resource estimate based on thickness < 1.5 metres, and ash >40% Hole INDIC INDIC R.D. INF INDIC ASH % INF 4.77 1.60 1.60 37.98 37.98 1.63 3.20 3.44 3.26 1.40 1.48 1.40 1.48 1.55 1.51 19.23 28.26 19.23 28.26 35.84 1.49 MNorthing INDIC R.D. INF INDIC ASH % INF 1.94 1.53 1.53 28.10 28.10 2.11 2.69 1.44 1.47 1.44 1.47 26.40 28.75 26.40 28.75 1.52 2.07 1.48 1.55 1.50 33.13 TABLE 2 - SUMMARY COAL QUALITY DATA Drillhole Number Seam From m To m Thickness m 1.39 1.72 1.54 1.4 1.52 Inherent Moisture % 11.6 11.9 10.5 11.5 11.48 171108 1.73 11.8 50 21.7 16.5 10.99 0.14 240.21 241.17 242.41 243.19 243.19 1.79 171109 0.96 171110 1.24 171111 0.78 171112 4.77 171109-171112 1.36 2.07 1.35 1.99 1.6 11.3 8 10.9 7.7 9.62 10.7 74.7 10.6 63.3 37.98 39.9 12.5 41 17.1 28.39 38.1 4.8 37.5 11.9 24 25.28 4.36 25.44 8.33 16.44 0.25 0.06 0.26 0.12 0.18 243.19 244.4 245.77 247.83 244.4 245.77 247.83 249.03 1.21 1.37 2.06 1.2 171113 171114 171117 171118 2.49 1.52 2.07 2.50 5.5 10.50 8.10 3.70 83.2 28.40 65.00 91.00 8.7 33.50 16.20 5.20 2.6 27.60 10.70 0.10 2.35 19.53 6.77 0.41 0.02 0.30 0.07 0.01 MA3 COMPOSITE 249.03 249.03 250.97 250.97 1.94 1.94 171119 171119 1.53 1.53 8.90 8.9 28.10 28.1 35.60 35.6 27.40 27.4 20.50 20.5 0.24 0.24 MA1 MA1 MA1 COMPOSITE 230.02 230.77 231.4 230.02 230.77 231.4 232.1 232.1 0.75 187551 0.63 187552 0.7 187553 2.08 187551-187553 1.46 1.71 1.37 1.51 11.20 10.40 11.40 10.99 23.40 51.50 16.00 30.8 33.40 22.60 36.90 30.76 32.00 15.50 35.70 27.46 20.68 10.69 23.49 18.1 0.26 0.24 0.35 0.28 W002C W002C W002C W002C MA1 MA1 MA1 MA1 COMPOSITE 215.97 217.39 219.1 220.11 215.97 217.39 219.1 220.11 221.58 221.58 W002C UN 221.58 238.42 W002C W002C W002C W002C MA2 MA2 MA2 MA2 COMPOSITE 238.42 240.21 241.17 242.41 238.42 W002C W002C W002C W002C UN UN UN UN W002C W011C W011C W011C SampNumb 1.42 171104 1.71 171105 1.01 171106 1.47 171107 5.61 171104-171107 16.84 RD Ash % 17.4 51.6 32.5 18 32.09 Volatile Fixed Specific Matter Carbon Energy % % MJ/kg 37 34 23.03 22.7 13.8 10.61 31.2 25.8 17.54 36.6 33.9 22.67 30.91 25.51 17.66 Total Sulphur % 0.33 0.2 0.2 0.26 0.24 TABLE 2 - SUMMARY COAL QUALITY DATA Drillhole Number Seam From m To m Thickness m SampNumb RD Inherent Moisture % 1.78 7.50 1.78 7.5 Ash Volatile Fixed Specific Matter Carbon Energy % % % MJ/kg 54.70 22.00 15.80 11.53 54.7 22 15.8 11.53 Total Sulphur % 0.24 0.24 W011C MA2 COMPOSITE 263.62 263.62 264.45 264.45 0.83 0.83 21531 21531 W011C W011C W011C UN UN UN 269.93 270.04 270.65 270.04 270.65 271.2 0.11 0.61 0.55 187554 187555 187556 1.78 1.54 2.40 7.60 8.40 5.00 56.70 35.60 88.10 22.20 29.10 6.40 13.50 26.90 0.50 9.81 17.56 0.27 0.20 0.24 0.01 W011C W011C W011C MA3 MA3 MA3 COMPOSITE 271.2 271.65 272.09 271.2 271.65 272.09 273.31 273.31 0.45 187557 0.44 187558 1.22 187559 2.11 187557-187559 1.51 1.63 1.34 1.44 8.60 8.00 10.20 9.32 34.00 46.10 14.60 26.4 30.60 25.60 40.00 34.49 26.80 20.30 35.20 29.79 18.21 13.88 24.47 20.56 0.22 0.12 0.29 0.23 W012C MA1 COMPOSITE 230.62 230.62 232.88 232.88 2.26 2.26 21530 21530 1.59 1.59 7.00 7 34.30 34.3 29.70 29.7 29.00 29 18.07 18.07 0.25 0.25 W012C W012C W012C W012C UN UN UN UN 261.09 261.62 262.17 262.33 261.62 262.17 262.33 262.95 0.53 0.55 0.16 0.62 21551 21552 21553 21554 1.37 2.31 1.40 2.17 9.10 3.90 6.60 4.80 13.40 87.40 18.60 79.30 38.80 7.40 40.00 10.70 38.70 1.30 34.80 5.20 25.13 1.00 24.63 3.06 0.42 0.02 0.38 0.08 W012C W012C MA2 MA2 COMPOSITE 262.95 263.63 262.95 263.63 264.58 264.58 0.68 21555 0.95 21561 1.63 21555-21561 1.38 1.41 1.4 8.40 9.70 9.16 17.00 20.80 19.23 40.60 35.40 37.54 34.00 34.10 34.06 23.85 22.30 22.94 0.23 0.26 0.25 W012C UN 264.58 265.26 0.68 2.39 2.70 84.40 10.40 2.50 1.78 0.02 21556 TABLE 2 - SUMMARY COAL QUALITY DATA Drillhole Number Seam From m To m Thickness m SampNumb W012C W012C W012C W012C W012C MA3 MA3 MA3 MA3 MA3 COMPOSITE 265.26 266.42 266.75 267.03 267.2 265.26 266.42 266.75 267.03 267.2 267.95 267.95 1.16 21557 0.33 21558 0.28 21562 0.17 21559 0.75 21560 2.69 21557-21560 1.46 1.41 1.39 2.17 1.40 1.47 Inherent Moisture % 7.80 7.40 8.80 11.10 8.60 8.37 W013C W013C W013C MA1 MA1 MA1 COMPOSITE 237.93 238.85 239.7 237.93 238.85 239.7 240.41 240.41 0.92 21501 0.85 21502 0.71 21503 2.48 21501-21503 1.39 1.59 1.49 1.49 11.60 11.20 9.60 10.88 17.80 39.00 34.30 30.3 36.10 30.00 34.50 33.41 34.50 19.80 21.60 25.41 22.39 15.00 17.76 18.35 0.40 0.32 0.51 0.4 W013C UN 240.41 243.69 3.28 21507 1.63 9.10 41.80 25.80 23.30 14.62 0.22 W013C W013C W013C MA2 MA2 MA2 COMPOSITE 252.1 252.98 254.15 252.1 252.98 254.15 255.3 255.3 0.88 21504 1.17 21505 1.15 21506 3.2 21504-21506 1.51 1.36 1.58 1.48 8.30 9.50 9.10 9.01 29.40 14.60 39.40 28.26 34.00 39.00 31.80 34.84 28.30 36.90 19.70 27.89 19.59 24.76 15.65 19.82 0.26 0.37 0.34 0.33 W013C W013C W013C MA3 MA3 MA3 COMPOSITE 263.37 263.96 264.32 263.37 263.96 264.32 264.85 264.85 0.59 21508 0.36 21509 0.53 21510 1.48 21508-21510 1.51 2.14 1.54 1.67 10.40 6.90 9.30 8.95 33.00 78.60 33.30 47.28 32.90 10.40 29.10 24.65 23.70 4.10 28.30 19.12 17.32 1.87 17.62 12.61 0.31 0.10 0.31 0.24 W013C W013C UN UN 289.86 291.17 291.17 291.74 1.31 0.57 1.34 1.66 10.60 8.60 12.40 46.20 40.20 23.70 36.80 21.50 24.89 13.69 0.31 0.16 21511 21512 RD Ash % 27.60 19.40 18.00 79.20 21.00 28.75 Volatile Fixed Specific Matter Carbon Energy % % MJ/kg 35.20 29.40 20.66 40.80 32.40 23.76 37.60 35.60 23.55 8.60 1.10 0.34 36.70 33.70 22.48 34.02 28.87 19.9 Total Sulphur % 0.24 0.30 0.30 0.01 0.26 0.24 TABLE 2 - SUMMARY COAL QUALITY DATA Drillhole Number Seam From m To m Thickness m SampNumb W018C W018C W018C W018C W018C W018C MA1 MA1 MA1 MA1 MA1 MA1 COMPOSITE 245.33 246.43 246.86 247.38 248.13 248.23 245.33 246.43 246.86 247.38 248.13 248.23 248.94 248.94 1.1 21513 0.43 21514 0.52 21515 0.75 21516 0.1 21517 0.71 21518 3.61 21513-21518 1.37 1.42 1.35 1.34 2.26 1.44 1.41 Inherent Moisture % 8.20 5.90 7.00 7.00 3.30 7.20 7.1 W018C W018C W018C W018C W018C MA2 MA2 MA2 MA2 MA2 COMPOSITE 248.94 250.17 250.78 251.37 251.9 248.94 250.17 250.78 251.37 251.9 252.38 252.38 1.23 21519 0.61 21520 0.59 21521 0.53 21522 0.48 21523 3.44 21519-21523 1.41 1.47 1.94 1.32 1.81 1.55 7.60 7.10 4.80 8.80 5.20 6.68 19.00 24.60 69.60 10.10 57.30 35.84 37.30 36.00 16.80 40.60 21.20 30.51 36.10 32.30 8.80 40.50 16.30 26.97 23.31 21.64 5.99 26.10 10.18 17.55 0.26 0.34 0.14 0.34 0.13 0.24 W018C W018C MA3 MA3 COMPOSITE 256.11 256.42 256.11 256.42 257.63 257.63 0.31 21524 1.21 21525 1.52 21524-21525 2.01 1.43 1.55 4.70 8.00 7.13 71.80 19.20 33.13 15.40 37.00 31.28 8.10 35.80 28.47 5.27 23.28 18.51 0.11 0.26 0.22 W018C W018C W018C W018C UN UN UN UN 257.63 259.49 262.87 265.21 259.49 262.87 265.21 266.57 1.86 3.38 2.34 1.36 1.36 1.60 1.59 1.30 7.30 7.20 5.60 7.00 12.80 34.20 38.60 6.40 39.70 31.00 30.30 45.80 40.20 27.60 25.50 40.80 26.04 18.34 17.52 28.60 0.27 0.19 0.24 0.42 21526 21527 21528 21529 RD Ash % 13.00 23.70 14.20 11.80 75.30 23.00 19.01 Volatile Fixed Specific Matter Carbon Energy % % MJ/kg 40.30 38.50 25.28 41.00 29.40 22.56 42.40 36.40 25.60 42.10 39.10 26.62 17.80 3.60 1.88 37.30 32.50 22.24 39.42 34.47 23.61 Total Sulphur % 0.26 0.22 0.24 0.25 0.01 0.24 0.24 TABLE 3 EPC 1118 WANDOAN ‐ RESOURCE DATA AND CATEGORIES INDICATED RESOURCES SEAM MA1 AV THICK RD (M) 3.11 RESOURCE AREA M2 INFERRED RESOURCES TONNES x 106 SEAM 1.53 3070692 14.61 MA1 AV THICK RD (M) 3.21 RESOURCE TONNES AREA M2 x 106 1.50 26695561 128.54 MA2 3.20 1.49 2215636 10.56 MA2 3.26 1.51 25513887 125.59 MA3 2.07 1.48 2322457 7.12 MA3 1.95 1.50 25362565 74.19 TOTAL INDICATED 32.29 TOTAL INFERRED NOTE : INDICATED AND INFERRED RESOURCE TOTALS MUTUALLY EXCLUSIVE, TOTAL Ind + Inferred = 328.32 360.61 EPC1118 JORC Compliant Resource Statement 13. Appendix-1 Coal Quality Epc1118 Laboratory Test Results 15 Bureau Veritas International Trade Australia 5/585 Maitland Road MAYFIELD WEST NSW 2304 Phone: + 61 2 4949 2700 www.bureauveritas.com.au ORIGIN Cougar Energy Limited : BV REF No. : ZIG_1243110 DESCRIPTION : Wandoan Slimcore - W012C DATE REC'D : 9/07/2009 REPORTED TO : Mr Garry LeBlang Date Reported : 8/03/2011 BOREHOLE - W012C RAW PLY ANALYSIS 61mm Diameter Core Sample Description Seam Ply Client BV Ply Number Sample Number Top Depth (m) Base Thickness Mass (m) (g) Vol. Relative Recovery Density (%) Proximate Analysis (%) Moist Ash Crucible Total Gross Calorific Volatile Matter Fixed Carbon Swelling Number Sulfur (%) (MJ/kg) Value UN Ply 1 21551 B84913 261.090 261.620 0.530 1938 91.3 1.37 9.1 13.4 38.8 38.7 n/a 0.42 25.13 UN Ply 2 21552 B84914 261.620 262.170 0.550 3475 93.6 2.31 3.9 87.4 7.4 1.3 n/a 0.02 1.00 UN Ply 3 21553 B84915 262.170 262.330 0.160 623 95.2 1.40 6.6 18.6 40.0 34.8 n/a 0.38 24.63 UN Ply 4 21554 B84916 262.330 262.950 0.620 3453 87.8 2.17 4.8 79.3 10.7 5.2 n/a 0.08 3.06 MA2 Ply 5 21555 B84917 262.950 263.630 0.680 2583 94.2 1.38 8.4 17.0 40.6 34.0 n/a 0.23 23.85 MA2 Ply 6 21561 B84918 263.630 264.580 0.950 3201 81.8 1.41 9.7 20.8 35.4 34.1 n/a 0.26 22.30 UN Ply 7 21556 B84919 264.580 265.260 0.680 4265 89.8 2.39 2.7 84.4 10.4 2.5 n/a 0.02 1.78 MA3 Ply 8 21557 B84920 265.260 266.420 1.160 4750 96.0 1.46 7.8 27.6 35.2 29.4 n/a 0.24 20.66 MA3 Ply 9 21558 B84921 266.420 266.750 0.330 972 71.4 1.41 7.4 19.4 40.8 32.4 n/a 0.30 23.76 MA3 Ply 10 21562 B84922 266.750 267.030 0.280 858 75.5 1.39 8.8 18.0 37.6 35.6 n/a 0.30 23.55 MA3 Ply 11 21559 B84923 267.030 267.200 0.170 844 78.3 2.17 11.1 79.2 8.6 1.1 n/a 0.01 0.34 MA3 Ply 12 21560 B84924 267.200 267.950 0.750 2534 82.6 1.40 8.6 21.0 36.7 33.7 n/a 0.26 22.48 21530 B90537 230.620 232.880 2.260 9975 95.0 1.59 7.0 34.3 29.7 29.0 n/a 0.25 18.07 MA1 All analysis results reported on an Air Dried Basis except where noted. Analysed in accordance with Australian Standard Methods AS1038.3, AS1038.5, AS1038.6.3.3, AS1038.12.1, AS1038.21.1.1 and AS4264.1. Bureau Veritas International Trade Australia Pty Ltd Provisional Page 1 of 1 Bureau Veritas International Trade Australia 5/585 Maitland Road MAYFIELD WEST NSW 2304 Phone: + 61 2 4949 2700 www.bureauveritas.com.au ORIGIN Cougar Energy Limited : BV REF No. : ZIG_1243111 DESCRIPTION : Wandoan Slimcore - W013C DATE REC'D : 9/07/2009 REPORTED TO : Mr Garry LeBlang Date Reported : 8/03/2011 BOREHOLE - W013C RAW PLY ANALYSIS 61mm Diameter Core Sample Description Seam Ply Client BV Ply Number Sample Number Top Depth (m) Base Thickness Mass (m) (g) Vol. Relative Recovery Density (%) Proximate Analysis (%) Moist Ash Crucible Total Gross Calorific Volatile Matter Fixed Carbon Swelling Number Sulfur (%) (MJ/kg) Value MA1 Ply 1 21501 B84925 237.930 238.850 0.920 3260 87.2 1.39 11.6 17.8 36.1 34.5 n/a 0.40 22.39 MA1 Ply 2 21502 B84926 238.850 239.700 0.850 3964 100.4 1.59 11.2 39.0 30.0 19.8 n/a 0.32 15.00 MA1 Ply 3 21503 B84927 239.700 240.410 0.710 2895 93.6 1.49 9.6 34.3 34.5 21.6 n/a 0.51 17.76 UN Ply 4 21507 B84928 242.410 243.690 1.280 5728 93.9 1.63 9.1 41.8 25.8 23.3 n/a 0.22 14.62 MA2 Ply 5 21504 B84929 252.100 252.980 0.880 4040 104.0 1.51 8.3 29.4 34.0 28.3 n/a 0.26 19.59 MA2 Ply 6 21505 B84930 252.980 254.150 1.170 3553 76.4 1.36 9.5 14.6 39.0 36.9 n/a 0.37 24.76 MA2 Ply 7 21506 B84931 254.150 255.300 1.150 5968 112.4 1.58 9.1 39.4 31.8 19.7 n/a 0.34 15.65 MA3 Ply 8 21508 B84932 263.370 263.960 0.590 2443 93.8 1.51 10.4 33.0 32.9 23.7 n/a 0.31 17.32 MA3 Ply 9 21509 B84933 263.960 264.320 0.360 1988 88.3 2.14 6.9 78.6 10.4 4.1 n/a 0.10 1.87 MA3 Ply 10 21510 B84934 264.320 264.850 0.530 2251 94.4 1.54 9.3 33.3 29.1 28.3 n/a 0.31 17.62 UN Ply 11 21511 B84935 289.860 291.170 1.310 4626 90.2 1.34 10.6 12.4 40.2 36.8 n/a 0.31 24.89 UN Ply 12 21512 B84936 291.170 291.740 0.570 2685 97.1 1.66 8.6 46.2 23.7 21.5 n/a 0.16 13.69 All analysis results reported on an Air Dried Basis except where noted. Analysed in accordance with Australian Standard Methods AS1038.3, AS1038.5, AS1038.6.3.3, AS1038.12.1, AS1038.21.1.1 and AS4264.1. Bureau Veritas International Trade Australia Pty Ltd Provisional Page 1 of 1 Bureau Veritas International Trade Australia 5/585 Maitland Road MAYFIELD WEST NSW 2304 Phone: + 61 2 4949 2700 www.bureauveritas.com.au ORIGIN Cougar Energy Limited : BV REF No. : ZIG_1243112 DESCRIPTION : Wandoan Slimcore - W018C DATE REC'D : 9/07/2009 REPORTED TO : Mr Garry LeBlang Date Reported : 8/03/2011 BOREHOLE - W018C RAW PLY ANALYSIS 61mm Diameter Core Sample Description Seam Ply Client BV Ply Number Sample Number Top Depth (m) Base Thickness Mass (m) (g) Vol. Relative Recovery Density (%) Proximate Analysis (%) Moist Ash Crucible Total Gross Calorific Volatile Matter Fixed Carbon Swelling Number Sulfur (%) (MJ/kg) Value MA1 Ply 1 21513 B84937 245.330 246.430 1.100 4156 94.4 1.37 8.2 13.0 40.3 38.5 n/a 0.26 25.28 MA1 Ply 2 21514 B84938 246.430 246.860 0.430 1763 98.8 1.42 5.9 23.7 41.0 29.4 n/a 0.22 22.56 MA1 Ply 3 21515 B84939 246.860 247.380 0.520 1922 93.7 1.35 7.0 14.2 42.4 36.4 n/a 0.24 25.60 MA1 Ply 4 21516 B84940 247.380 248.130 0.750 2749 93.6 1.34 7.0 11.8 42.1 39.1 n/a 0.25 26.62 MA1 Ply 5 21517 B84941 248.130 248.230 0.100 711 107.6 2.26 3.3 75.3 17.8 3.6 n/a 0.01 1.88 MA1 Ply 6 21518 B84942 248.230 248.940 0.710 2691 90.1 1.44 7.2 23.0 37.3 32.5 n/a 0.24 22.24 MA2 Ply 7 21519 B84943 248.940 250.170 1.230 4899 96.7 1.41 7.6 19.0 37.3 36.1 n/a 0.26 23.31 MA2 Ply 8 21520 B84944 250.170 250.780 0.610 2437 93.0 1.47 7.1 24.6 36.0 32.3 n/a 0.34 21.64 MA2 Ply 9 21521 B84945 250.780 251.370 0.590 3310 99.0 1.94 4.8 69.6 16.8 8.8 n/a 0.14 5.99 MA2 Ply 10 21522 B84946 251.370 251.900 0.530 2107 103.1 1.32 8.8 10.1 40.6 40.5 n/a 0.34 26.10 MA2 Ply 11 21523 B84947 251.900 252.380 0.480 2146 84.5 1.81 5.2 57.3 21.2 16.3 n/a 0.13 10.18 MA3 Ply 12 21524 B84948 256.110 256.420 0.310 1672 91.8 2.01 4.7 71.8 15.4 8.1 n/a 0.11 5.27 MA3 Ply 13 21525 B84949 256.420 257.630 1.210 4549 90.0 1.43 8.0 19.2 37.0 35.8 n/a 0.26 23.28 UN Ply 14 21526 B84950 258.870 259.490 0.620 2450 99.4 1.36 7.3 12.8 39.7 40.2 n/a 0.27 26.04 UN Ply 15 21527 B84951 262.340 262.870 0.530 2240 90.4 1.60 7.2 34.2 31.0 27.6 n/a 0.19 18.34 All analysis results reported on an Air Dried Basis except where noted. Analysed in accordance with Australian Standard Methods AS1038.3, AS1038.5, AS1038.6.3.3, AS1038.12.1, AS1038.21.1.1 and AS4264.1. Bureau Veritas International Trade Australia Pty Ltd Provisional Page 1 of 2 Bureau Veritas International Trade Australia 5/585 Maitland Road MAYFIELD WEST NSW 2304 Phone: + 61 2 4949 2700 www.bureauveritas.com.au ORIGIN Cougar Energy Limited : BV REF No. : ZIG_1243112 DESCRIPTION : Wandoan Slimcore - W018C DATE REC'D : 9/07/2009 REPORTED TO : Mr Garry LeBlang Date Reported : 8/03/2011 BOREHOLE - W018C RAW PLY ANALYSIS 61mm Diameter Core Sample Description Seam Ply Client BV Ply Number Sample Number Top Depth (m) Base Thickness Mass (m) (g) Vol. Relative Recovery Density (%) Proximate Analysis (%) Moist Ash Crucible Total Gross Calorific Volatile Matter Fixed Carbon Swelling Number Sulfur (%) (MJ/kg) Value UN Ply 16 21528 B84952 264.410 265.210 0.800 2984 80.3 1.59 5.6 38.6 30.3 25.5 n/a 0.24 17.52 UN Ply 17 21529 B84953 266.090 266.570 0.480 1646 90.3 1.30 7.0 6.4 45.8 40.8 n/a 0.42 28.60 All analysis results reported on an Air Dried Basis except where noted. Analysed in accordance with Australian Standard Methods AS1038.3, AS1038.5, AS1038.6.3.3, AS1038.12.1, AS1038.21.1.1 and AS4264.1. Bureau Veritas International Trade Australia Pty Ltd Provisional Page 2 of 2 EPC1118 JORC Compliant Resource Statement 14. Appendix-2 Extract From“Queensland Coals, Physical And Chemical Properties, Colliery And Company Information 14th Edition, 2003” 16 EPC1118 JORC Compliant Resource Statement 17