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Company PresentationMarch 2011 - Update

www.bandannaenergy.com.au

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Disclaimer

Important NoticeThis investor presentation (Presentation) has been prepared by Bandanna Energy Limited (ABN 34 009 356 665) (Bandanna).Summary informationThis Presentation contains summary information about Bandanna and its activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete. It should be read in conjunction with Bandanna’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at asx.com.au.Not financial product adviceThis Presentation is for information purposes only and is not a prospectus under Australian Law (and will not be lodged with Australian Securities and Investments Commission), financial product or investment advice or a recommendation to acquire Bandanna shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Bandanna is not licensed to provide financial product advice in respect of Bandanna shares. Cooling off rights do not apply to the acquisition of Bandanna shares.Financial dataAll dollar values are in Australian dollars (A$) unless other stated. Future performanceThis presentation may contain certain statements and projections provided by or on behalf of Bandanna with respect to anticipated future undertakings. Forward looking words such as, “expect”, “should”, “could ”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. These forward-looking statements reflect various assumptions by or on behalf of Bandanna. Accordingly, these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control of Bandanna which could cause actual results or trends to differ materially, including but not limited to price fluctuations, exploration results, ore reserve and mineral resource estimation, environmental risks, general operating risks, commodity, legislative and regulatory changes, project delay, ability to meet additional funding requirements, factors relating to title to properties, native title and aboriginal heritage issues, dependence on key personnel, share price volatility, approvals and cost estimates. Consequently, there can be no assurance that such statements and projections will be realised. Neither Bandanna, or any of its affiliates, advisers, consultants, agents or any of their respective officers or employees make any representations as to the accuracy or completeness of any such statement of projections or that any forecasts will be achieved. Such forward-looking statements only speak as to the date of this Presentation and Bandanna assumes no obligation to update such information.

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Bandanna Profile

Bandanna ProfileBandanna is the largest Australian thermal coal explorer listed on the ASX in terms of JORC resources – 1.483 billion tonnes* including reserves at Arcturus and Springsure Creek in the Bowen Basin.

HIGHLIGHTS> Only ASX listed company with exposure to a JORC compliant resource in the Galilee Basin.

> Current market capitalisation of circa AUD $765 mil.

> Only ASX listed coal exploration player with exposure to infrastructure development in both the Bowen and Galilee basins.

> “Golden Triangle” Bowen Basin projects planned to be developed as large export coal complex.

> Port allocation of 4 Mtpa in Stage 1 of Wiggins Island Coal Export Terminal (“WICET”) provides access to export markets for Bowen Basin coal products from FY2014.

> Earlier production planned at Dingo West using existing port infrastructure.

* Refer Slide 26 – Reserves and Resource Tabulation.

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Bandanna Profile

Bandanna Profile

> Bandanna recently raised approx $76 mil through a fully underwritten placement with institutional investors through UBS AG, Australia Branch (“UBS”).

> Proceeds to be used for pro-rata funding of the development of essential export infrastructure, funding ongoing exploration and development expenditures, and general working capital purposes.

> Capital raising increased liquidity and introduced new institutional investors.

> Bandanna is undertaking a transaction process, in conjunction with UBS, and is currently seeking competitive expressions of interest for third party participation in its projects.

HIGHLIGHTS

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Bandanna Profile

Bandanna Profile

Total shares issued 426 mil

Market Capitalisation (@$1.80ps @ 01/03/11) $766 mil

Shares quoted on ASX 426 mil

Cash (@ 1/1/2011) $86.2 mil

Debt Nil

52 week high and low $1.97 – $0.49

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Bandanna ProfileStrong Board & Management Team

Jeremy W BarlowChairman

Has had diverse technical and commercial experience in the energy industry.; including principal of Barlow Jonker consulting, director of CH4 Gas Ltd and Arrow Energy Ltd.

Dr Raymond ShawManaging Director

Robert K JohansenNon-Executive Director

David DH GrahamNon-Executive Director

Is Executive Chairman of DDH Graham Limited, an advisory and funds management company he founded in 1981. Wide range of past directorships including Bank of Queensland .

Experience in Australia and South Africa coal industries, a mining engineer with additional qualifications in law and commerce.

Over 30 yrs resources experience including directorships of several public energy companies.

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Park Soon ILNon-Executive Director

Is the Senior Managing Director of SAMTAN's Energy & Resources Development Division. Is a qualified mining engineer with 30 years experience in Korean and Indonesian mines.

Matthew Scott CFO & Company Secretary

Is a Chartered Accountant with twenty years accounting and commercial experience including substantial coal industry experience.

David CampbellManager Exploration

Is a “multidisciplined mining professional” with over 30 years of experience in the coal industry.

Peter BinnieManager Infrastructure

With more than 35 years industry experience. He has worked in project management, mechanical and electrical engineering in the coal and metals sector.

Strong Board & Management Team

Bandanna Profile

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Bandanna Projects

Bandanna Projects

> Production timetable revolves around development of infrastructure:

> Bowen Basin – new Gladstone Port expansion

> Galilee Basin – rail to Abbot Point

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Bandanna’s Coal Assets

Bandanna Projects

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Bandanna Key Projects

Bandanna Projects

Project Basin Current Stage BND InterestResources (Mt)

Reserves (Mt) Exploration

Targets (Mt)Inferred Indicated Measured Total Probable

Springsure Creek Bowen Feasibility 100% 252 72 - 324 49 417 – 600South Galilee Galilee Pre-feasibility 100% (AMCI

earning 50%) 403 103 83 589 -

Arcturus Bowen Feasibility 100% 104 103 - 206 44 -Arcadia Bowen Pre-feasibility 100% 273 - - 273 - -Dingo West Bowen Feasibility 100% 91 - - 91 - -Total 1,123 278 83 1,483 93 417-600

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Conceptual Regional Development Plan

Golden Triangle

Comprises Springsure Creek, Arcturus and Arcadia which are all 100% owned

> All tenements are located within 50 km of each other.

> Close proximity to existing Blackwater –Gladstone rail infrastructure network.

> Potential for fully integrated regional development >20Mtpa, involving potential open cut and underground operations.

> Over 800 Mt of JORC compliant resources in three projects with potential for multiple mine development.

Bandanna Projects

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Golden Triangle Complex

Golden Triangle

Comprises Springsure Creek, Arcturus and Arcadia which are all 100% owned

> Very significant acreage position, providing “buffer” zones.

> Mostly on elevated ground, less prone to flooding.

> Significant mining community with proximity to Rolleston, Cook and Minerva mines.

Bandanna Projects

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Arcturus Project

Arcturus Project (EPC 1221) is located in the Southern Bowen Basin, approximately 30 km south east of Emerald township.

> Following 20 cored hole program resource upgrade to 206 Mt thermal coal resource, including 102.6 Mt Indicated and 44.3 Mt marketable reserves.

> Potential to develop in conjunction with adjacent Springsure Creek.

Bandanna Projects

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Springsure Creek

Springsure Creek Project (EPC 891) is located in the Southern Bowen Basin, approximately 35 km south east of Emerald township.

> Underground, raw thermal coal opportunity - located within 20 km of existing rail infrastructure.

> Recent upgrade in resources and maiden 49 Mt mineable reserve.

> Potential to share above-ground infrastructure with adjoining ArcturusProject.

Image or Diagram Caption

Bandanna Projects

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Dingo West

Dingo West Project (EPC 881) is located on the Blackwater rail line, approximately 150 km west of Rockhampton, in the Southern Bowen Basin, Queensland, Australia.

> PCI with some coking potential. Concept study completed – multiple satellite pit development most likely scenario.

> Resource drilling program to resume during Q1 2011.

> Near term production potential, with first coal expected in 2012.

Bandanna Projects

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Dingo West Concept Mine Layout

Bandanna Projects

Pit 1

Pit 3

Pit 2

Mine Industrial Area and

Coal Handling and Preparation Plant Raw Water

Dam

Existing Central Rail Line

EPC881 Boundary

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Bowen Basin Export Infrastructure> Bandanna as one of the Stage 1 participants is involved with Queensland Rail concerning

below rail requirements

> Bandanna has board representation on WICET Holdings, the company responsible for overseeing the construction of the $2.8 billion + Stage 1 development

> WICET Stage 1 expected to be open by early 2014 - 4 Mtpa allocation to Bandanna

> WICET Stage 2 application ,of 5 Mtpa, made to support future growth objectives

> Bandanna also has potential to fast track Dingo West production within 2-3 yrs with export via existing Gladstone port facilities.

Bandanna Projects

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South Galilee Project

Bandanna Projects

Adani - Linc

South Galilee

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Galilee Basin – South Galilee Project

> Bandanna South Galilee Project (SGP) declared Project of State Significance in July 2010.

> SGP JV participating in feasibility study with Sunwater on Connor’s Dam connection.

> SGP Concept Study indicates - 43 year mine life, 15-20 Mtpa thermal coal.

> Pre Feasibility Study underway at SGP. > Hancock and Waratah/Resourcehouse have

aggressive time tables for first coal production.> Hancock & BHP preferred tenders for X60

expansion of Abbott Point port, May 2010.> Linc-Adani deal has been estimated to imply

values of up to $560 mil for SGP+.> Future activity likely to confirm transactional

values – Hancock’s sale of Kevin’s Corner interest and Resourcehouse IPO April 2011?

Bandanna Projects

+ Bell Potter Review August 2010

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Conceptual Mine Plan – South Galilee Project

Bandanna Projects

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Bandanna positioning for strong growth phase

> With some 1.483* billion tonnes of JORC compliant resource Bandanna is now focused on a stage of growth consolidation.

> WICET Stage 1 allocation cements timetable for coal production from early 2014.

> Rationalised conventional oil and gas activities through divestment.

> Delineated maiden marketable reserves for Arcturus (44.3 Mt) and Springsure Creek (49.2 Mt)*.

> In 2010 Bandanna appointed Manager – Exploration, Manager – Infrastructure and a field liaison officer based in Emerald and expanded its Brisbane head office space.

> Environmental approval processes for Arcturus, Springsure Creek, South Galilee and Dingo West underway.

> Engaged Larpro Management to coordinate feasibility studies for Arcturus, Springsure Creek and Dingo West.

> Prefeasibility study for South Galilee Project to be completed during Q1 2011.

* Refer Slide 26 – Reserves and Resource Tabulation.

Bandanna Profile

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Strategic Review Details> Bandanna has progressed its strategic review in conjunction with UBS. The review

reached the following conclusions:

> That in order to progress the development of its key assets, funds would be required in the future which are additional to current cash reserves;

> That because BND has a 100% interest in its assets (except the South Galilee Project) there exists the capacity to raise the required funds by inviting partners to acquire interests in core assets (and/or acquire non-core assets outright) and participate in their development

> That despite Bandanna’s capacity to raise the necessary funds, corporate transactions or whole of asset transactions should be considered where they deliver greater value than can be achieved by Bandanna funding and developing its projects

> Bandanna is undertaking a transaction process, in conjunction with UBS, and is currently seeking competitive expressions of interest for third party participation in its projects.

Bandanna Profile

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Bandanna Profile

Attractive Valuation Metrics

Trading comparables1

Note:1 As at 31 January 2011 trading close shown on a diluted basis, adjusted for changes in cash positions and transactions post 30 June 2010

Transaction comparables

Jan 2011Oct 2009

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Conclusion> Bandanna is an existing explorer/developer and emerging producer

positioned for significant growth.

> Near term emphasis on development of Golden Triangle and Dingo West opportunities supported by WICET Stage 1 allocation of 4Mtpa.

> JV with AMCI provides for strategic exploitation of the South Galilee Basin Project.

> Strong fundamentals and attractive valuation metrics relative to other ASX coal explorers and developers.

> Following the successful completion of the Placement Bandanna is in a strong cash position which in conjunction with its largely 100% owned portfolio and strategic review process provide it with a strong platform for a variety of funding opportunities in order to achieve its growth targets.

Bandanna Profile

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Bandanna Profile

Additional Materials

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Reserves and Resource Summary

Project BND %Inferred

Resource(Mt)

Indicated resources

(Mt)

Measured Resources

(Mt)

Total Resources

(Mt)

Marketable Reserve

(Mt)

Dingo West 100% 91.1 91.1

Springsure Creek 100% 252.0 72.2 324.2 49.2

Arcturus 100% 103.7 102.6 206.3 44.3

Arcadia 100% 272.9 272.9

South Galilee 50%* 461.0* 103.0* 83* 589

* Assumes AMCI earns its max 50%; figures net to BND

TOTAL 1180.7 278 83 1483 93.5

Bandanna Profile

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Indicative Coal QualitySouth Galilee Dingo West Arcturus Springsure

Ck Arcadia Golden Triangle

Air Dried As

Rec’dAir

DriedAs

Rec’dAir

DriedAs

Rec’dAir

DriedAs

Rec’dAir

DriedAs

Rec’dAir

Dried

Moisture % Total 10.0 15.0 15.0 9.0 13.6Proximate Analysis I.M. 6.7 1.5 8.5 8.0 4.5 7.3

Ash 11.0 7.8 8.5 13 14 10.2 11 13.3 14.0 12.2Volatile Matter 34.8 13.6 14.9 26.7 28.8 26.2 28.4 28.6 30.0 28.6

F.C. 47.5 68.7 75.2 45.3 48.7 48.6 52.7 49.1 51.5 51.9

Total Sulphur (%) 0.81 0.55 0.60 0.34 0.37 0.23 0.25 0.33 0.35 0.30

Phos (%) 0.073 0.080 .06Chlorine

(%) .004 0.05 0.06 0.01 0.01 0.03 0.03 0.04 0.04 .02

Cal Value Gross (Kcal/kg) 6352 6990 7650 5540 5960 5830 6310 6140 6439 6279

Net (Kcal/kg) 5800 6770 5260 5662 5550 5880

Bandanna Profile

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Top Twenty Shareholders as at 28/02/11

Bandanna Profile

(*Includes shareholdings of Gordon Saul of 87,845,788 Shares (Resolve Geo Pty Ltd), Bruce Wood of 32,350,516 Shares (Locmaria Pty Ltd, Gas Strategies Pty Ltd)

1. UBS WEALTH MANAGEMENT AUSTRALIA NOMINEES PTY LTD 132,046,467* 30.98

2. DJ MINING PTY LTD 87,845,788 20.613. SAMTAN AURES PTY LTD 42,958,478 10.084. J BARLOW CONSULTANTS PTY LTD 19,521,287 4.585. MATHEW CONSULTING PTY LTD 18,955,846 4.456. MR NORMAN JOSEPH ZILLMAN 18,866,908 4.43

7. MR NORMAN JOSEPH ZILLMAN + MRS LORRAINE JEAN ZILLMAN <BANNERBLOCK SUPER FUND A/C> 10,133,092 2.38

8. GLOBAL RESOURCE ASSET EXCHANGE PTY LTD 9,056,524 2.129. CITICORP NOMINEES PTY LIMITED 6,739,278 1.5810. J P MORGAN NOMINEES AUSTRALIA LIMITED 5,243,380 1.23

11. JP MORGAN NOMINEES AUSTRALIA LIMITED <CASH INCOME A/C> 5,026,544 1.18

12. UBS NOMINEES PTY LTD 3,303,893 0.78

13. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 2,018,817 0.47

14. DR RAYMOND DOUGLAS SHAW 1,970,000 0.46

15. DR RAYMOND DOUGLAS SHAW + MS RITA BARBARA JONES <SHAW JONES SUPER FUND A/C> 1,852,000 0.43

16. NATIONAL NOMINEES LIMITED 1,742,007 0.4117. COGENT NOMINEES PTY LIMITED 1,622,334 0.3818. TOWER HOLDINGS PTY LIMITED 1,258,424 0.3019. SHIMMERING BRONZE PTY LTD 1,197,500 0.28

20. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2 880,568 0.21

Totals: Top 20 holders of ORDINARY FULLY PAID (TOTAL) 372,239,135 87.33

Total Remaining Holders Balance 54,026,347 12.67

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Bandanna ProfileArcturus Environmental & Approvals Process Status

Action Status Completion Date

Preparation of the Initial Advice Statement completed 14 November 2010

Initial Advice Statement submitted to Government completed 21 November 2010

Voluntary EIS Application submitted to Government completed 21 November 2010

Draft Terms of Reference submitted to Government completed 21 November 2010

Draft Terms of Reference Public review in progress 1 April 2011

Terms of Reference Finalised 29 April 2011

EPBC Referral Submission completed 17 December 2010

Additional Information request from DSEWPC received 23 December 2010

Additional Information Request finalised completed 15 February 2011

EPBC Decision from DSEWPC in progress 10 March 2011

Preparation of Environmental Impact Statement in progress 14 July 2011

Draft Environmental Management Plan Preparation in progress 14 July 2011

Initial Development Plan Preparation in progress 14 July 2011

Draft Environmental Authority in progress 14 July 2011

Submission of Environmental Impact Statement to Govt not started August 2011

Pegging of Mining Lease boundary not started August 2011

Mining Lease Application Submission not started August 2011

Cultural Heritage Management Plan Preparation in progress 24 June 2011

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Springsure Ck Environmental & Approvals Process Status

Bandanna Profile

Action Status Completion Date

Preparation of the Initial Advice Statement completed 14 November 2010

Initial Advice Statement submitted to Government completed 21 November 2010

Voluntary EIS Application submitted to Government completed 21 November 2010

Draft Terms of Reference submitted to Government completed 21 November 2010

Draft Terms of Reference Public review in progress 1 April 2011

Terms of Reference Finalised 29 April 2011

EPBC Referral Submission completed 17 December 2010

Additional Information request from DSEWPC received 23 December 2010

Additional Information Request finalised completed 15 February 2011

EPBC Decision from DSEWPC in progress 10 March 2011

Preparation of Environmental Impact Statement in progress 14 July 2011

Draft Environmental Management Plan Preparation in progress 14 July 2011

Initial Development Plan Preparation in progress 14 July 2011

Draft Environmental Authority in progress 14 July 2011

Submission of Environmental Impact Statement to Govt not started August 2011

Pegging of Mining Lease boundary not started August 2011

Mining Lease Application Submission not started August 2011

Cultural Heritage Management Plan Preparation in progress 24 June 2011

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Dingo West Environmental & Approvals Process Status

Bandanna Profile

Action Status Completion Date

Preparation of the Initial Advice Statement completed 30 November 2010

EPBC Referral Submission completed 10 December 2010

Additional Information request from DSEWPC received 7 January 2011

Additional Information Request finalised in progress 1 April 2011

EPBC Decision from DSEWPC in progress 29 April 2011

Environmental Management Plan technical studies in progress 15 May 2011

Draft Environmental Management Plan Preparation in progress 14 June 2011

Initial Development Plan Preparation in progress 14 June 2011

Draft Environmental Authority in progress 14 June 2011

Submission of Environmental Management Plan to Govt not started July 2011

Pegging of Mining Lease boundary not started July 2011

Mining Lease Application Submission not started July 2011

Cultural Heritage Management Plan Preparation in progress 24 June 2011

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Arcadia Environmental & Approvals Process Status

Bandanna Profile

Action Status Completion Date

Preparation of the Initial Advice Statement in progress 15 March 2011

Initial Advice Statement submitted to Government not started 22 March 2011

Voluntary EIS Application submitted to Government in progress 22 March 2011

Draft Terms of Reference submitted to Government in progress 22 March 2011

Draft Terms of Reference Public review not started April 2011

Terms of Reference Finalised not started May 2011

EPBC Referral Submission in progress 30 March 2011

EPBC Decision from DSEWPC not started May 2011

Preparation of Environmental Impact Statement not started September 2011

Draft Environmental Management Plan Preparation in progress 14 August 2011

Initial Development Plan Preparation in progress 14 August 2011

Draft Environmental Authority in progress 14 August 2011

Submission of Environmental Impact Statement to Govt not started October 2011

Pegging of Mining Lease boundary not started October 2011

Mining Lease Application Submission not started October 2011

Cultural Heritage Management Plan Preparation in progress 24 June 2011

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Statement of Compliance

Compliance

*JORC – Statement of Compliance

The information compiled in this release from Bandanna Energy Limited, including any relating to resources, is based on information complied by Gordon Saul, who is a member of the Australian Institute of Geoscientists and who is employed by Resolve Geo Pty Ltd. Gordon Saul has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves”. Gordon Saul consents to the inclusion in the report of the matters based on his information and in the form and context in which it appears. Resolve Geo Pty Ltd is a shareholder in Bandanna Energy Limited.

The Underground Reserves Estimate for Springsure Creek has been prepared by Mr Jeremy Busfield, Principal Mining Engineer of MineCraft Consulting Pty Ltd. Jeremy holds a Bachelor of Mining Engineering degree from the University of Queensland, is a Chartered Professional Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Registered Professional Engineer of Queensland (Mining) (RPEQ 10285). Jeremy has worked in various planning, operational and consulting roles for the underground coal industry for 26 years and as such qualifies as Competent Person under the JORC Code. The relationship between the Estimator and the Project owner is that of independent consultant. Jeremy consents to the inclusion in this report of the matters based on his information and in the form and context in which it appears.

The Opencut Reserves estimate for Arcturus has been prepared by Mr Ken Hill. Ken Hill is the Managing Director of Xenith Consulting Pty Ltd. He holds a Bachelor in Civil Engineering degree from the University of Queensland and a Post Graduate Diploma in Business Administration from University Queensland. He has over 20 years experience in the open cut coal mining industry and substantial experience in mining operations financial evaluations. Ken Hill is a Member of the Australasian Institute of Mining and Metallurgy and as such qualifies as a Competent Person under the JORC Code. Ken Hill consents to the inclusion in this report of the matters based on his information and in the form and context in which it appears.

The Underground Reserves Estimate for Arcturus has been prepared by Mr Jeremy Busfield, Principal Mining Engineer of MineCraft Consulting Pty Ltd. Jeremy holds a Bachelor of Mining Engineering degree from the University of Queensland. He is a Chartered Professional Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and a Registered Professional Engineer of Queensland (Mining) (RPEQ 10285). Jeremy Busfield has worked in various planning, operational and consulting roles for the underground coal industry for 26 years and as such qualifies as Competent Person under the JORC Code. The relationship between the Estimator and the Project owner is that of independent consultant. Jeremy Busfield consents to the inclusion in this report of the matters based on his information and in the form and context in which it appears.

With respect to exploration target tonnages, these are conceptual in nature. There is insufficient exploration to define a Mineral Resource across the target area (excluding any existing inferred or indicated resources) and it remains uncertain if further exploration will result in the determination of a Mineral Resource across the whole area.

In the case of Springsure Creek project the range of exploration target was determined from bore hole and seismic information within the exploration lease which points to a continuous A2 seam, averaging 3.09m in thickness, mineable with underground methods, underlying an area of at least 97.8 km2 to 140.8 km2.

In the case of South Galilee (formerly Alpha) Project the range of exploration target was determined by projecting D1 and D2 seam intersections from the eastern indicated and inferred resource area to the western boundary of EPC 1049. Supported by petroleum holes to the west, a 9966 Ha area has been estimated to contain an average of 5.6m of coal, providing a target tonnage of between 570 and 960 Mt.