Asset Name

Cracow

EPC

2386 and 2421

Project Basin

Bowen Basin (Permo-Triassic)

Project Area

235.2km2

Coal Type

Coking, PCI & Thermal

Target Stratigraphy

The Back Creek Group.

Proximal Major Projects

Anglo-American - Theodore South, Dawson South & Dawson Central Anglo-American; Dawson South Anglo-American; Dawson Central

Project Overview

The Cracow Project is located in Banana Shire in Central Queensland. The Project is elongate, running 90km north south and approximately 10km east west. The town of Cracow is located in the south of the Project area and the town of Moura and the Moura Coal Rail System is 20km to the north west of the northern end of the Project.

Previous Exploration

14 Geological Survey of Queensland (GSQ) stratigraphic boreholes, 5 coal exploration boreholes and 4 water bores with coal intersections have been recorded on or close to the Cracow Project. Geological Survey of Queensland (GSQ) geophysical survey data has been compiled over the Project area but much of the north of the Project area is largely underexplored for coal.

Coal Quality

Coal Petrology results from samples taken on GSQ Mundubbera 11 indicates coking properties – Reflectance of Vitrinite (RoV, max) 1.36. Exploration by Endocoal Limited, on adjacent tenements has intersected two (2) coal seams, ranging in depth from 42.7 – 318m. Both seams are approximately 3m thick and are separated by approximately 0.3m of intra-burden. Endocoal has announced (ASX) that the coal seams within the same target formation contain plies with strong coking properties.

Exploration Program

Initial exploration will begin in the vicinity of the GSQ Stratigraphic borehole Mundubbera 11 which is situated in the southern section of the Cracow Project. Three (3) scout boreholes have been planned to verify the extent of the coal seam recorded in the Buffel Subgroup of the Back Creek Group. Favorable results will be followed by more intensive drilling and a strategic seismic survey that will test the continuity of the seam across the Project area.

Proximity to Infrastructure

The Moura Rail System is situated 20km to the north west of the Cracow Project. This Rail System currently services the existing Anglo Coal Dawson Mine Complex and transports coal 184km to the coal terminals in the Gladstone Region. The proposed Surat Coal Rail System will extend the rail system to the south of the Dawson Mine Complex, passing close to the western, north / south running border of EPC 2386. The Surat Coal Rail Link will pass between the southern end of EPC 2386 and the eastern border of EPC 2421. The Moura Rail System connects to the existing coal terminals of RG Tanna and Barney Point and the coal terminal at Wiggins Island (WICET). It will also connect to the proposed coal terminals at Balaclava Island and Fitzroy.