Asset Name

Styx

EPC

2390 (Status: Granted)

Project Basin

Styx Basin periphery (Early Cretaceous) and the Bowen Basin periphery (Permo-Triassic).

Project Area

117.6km2

Coal Type

Semi-Soft Coking Coal / Thermal Coal Product

Target Stratigraphy

The Back Creek Group (Exmoor Formation) and the Styx Coal Measures.

Estimated Exploration Target

5 to 25 Million Tonnes in the Styx Coal Measures and 0-15 Million Tonnes in the Back Creek Group.

Proximal Major Projects

Waratah Coal subsidiary Fairway Coal; Styx South MDL Lodged 28/02/2012. Waratah Coal; (EPC2268)

Project Overview

The Styx Coal Project is located in the Rockhampton Region on the east coast of Queensland between the Gladstone Region coal terminals and the coal terminals at Mackay. The Project area is located 8.5km east of the Waratah Coal subsidiary Fairway Coal MDL.

Previous Exploration

79 coal exploration boreholes have been drilled in the Styx Basin on the Waratah Coal Styx Coal Project to the north of the CMR Styx Coal Project. Data from Geophysical Survey of Queensland (GSQ) and open file private company geophysical survey data covering the Project area have been compiled.

Exploration Target

An independent Geological Statement has been prepared by Moultrie Database and Modeling (Moultrie) in order to provide an analysis of coal occurrence within the Styx Coal Project area. Potential targets in multiple coal-bearing formations throughout the Project have been assessed. These include the Early Cretaceous Styx Coal Measures in the south and the Late Permian Back Creek Group (Exmoor Formation) in the north and the south. A gravity low feature that depicts the Styx Basin extends under the southern half of EPC 2390. The gravity low overlays a section of the tenement that hosts the sub-cropping Styx Coal Measures and exploration will track the extent and depth of the coal seams within this formation.

The primary target seams within the Styx Coal Measures are at depths of 0.00m to 200.00m and seams of 3.5m have been recorded in the Styx Basin. Seams of 2.5m have been recorded in the Exmoor Formation of the Back Creek Group.

An exploration Target of 5 to 25 Million tonnes of domestic thermal coal in the Styx Coal Measures and 0 to 15 Million tonnes of high ash, weakly coking coal in the Exmoor Formation has been independently calculated by Moultrie.

Coal Quality

Coal quality from neighboring MDL468 (Waratah Styx Coal Project) has identified 11 principle seams confirming the presence of high-volatile bituminous coal with low ash, low sulfur and a high calorific value. Initial float sink analysis (F1.5 fraction) of the coal plies gives an average theoretical yield of approximately 75%, average ash of approximately 8.5% and calorific value of approximately 7170kcal/kg. CSN values average approximately 5 to 6, with the upper limit being 7. These initial results are very encouraging to produce a semi-soft coking coal;

Exploration Program

An initial scout drilling program of five (5) exploration boreholes has been devised to test the extent of coal seams in the coal-bearing formations identified in the Independent Geological Report by Moultrie. Favourable results from the exploration boreholes will lead to follow up drilling and seismic surveys to assess the continuity of the coal seams.

Proximity to Infrastructure

The Styx Coal Project is approximately 210km south to the existing coal terminals at Hay Point and Dalrymple Bay and the proposed coal terminal at Dudgeon Point. The Project is also approximately 210km north of the existing coal terminals of RG Tanna and Barney Point and the coal terminal at Wiggins Island (WICET). Also in the Gladstone Region are the proposed coal terminals at Balaclava Island and Fitzroy.