BERAU

Resource drilling within the proposed initial mining pit and a resource review by Minarco MineConsult has led to an upgrading of the JORC Inferred Resource of 8 million tonnes to a JORC Indicated Resource of 8.1 million tonnes of subbituminous thermal coal with a calorific value of 5,756 kcal/kg. The coal has low ash (6.8%), low sulphur (0.73%) and Inherent Moisture of 13.8%.Some 50% of a 5,000 metre diamond core drilling programme to confirm the continuity of coal seams within the resource block and extend the occurrence of coal seams in drill holes 2.5 kilometres away from the resource block has been completed. Continuous intersections of seam thicknesses of 4 and 5.7 metres is encouraging for significant addition to the resource base.