July 31, 2007 The exploration programme for the Downs Project has focused on completing a compilation and review of all the existing data in an attempt to define exploration targets which show potential for containing the target seams at shallow depths. At Mt Maria, exploration drilling near the town of Mt Tyson found the Kogan/Wilkie Creek equivalent coal measures to be poorly developed. 4,304 metres of open hole drilling were completed. At Wellcamp, a total of 3,290 metres of open hole drilling was carried out. Waipanna and Acland coal seams were found to be in close proximity to each other to the south of Jondaryan. Further open hole exploration drilling totalling 1,162 meters showed a small southeast extension of the Acland MDL 244 reserve into EPC 762.
At Cecil Plains, a total of 484 metres were drilled in two open holes. The targeted Kogan/Wilkie Creek coal seams were poorly developed in this area.