Pre-Feasibility Study on Titiribi coal project completed – 26 August 2013

KEY HIGHLIGHTS

Pre-Feasibility Study (PFS) confirms the technical and economic feasibility for starter mining operation at Titiribi coal project
PFS was based on Measured and Indicated components of the total Coal Resource estimate of 8.1Mt1 developed in accordance with JORC (2004)
Starter mine projected to have a minimum 5 year Life-of-Mine (LOM) based on production rate of up to 400,000tpa
Low initial start-up capital in the order of US$7.8m
Low average cash operating cost of US$44/t at mine gate (US$84/t FOB port)
Study based on a blended metallurgical coking coal product with low ash, ultra-low phosphorus, medium volatiles and Free Swell Indexes (FSIs) averaging 6.7
Significant upside to PFS economics and to JORC resource remains from further exploration potential along strike from existing concessions