Wongai Project Presentation

16 September, 2014

Geos Mining Limited

Andrew Todd,

Coal Resource Specialist (JORC competent)

7 years: coal resource geologist - New Zealand and Indonesia;

8 years: coal quality geologist - Central Queensland coking coal mines;

6.5 years: groundwater investigation and research; and

2.5 years: senior coal consultant, Geos Mining.

Wongai Project Summary:

Far north Queensland

Moderate sized resource (Inferred and Indicated)

Advanced conceptual stage mining feasibility

Premium quality high swell hard coking coal

Shallow underground

30 plus years mine life

Cooperative project with Aboriginal Landowners

Environmental constraints.

Australian Coal Context – refer Qld Coal map and Quinn diagram

Figure 1: Wongai Project Regional Location (EPC2334)

15 x 35km licence area

Remote

Surrounding environmental areas

Currently dry season access

Supportive Aboriginal land owners

Figure 2: Stratigraphy

Mid – Late Jurassic coal measures

Higher rank than similar age coal measures of SE Qld

One main target seam – Bathurst seam

Melville seam of mineable thickness in small areas

Predominantly sandstone overburden

Figure 3: Coal Resource Areas, EPC2334

Drill hole spacing 1-2 km

Now locally 500m in Birthday Plains area

Topography and structural pattern – south plunging anticline

Coal resource areas, Bathurst seam > 0.8m

Figure 4: East - West Cross-Section, Birthday Plains Deposit

Structurally simple anticlinal axis

Eastern and western areas structurally less simple and steeper dipping seam

Figure 5: 2013/14 Refined Coal Resource Areas, EPC2334

Refined resource areas after 2013/2014 drilling

Minimum mining coal thickness 1.4m, with peripheral zone to 1.2m thick;

Up to 3m thick

Table 1: Resource tonnages

Area Indicated Resources (Mt) Inferred Resources (Mt) Total (Mt)

Birthday Plains 6 15.4 21.5

Airstrip 0 56.2 56.2

Total 6 71.6 77.7

Single target coal seam;

Have modelled seam thickness and extent only;

Insufficient coal seam recovery to model coal quality.

Additional Exploration Target totalling 26.5 Mt to minimum 1.2m coal thickness;

Coal connecting the two resource areas is <1.2m thick and not included in current estimates;

Some of this coal could be extracted within connecting headings;

Table 2: Raw coal qualities

Resource

Area

Total Moisture

% (ar)

Inherent

Moisture %

(adb)

Raw Ash %

(adb)

T S %

(adb)

V M %

(adb)

FC %

adb) CSN

Birthday

Plains 9.9 0.9 17 - 23 0.8 – 1.2 18.6 59.3 7-9

Airstrip 8 0.5 6.6 1.28 18.5 74.7 8

Low volatile bituminous coking coal

Very friable where vitrinite content is high

Historically poor coal seam recovery, particularly in Birthday Plains area

Ash predicted from geophysical logs in some holes

Organic sulphur typically 0.8 – 1.1% (pyritic sulphur washes out)

Mining Feasibility:

Conceptual stage mining feasibility assessments;

Shallow;

Over 30 years mine life likely;

Some structurally complex areas (B&P mining methods are more flexible);

Groundwater systems yet to be fully investigated;

Prospective for mining by underground Bord & Pillar Place Change methods;

A wash plant will be required;

However, significant areas of Airstrip deposit likely to be suitable as ROM product;

Close to potential export shipping lanes.

Birthday Plains Washability:

Figure 6: Raw Ash vs Cumulative Yield @ F1.60, Bathurst Seam

Figure 7: Raw Ash vs Cumulative Float Ash @ F1.60, Bathurst Seam

Figure 8: Raw Ash vs Cumulative Float CSN @ F1.60, Bathurst Seam

Good washing characteristics

Yield greater than 70%; typically 80-85% for raw ash <25% (assumes no dilution)

Typical Product 6 - 12%ash; 8 - 9 CSN; 0.8 - 1.0% total sulphur

Air Strip Deposit: Has very low in-situ ash (6.6% average) locally, where it could be

mined as a ROM product. Significant mining cost saving.

Coal Utilisation

Typical Properties Birthday Plains Deposit (excludes peripheral areas):

ANALYSIS Minimum Maximum

ULTIMATE ANALYSES

Carbon % (daf) 87.60 89.75

Hydrogen % (daf) 4.46 4.94

Nitrogen % (daf) 1.10 1.40

Oxygen % (daf) 2.96 4.71

Carbonates % (daf) 0.02 0.21

COKING PROPERTIES

Roga 1.5 1.6

Gray-King Coke Type G8 G10

Initial Softening Temp. C 413 447

Fusion Temp. C 433 465

Max. Fluid Temp. C 470 480

Solid Temp. C 492 512

Max. Fluidity dd/m 150 825

Plastic Range C 70 97

Softening Temp. C 382 418

Max. Contraction Temp. C 425 455

Resolidification Temp. C 500 510

Max. Contraction % 24 30

Max. Dilation % 18 139

PETROGRAPHY

Reflectance (Rv max) 1.45 1.65

Total Vitrinite% 83 92

Inertinite Semi Fusinite% 1 14

Total Mineral Matter % 3 7

High swell Coking Coal

Very high vitrinite

High rank (Rv max)

Suggests promising qualities as a premium blending coking coal

Assessment is in early stage with insufficient recovery for detailed coke strength testing

(planned for 2014)