Coalworks' flagship project, the Oaklands asset in southern New South Wales, covers 54 square kilometres and has a measured, inferred and indicated thermal coal JORC resource of 822 million tonnes.The total JORC resource includes:

• 121 Million tonnes Measured resources (calculated in accordance with the JORC Code);
   
• 572 Million tonnes Indicated resources (calculated in accordance with the JORC Code); and
   
• 129 Million tonnes Inferred resources (calculated in accordance with the JORC Code).

Located about 6km north of the town of Oaklands, the project contains a group of kaolin mines within the southern zone of EL 6861. Oaklands black, thermal, low sulphur coal is ideal for gasification where coal is converted to synthetic natural gas (syngas) for power, or to upgrade to value-added products

Coalworks has initiated a bankable feasibility study (BFS) to determine a precise mine plan and provide a basis for project financing. Leading international engineers Minarco-MineConsult have been appointed to act as BFS Study Manager.

Technical studies to support Oaklands' clean coal strategies have been commissioned and strategic alliances are being considered for: briquetting; a low emission coal-to-liquids plant; and a new generation power plant.

The Oaklands North project in southern NSW is well located for exporting coal. There are plans for the rail line which connects to the main Sydney-to-Melbourne rail line to be upgraded, providing the necessary link for the transport of coal or coal products to port.

Coalworks plans to advance Oaklands' development to production with infrastructure and robust product slate by 2013 - 2014.

PROJECT SCHEDULE