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ENERGY to GROW Second project expands South Pentland by more than 50% to 3.6 5.

1 ENERGY to GROW Second project expands South Pentland by more than 50% to Bt thermal coal JORC Exploration Target October 8, 2012 ASX: BWD Level Adelaide Street Brisbane, QLD, 4000 T: F: E: info@bwdcorp.com.au Highlights JORC Exploration Target of Billion Tonnes A of thermal coal at Lauderdale prospect, increasing the JORC Exploration Target of Bt B for the South Pentland Project by more than 50% Board of Directors Barry Bolitho Rex Littlewood Will Randall Andrew Simpson Blackwood now has a combined total of 5.0 to 6.9 Bt C of JORC Exploration Target tonnes from its Projects New drilling (4 core holes) and 63km of 2D seismic confirm presence of continuous coal seams More than 114 historical and new drill holes and seismic used in the geological model. Company Secretary Patrick McCole Senior Management CEO Todd Harrington CFO David Smith GM Exploration QLD Mark Winsley GM Bus Dev Brendan Schilling Principal Geo Intl Joel Yago Blackwood representative appointed to Queensland Government s North Queensland Supply Chain Steering Committee Additional EPC tenures granted # Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement Blackwood Corporation Ltd ABN October 2012 Page, 1

2 Blackwood Corporation Limited (ASX: BWD, Blackwood ) has identified a JORC Exploration Target within the range 1.5 billion tonnes to 1.8 billion tonnes A in the Lauderdale Project, a second prospect within the South Pentland Project (Figure 1). This target is the result of a program involving 63 km of new 2D seismic and 4 additional drill holes intersecting coal on the seismic lines, and a comprehensive review of all available historical data. These elements were used to build a detailed geological model of the Project area and projected coal seams. The South Pentland Project now has a total of billion tonnes B JORC Exploration Target thermal coal. Todd Harrington, Chief Executive Officer of Blackwood Corporation said the identification of this additional target area, closer to existing rail and road infrastructure on the South Pentland Project, is a significant and positive step for Blackwood. The relative proximity of the Lauderdale and Longton deposits to each other and the existing Great Northern rail line confirms the attractiveness of the South Pentland prospect, he said. Figure 1: Blackwood Corporation s South Pentland Project and associated infrastructure Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement Blackwood Corporation Ltd ABN October 2012 Page, 2

South Pentland and the Lauderdale sub-project overview The South Pentland Project and associated EPC s 1486, 1762 and 2 applications EPCa 2842 and EPCa 2853 covering 542 sub blocks (1626km2, Figure

3 South Pentland and the Lauderdale sub-project overview The South Pentland Project and associated EPC s 1486, 1762 and 2 applications EPCa 2842 and EPCa 2853 covering 542 sub blocks (1626km2, Figure 1) is 100% owned by Blackwood Corporation Limited through its subsidiary Matilda Coal Pty Ltd. The Project is strategically located in the northeast Galilee Basin, 40 km south east of Pentland township, making it one of the closest Galilee projects to the coast (<250km). In addition and to significant advantage, major roads (Flinders Highway) and railway (Great Northern Line) are already established, traversing the northern edge of the tenure. The Lauderdale Project is the second significant target area at South Pentland identified by the Blackwood exploration team. Figure 2 illustrates the two sub-projects, Lauderdale and Longton of the South Pentland Project.. Figure 2: Blackwood Corporation s South Pentland Project with the Lauderdale and Longton project areas. Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement Blackwood Corporation Ltd ABN October 2012 Page, 3

Blackwood is exploring the coal seams of the Permian Betts Creek Beds, which are the main coal bearing sequence throughout the Galilee Basin and have demonstrated potential for significant quantities

4 Blackwood is exploring the coal seams of the Permian Betts Creek Beds, which are the main coal bearing sequence throughout the Galilee Basin and have demonstrated potential for significant quantities of export quality thermal coal. These coal measures and the seams contained within are regionally consistent and are correlatable for many hundreds of kilometres. Blackwood s South Pentland project is therefore the northern extension of Hancock s (now GVK s) Alpha & Kevin Corners and Adani s Carmichael Project Figure 3 Regional correlation of Betts Creek Beds South Pentland Exploration 2012 Recent drilling includes 4 core holes drilled on the newly acquired 63km of seismic lines to confirm coal occurrence, thickness and coal quality. The Lauderdale Project drilling confirms more than 4 coal seam groups present in all holes, with a cumulative coal thickness of 11 to 15m. Importantly, 4 seams have potential working sections of greater than 2m in thickness. All holes have been processed, validated and interpreted together with the historical data set. Blackwood geologists re-created the geological model for South Pentland Project containing 114 drill holes and enhanced by 5 seismic lines and 63km of new 2D seismic. The geographical spread of the data used in Blackwood s geological models and Exploration Target Area is shown in Figure 4. Blackwood Corporation Ltd ABN October 2012 Page, 4

As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a

5 Figure 4 Lauderdale exploration target polygon and the associated drilling and seismic. Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement The recent drilling has been used to obtain the detailed coal seam thickness information and coal core is currently undergoing analysis at the Bureau-Veritas laboratory in Brisbane. The regional seismic data has been used to confirm continuity of coal seams across the target area (Figure 5 seam continuity in seismic section). The seismic data also shows the geological structure of this area, which is an important consideration in coal prospect with underground mining potential. As with other areas of the Galilee Basin the fault frequency is low, wide spaced and relatively benign. Figure D seismic line example Blackwood Corporation Ltd ABN October 2012 Page, 5

6 Lauderdale Exploration Target Borehole collars and seam picks were interpreted by Blackwood personnel, collated into a Mincom GDB Database and correlated and modelled in Minescape. The exploration target for Lauderdale of billion tonnes A is given competent person sign-off by Mark Winsley Blackwood s General Manager for Exploration. In addition, an independent geological model review and joint JORC competent person sign-off, was undertaken by Lyndon Pass of Encompass Mining Pty Ltd. Constraining factors for the Exploration Target were as follows: Area of target estimate is within the polygon shown in Figure 2. Coal seams were modelled to >0.3m thick and <1000m depth, however only seams with average thickness >2.0m thickness and <600m were used in the estimation of the Exploration Target Coal seams are not weathered or intruded An appropriate geological loss factor of 20% was applied to all seams to account for unexpected seam splitting and thinning No new coal quality results are available. As reported previously from the adjacent Milray deposit, the historical coal quality ranges are as follows in Table 1 Raw Coal Analysis (air dried) D-seam Average Range Moisture % Ash % Volatile Matter % Fixed Carbon % Sulphur % Specific Energy Mj/kg Specific Energy kcal/kg HGI Table 1 Coal Quality ranges (all seams) and D seam average values from the adjacent Milray deposit. Note: All references to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement Blackwood Corporation Ltd ABN October 2012 Page, 6

7 BWD Appointed to North Queensland Supply Chain Steering Committee Blackwood has been appointed to the North Queensland Supply Chain Steering Committee, as notified by the Queensland Government Department of State Development, Planning and Infrastructure on the 24th September The purpose of this committee is to prioritise projects and investment in North Queensland, predominantly driven by the Mt Isa to Townsville rail system with funding of $1.66 million for infrastructure planning. Blackwood has been involved in the infrastructure planning process for the supply chain requirements for the Galilee Basin since commencing work on the South Pentland Project, previously holding a position on the Mt Isa to Townsville Economic Zone (MITEZ) "Fifty Year Freight Infrastructure Plan" steering committee. Additional Tenure Grants Blackwood advises that five of its tenure applications have recently been granted and renewed by the Department of Natural Resources & Mines. These are: GRANTED EPC 1603, Taroom, 1 sub block GRANTED EPC 2138, Bowen North, Calen 15 sub blocks RENEWAL GRANTED EPC 1461, Dalby, 11 sub blocks RENEWAL GRANTED EPC 1530, Warwick South, 26 sub blocks RENEWAL GRANTED EPC 1531, Rolleston North, 11 sub blocks The Company still has several outstanding applications awaiting process by the Government, and expects these grants to continue throughout the next quarter. For more information please contact: Todd Harrington Chief Executive Officer Phone +61 (0) Blackwood Corporation Ltd ABN October 2012 Page, 7

8 About Blackwood Corporation Blackwood Corporation Limited (ASX: BWD) is an emerging Australian energy and resources company with a primary focus on the exploration and development of its coal tenement portfolio in Queensland, Australia. Through its wholly owned subsidiary, Matilda Coal Pty Ltd, Blackwood Corporation holds tenure of over 5,800km 2 in world class and internationally recognized coal basins, including the Bowen Basin, Galilee Basin, Surat Basin and Clarence-Moreton Basin. Many of its assets are adjacent to proven coal reserves of significant size and export quality, as well as excellent infrastructure. Competent Persons Statement The information in this report that relates to Exploration Results, Exploration Targets and Minerals Resources is based on information compiled by Mr Mark Winsley, Mrs Merryl Peterson and Mr Lyndon Pass, who are all members of The Australian Institute of Mining and Metallurgy (AusIMM). Mr Winsley is Blackwood Corporation Limited s General Manager QLD Exploration and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Winsley consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. Mrs Peterson is Principal Geologist at Runge Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mrs Peterson consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. Mr Pass is engaged as Principal Resource Geologist/Director at Encompass Mining Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Pass consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. Blackwood Corporation Ltd ABN October 2012 Page, 8

9 JORC Exploration Targets Note: All references to Exploration Targets in document are in accordance with the guidelines of the JORC Code (2004). As such, it is conceptual in nature and there has been insufficient exploration drilling to define a coal resource on the tenement, it is uncertain if further exploration will result in discovery of a coal resource on the tenement. A Coal Quality Ranges for the South Pentland Lauderdale and Longton Projects are as follows (all on an air dried basis): Moisture , Raw Ash , Volatile Matter , Fixed Carbon , Total Sulphur , Specific Energy kcal/kg, HGI B The South Pentland total of 3.6 to 5.0 Bt of JORC Exploration Target tonnes is derived from the South Pentland Longton Project ( Billion tonnes A ) and the South Pentland Lauderdale Project ( Billion tonnes A ) C The total of 5.09 to 6.96 Bt^ of JORC Exploration Target tonnes is derived from the South Pentland Projects ( Billion tonnes B ), Taroom (1 to 1.3 Billion Tonnes D ), Bymount ( million tonnes E ) and Chinchilla ( million tonnes F ) projects. D Coal Quality Ranges for the Taroom Project are as follows (all on an air dried basis): Moisture , Raw Ash , Volatile Matter , Fixed Carbon 27-40, Total Sulphur , SE kcal/kg. E Coal Quality Ranges for the Bymount Project are as follows (all on an air dried basis): Moisture , Raw Ash , Volatile Matter , Fixed Carbon 27-40, Total Sulphur , SE kcal/kg. F Coal Quality Ranges for the Chinchilla Project are as follows (all on an air dried basis): Moisture , Raw Ash , Volatile Matter , Fixed Carbon , Total Sulphur , SE kcal/kg. Blackwood Corporation Ltd ABN October 2012 Page, 9

JORC COAL RESOURCE MILESTONE

QUEENSLAND UPDATE GUILDFORD EXCEEDS 2PROJECTS BILLION TONNE JORC COAL RESOURCE MILESTONE 5th March 2012 ASX: GUF SHARE INFORMATION Issued Shares: 439.6m Listed Options: N/A Unlisted Options: N/A BOARD