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1 NSL Consolidated 23 December, 2013 NSL s QUEENSLAND THERMAL COAL PROJECT EPC 2336 GRANTED HIGHLIGHTS EPC 2336 formal grant received All of EPC 2198, 2336, 2337 and 2338 now granted Dual bulk commodity developer, NSL Consolidated Ltd (NSL or Company), is pleased to announce that the fourth of its thermal coal exploration tenements, EPC 2336 is now formally granted. NSL s four thermal coal tenements (EPCs 2198, 2336, 2337 and 2338) cover 2,585 km² in the Eromanga Basin in southwest Queensland and are adjacent to similar projects held by East Energy Resources (ASX: EER, Inferred Resource of 1.74 Billion Tonnes) Coalbank (ASX: CBQ, Inferred Resource 1.25 Billion Tonnes) and International Coal Limited (ASX: ICX, Inferred Resource of 1.2 Billion Tonnes). As previously announced, independent geologists have estimated a combined exploration target of between 6.6 billion and 18.7 billion tonnes 1 of thermal coal for the four tenements. This information was prepared and first disclosed under the JORC Code It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. It should also be noted that the exploration target quoted above is conceptual in nature and there has been insufficient exploration to define a Mineral Resource under the JORC Code. It is uncertain if further exploration will result in the determination of a Mineral Resource. The Company continues to conduct ongoing assessments on the tenements and their potential. The company strongly supports the exploration conducted thus far in the region and agrees with its peers in recognising the long-term significance of the vast subbituminuous coal deposits contained within the Winton Formation of the Eromanga Basin. The company does believe, however, that to gain further market acceptance more work is required to distinguish in these vast deposits what proportion is Inventory coal and what proportion is a Coal Resource under the 2012 Code. Inventory Coal is a Non-JORC term that applies to all coal in the ground that can be estimated and classified according to geological confidence, without a need for a Competent Person to account for either potential commercial considerations or land use constraints when identifying Inventory Coal. A Coal Resource is all coal that can be estimated on the basis of relative confidence levels, and having passed the reasonable prospects for eventual economic extraction test can then become a Coal Resource as defined by the JORC Code.

2 The Company is also reviewing its requirements to make further payments under the Tenement Acquisition Agreement as announced on 16 June Further updates will be provided to the market in due course. CONTACT: Cedric Goode Kevin Skinner NSL Consolidated Field Public Relations (08) / COAL RESOURCE STATEMENT OF COMPETENCE AND COMPLIANCE Technical information on NSL Consolidated Limited's Queensland coal projects discussed in this ASX Release has been compiled by Mr Mark Biggs, Principal Geologist of ROM Resources Pty Ltd. Mr Biggs is a member of the Australasian Institute of Mining and Metallurgy and has the experience relevant to the style and type of coal deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined by the Australasian Code for Reporting of Minerals Resources and Reserves (JORC) Mark Biggs consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. The report is based on factual geological data acquired by NSL Consolidated Limited over a period of several months as well as pre-existing data from Government stratigraphic drilling and private company coal exploration. Interpolation and extrapolation of data has been avoided in most cases but where necessary it was done with due consideration of the JORC Coal Guidelines. Whilst significant coal intersections are present within most of the coal tenure discussed, insufficient data exists to estimate coal resource tonnages to the JORC standard at this time. It should be noted that this information was prepared and first disclosed under the JORC Code It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Notwithstanding this it should also be noted that any resource tonnages implied in this release are conceptual in nature, that there has been insufficient exploration to define a Coal Resource and that it is uncertain if further exploration will result in the determination of a Coal Resource Name Job Title Registration Experience (Years) Signed M Biggs Principal Geologist ROM Resources Pty Ltd AusIMM

3 Appendix One NSL Consolidated Limited (ASX: NSL, Company) is pleased to announce that final acquisition and granting of EPC s 2198, 2336, 2337 & 2338 (Projects) in Queensland, which are considered highly prospective for sub-bituminous thermal coal, has occurred (refer to Figure 1) The Projects are located in the Eromanga Basin in South-western Queensland, adjacent to similar projects held by East Energy Resources (ASX: EER), Coalbank (ASX:CBQ) and International Coal Limited (ASX: ICX). NSL Managing Director, Mr Cedric Goode, said that the published Exploration Target at the Projects (NSL 2011; ASX release May 2011) was a significant first step in their potential development. We are delighted and excited by the initial independent geological review at the projects. Clearly there is a lot of initial promise shown at the projects, and we will now move on to evaluating the best way to progress the projects with an initial exploration program, including drilling, It should be noted that the tonnages quoted in the text conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The project area is girt by a number of other highly prospective properties, including the substantial resource at the Blackall Coal deposit and very encouraging reports from US oil and gas explorer Sentry Petroleum, said Mr Goode.

4 Table 1 Calculation of Exploration Target Tonnage Range of the Winton Formation for the Project Area Tenement Formation Area (m2) Average Cumulative Thickness (m) Relative Density (Kg/m3; adb) Gross Tonnage Mt Range of Raw Ash %adb Range of Raw Calorific Values (MJ/kg adb) Unexpected Geological Loss %2 Exploration Target (Million tonnes) EPC 2198 Winton 200,000, EPC 2336 Winton 334,587, , ,400 EPC 2338 Winton 270,190, , ,000-7,400 EPC 2337 Winton 240,990, , ,000-8,500 Sub-Totals 7,000-17,900 Table 2 Calculation of Exploration Target Tonnage Range of the Mackunda Formation for the Project Area Tenement Formation Area (m2) Average Cumulative Thickness (m) Relative Density (Kg/m3; adb) Gross Tonnage Mt Range of Raw Ash %adb Range of Raw Calorific Values (MJ/kg adb) Unexpected Geological Loss %2 Exploration Target (Million tonnes) EPC 2198 Mackunda 105,000, EPC 2336 Mackunda 334,587, EPC 2338 Mackunda 270,190, EPC 2337 Mackunda 240,990, Sub-Totals It should be noted that the tonnages quoted above are conceptual in nature and there has been insufficient exploration to define a coal resource. No coal quality data within the project area was uncovered in previous reports. Although a preliminary analysis was undertaken, insufficient data exists to confidently correlate coal seams and generate a grid mesh model. It is uncertain whether further exploration may lead to the reporting of a JORC-standard resource however there is considerable evidence to support the current Exploration Tonnage calculations, and the sufficient coal thicknesses interpreted from historic drilling to warrant further investigation. 2 Unexpected geological loss mainly due to seam splitting and thinning over large distances between boreholes. 3 Large variations in the Exploration Target reflect the sparseness of data and expected seam splitting and thinning known to occur in the Winton Formation.

5 Collectively, the EPC s 2336, 2337 and 2338 comprising the Adavale-Quilpie project area cover 733 sub-blocks covering approximately 2,261 km 2. The project area covers sedimentary and volcanic rocks from the Eromanga, Galilee and Adavale Basins. The Eromanga and Galilee Basins are known to contain significant coal seams. In terms of infrastructure, the project area is located 62km due east of Mount Morris in south western Queensland. The railway line is 34km south of the project area, and continues to the port in Brisbane. Surrounding infrastructure includes rail and a major road, the Landsborough Highway (A2). This highway runs north-south between the Capricorn Highway and the Warrego Highway which is located 165km to the east of the tenement area. The project area is bisected by the Charleville-Adavale Road. The project area covers sedimentary rocks from the Eromanga, Galilee and Adavale Basins. The Eromanga and Galilee Basins are known to contain coal seams. The Eromanga Basin is present across the entirety of the project area, outcropping in part due to the anticlinal structure to the east. The Galilee Basin and Adavale Basin are both present at depth over EPC's 2336 and 2338 and in part on EPC It should be noted that the tonnages quoted above are conceptual in nature and there has been insufficient exploration to define a coal resource. No coal quality data for the project area was uncovered in previous reports. Although a preliminary analysis was undertaken, insufficient data exists to confidently correlate coal seams and generate a grid mesh model. Unexpected Geological loss is designed to account for seam splitting and thinning. It is uncertain whether further exploration may lead to the reporting of a JORC- standard resources, however there is considerable evidence to support the current Exploration Tonnage calculations, and the sufficient coal thicknesses interpreted from historical drilling warrant further investigation. Recent exploration in the Eromanga Basin by East Energy Resources Ltd (ASX: EER) has resulted in the announcement of a 1.2 Billion tonnes JORC Inferred Coal Resource approximately 62km north the project area (East Energy Resources Ltd, 2009). The Blackall Coal Deposit in EPC 1149 is expected to produce a domestic thermal coal product. Immediately west of EPC 1149, Sentry Petroleum Limited s (NASDAQ OTC: SPLM) Exploration Permits for Petroleum (ATP s) 862 and 864 (see location map in Appendix) have been announced as containing a 2,000 square mile coal deposit (non-jorc, Sentry Petroleum Limited, 2011). In the locality of the project area there has been previous petroleum, coal bed methane, and coal exploration. It has been documented that the region also includes deeper sedimentary rocks from older Eromanga Basin formations (Westbourne, Birkhead, and Poolwanna Formations) that also contain coal. No resource calculations from these sequences have been included in Tables 1 & 2 as seams intersected occurs at depths greater than 700m. There are no structural interferences other than a slight folding of the targeted Eromanga Basin.

6 Figure 1 - Source: Sentry Petroleum Ltd website 15 July Figure 2 - Source: Sentry Petroleum Ltd website 15 July

7 The Winton Formation, within the Eromanga Basin, is the main targeted-formation over NSL s EPC 2336, 2337, 2338 which contains some 23 coals seams from surface to 130m at an average thickness of m per seam. Further coal seams continue from 130m- 250m and deepen to 480m in the north before petering out. The Winton Formation is the coal-bearing Formation of interest in the project area. The base of this formation has been deduced from extrapolating intersections in petroleum wells. This base varies from approximately m deep over EPC'S 2337 and 2338 deepening in the north to 480m in EPC The main coal seam within the Winton Formation occurs at 130m from this base. The coal seams generally noted in the surrounding exploration areas seems to include a series of 1m seams above the main seam that is around m thick followed with three 1m seams, Figure 3. The cumulative thickness varies the depth of weathering across the project area is not well defined, but has elsewhere been reported as varying between 20-60m deep. Figure 3 NSL Consolidated EPC's Typical Cross-section There were fifty-eight (58) historical holes drilled in the northern section of this project area with the closest of these holes approximately 30km to the north-west of the project area. In the south the 30 holes of which six are within 10km of the project area. These holes were analysed and a cumulative thickness assigned of 8.5m for the Winton Formation and 0.5m for the Mackunda Formation. There is sufficient seismic data to run a full seismic study of this area. The quality of these holes indicates a thermal coal product with an exploration target tonnage range of between 6,600-18,050 Million tonnes1 within the Winton Formation (Table 1) and Million tonnes1 for the Mackunda Formation

8 (Table 2). The thickness of coal is based on the lithological information recorded from the historical exploration in close proximity to the project area, and correlated with the coal noted in petroleum well chip logs. In the available borehole data there are up to 15 seams present that vary in thickness. In the partially cored borehole C2 (1981, Pacific Coal), the defined Winton Formation coal seam is 6.66m thick and cumulatively there is 9.36m of coal. Geophysical logging of the lower part of the Winton Formation in the petroleum wells shows numerous seams of varying thickness and coal density. An average cumulative coal thickness of 10.9m was estimated from the cumulative coal isopach map produced from previous coal exploration, petroleum drill chip logs, and available geophysical logging, and is considered to be a conservative estimate. For each successive EPC moving north this thickness was decreased. A seam thickness of 0.5m has been used for the Mackunda Formation. Independent Geologist s Report at EPC Application 2198 EPC Application 2198 covers an area of 75 sub-blocks (approximately 213km2). The Tenement EPC Application 2198 is located in the Blackall Tambo shire region in Queensland, Australia, near the township of Emerald, which hosts the nearest airport. The tenement is situated 330km southwest from Emerald, 310km northwest of Roma. The closest town to the tenement is Mount Morris which is <30km northeast of EPC Application Some infrastructure is close to the tenement, including: the railway is 90km and the Warrego and Landsborough highway are approximately 50km away with minor roads providing access to the tenement. The railway is the most common form of transporting coal to port for exportation. The Barney Point Terminal in Gladstone is the nearest coal port. This port is set up for coal and has a laboratory and power station associated with it. Similar to the other EPC s, the Winton Formation covers most of the tenement area and has been the focus of recent nearby exploration efforts by other exploration companies to find large quantities of thermal coal amenable to beneficiation and open cut extraction. The intersected Winton Formation coal seams range in thickness from 1-7m. The main seam averages 3m in thickness. From preliminary investigations into historic drilling records, a gross in-situ tonnage estimate calculation was completed, using a 2.4m average cumulative thickness assigned across most of the tenement area. As previously reported, for EPC 2198 (South Bulburrum) these calculations resulted in an Exploration Target ranging between Million tonnes1 for the project, and this is included in the tables of all EPC s (Table 1 and 2) above. Future Work Program NSL is now reviewing a potential future work program for the Projects, based upon the recommendations of the Independent Geologist. These programs will potentially involve geophysical surveys and ultimately evaluation drilling. NSL s early priority for the projects

9 is to establish an outline of the necessary work required to reach resources to the JORC standard at the projects in the shortest time frame. - Ends

10 Appendix 2 Table JORC Sampling Criteria JORC Code explanation CP Comments Sampling techniques Drilling techniques Drill sample recovery Logging Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where industry standard work has been done this would be relatively simple (eg reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay ). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. For all historical coal exploration coal core was sampled on a ply basis and all coal samples were double bagged on site and transported to various laboratories in Brisbane (ACIRL, SGS and CCI) for testing. All coal quality samples were prepared and analysed using Australian Standard testing methodologies. All coal seams intersected were sampled, and any stone band greater than 0.10 m in thickness (depending upon the company) was sampled separately to the coal. Any stone band greater than 1.0 m in thickness was not sampled. All coal quality holes were cored (partially or fully) using a HQ size barrel (63 mm core diameter). Structural holes were fully chipped using blades or hammer and mud drilling fluids. A full list drill holes and drilling methods have been previously published to the ASX in July 2011 An assessment of core recovery was made in the field using the recovered thickness and thickness reported in the geophysical log. If core recovery for a seam fell below 80 % the seam was redrilled. Coal is sampled as is from the core and its representivity is dependent upon the core diameter size, i.e. the larger the diameter the more likely the coal is to break close to natural sizings All core was geologically logged, marked and photographed before sampling. All chipped holes had chips collected every metre that were then geologically logged. All holes were geophysical logged with a minimum of density, gamma and calliper. A full list of the geophysical tools run in each hole can be found at the end of Table 1, All geophysical tools were calibrated prior to arrival on site

11 Criteria JORC Code explanation CP Comments Sub-sampling techniques and sample preparation Quality of assay data and laboratory tests Verification of sampling and assaying Location of data points Data spacing and distribution If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivations etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. All coal core was double bagged on site and transported to the laboratory for testing. Various historical explorers used different Brisbane, laboratoris (noteably ACIRL and SGS) all of whom comply with Australian Standards for sample preparation and sub sampling. All coal samples were crushed to a top size of 12.5mm before analysis. ACIRL Laboratory, Brisbane, and others comply with Australian Standards for all coal quality tests run. Historical reporting records that where conducted, all geophysical tools were calibrated prior to arrival on site. A standard suite of geophysical sondes was run, including both long and short-spaced density calibrate internally to units of relative density (g/cc) As the majority of the sampling and analysis took place in the late seventies and early eighties, a detailed program of cross-checking, cross-correlation is required. It may be necessary for NSL Consolidated to drill a twinned hole nearby an historical coal quality hole in order to verify analytical results. All boreholes were drilled before surveying using hand-held GPS machines has become commonplace. At a late stage in each drilling program, total workstations and theodolites, as, operated by professional, qualified surveyors are used to obtain accuracies of 10% Exploration drilling has been conducted on a grid, spaced at 5,000 m along strike with infill drilling ever 3,000m, and 2,500 m perpendicular to strike. Nearest neighbour analysis suggests that the RMS Borehole density spacing is currently 4,800m for the whole deposit/model area

12 Criteria JORC Code explanation CP Comments Orientation of data in relation to geological structure Sample security Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The measures taken to ensure sample security. The strike of the Winton Formation at this locality is approximately 45 o with the drilling program panned about traverse lines designed perpendicular to strike at approximately 4,000m intervals, with the majority of the drilling progressing west, i.e. down-dip. The regional dip of the coal measures on the eastern limb of the Gumbardo Syncline is approximately 1-2o No NSL Consolidated drilling and sampling has yet taken place. Audits or reviews The results of any audits or reviews of sampling techniques and data. No audits yet undertaken. Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. Collectively, the EPC s comprising the Adavale-Quilpie project area cover 733 sub-blocks covering approximately 2,261 km 2. The project area covers sedimentary and volcanic rocks from the Eromanga, Galilee and Adavale Basins. The Eromanga and Galilee Basins are known to contain significant coal seams. EPC 2198 is 75 sub-blocks covering approximately 200 km 2. The project area covers sedimentary and volcanic rocks from the Eromanga, Galilee and Adavale Basins. The Eromanga and Galilee Basins are known to contain significant coal seams. In terms of infrastructure, the project area is located 62km due east of Mount Morris in south western Queensland. The railway line is 34km south of the project area, and continues to the port in Brisbane. Surrounding infrastructure includes rail and a major road, the Landsborough Highway (A2). This highway runs north-south between the Capricorn Highway and the Warrego Highway which is located 165km to the east of the tenement area. The project area is bisected by the Charleville-Adavale Road. Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. Previous exploratory drilling for coal has been undertaken in the region by Total Exploration, Mobil Energy, and Thiess Exploration, mostly in the period of Geology Deposit type, geological setting and style of mineralisation. The project area covers sedimentary rocks from the Eromanga, Galilee and Adavale Basins. The Eromanga and Galilee Basins are known to

13 Criteria JORC Code explanation CP Comments contain coal seams. The Eromanga Basin is present across the entirety of the project area, outcropping in part due to the anticlinal structure to the east. The Galilee Basin and Adavale Basin are both present at depth over EPC's 2336 and 2338 and in part on EPC In the locality of the project area there has been previous petroleum, coal bed methane, and coal exploration. It has been documented that the region also includes deeper sedimentary rocks from older Eromanga Basin formations (Westbourne, Birkhead, and Poolwanna Formations) that also contain coal. Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. General Structure characteristics are as follows Seams dip east at 1-2 degrees on the western limb of the Gumbardo Syncline Presence of faulting is not yet identifiable. The coal measures can be subdivided into three units; The upper and lower units are composed of interbedded sandstones and siltstones with no coal seams; The middle unit is approximately 500 metres thick and contains mainly shale with many thin coal seams; Drilling in the south of basin has identified 6 separate coal deposits and none of these have been mined; Local coal Seam Geology can be summarised as: The coal seams are characteristically lenticular and are often split by shale and sandstone bands. Working thicknesses of individual seams have been recorded at more than 1m and in some occurrences the coal seams are up to 2m thick, as illustrated in Figure 3. A full list of details of drill holes used in the Resource Estimate can be found in the table after Table 1. All drill holes have been modelled as vertical, however, hole deviation (form vertical) has been recorded for all holes.

14 Criteria JORC Code explanation CP Comments If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. Data aggregation methods Relationship between mineralisation widths and intercept lengths Diagrams Balanced reporting Other substantive exploration data Further work In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg down hole length, true width not known ). Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). All seams where multiple coal quality samples were taken were given a composite value (generated within the Ventyx software) weighting each quality by thickness and insitu density, with the exception of insitu density which is weighted on thickness. The current data within the Mount Morris coal deposit demonstrates, with sufficient confidence, that the deposit has lateral continuity, as coal seam groups are correlatable from available downhole geophysics over distances of 5,000m All appropriate diagrams are contained within body of report "Quilpie- Adavale Project EPC Independent Geologists Report for NSL Consolidated, July 2011" All prior exploration borehole data is available in the public domain through accessing relinquishment reports in QDEX. No other ground-based geophysical nor geochemical surveys have been carried out. Normal geological mapping is hampered by a thin veneer of Tertiary sedimentary rocks covering the coal seams of the Winton Formation. NSL Consolidated plan to increase the drilling and coal quality sample density south in EPC 2337 in their 2014 drilling program.

15 Criteria JORC Code explanation CP Comments Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Appendix 3 (Cont): JORC 2012 Table 1 Section 3 (Estimation and Reporting of Mineral Resources) Criteria JORC Code explanation Commentary Database integrity Site visits Geological interpretation Dimensions Estimation modelling techniques and Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. Data validation procedures used. Comment on any site visits undertaken by the Competent Person and the outcome of those visits. If no site visits have been undertaken indicate why this is the case. Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit. Nature of the data used and of any assumptions made. The effect, if any, of alternative interpretations on Mineral Resource estimation. The use of geology in guiding and controlling Mineral Resource estimation. The factors affecting continuity both of grade and geology. The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource. The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a NSL Consolidated stores all historicalexploration data within Ventyx s GDB database software that has several levels of validations. Data is also validated by ROM Resources and internal by checks run in the Minescape Stratmodel software No site visits undertaken Current historical borehole spacing (company, water bores, petroleum wells) are too sparsely-spaced to allow JORC Resource calculation. The coal extends along approximately 15,000m along strike and approximately 8,000 m perpendicular to strike with an approximate average cumulative thickness of 8 m. The depth of first coal ranges from 25 m in the west and 360 m in the east. Different levels of variability in seam thickness and raw coal quality are seen in the different seams estimated and this variability is reflected in the unexpected geological loss discount factors assigned to each seam. The geological model was constructed using Ventyx's Stratmodel modelling package, using an FEM interpolator, using 0,1,0 parameters for thickness, surface and trend respectively. A maximum distance of 5,000 m from a data point was used.

16 description of computer software and parameters used. The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. The assumptions made regarding recovery of by-products. As no previous mining has taken place and there is no surface outcrop of the Winton Formation at this locality (the former unit being covered by 5-30m of Tertiary sedimentary rocks, the geological model totally relies on sub-surface information provide by vertical boreholes Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation). In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. Any assumptions behind modelling of selective mining units. Any assumptions about correlation between variables. Description of how the geological interpretation was used to control the resource estimates. Discussion of basis for using or not using grade cutting or capping. The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available. Moisture Cut-off parameters Mining factors or assumptions Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content. The basis of the adopted cut-off grade(s) or quality parameters applied. Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made. Tonnages are estimated using calculated Preston and Sanders insitu density using air dried moisture, total moisture and moisture holding capacities from coal samples. As no MHC has yet been analysed, a derived moisture, based on coals from similar basins and rank in Australia will be used. Maximum Raw Ash Percentage - A maximum raw ash percentage of 55 %, air dried basis, will be applied to the Resource Estimate It is ROM s opinion that at this stage of project development there are no limiting environmental factors. It is also too early in the evaluation process to discuss mining methods and mining dilution, although mining by large open cut strip methods is envisaged. Metallurgical factors assumptions or The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential None made

17 metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made. Environmental factors assumptions or Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made. not applicable, too early in the project Bulk density Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. Preston and Sanders insitu Relative Density Estimation - The insitu density of the coal seams has been estimated using the Preston Sanders insitu relative density estimation equation. Due to the banded nature of coal seams in the Eromanga Basin, different bed moisture values have been assigned to the low ash, high ash and in seam stone samples as follows: Classification Discuss assumptions for bulk density estimates used in the evaluation process of the different materials. The basis for the classification of the Mineral Resources into varying confidence categories. Samples with raw ash, air dried basis (adb). less than 40 %, were assigned a bed moisture of 15 %. Samples with raw ash (adb) of 40 % to 60 %, were assigned a bed moisture of 12 %. Samples with raw ash (adb) greater than 60 %, were assigned a bed moisture of 5 %. The bed moisture values were derived from total moisture values that have been conducted on all samples and from public domain information published by Coalbank Limited regarding the Inverness Deposit (85km to the north; which is also looking to exploit coal seams in the Winton Formation No JORC Resources to the 2012 Code yet established. Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

18 Whether the result appropriately reflects the Competent Person s view of the deposit. Audits or reviews The results of any audits or reviews of Mineral Resource estimates. No audits of the Resource Estimate have been conducted for the November update, but the February initial resource estimate was auditted by Runge Limited who found the model "fit for purpose" and in a counter-estimate found similar tonnages to those estimated by ROM. Discussion relative accuracy/ confidence of Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. No geostatiscal studies have carried out yet on the Mount Morris deposit, but nearest neighbour and other univariate statistical studies of the WFS4 Floor data highlighted that the RMS nearest-neighbour spacing was 4,800m and that likely relative errors on the volumes calculated likely to be in the range of 20-35%, which is consistent for Inferred Resources. The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.