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1 ASX ANNOUNCEMENT ICX increases Inferred Resources by 33% at Bundaberg coking coal project Highlights Results from recent drilling reported at International Coal Limited s Bundaberg Project (Figure 1) have been reviewed and a Resource Statement prepared to the new reporting standards required by the Joint Ore Reserve Committee (JORC 2012). The review has resulted in a 37.9Mt 1 Inferred Resource, which represents an increase of 33% on the previously announced resource (Figure 2). These results are from the same seams that were sampled and found to have hard coking coal characteristics comparable to hard coking coal mines in the Bowen Basin. Bundaberg Project Drilling Results 17 December 2013: International Coal Limited (ASX: ICX) is pleased to announce the results of recent drilling at the Company s Bundaberg Project (Figure 1 and 2) which has yielded an increased JORC Inferred Resource of 37.9Mt 1. This represents an increase of 33%, when compared to the inferred resource announced on 25 th March A substantial Exploration Target (20 to 45Mt 1 ) also remains as a result of the new drilling. The Company s Chief Executive Officer, Mr Glenn Simpson said, The ICX and Queensland Coal Investment (QCI) Joint Venture continues to receive good results from the Bundaberg Project. We look forward to developing a program for further refining our understanding of the resource, its size and continuity. 1 Details on constraints applied to JORC Inferred Resources are provided in Appendix 2. It should be noted that the Exploration Target tonnages quoted above are conceptual in nature and there has been insufficient exploration to define a coal resource. Although a preliminary analysis was undertaken, insufficient data exists to confidently correlate coal seams within the Exploration Target Masks. It is uncertain whether further exploration may lead to the reporting of a JORC-standard resource however there is some evidence to support the current exploration tonnage calculations, and the sufficient coal thicknesses interpreted from historic drilling to warrant further investigation in some areas. 1

2 Figure 1 Location of EPC 2194, 2195, 2196 (Bundaberg Project) Figure 2 EPC Inferred Masks for Burrum Coal Measure seams Stippled Mask is Inferred, others Exploration Target. Overburden cover lines are depth to the GU seam (metres) 2

3 Results reported under new JORC and ASX standards Results from drilling at EPC 2196 have been reconciled and reported in this release under the Joint Ore Reserve Committee (JORC) Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves 2012 Edition. Background EPC 2196 is located north west of Bundaberg on Queensland s east coast. A total of six boreholes at three sites, including three core holes (BUN006C, BUN010C and BUN011C) were drilled on EPC 2196 near Bundaberg in late A JORC Inferred Resource of 28.5Mtwas identified and reported on 25 th March The Exploration Target for the area was also upgraded, as reported to the market on 25 th March 2013, to a range of 20 to 40Mt (in addition to the JORC Inferred Resource). In October 2013, two further holes were drilled in EPC 2196 (BUN012P and BUN 013P) again intersecting coal seams in the Burrum Coal Measures as reported on 31 st October Depth and thicknesses of these seams are described in Table 1. Table 1 - Coal intersection in BUN012P and BUN013P Hole ID BUN012PR BUN013P From (m) To (m) Thickness (m) Lithology Seam CO CO CO C CO D CO F CO GU ST GU CO GU CO GL CO GL CO H CO CO E CO E CO GU CO GL ST GL CO GL ST GL CO GL CO GL CO H 3

4 Seams in the lower Burrum Coal Measures have been correlated between the sites drilled in EPC 2196 with a potential working section identified in the Lower Burrum seams. The most recent modelling also provided further control on the location and structure of the coal occurrences previously defined. Seams in the Lower Burrum Coal Measures can be correlated down dip from 240m to 560m. The regional dip is estimated at 9 o west-northwest (Figure 3). Figure 3 Correlation of geophysical signatures at sites in EPC 2196 As reported on 25 th March 2013, clean coal composite results from the key target seams, GU, GL1 and GL2 showed crucible swell numbers (CSN) between 8-9 (CF1.50), maximum Gieseler Fluidity (2500 ddpm), average ash of 9.5%, average calorific value of 7,450 kcal/kg at yields of 50%-65%. Summary The joint venture at Bundaberg continues to produce positive results for ICX shareholders. The Bundaberg Project remains a key project for the Company and the Board and management intend to progress its development as a matter of priority. For further information please contact: Glenn Simpson Chief Executive Officer Hugh Dai Executive Director

5 Appendix 1: JORC 2012 Table 1 Criteria JORC Code explanation CP Comments Sampling techniques 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. Drilling techniques 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). All coal core was sampled on a ply basis and all coal samples were double bagged on site and transported to Bureau Veritas laboratory Brisbane 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 0.05 m in thickness 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 March and October

6 Criteria JORC Code explanation CP Comments Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Logging 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. 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 95 % 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, Sub-sampling techniques and sample preparation 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 All geophysical tools were calibrated prior to arrival on site All coal core was double bagged on site and transported to the laboratory for testing. Bureau Veritas Laboratory, Brisbane, comply with Australian Standards for sample preparation and sub sampling. All coal samples were crushed to a top size of 12.5mm before analysis. 6

7 Criteria JORC Code explanation CP Comments sampled. Quality of assay data and laboratory tests Verification of sampling and assaying Location of data points Data spacing and distribution 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. Bureau Veritas Laboratory, Brisbane, comply with Australian Standards for all coal quality tests run. 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) BV Laboratory has adopted a sophisticated Excel spreadsheet Request-for-Analysis data entry system. As results are entered sophisticated macros cross-plot and correlate raw coal quality parameters that are used on industry-wide basis to check input data. If entered data plots beyond 2 standard deviations from the line of best fit then alarms are raised. All boreholes are initially surveyed using hand-held GPS machines with accuracies of ±10m as a first pass. At a late stage in each drilling program, differential GPS systems, operated by professional, qualified surveyors are used too obtain accuracies of 10% Exploration drilling has been conducted on a grid, spaced at 2,500 m along strike with infill drilling ever 1,250m, and 750 m perpendicular to strike with infill drilling between 350 m and 100m apart. Nearest neighbour analysis suggests that the RMS Borehole density spacing is currently 1,800m for the whole deposit/model area 7

8 Criteria JORC Code explanation CP Comments Orientation of data in relation to geological structure 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 strike of the Burrum Coal Measures at this locality is approximately 340 o with the drilling program panned about traverse lines designed perpendicular to strike at approximately 2,500m intervals, with the majortiy of the drilling progressing east, i.e. down-dip. The regional dip of the coal measures on the eastern limb of the Bundaberg Syncline is approximately 9 o Sample security The measures taken to ensure sample security. Sample security was ensured under a chain of custody between Salva Resources personnel and Bureau Veritas Laboratory, Brisbane Audits or reviews The results of any audits or reviews of sampling techniques and data. Bureau Veritas Laboratory, Brisbane undertake internal audits and check, in line with Australian Standards, to ensure their analysis results are consistent and reporting is correct. 8

9 Appendix 2 - Reporting of Exploration Results Criteria JORC Code explanation Commentary 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. The ICX-QCI JV holds title to three tenures in south-east Queensland which hold the potential for coal resources. These are Exploration Permits for Coal (EPCs) 2194, 2195 and 2196 in South East Queensland. EPC 2194 covers an area of 88 sub-blocks (approximately 274km 2 ). EPC 2195 covers an area of 23 sub-blocks (approximately 71.4km 2 ). The Bundaberg Project is centred upon EPC 2196, which covers an area of 8 sub-blocks (approximately 24.9km 2 ). The tenements are located immediately north and north-west of coastal city of Bundaberg, a city of approximately 65,000 residents and a regional population of about 100,000 people. The Burnett River passes through Bundaberg just south of the Tenement s southern boundary and enters Hervey Bay at Burnett Heads. Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. There has been coal exploration undertaken since the 1960s in the surrounding region which has targeted coal within the Burrum Coal Measures. Thiess Exploration in EPC79C ( QDEX: CR2954) drilled core hole 76C-2 to a depth of 97.5m just outside the south-west corner of the area now covered by EPC This hole intersected two coal seams of 0.3m and 1.52m thickness at depths of 51.8m and 57.6m respectively. No coal quality data is available. Target Exploration in EPC 82C ( QDEX: CR3355) drilled 16 open and partly-cored drill holes (TM series) within the area south of EPC Coal seams between 0.21m and 1.68m thick were encountered however these thicknesses are based on non-geophysically logged open 9

10 Criteria JORC Code explanation Commentary holes. Most drill holes intersected two thin coal seams ranging from 0.09m to 1.58m apart. One of the cored holes, TM75K6 intersected three thin coal seams between 0.49 and 0.62m over an interval of 2.49m (Figure 4). The coal quality data indicates coking coal characteristics with the potential to be prime coking coal. Figure 4: Coal Quality for Borehole TM75K6 Source: modified after Target Exploration (1970) Consolidated Gold Fields in EPC 88C (1971: QDEX CR3555) drilled three open holes and two core holes just outside the north-west corner of EPC Cored borehole CGA_3 drilled to a depth of 67.8m intersected three coal seams as shown in Figure 5. The cumulative coal thickness is 10

11 Criteria JORC Code explanation Commentary 2.44m. The coal quality data presented in this figure demonstrates the coking properties of the coal seams within the Burrum Coal Measures. The Gray King Coke Index of G2 to G3 indicates the coal would be potentially suitable for coke manufacture. The second core hole CGA_5 drilled only 200 metres and down dip from CGA_3 also intersected three relatively thin coal seams. The cumulative coal thickness was 1.2 metres. This thickness variation was considered by Consolidated Goldfields to be due to the lenticular nature of the coal seams. Figure 5: Coal Quality for Borehole CGA_3 11

12 Criteria JORC Code explanation Commentary Source: Modified after Consolidated Gold Fields (1971) Exploration by other Parties Recent ASX releases attest to the fact that Fox Resources are currently engaged in a drilling program in EPC 1523, but there has been no 12

13 Criteria JORC Code explanation Commentary indication that exploration is imminent in EPC Geology Deposit type, geological setting and style of mineralisation. The Maryborough Basin contains: Terrestrial and marine sedimentary sequence up to 10km thick; Late Triassic to Early Cretaceous age with some volcanic rocks; Sedimentary sequences is composed of fluvial sandstone overlain by fluvio-lacustrine coal measures; Unconformable volcanic and pyroclastic flows of Late Jurassic age overlie the coal measures and are in turn overlain by Cretaceous deltaic to marine sedimentary rocks, up to 5km thick. General Structure characteristics are as follows Seams dip east at 6-12 degrees on the western limb of the Bundaberg Anticline; Presence of faulting is not yet identifiable. The Burrum Coal Measures conformably overlie the Maryborough Formation in the east of the basin; 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 thin coal seams; Drilling in the south of basin has identified 13 separate coal seams and six of these have been mined; Local coal Seam Geology can be summarised as: 13

14 Criteria JORC Code explanation Commentary Drill hole Information Data aggregation methods 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. 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. 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 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. 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. 14

15 Criteria JORC Code explanation Commentary clearly stated. Relationship between mineralisation widths and intercept lengths Diagrams Balanced reporting Other substantive exploration data Further work 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). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. The current data within the Bundaberg coal deposit demonstrates, with sufficient confidence, that the deposit has lateral continuity. As such, data has been extrapolated a maximum of 2,600 m past the last drill hole, or the lease boundaries, whichever is encountered first. All appropriate diagrams are contained within body of report Bundaberg Report Modelling and Updated JORC Coal Resource Estimate, December All exploration results within the Bundaberg area have been reported with the exception of some registered water bore drilling that could not verified using a geophysical log or survey data. Due to the populated and cultivated nature of the ground (sugar cane farming) within the project area 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 Burrum Coal Measures. The International Coal /Queensland Coal Investments JV plan to increase the drilling and coal quality sample density south of the Kolan River in their 2014 drilling program. 15

16 Appendix 3 Technical Data One of the outcomes of recent Minescape modelling and resource estimation at EPC 2196 has been a direct comparison between calculations based on the 2004 and 2012 JORC code. At issue was the realisation that under the new Code, a large proportion of previously defined Burrum Coal Measures seams were more properly identified as insitu resources or "inventory coal". Detailed coal quality (only recently available) and the thin, wispy nature of the Upper Burrum Coal Measures coal seam plys was not completely considered in the estimation of the initial modelling (in February 2013 under the previous JORC). The implication for JORC standard Resources is the coal must have reasonable prospects of eventual economic extraction. A methodology for modelling the deposit appropriately to meet the 2012 JORC Code was devised, and involved identifying coaly plies out of the full geological sequence, based on the long and short-spaced down-hole geophysical density logs and assigning a composite relative density to each ply. Stringent cut-off parameters were applied to the coal plies thus: <0.2m excluded (for reporting); >1.76 kg/m 3 relative density (air-dried basis) excluded; >55% raw ash excluded; Plies above the base of weathering excluded; >520m depth below the ground surface excluded; From the cross-correlations established (for example see Figure 6 below which is wet insitu relative density vs raw volatile matter it is objectively possible to estimate a range of raw coal quality parameters, based on correlations of historical and company laboratory data available. 16

17 Figure 6 - Raw Coal Quality, Raw Volatile Matter Versus Wet, Raw Relative Density Correlation between Wet, Insitu Relative Density and Raw Volatile Matter y = x x R² = vm vs rdi Poly. (vm vs rdi) This data was loaded into the Minescape mine planning system from which geological models were constructed. Validation of compiled data, and models, were completed at the relevant stages. Full float/sink washability coal quality data is becoming available progressively for the boreholes within the EPC, and the geological model is being progressively updated to match the existing borehole data. Modelling cut-offs applied were: seam thickness greater than 0.05m (the actual reporting cutoff was 0.2m), and a maximum search distance of 5,000m. Based on this model, JORC Inferred Resource 2 tonnages in the lower Burrum Coal Measures have been estimated at 37.9Mt (refer to Table 2). The location of the masks and tonnage summary by depth break-up is shown in Figure 7 and Table 4 (below). An Exploration Target 2 in the range of 20 to 45Mt has been estimated in the same seams as the Inferred Resource (refer to Table 3 ), which is in addition to the JORC Inferred Resource mentioned above. 17

18 Table 2: EPC 2196 Inferred Resource Estimate December 2013 Formation Inferred Tonnage Raw Ash %adb Raw Volatile Matter %adb Raw Crucible Swell Number Raw Total Sulphur %adb Burrum Coal Measures % Constraints on the Inferred Resources are as follows: 1.) Coal seams not intruded or not outside the tenure boundaries; 2.) Coal thicknesses <0.2m excluded; 3.) The depth range of calculation was from the base of weathering to 450m below natural topography; 4.) Coal seams >55% adb from coal quality or estimated from downhole density logs (in g/cc) excluded from the calculations; 5.) A discount factor varying from 10-20% has been subtracted from the initial calculation for unexpected geological losses. This accounts for unexpected conditions such as seam thinning, splitting, or seams missing in barren zones around faults; 6.) The mine planning package used was Minescape and seam structure and thickness contours were generated using standard modelling algorithms and methodologies. Inferred masks were generated from base circles drawn 2,600m between Points of Observation; 7.) Points of Observation were defined as those boreholes that had known surveyed positions, detailed lithological logs and coverage of the target coal seams with a suite of downhole geophysical logs that must include density in units of Kg/m 3 ; 18

19 Table 3: EPC 2196, Comparison of Exploration Targets Feb - December 2013 Formation Year EPC Area (km 2 ) Estimated Average Thickness (m) Average Density 1 Gross Tonnage (Mt) Unexpected Geological Loss 2 (%) Inventory Coal (Insitu) (Mt) Exploration Target 3 (Mt) Burrum Coal Measures Feb Burrum Coal Measures Dec The Burrum Coal Measures has been given an average relative density of 1.45 g/cc, however the F and G seams have been assigned an average density of 1.40, due to their lower raw ash contents. These are to approximate wet, in situ densities as no moisture holding capacity tests exist to calculate the Preston and Sanders corrections. 2 Unexpected geological loss mainly due to seam splitting and thinning over large distances between boreholes. 3 It should be noted that the tonnages quoted above are conceptual in nature and there has been insufficient exploration to define a coal resource. Although a preliminary analysis was undertaken, insufficient data exists to confidently correlate coal seams. It is uncertain whether further exploration may lead to the reporting of a JORC-standard resource however there is some evidence to support the current exploration tonnage calculations, and the sufficient coal thicknesses interpreted from historic drilling to warrant further investigation in some areas. 19

20 Table 4: EPC 2196 Inferred Resources by Depth Figure 7 Bundaberg Resources - Waterfall Comparison Chart Feb-Nov 2103 Comparison Feb-Nov 2013 Inferred Resource Estimates: Waterfall Chart 20

21 Appendix 4 - Coal resource statement of competence and compliance Technical information in this memo is based on, and fairly reflects, the information and supporting documentation compiled by Mr Mark Biggs, Principal Geologist of ROM Resources. The Minescape Resource model update is based on factual geological data provided by the ICX/QCI Joint Venture over a period of three (3) months as well as pre-existing data from Government stratigraphic drilling and other historical 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 Competent Persons Statement 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) The technical information in this report is being released to the Australian Stock Exchange. 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 estimates of the Coal Resources presented in this Report are considered to be a true reflection of the Coal Resources as at 19th November 2013 and have been carried out in accordance with the principles and guidelines of the Australian Code for Reporting of Coal Resources and Coal Reserves published in December 2012 (JORC Code). Where quoted, it should be noted that Exploration Target tonnages calculated in the report are considered non-jorc and are conceptual in nature. There has been insufficient exploration to define a Coal Resource in the Exploration Target masks 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

22 Appendix 5 - Glossary Alluvium: Anticline: Basin: Borehole: Coal: Coal Measures: Coal Quality: Inferred Indicated Measured Competent Person: Cretaceous: CSN: Sediments transported and deposited by running water. A fold, enclosing in any direction, in which the older rocks occupy the core. 1. A synclinal structure with a sub-circular outcrop. 2. A topographical depression containing, or capable of receiving, sediment. A hole drilled for exploration or exploitative purposes. A combustible, organoclastic, sedimentary rock containing >50% by weight of carbonaceous material and moisture and composed mainly of lithified plant remains. A series of strata containing economically workable coal seams. The presence of a suite of physical and chemical characteristics of a coal seam, which might indicate the potential utilization of the coal, whether as a raw product, a sized coal product, a washed coal product, or combination of the above. An Inferred Mineral Resource is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability. An Indicated Mineral Resource is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed. A Measured Mineral Resource is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity. A Competent Person is a person who is a Member or Fellow of The Australasian Institute of Mining and Metallurgy or of the Australian Institute of Geoscientists, or of a Recognised Overseas Professional Organisation ( ROPO ) included in a list promulgated from time to time. A Competent Person must have a minimum of five years experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which that person is undertaking. The youngest period of the Mesozoic Era, from million to 65 million years ago, characterized by the greatest development and subsequent extinction of dinosaurs and the advent of flowering plants and modern insects. Crucible Swelling Number; A parameter indicating the suitability of coal for coke manufacture, involving the measurement of the profile of the coke residue after heating a small sample of coal to 800 C under standard conditions. 22

23 Deposition: Exploration Target: Fault: Fluvial: Formation: The settling from suspension of transported sediments. Also, the precipitation of chemical sediments from mineral rich waters An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate quoted as a range of tonnes and a range of quality, relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource. A discontinuous surface across which there has been shear displacement. pertaining to a river or stream: fluvial deposits A group of beds used in lithostratigraphy, the smallest unit mappable on a reasonable scale. Geological Model: The computer generated three-dimensional representation that represents the areal, volumetric, tonnage and coal quality attributes of the specific Coal Deposit, based on all the relevant geological data, and is prepared by the Competent Person or Technical Specialist with sufficient experience in modelling such a Coal Deposit. Independent Geologists Report: Intrusion: A report compiled by a geologist who is not affiliated with the ownership of the exploration permit in question. The report will contain an Exploration Target Tonnage or a Mineral Resource Estimate in line with the JORC code. An igneous rock body that formed from magma that forced its way into, through or between subsurface rock units JORC: Australasian Joint Ore Reserves Committee (JORC), which is sponsored by the Australian mining industry and its professional organisations. The Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code) is widely accepted as a standard for professional reporting purposes. Jurassic: Lacustrine: Noting or pertaining to a period of the Mesozoic Epoch, occurring from 190 to 140 million years ago and characterized by an abundance of dinosaurs and the advent of birds and mammals. Formed at the bottom or along the shore of lakes, as geological strata. Mineral Resource: A Mineral Resource is a concentration or occurrence of material of intrinsic economic interest in or on the Earth s crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. Mining Model: The computer generated representation that represents the scheduled Waste volume (in opencast mining), ROM tonnage, Saleable tonnage and Product coal quality attributes of the specific Coal Reserve, based on the output from the Geological Model, which must consider key inputs from the Mine Design considerations, any geotechnical constraints, ventilation constraints, machine selection criteria and productivity considerations, process flow and coal processing design aspects, and which is prepared by a Competent Person or technical Specialist with sufficient experience in scheduling such a Coal reserve. Probable Reserve: Economically mineable coal derived from a measured or indicated coal resource, or both; it is estimated with a lower level of confidence than a proven coal reserve; inclusive of diluting and contaminating materials and allows for losses that may occur when the material is mined. Project: A coal resource block, either wholly or partially owned by the ICX-QCI JV, which is at an advanced phase of evaluation with a Geological Model and associated coal resource estimate at least at an Indicated Coal Resource status. Proved Reserve Economically mineable coal derived from a measured coal resource; it is estimated with a high level of confidence and is inclusive of diluting and contaminating materials and allows for losses that may occur 23

24 when the material is mined. Public Report: Reserve: Resource: Outcrop: Permian: Pyroclastic: Point of Observation: Reefs: Syncline: Tectonics: Tertiary: Triassic: Tuff : Quaternary: Report on coal resources or reserves, prepared for the purpose of informing investors or potential investors and their advisers, or satisfying national regulations and statutory requirements. Economically mineable coal derived from a measured or indicated coal resource, or both; inclusive of diluting and contaminating materials and allows for losses that can occur when the material is mined. Occurrence of coal of economic interest in or on the earth s crust in such form, quality and quantity that there are reasonable and realistic prospects for eventual economic extraction. the total area over which a particular rock unit occurs at the surface. Of, denoting, or formed in the last period of the Palaeozoic era, between the Carboniferous and Triassic periods, which lasted for 60 million years. Composed chiefly of rock fragments of explosive origin, especially those associated with explosive volcanic eruptions. Volcanic ash, obsidian, and pumice are examples of pyroclastic materials. A Borehole which contains Coal Quality Analysis and/or downhole geophysical survey. A ridge of rocks or sand, often of coral debris, at or near the surface of the water. A fold, enclosing in any direction, in which the youngest rocks occupy the core. The study of processes that move and deform Earth's crust. Noting or pertaining to the period forming the earlier part of the Cenozoic Era, occurring from 65 million to 2 million years ago, characterized by the development and proliferation of mammals. Noting or pertaining to a period of the Mesozoic Era, occurring from 230 to 190 million years ago and characterized by the advent of dinosaurs and coniferous forests. A fragmental rock consisting of the smaller kinds of volcanic detritus, such as ash or cinder, usually more or less stratified. Noting or pertaining to the present period of earth history, forming the latter part of the Cainozoic Era, originating about 2 million years ago and including the Recent and Pleistocene Epochs. 24