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1 ASX Release 25 October 2012 SIGNIFICANT COAL INTERSECTED IN DRILLING AT GROUNDHOG HIGHLIGHTS DDH-GH intersected 36.0m and DDH-GH intersected 30.4m of cumulative coal in multiple seams between 0 and 400m depth 20m cumulative coal average across multiple seams were encountered over the entire 15 hole drill program with many holes remaining open to further coal at depth Significant coal intersections across the entire 83km 2 target area including individual intersections of 1.4m to 8.2m starting at 13m depth and down to a depth of 400m Near ear-surface coal seam intercepts include: 1.4m of coal from 12.88m to 15.00m in DDH-GH m of coal from 19.65m to 23.20m in DDH-GH m of coal from 48.42m to 52.95m in DDH-GH m of coal from 74.10m to 77.23m in DDH-GH Atrum expects to expand significantly on Groundhog s current 159Mt JORC resource (57.1Mt Indicated / 101.9Mt Inferred) following modelling of the current drilling results resource upgrade expected Q samples have been sent for comprehensive coal quality testing initial coal c quality results expected before end of Q Scoping study and coal product market assessment expected to be commissioned in the coming weeks scoping study expected to be complete by the end of Q Aim to deliver a low cost and simple open cut coal operation Targeting high ranking and high value anthracite coal (semi anthracite & anthracite) for metallurgical application to the steel and ferro-alloy industries ASX:ATU - Share Information Issued Shares: 101.7m Registered Office Ground Floor, 510 Hay Street, Subiaco WA 6008 T E info@atrumcoal.com Board of Directors Non Executive Chairman Executive Director Executive Director Non Executive Director Company Secretary J. Chisholm R. Moran G. D Anna E. Lilford G. D Anna Key Projects Groundhog Peace River Naskeena Bowron River Ownership: 100% Ownership: 100% Ownership: 100% Ownership: 100%

2 Focused Canadian metallurgical coal explorer and developer, Atrum Coal NL ( Atrum Atrum or the Company Company ) (ASX: ATU) is pleased to announce the results of the Company s maiden drill campaign at its flagship Groundhog Coal Project ( Groundhog Groundhog ), located in British Columbia, Canada. Commenting on the exploration drill results, Executive Director Mr Russell Moran stated: Our maiden drill campaign has uncovered thick shallow coal seams. This will be a key driver in delivering a low cost metallurgical coal operation at Groundhog. The results from this drilling campaign demonstrate the existence of multiple coal seams across the entire property and further support the Company s belief that significant coal resources are in place at Groundhog. Figure 1: Coal at DDH-GH GH and Atrum management Each drill hole intersected multiple coal seams, and several thick seams were intersected close to surface. Consistent drill intercepts throughout the property suggest continuous strike of the coal bearing geology. The drill program included fifteen (15) cored diamond drill holes which were designed to expand the current JORC Indicated and Inferred resource at Groundhog with a number of holes targeting the northern and southern extensions of the previously explored central core area. Several thick coal intersections were encountered and the Company believes that these areas could also be capable of supporting a low cost open cut mining operation. DRILLING INTERCEPTS On 17 October 2012, the Company completed the drilling and downhole wireline geophysical logging for its inaugural fifteen (15) hole program at Groundhog. The results of this program exceeded expectations with significant cumulative coal encountered throughout the entire 83km 2 target project area. Up to 36.0m of cumulative coal in multiple seams to a depth of 400m with individual coal intersections of up to 8.2m (DDH-GH-12-11) were encountered. Drill hole DDH-GH-12-09, which was drilled in the north-west area of the project, intersected 30.4m of cumulative coal to a depth of approximately 400m, including an individual coal intersection of 7m. An average of 20m of cumulative coal across multiple seams was encountered throughout the 15 hole program. This underpins the Company s belief that extensive coal resources are in place at Groundhog, and that a significant increase to the current JORC Indicated and Inferred resource will occur following structural interpretation and modelling. #All intercepts reported are drilled thickness and may not represent true thickness.

3 The previous Exploration Target of 390Mt to 510Mt at Groundhog (refer to Prospectus dated 25 th May 2012) was based on a cumulative coal average of 10m to a depth of 250m. The current program has demonstrated potential for significantly greater cumulative coal across the property and thus a larger global resource target. The Company has further enhanced its understanding of the structural geology at Groundhog, including those areas which have previously been under-explored. The average depth of the holes drilled was 330m with many holes remaining open at depth for a further extension of the coal resources. Significant near-surface coal seam intercepts include: 2.7m of coal from m to m in DDH-GH m of coal from 14.05m to 15.40m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from 74.10m to 77.23m in DDH-GH m of coal from 19.65m to 23.20m in DDH-GH m of coal from 58.55m to 62.40m in DDH-GH m of coal from 48.42m to 52.95m in DDH-GH m of coal from 90.15m to 93.60m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from 12.88m to 15.00m in DDH-GH m of coal from m to m in DDH-GH Other significant coal seam intercepts include: 3.5m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH m of coal from m to m in DDH-GH An extract from results of the current drill program is contained in Appendix B. These results are based on a coal seam cut-off of 0.6m.

4 COAL SAMPLING In excess of 800 samples taken from the current drilling program have been sent to the laboratory in Calgary for testing including proximate analysis, ultimate analysis, petrography, ash chemistry and a selection of other tests for metallurgical coal, on both a raw and washed coal basis. The Company expects initial results from these tests will be announced before the end of Q Figure 2: Coal sample s taken at Groundhog Atrum is targeting a coal resource that is amenable to open-pit mining which includes a low volatile semi-anthracite and anthracite product suitable for metallurgical application. COAL RESOURCES The current JORC resources at Groundhog are summarised in the tables below: JORC Category Resource Indicated 57.1Mt Inferred 101.9Mt Total 159Mt Figure 3: JORC resources at Groundhog JORC Resource Breakdown By Depth 0 50m 0 100m 0 150m 0 200m 29.7% 67% 91.5% 99.9% 47.2Mt 106.5Mt 145.5Mt 158.8Mt Figure 4: JORC resources at Groundhog by depth Groundhog s 159Mt JORC Indicated and Inferred resource is considered to be amenable to open cut exploitation with more than 90% of the current resource occurring between 0 and 150m. A further JORC resource upgrade is expected in Q following modelling of the current drill program and structural interpretation. INDICATIVE COAL QUALITY AND PRODUCT Coal quality testing by previous explorer Quintana Minerals Limited, from a drill hole proximate to the central core area at Groundhog, demonstrated the potential to wash the coal and achieve a 65% yield (at 1.65 SG) with the following characteristics: Sample Air Dry Moisture Yield (1.65 SG) Ash Volatile Matter Fixed Carbon Sulphur Calorific Value (kcal/kg) Seam % 60.6% 10.3% 5.9% 83.9% 0.39% 7,480 Seam % 80.6% 5.3% 5.5% 89.1% 0.79% 8,056 Seam % 69.4% 6.7% 6.7% 87.7% 1.32% 7,915 Seam % 47.7% 9.0% 5.6% 85.4% 0.35% 8,024 Average 0.63% 65.8% 7.6% 6.1% 86.8% 0.84% 7,874 Figure 5: Indicative coal quality from nearby diamond drill hole

5 Testing was based on four individual seams with samples taken at 29.3m, 72.3m, 79.1m and 136.6m depth. Coal type was categorised as a low-volatile semi-anthracite / anthracite rank. The type of coal most favoured for PCI is semi-anthracite / anthracite with low ash, low sulphur, high calorific values, high carbon content and low volatiles. The replacement ratio of low volatile semi-anthracite / anthracite to coking coal varies according to the requirements of each blast furnace, however typically, 1.0 tonne of low-volatile semi-anthracite / anthracite can replace 1.5 tonnes of more expensive coking coal. Low volatile semi-anthracite / anthracite is increasingly sought by steel mills in preference to high volatile bituminous coal that has traditionally been used as PCI coal. Low volatile semi-anthracite / anthracite provide superior performance in the blast furnace due to higher carbon and energy content. The worldwide shortage of coke and its relatively high price further strengthens future demand for low volatile semi-anthracite / anthracite. A coal product market assessment is expected to be commissioned in the coming weeks. RAIL & PORT INFRASTRUCTURE Figure 6: Rail easement traversing Groundhog Groundhog is located in close proximity to key mining infrastructure, including power, water, rail and port. A rail easement or right-of-way completed by the British Columbia Railway ( BCR BCR ) foundation, runs adjacent to the project for approximately 30km southwards where it connects with existing rail at the Minaret Terminus and continues on to the dedicated coal terminals at the deep sea ports of Prince Rupert and Port Metro Vancouver including Ridley, Neptune and Westshore (see Figure 6). CN Rail operates under a long term lease arrangement with BCR, and operates the rail line between Prince George and Port of Prince Rupert and on the Dease Lake Line to Minaret, approximately 30km south of Groundhog. A scoping study for Groundhog is expected to be commissioned in the coming weeks, with results expected by the end of Q The Company is planning a follow up drill campaign commencing in Q which will be designed to delineate and expand Measured resources at Groundhog and transition to the delineation of a mineable reserve.

6 For further information contact: Russell Moran Gino D Anna Executive Director Executive Director M M russell@atrumcoal.com gino@atrumcoal.com James Chisholm Nathan Ryan Non Executive Chairman Investor Relations M M james@atrumcoal.com nathan@atrumcoal.com Exploration Targets This announcement refers to Exploration Targets as defined under Section 18 of the JORC Code. The Exploration Target quantity and quality is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the Exploration Target being delineated as a mineral resource. Competent Person Statement The information in this document that relates to Mineral Resources or Ore Reserves is based on information compiled by Robert J Morris M.Sc P.Geo, who is a Member of a Recognised Overseas Professional Organisation (ROPO) included in a list promulgated by the ASX from time to time, being the Canadian Institute of Mining and Metallurgy. Mr Morris is a consultant of the independent consulting firm Moose Mountain Technical Services and has sufficient experience which is relevant to the style of mineralisation and type of deposit and mineralisation under consideration by them and to the activity which they are 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 Morris consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this document that relates to Exploration Results is based on information compiled by Brad Van Den Bussche B.Sc P.Geol, who is a Member of a Recognised Overseas Professional Organisation (ROPO) included in a list promulgated by the ASX from time to time, being the Canadian Institute of Mining and Metallurgy. Mr Van Den Bussche is an employee of Atrum Coal NL and has sufficient experience which is relevant to the style of mineralisation and type of deposit and mineralisation under consideration by them and to the activity which they are 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 Van Den Bussche consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

7 For personal use only APPENDIX A DRILL HOLE LOCATIONS Figure 7: 7: Drill hole locations for 2012 exploration program at Groundhog

8 APPENDIX B DRILL HOLE LOGS The tables below detail coal intersection logs for the drill program: Depth From Depth To DDH-GH Cumulative Coal Total Cumulative Coal # No cut-off Total Total Drill Hole Depth Depth From DDH-GH Cumulative Coal Depth To Total Cumulative Coal # No cut-off Total Total Drill Hole Depth

9 Depth From Depth To DDH-GH Cumulative Coal Total Cumulative Coal # No cut-off Total Total Drill Hole Depth Depth From DDH-GH Cumulative Coal Depth To Total Cumulative Coal # No cut-off Total Total Drill Hole Depth

10 Depth From DDH-GH Cumulative Coal Depth To Total Cumulative Coal # No cut-off Total Total Drill Hole Depth Depth From DDH-GH Cumulative Coal Depth To Total Cumulative Coal # No cut-off Total Total Drill Hole Depth

11 Depth From DDH-GH Cumulative Coal Depth To Total Cumulative Coal # No cut-off Total Total Drill Hole Depth Depth From Depth To DDH-GH Cumulative Coal Total Cumulative Coal # No cut-off Total Total Drill Hole Depth

12 DDH-GH Depth From Depth To Cumulative Coal Total Cumulative Coal # No cut-off Total Total Drill Hole Depth Depth From Depth To DDH-GH Cumulative Coal Total Cumulative Coal # No cut-off Total Total Drill Hole Depth

13 DDH-GH Depth From Depth To Cumulative Coal Total Cumulative Coal # No cut-off Total Total Drill Hole Depth DDH-GH Depth From Depth To Cumulative Coal Total Cumulative Coal # No cut-off Total Total Drill Hole Depth

14 Depth From Depth To DDH-GH Cumulative Coal Total Cumulative Coal # No cut-off 2.38 Total 4.17 Total Drill Hole Depth Depth From Depth To DDH-GH Cumulative Coal Total Cumulative Coal # No cut-off Total Total Drill Hole Depth

15 Depth From DDH-GH Cumulative Coal Depth To Total Cumulative Coal # No cut-off Total Total Drill Hole Depth

16 ABOUT ATRUM Atrum is an emerging metallurgical coal explorer which owns 100% of the Groundhog, Peace River, Naskeena and Bowron River coal projects in British Columbia, Canada. The Company s flagship Groundhog Project has a JORC Indicated and Inferred Resource of Mt from 0 200m depth (57.1Mt Indicated and 101.9Mt Inferred) with additional exploration upside. The Company also has three other wholly owned coal projects: Coal Projects Size (Ha) JORC Resource (Mt) JORC Exploration Target (Mt) Peace River 5, Naskeena 11, Bowron River 3, Table 1: Atrum Coal Project JORC Resources and Exploration Targets Map 1: Location of Atrum Coal Projects

17 CANADA ADVANTAGE Atrum has targeted British Columbia due to its relative: a. abundance of high quality metallurgical coals; b. well developed rail and port infrastructure with excess capacity; c. access to deep sea ports; d. competitive shipping distance to Asia; and e. positive government stance on mining Canada is one of the world s leading coking coal suppliers to the seaborne market. Map 2: Shipping distances from British Columbia to Asian markets The Company s projects are targeting PCI, coking and anthracite coals suitable for use in the steel and ferromanganese industries. Chart 1: Spectrum of Coal Types