EXPLORATIONINUPDATE. 4 July 2011 FURTHER SIGNIFICANT COAL INTERSECTIONS ASX: GUF FURTHER SIGNIFICANT INTERSECTIONS ON SOUTH GOBI COAL PROJECT

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1 EXPLORATIONINUPDATE FURTHER SIGNIFICANT COAL INTERSECTIONS MONGOLIA 4 July 2011 ASX: GUF SHARE INFORMATION Issued Shares: 413m Listed Optins: N/A Unlisted Optins: N/A BOARD OF DIRECTORS Chairman: C. Ransley Dep. Chairman: T. Bellas MD: M. Avery Nn-Exec: M. Chester Directr: N. St Gerge Nn-Exec: A. Griffiths WEBSITE guildfrdcal.cm.au FURTHER SIGNIFICANT INTERSECTIONS ON SOUTH GOBI COAL PROJECT Fllwing n frm the previusly reprted cal utcrp mapping and cal intersectins at ptentially pen cut minable depths in EL13780X n the Suth Gbi Prject, Stage 2 drilling has cmmenced t quantify cal tnnages and qualities accrding t the JORC Cde and t prepare a Mining License applicatin. Drilling n the adjacent tenement EL5264X have intersected apprximately 21 metres apparent thickness f net cal at ptentially pen cut mineable depths. This included a seam f 13.7 metres (apparent thickness) in the Permian Deliin Shand Frmatin which is knwn t have ptential fr cking prperties. The intersectin thicknesses are t be cnfirmed by gephysical lgging at the cmpletin f drilling. EXPLORATION TARGET DEVELOPED ON MIDDLE GOBI COAL PROJECT An Explratin Target range f 29Mt t 149 Mt has been estimated fr the Middle Gbi Prject; the cal is likely t suit thermal markets and is ptentially amenable t pen cut mining methds. Gelgists believe that there is additinal upside ptential fr further drilling t increase this explratin target tnnage range. REGISTERED OFFICE Suite C1 1 Hneysuckle Dr Newcastle, NSW, 2300 Phne: +61 (2) Fax: +61 (2) inf@guildfrdcal.cm.au KEY PROJECTS HUGHENDEN (80%) Lcatin: Galilee Basin, QLD SIERRA (100%) Lcatin: Bwen Basin, QLD KOLAN (100%) Lcatin: Marybrugh Basin, QLD SOUTH GOBI (20% with ptin t increase t 70%) Lcatin: Suth Gbi Basin, Mnglia This Explratin Target range is based n 4km f mapped cal utcrp cmbined with multiple cal seams encuntered in bth histric and recent explratin brehles drilled. The intersectins are t be cnfirmed by gephysics and include net cal thicknesses f up t 9.2 metres in brehles. TOTAL EXPLORATION TARGET FOR MONGOLIAN COAL TENEMENTS The Explratin Target fr the Middle Gbi Prject brings the ttal Explratin Target Range fr Guildfrd s Mnglian subsidiary t 29 Mt t 609 Mt which is made up f 0 t 460 Mt fr the Suth Gbi Prject and 29 Mt t 149 Mt fr the Middle Gbi Prject. HUGHENDEN COAL PROJECT DRILLING PROGRESS Fllwing n frm the recently reprted drilling that intersected significant cal seams in brehle H005C with an interpreted 11.9 metres f net cal frm the Betts Creek Beds with multiple individual seams up t 5.5 metres in thickness. Drilling has prgressed slwer than expected n subsequent hles due t difficult drilling cnditins in the verlying Triassic sandstnes, hwever it is anticipated that Permian Betts Creek cal seams will sn be cred n the current hle. A secnd hle has been pre-cllared t just abve the interpreted psitin f the Permian Betts Creek cal seams als in preparatin fr cring. The Explratin Target range fr this regin will be released nce the results f the current drilling are incrprated int the gelgical mdel. The planned pattern f hles is als expected t deliver a significant JORC inferred resurce nce cmpleted. An Explratin Target fr the Hughenden White Muntain Prject f 40 t 815 Mt f Galilee Basin thermal cal fr the cmbined EPC1250 and EPC1260 has already been develped. 1

2 SOUTH GOBI PROJECT OVERVIEW The Guildfrd Suth Gbi Prject is lcated in the Suth Gbi Basin which is knwn t hst premium thermal and cking cal depsits f Permian age Suth Gbi Prject is the pririty prject which cvers large pen cut cal cking and thermal cal prspects cnsisting f 4 explratin licenses The Suth Gbi Prject is well lcated in the Suth Gbi desert apprximately 60km t the Chinese brder and adjacent t tw perating cal mines (SGS and MAK) These mines prduce in excess f 5 mtpa f high vlatile bituminus cals which are marketed as a mixture f bth thermal and cking cal prducts Cal is currently sld ROM (unwashed) at mine gate t Chinese traders wh transprt the cal by truck t a Chinese brder cal stckpile at Ceke where it is then transferred by rail t Chinese pwer statins and steel mills Target custmers are the grwing Chinese markets in Gansu prvince, Inner Mnglia and Shanxi prvince The Suth Gbi regin and gelgy allws fr lw-cst prductin, with average ROM cash csts estimated at belw US$20/t Selling prices fr (unwashed) ROM cal are nw estimated at up t US$50/t Licence 5264X Cre Trays 2

3 MIDDLE GOBI PROJECT OVERVIEW Middle Gbi Prject cnsisting f tw licences lcated in the Dundgvi Prvince which is apprximately 200km suth f Ulaanbaatar and just ver 200km west f the Mnglian railway grid with a lgistic rute t China via Erlianhate brder crssing It is als lcated less than 200km nrth f the Tavan Tlgi Prject with culd present an alternate lgistic path t the Chinese brder The tw Middle Gbi Prject explratin licences have an apprximate area f 36,000 hectares and are lcated in the cal bearing Ongi Gl Basin Ptential exists fr large shallw thick seam thermal cal depsits suitable fr pen cut mining The reginal gelgy is steeply dipping which ptentially prvides multiple hard and lw rank surface cal targets in clse prximity Ptential custmers cnsist f Mnglian and Chinese electricity generatrs There are tw ptential cal depsits lcated in the Middle Gbi Prject Tsagaan Ov Depsit (Licence 15466X) Tsakhiurt Gbi Depsit (Licence 12929X) 3

4 HUGHENDEN PROJECT OVERVIEW Lcated in the nrthern end f the cal bearing Galilee Basin in Queensland, Australia Cvers apprximately 16,500 square kilmetres f explratin permit applicatins fr cal f which an estimated 11,500 square kilmetres have been granted Targeting substantial exprt thermal cal tnnages with pen cut and undergrund mining ptential Lcated in clse prximity t infrastructure with the Mt Isa t Twnsville rail line running acrss the prject area Relatively uncmplicated gelgy f the Galilee Basin allws less intensive drilling t evaluate cal depsits Guildfrd Cal's titles under management are shwn as fllws: HUGHENDEN PROJECT 4

5 ABOUT GUILDFORD COAL Guildfrd Cal has established a prtfli f cal explratin tenement areas in Queensland, Australia and mre recently in Mnglia. Guildfrd Cal s Queensland tenements cver an estimated area f 20,000 square kilmetres and are defined within prject areas as fllws: Hughenden Prject (Galilee / Ermanga Basins): FTB (Qld) Pty Ltd (Guildfrd 80%) Orin Mining Pty Ltd (Guildfrd 80%) White Muntain Prject - EPC1250 (Guildfrd 100%) Klan Prject (Marybrugh Basin); Sierra Prject (Bwen Basin); Cmet Prject (Bwen Basin); Sunrise Prject (Surat/Bwen Basin); Mnt Prject (Nagrin Graben). - EPC1260 (Guildfrd 51%) Guildfrd Cal has an equity share in 6 tenements cntained in tw prjects in Mnglia thrugh its 20% sharehlding in Terra Energy LLC with the ptin t increase t a 70% sharehlding. The cal prjects are lcated in the Suth Gbi and Middle Gbi cal bearing basins which cntain thermal and cking cals. Guildfrd Cal s key bjective is t create sharehlder value thrugh the identificatin, securing and explratin and ptential develpment f cal depsits. In rder t achieve this bjective, Guildfrd Cal intends t: Drill and assess existing explratin permits with the aim f establishing cal resurces; Cmplement and diversify Guildfrd Cal s existing prtfli thrugh applicatin fr and acquisitin f additinal cal assets; Undertake prject develpment fr high pririty targets where ecnmic cal depsits are prven; and Ultimately prduce and sell a variety f cal prducts int exprt markets if successful in explratin bjectives. MICK AVERY Managing Directr T: +61(2)

6 Explratin Target References t Explratin Targets in this dcument are in accrdance with the guidelines f the JORC Cde (2004). As such it is imprtant t nte that in relatin t reprted Explratin Targets any references t quality and quantity are cnceptual in nature. Explratin carried ut t date is insufficient t be able t estimate and reprt cal resurces in accrdance with the JORC Cde (2004). It is uncertain if further explratin will result in the determinatin f a Cal Resurce. Cmpetent Persns Statement The infrmatin in this reprt is based n infrmatin cmpiled by Brendan Llyd, wh is a Member f the Australasian Institute f Mining and Metallurgy (208658) and has had sufficient experience which is relevant t the style f mineralizatin and type f depsit under cnsideratin and t the activities which are being undertaken t qualify as a Cmpetent Persn as defined in the 2004 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves. Mr. Llyd is Explratin Manager fr Guildfrd Cal Limited engaged under secndment frm Palaris Mining Pty Ltd and cnsents t the inclusin f the matters based n his infrmatin in the frm and cntext in which it appears. Mr Llyd has ver 10 years experience in explratin and mining f cal depsits. 6