BALAMARA SECURES ADVANCED WORLD-SCALE COKING COAL PROJECT IN POLAND

Level 1, 350 Hay Street, Subiaco, WA 6008 ABN 84 061 219 985 P: +61 8 6365 4519 F: +61 8 9388 6040 E:enquiries@balamara.com.au 24 July 2013 BALAMARA SECURES ADVANCED WORLD-SCALE COKING COAL PROJECT IN POLAND Feasibility studies to commence as part of plan to resume production at Nowa Ruda Highlights: Balamara scores a major coup with the Polish Government awarding it exclusive rights to the Nowa Ruda coking coal concessions in Poland 100% ownership via Balamara s local Polish subsidiary, Coal Holdings Sp z.o.o. Concessions include predominantly coking coal plus significant volumes of anthracite coal and high-grade thermal coal within the Lower Silesian Coal Basin. Nowa Ruda had consistent historical production of ~1Mtpa of high-quality coking coal up to its closure in 1995: o Extensive geological & production database available within the Polish Geological Institute allowing fast-track to feasibility; o Existing underground development including production and ventilation shafts and surface infrastructure; and o Strong local and regional support to return the mine to production within three years. The current international coking coal sales price is approximately $150 per tonne, and Balamara expects Nowa Ruda to be in the lower percentile for unit production costs due to its geographic location. Three operating coke plants located within 100km radius of Nowa Ruda, all linked by rail to the Project, providing a ready local market for the coal produced. Historically over 90% of Nowa Ruda coal was sold into these coke plants. Balamara to focus on collating existing historical data and undertake a programme of confirmatory drilling and testwork in order to produce an initial JORC compliant Mineral Resource, prior to undertaking a Feasibility Study. Balamara Resources Limited ( Balamara or the Company ; ASX: BMB) is pleased to announce that it has been awarded the exclusive rights to a world-scale coking coal project in south-western Poland which comprises a previously developed underground mine with historical production over several decades of around 1Mtpa of high quality coking coal. 1

The Government of Poland has awarded the rights to explore and develop the Nowa Ruda Coal Project to Balamara s 100%-owned Polish subsidiary company, Coal Holdings Sp z.o.o., providing an exciting opportunity for the Company to reposition itself as a significant midtier player in the international coal industry. As a result of this important breakthrough in the Company s ongoing search for major resource assets with company-making potential, Balamara intends to embark on a corporate restructure, including the potential divestment of its existing base metal projects in Central Europe and Australia, to enable it to focus on the development of this Tier One asset. Any such disposal would be subject to any regulatory approvals. Balamara will continue to progress activities relating to the Togo Phosphate Project in West Africa, where it remains one of the final three short-listed parties. NOWA RUDA PROJECT The Nowa Ruda Project is located in the Central Sudeten range within the Lower Silesian Coal Basin, close to the Czech Republic border. It consists of a single lease area covering two large, adjacent coal deposits known as the Waclaw and Piast deposits. The project covers a surface land area of approximately 20sqkm and extensive key infrastructure including roads, rail, power and water is in place in this area. The current Licence can be converted to a Mining Licence subject to the successful completion of a Feasibility Study. The Licence has been awarded directly from the Polish Government, with only a minor concession fee payable. Nowa Ruda was a substantial producing underground coal mine for a large part of the last century, before being placed on care and maintenance at the end of 1995 due to lower coking coal prices along with excessive and inefficient cost structures attached to the overall project; these structures were established by the Communist Government almost 50 years ago. Balamara considers that the overall cost structures can be better managed by the Company operating this Project more commercially, and coupled with considerably higher prices for end-product as exists today this creates a significant opportunity for shareholders. There are official Polish estimates of mineralization for both the Waclaw and Piast deposits and these are reported in this announcement as foreign estimates under ASX listing rule 5.10. These foreign estimates are obtained from official reports and annexes issued by the Polish Ministry of Mines and Ministry of Environmental Protection. They are shown as two tables overleaf with Table 1 containing tonnages and coal quality in various categories and Table 2 containing coal tonnage versus various coal parameters. 2

Table 1: Nowa Ruda Coal Project tonnages and coal classifications (Polish system)* Deposit Tonnes (000's) Coal (Polish Classification) Coal Type Waclaw Total 83,886 C1 48,748 including 4,895 type 32: gas-cannel coal high grade thermal coal 4,584 type 33: gas coal high grade thermal coal 9,889 type 34: gas-coking coal lower grade coking coal 5,297 type 35: ortho-coking coal coking coal 11,005 type 37: semi-coking coal coking coal 13,078 type 41: anthracite coal anthracite coal C2 35,138 including 3,374 type 32: gas-cannel coal high grade thermal coal 595 type 33: gas coal high grade thermal coal 10,815 type 34: gas-coking coal lower grade coking coal 10,680 type 35: ortho-coking coal coking coal 9,093 type 37: semi-coking coal coking coal 581 type 41: anthracite coal anthracite coal Piast Total 22,636 A + B 15,491 including 2,766 type 35: ortho-coking coal lower grade coking coal 12,725 type 37: semi-coking coal coking coal C1 1,373 including 347 type 35: ortho-coking coal lower grade coking coal 1,026 type 37: semi-coking coal coking coal C2 5,772 including 1,404 type 35: ortho-coking coal lower grade coking coal 4,368 type 37: semi-coking coal coking coal TOTAL 106,522 predominantly coking coal *It should be noted that: the foreign estimates are not reported in accordance with the JORC Code; A Competent Person has not yet done sufficient work to classify the foreign estimates as mineral resources or ore reserves in accordance with the JORC Code; and It is uncertain that following evaluation and/or further exploration work that these foreign estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code. 3

Table 2: Nowa Ruda Coal Project tonnages and coal parameters* Coal Deposit Waclaw Piast Total Tonnage (000's) 83,886 22,636 106,522 Classifications: including A + B 15,491 15,491 including C1 48,748 1,373 50,121 Including C2 35,138 5,772 40,910 Calorific value (kcal/kg) 6,523 6,500 6,518 Ash content (%) 18.35 31.23 21.09 Sulphur (total) (%) 1.09 0.7 1.01 *It should be noted that: the foreign estimates are not reported in accordance with the JORC Code; A Competent Person has not yet done sufficient work to classify the foreign estimates as mineral resources or ore reserves in accordance with the JORC Code; and It is uncertain that following evaluation and/or further exploration work that these foreign estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code. ASX listing rule 5.12 is concerned with the reporting of foreign estimates and specifies the additional information that must be provided in a market announcement that contains a foreign estimate. This information is contained in the Accompanying Notes at the end of the announcement. 4

Figure 1: Project Location Map showing Nowa Ruda Project in South-West Poland HISTORICAL PRODUCTION Coal mining has been conducted in the Lower Silesian Basin since 1771, making this one of the oldest coal producing regions in Poland, typically averaging 0.25-0.5Mt (million tonnes) coking coal per annum prior to 1945. Post 1945 production increased significantly and around 1980-1995 production peaked at an average 1.0-1.2Mtpa. Seam thickness ranges up to 2.75m at the Waclaw Deposit and up to 7.0m at the Piast Deposit. The coal is of a high-grade hard coking coal quality, with a calorific value ranging from 6,500kcal/kg to 6,700kcal/kg. The sulphur content is around 1.0%. 5

Historically most Nowa Ruda coal has been sold to local coking plants which then produced coke for use in regional smelters for steel-making. There are three existing coke plants in operation, all within a 100km radius of the Project, all of which are linked to Nowa Ruda by rail. At present some of these coke plants are sourcing coal from as far away as the United States and therefore offer an obvious opportunity for future production off-take. Over the two decades up until closure the mine (1995) Nowa Ruda produced approximately 1Mtpa of coking coal and over 90% of this coal was sold into local coke plants, with the majority being sold into the Walbrzych plant, located only 40kms away and linked by rail. This gives Balamara further confidence that the end-product may be acceptable to local coke plant requirements. The Project has considerable infrastructure in place, including extensive underground development, which includes: Production and ventilation shafts the main shafts are in place but require regeneration work as they were capped and stripped of equipment; however the time and cost to bring these back to a ready state for production will be considerably less than developing completely new shafts; Horizontal underground development work, including cross-cuts and access drives between the two main deposits this is important in terms of timing and cost savings, but also because this access may allow both of the main deposits to be mined simultaneously through one production shaft without having to sink another one elsewhere; and Surface infrastructure such as roads, rail, power and water are all available at the mine gate. 6

Figure 2: Coal Concessions in relation to the local district, including projected drill holes under Balamara s concession application. 7

KEY ADVANTAGES The main advantages associated with this Project and its location, are as follows: 1. The Nowa Ruda underground mine has been extensively explored throughout the last century so there is considerable data available to assist with the establishment of a JORC standard Mineral Resource estimate and feasibility work thereafter. 2. Significant mine development is already in place and intact including production and ventilation shafts, which means that the capital cost to rehabilitate and ultimately recommence mining would definitely be lower than would be the case with an undeveloped mine site. It will also substantially reduce the time required to bring the mine back into production. 3. Poland is a member of the European Union and Balamara considers this country a low sovereign risk location. 4. The added benefit of relatively low production costs coupled with this lower sovereign risk. It is unusual to find a resource project location which offers this unique combination of these two important attributes. 5. There is an existing, suitable and experienced workforce available in the region. 6. Core infrastructure such as rail, roads, power and water are available at the gate. 7. Coal quality is high, with hard coking qualities and low sulphur content. 8. There is demand for coking coal of this quality in Europe and buyers may potentially be local or regional, thus reducing logistical risk to bring product to market. NEXT STEPS Balamara believes that there is an opportunity to redevelop Nowa Ruda back into production within a three year time period, subject to completing successful feasibility studies and securing funding. The key steps for Balamara from this point to progress the Project towards production are: 1. Collation of the existing database and confirmatory drilling to deliver a JORC standard resource; 2. Bankable Feasibility Study ( BFS ), including permits and approvals; 3. Funding; and 4. Mine rehabilitation and re-commissioning of all plant and infrastructure. 8

The work programme will begin immediately and Balamara will have sufficient cash from the recently completed $5.26 million Rights Issue to proceed through to feasibility. Balamara s Managing Director Mike Ralston said the award of exclusive rights to develop the Nowa Ruda Project represented a breakthrough development for the Company, marking the beginning of a significant new chapter for Balamara. The Company has been pursuing a large, advanced project of this quality for some time now as part of our revised 2013 strategy. In the current market, a Tier One asset such as Nowa Ruda is exactly what we want to be focusing on and we are delighted to have secured a project of this calibre with the potential to underpin a world-scale mining operation for Balamara ahead. The advanced nature of this Project represents a distinct advantage and will enable us to progress it more rapidly from this point. We are very comfortable with Poland from a sovereign risk perspective as an investment location for major resource projects, and we already have an emerging exploration project nearby at Bogdan. The fact we are already operating in-country will enable us to unlock a number of synergies. It is also important to note that adding Nowa Ruda to our portfolio does not in any way change our position with respect to the Togo Phosphate Project, for which we still remain deeply committed as we navigate the final stage of the tender process. The Company does acknowledge however that if it is successful in the Togo Phosphate tender we will need to consider corporate restructuring within Balamara as we cannot ultimately focus on delivering two diverse Tier One Projects together within the same vehicle. The Board will ensure that any restructure performed would aim to benefit the existing shareholders. -ENDS- For further information contact: Mike Ralston Nicholas Read/Paul Armstrong Managing Director Read Corporate Balamara Resources (08) 9388 1474 (08) 6365 4519 9

ACCOMPANYING NOTES: 1. ASX Listing Rule 5.12.1 Provide the source and date of the foreign estimates: These foreign estimates are based on official geological reports completed for Waclaw and Piast deposits in the years 1979 to 1986. These estimates have been confirmed with recent annex reports authorised in 2011 by the Minister of Environmental Protection (Poland). Source of Geological Report: Waclaw: Dokumentacja geologiczna złoża węgla kamiennego KWK Nowa Ruda pole Piast rejon Wacław, miejscowość Ludwikowice Kłodzkie, gmina Nowa Ruda, woj. Wałbrzych, by Derkacz & Dabrowski, authorized by the Ministry of Mines on 1979, administrative decision ref.: KZK/012/K/4346/81/82/83. annexed with: Dodatek nr 2 do dokumentacji geologicznej złoża węgla kamiennego Nowa Ruda pole Piast Rejon Wacław w kategorii C1+C2 w miejscowości Ludwikowice Kłodzkie, by Kowalik, authorised by the Minister of Environmental Protection on 2011, administration decision ref: DGiKGkzk 4741-46/7991/18676/11/AW Piast: Dokumentacja geologiczna złoża węgla kamiennego KWK Nowa Ruda pole Piast rejon Lech, OG Nowa Ruda kat. A, B, C1, C2 miejscowość: Nowa Ruda, woj. Wałbrzyskie, by Opyrchal, authorised by the Minister of Environmental Protection on 1986, administrative decision ref: KZK\012\M\139\pf\4266\81\86 annexed with: Dodatek nr 3 do dokumentacji geologicznej złoża węgla kamiennego Nowa Ruda Pole Piast Rejon Lech w kategorii A+B+C1+C2 w miejscowości Nowa Ruda, by Kowalik, authorised by the Minister of Environmental Protection on 2011, administrative decision ref: DGiKGkzk 4741-39/7998/18206/11/AW 2. ASX Listing Rule 5.12.2 - If the foreign estimates use categories of mineralisation other than those defined in Appendix 5A (JORC Code) provide an explanation of the differences. The system of classification of mineral resources in Poland is based on the system that was developed and used in the Comecon countries in the period from 1949-1991. A comprehensive description of the system with some comparisons with other classification systems is given in Jakubiak, Z. and Smakowski, T. (1994). - Classification of mineral reserves in the former Comecon countries. Geological Society, London, Special Publications 1994, v. 79, p. 17-28. Under the Polish system classification of reserves is based on two reference criteria, with the first representing the degree of resource definition and the second related to the possibility of economic exploitation. This is conceptually similar to JORC (see Figure 1, JORC Code 2012 Edition) where the axis from top to bottom represents the increasing level of geological knowledge and confidence proceeding through the categories from Inferred to Indicated to Measured. Also in JORC the axis from left to right represents the Modifying Factors including mining, processing, infrastructure, 10

economic and others. There is a difference in terminology in that under the Polish system the single term reserve is used more generally and differentiation is based on category whereas JORC differentiates on category and also between resources and reserves. Accordingly under the Polish system of resource and reserve classification, reserves are classified as identified and prospective and as economic and uneconomic. The identified Polish reserves for the Nowa Ruda project are divided into categories A, B, C1 and C2. Categories A and B relate only to developed and blocked reserves, with category A being in practical terms restricted to reserves under advanced exploitation. These materials have been selected for mining and partially exploited based on a very high degree of geological confidence and the application of Modifying Factors.. Category B also corresponds to a category of reserve or resource known to a relatively high degree of confidence. Depending on the application of specific Modifying Factors under the Polish system Category B represents material that is ready for exploitation. Category C1 comprises reserves which have been identified and examined to such an extent as to enable a positive definition of their suitability for exploitation - these reserves are often in early production phases. They are similar to an Indicated Mineral Resource in that the quantity, grade (or quality), densities, shape and physical characteristics have been estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support preliminary mine planning and evaluation of the economic viability of the deposit. Category C2 relates to reserves which have been identified and documented at a preliminary stage only. Under the Polish system the C2 reserves have not been documented with sufficient confidence to apply economic parameters. This is similar to Inferred Mineral Resources under JORC where confidence in the estimation of resources is not sufficient to allow the application of technical and economic parameters for detailed planning in Pre-Feasibility or Feasibility Studies. For this reason under JORC, there is no direct link under Inferred Mineral Resources to any category of Ore Reserves. 3. ASX Listing Rule 5.12.3 Provide the relevance and materiality of the foreign estimates to the entity/project. Nowa Ruda is a major historical coal producing region in south-west Poland. The Project consists of two separate named deposits Waclaw and Piast within the single concession area held by Balamara s local subsidiary company. Coal mining is recorded from the Waclaw mine from 1770 almost continuously until 1939. Coal production over the 12 year period from 1919 to 1930 produced 8.35 million tonnes at an average rate of 696,000 tonnes per annum. Over the four year period from 1934-1937 it produced approximately 869,000 tonnes at 217,000 tonnes per annum and coal production ceased in 1939. 11

Coal mining has been undertaken at the Piast deposit from the years 1800 to 1994. Historical production rates were relatively modest throughout the first half of the 20 th century but there was an expansion in the Piast deposit in the 1970 s. From 1970 to 1978 Piast produced 1.843 million tonnes over a nine year period averaging approximately 205,000 tonnes per annum. The last year of recorded production at the Piast deposit was in 1994 and there was additional production until 2000 at Slupiec approximately 5 km to the south of Piast. In terms of coal quality over 90% of historical coal production from Nowa Ruda coal mines has been processed at four coking plants in the Walbrzych region approximately 40 kilometres north of Nowa Ruda. In 1961 the four coke plants were amalgamated into a single larger plant designated Walbrzych. It consists of five coke oven batteries and is a significant European producer of foundry coke of +100 mm granulation. Total coke production at Walbrzych is currently over 500,000 tonnes per annum. There has been substantial documented historical production at Nowa Ruda and the vast majority of this coal has been processed at nearby coking plants. There is a large existing foreign estimate of approximately 107 million tonnes of coal and under the Polish classification system the vast majority of this is classified as various types of coking coals. There is also existing infrastructure that may possibly be used to facilitate the redevelopment of the project. The existence of the foreign estimate in conjunction with significant historical production is regarded as being material to the project and Balamara has decided to report this foreign estimate as per Chapter 5.10 of the ASX listing rules. The foreign estimate is not JORC compliant and Balamara has planned a work programme with the objective of being able to convert the foreign estimate or a part thereof to JORC status. It is estimated this programme will take between 6-12 months to complete. Whilst it is uncertain that the additional planned drilling programme will allow the foreign estimate to be converted to mineral resources under the JORC code, the reporting of the foreign estimate is regarded as providing a more realistic indication of the relatively advanced state of the Nowa Ruda Project. A possible alternative approach would have been to report the mineralization under JORC as an Exploration Target and to report a range of tonnes and coal quality. This approach was not taken as that status is regarded as more appropriate to earlier stage exploration projects and does not do justice to the actual advanced status of this Project. 4. ASX Listing Rule 5.12.4 Detail the reliability of the foreign estimates, including by reference to any of the criteria in Table 1 of Appendix 5A (JORC Code) which are relevant to understanding the reliability of the foreign estimates. The Nowa Ruda coal project consists of two adjacent coal deposits, Waclaw to the north and Piast to the south. The two deposits are separated by a fault but very close together in a lateral sense and there is 200-300 metres separating the southernmost blocks of Waclaw form the northernmost portion of the Piast deposit. Stratigraphy of the deposits is well documented and individual coal seams can be correlated across the deposits and are also recognized more generally within the Lower Silesian Coal Basin. 12

Balamara has undertaken a thorough review of these foreign estimates. The highest categories under the Polish estimation System are A and B. At Piast there are a total of 15,491 thousand tonnes of coal grouped together in these two categories. Material in category A consists of remnant coal blocks that occur in areas where there has been advanced exploitation. These blocks are largely surrounded by exploited areas and consequently are known to a very high degree of geological confidence. As a consequence of mining, the spatial locations are known precisely from underground mine surveying. The seam thicknesses, density and coal parameters are as per what was mined immediately adjacent to the block. Significant examples of category A materials have been identified in particular on coal seams 304 and 415/1. Category B relates to material that is immediately adjacent to and down dip of a coal face. These materials are known to a high level of confidence and have essentially been mined in one direction along strike along the wall. Depending on the regularity of the coal face Category B is generally projected down dip for a horizontal distance of 150-200 metres. The end of Category B corresponds with a north-north-west trending drill section line of four drill holes (B-1, B-11, B-111 and B-1V) that extends for approximately 1.5 kilometres along strike. These holes have intersected the various coal seams down dip and confirmed the continuity of individual seams. Hence the continuity of category B material is confirmed by a combination of proximity to an exploited coal face and also by extension drilling down dip of that face. The seam thicknesses, density and coal parameters are determined from the material at the coal face and core sampling from diamond drill holes (as per JORC Table 1). All holes were geologically logged (JORC Table 1) and a comprehensive stratigraphic nomenclature for the coal seams have been established. Individual coal seams have specific names and are generally well recognized and there is good correlation in the district. Category C1 material is defined as extending down dip for approximately 150-200 metres down dip of the drill section. It is defined purely by proximity to drill holes and as a consequence is known to a lesser degree of geological confidence than Category B. Category C2 is the lowest category of material at Piast and is defined as extending a further 150-200 metres down dip of the material in Category C1. The level of confidence in geological continuity is lower as a consequence of being a greater distance from known geological intersections. The seam thicknesses, density and coal parameters are derived from the drill intersections. Individual coal seams are well recognized and documented in the deposit as a whole and have a high degree of lateral continuity. The north-northwest trending drill section line extends for 1.5 kilometres parallel to strike and is only 150-200 metres from a known coal mining face. The section contains four drill holes through the complete sequence and this is regarded as quite close spaced drilling for coal deposits of this type. It is sufficient to establish a high degree of confidence in the geological and coal parameter continuity. At Waclaw all coal has been classified as C1 and C2. There is a NW (north-west) trending drill section line containing four drill holes (B.W-1, B.W-2, B.W-3, B.W-4) at an approximate spacing of 1 kilometre between holes. The coal face is somewhat irregular but the drill section line is generally 1 kilometre from the coal face. Material between the coal face and the drill section line has been classified as C1 and the various parameters are determined by information from material that was 13

mined and from drill hole samples. Material extending down dip to the SW has been classified as C2 which is a lower level of confidence. The various parameters assigned to this C2 material have been determined from data obtained only from the drill samples. There has been historical production at Waclaw but it was quite some time ago. Compared to Piast drilling is more widely spaced and the drill section line is a greater distance from the coal face. In general there is a lower degree of confidence in geological continuity at Waclaw compared to Piast. As a consequence there is no material classified in the B category and a significant amount of material has been classified as C2. The estimates of tonnages were obtained by classical polygonal methods. The real block surface area is calculated using the planimetric surface and the dip angle of the coal seam. The tonnage s then calculated by multiplying the real block surface area by the thickness of the coal seam and by the density. The minimum thickness allowed for any particular coal seam is 1 metre (see JORC Table 1). With respect to coal quality the majority of the coal is classified as various types of coking coal under the Polish classification system and over 90% of historical Nowa Ruda historic coal production has been processed at coking plants in the vicinity of Walbrzych, 40 kilometres to the north of Nowa Ruda. The source geological reports subdivide the coal into various categories. These are predominantly coking coals under the Polish classification system. The figures are summary classifications only as documentation associated with detailed coal parameter analysis is not yet available, but will be shortly. In general the criteria used are similar to those used in JORC. There is a relatively high level of geological confidence adjacent to areas of historical production or close to drill holes which have provided samples for test work. As distance increases from known positions confidence levels are lower and materials are classified in lower categories, principally as C2. 5. ASX Listing Rule 5.12.5 - To the extent known provide a summary of the work programs on which the foreign estimates are based and a summary of the key assumptions, mining and processing parameters, and methods used to prepare the foreign estimates. There has been considerable historical production at both Waclaw and Piast and drill programmes have been conducted at both deposits. At Piast there is NNW (north-north-west) trending drill section line of four drill holes (B-1, B-11, B-111 and B-1V) that extends for approximately 1.5 kilometres parallel to strike. The four vertical drill holes were drilled from 1968-1974 and comprise a total of 3,843 metres. The holes were drilled by coring methods and were geologically logged in detail. These drill holes enable individual coal seams to be correlated across the deposit and provide samples for various test works sampled. In calculating the estimate a critical mining assumption is the minimum mining width and this has been set at 1.0 metres (see JORC Table 1).. At Waclaw there is a is a NW trending drill section line approximately 4 kilometres parallel to strike and containing four drill holes for 4,775 metres. 14

The highest categories of estimation (A and B) are reserved for coal materials that are in close proximity to historical mining, whereas the categories of C1 and C2 are largely defined by drilling and differentiated on distance from known drill intersection. 6. ASX Listing Rule 5.12.6 Are there any more recent estimates or data relevant to the reported mineralisation available to the entity. These foreign estimates are based on official geological reports completed for Waclaw and Piast deposits in the years 1979 to 1986 respectively. The original reports were completed on behalf of the Minister of Mines and have been recently reviewed on behalf of the Minister of Environmental protection. These estimates have been confirmed and are the current official estimates. They are contained within recent annex reports authorised in 2011 by the Minister of Environmental Protection (Poland). 7. ASX Listing Rule 5.12.7 Detail the evaluation and/or exploration work that needs to be completed to verify the foreign estimates as mineral resources or ore reserves in accordance with Appendix 5A (JORC Code). Balamara has planned a programme of exploration and evaluation in order to convert the foreign estimates to resources/reserves under JORC. The programme involves: Collation of the existing database; Confirmatory drilling involving 5 drill holes for 4,876 metres. This includes three drill holes at Waclaw and two drill holes at Piast; Bankable Feasibility Study ( BFS ), including permits and approvals; Acquiring of funding for further project development; and Mine rehabilitation and re-commissioning of all plant and infrastructure. 8. ASX Listing Rule 5.12.8 Explain the proposed timing of any evaluation and/or exploration work the entity intends to undertake and how the entity intends to undertake that work. The preliminary work programme involving the collation of the database and the confirmatory drill programme will commence immediately as Balamara will have sufficient cash to proceed through to feasibility. Balamara is targeting to redevelop the Nowa Ruda Coal Project back into production within a three year time period, subject to completing successful feasibility studies and securing required funding. 9. Competent Person Statement The information in this market announcement that relates to the reporting of foreign estimates is provided under ASX listing rules 5.12.2 to 5.12.7 and is an accurate representation of the available data and studies for the Nowa Ruda Coal Project and is based on information compiled by Mr. Kevin Alexander. Mr. Alexander is a full time employee of Balamara Resources Limited. Mr. Alexander is a member of The Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. He has sufficient experience that is relevant to the style of mineralization under consideration and to the activity which he is undertaking to be qualified as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting on Exploration Results, Mineral resources and Ore Reserves. Mr. Alexander consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 15