Geological Confidence And Resource Categories

The categorisation of resources at GBP Block 2 under this system is summarised in Table 4.3 below: Table 4.3—Resource Categorisation Parameters Simple Moderate Complex Sedimentation . . . . . . . . . . . . . . . . . . . X Coal Quality . . . . . . . . . . . . . . . . . . . . X Structure . . . . . . . . . . . . . . . . . . . . . . . X Drill Spacing —Measured . . . . . . . . . . . . . . . . . . . . . 500m 250m 100m —Indicated . . . . . . . . . . . . . . . . . . . . . 500-1,000m 250-500m 100-200m —Inferred . . . . . . . . . . . . . . . . . . . . . . 1,000-1,500m 500-1,000m 200-400m Based on the level of complexity of the GBP deposit, MMC sub-divided resources into categories based on the following drill spacing: ‰ Measured 0-250m radius of influence 125 m. ‰ Indicated 250-500m radius of influence 250 m. ‰ Inferred 500-1,000m radius of influence 500 m. Although areas planned for open cut mining generally have close drill spacing 50-100 m spacing, the limited geophysical logging has resulted in the majority of Coal Resources being classified as of Indicated status in these areas with only limited areas of Measured status. The above level of confidence categories have been further modified seam-by-seam on the basis of the following factors: Minimum No. of Drillholes For inclusion in the Coal Resource estimation a minimum of four overlapping drillholes are required for inclusion in the relevant category, in order to avoid “bulls-eyes”. Down-Dip Drilling The majority of drillholes are relatively shallow less than 60 m and in some areas seams have been intersected only in drillholes close to the outcropsubcrop, i.e. data is only available along strike and not down dip. As a general principle it is necessary to have a minimum of two drillhole intersections per drill line on a majority of drill lines in order to confirm seam continuity at depth in order to categorise coal as being “high” level of confidence i.e. Measured, otherwise the resource is categorised as Indicated or Inferred. Pit Survey Data The geological model includes pit floor survey data in active pits, therefore where such data has been modelled the Coal Resource category has been upgraded to Measured category down dip up to 100 m subject to the availability of supporting drillhole data. The drillhole density and resource category polygons for one of the main seams Seam 12 are shown in Figure 5 as an example of the methodology used in determining resource polygons. The drillhole density and the resource category polygons applied by MMC to one of the main seams Seam 2 are shown as an example in Figure 5. Similar methodology was applied to other seams to determine resource limits.

4.6 Coal Resources

The parameters applied in the estimation of coal resources by MMC are as follows: ‰ no geological losses have been applied, ‰ minimum thickness of 0.2 m coal is reported, A-48 ‰ maximum thickness of parting included in seam thickness is 0.10 m, ‰ no coal resources were estimated down dip of mined out pits, ‰ the GBP Block 2 coal seams are typically subject to shallow drilling less than 60 m and are mined in multiple relatively shallow along strike pits where coal is of mineable thickness, therefore Coal Resources are reported above an elevation Reduced Level, RL of minus 50 m. Note: elevation limitations have been applied in order to meet the criteria of JORC resource reporting of “reasonable prospects for eventual economic extraction”, ‰ the exception is Seams 7 and 8 where deeper drilling data is available and it is planned to mine these seams in a deeper multi-seam pit, therefore Coal Resources are reported to the limit of the current