Ann: September 2014 Quarterly Activities Report & Appendix 5B, page-10

Had an average of about 2.3c and topsliced 55% of my holding .

I am a fan of UCG but believe that in Australia it will be required to adhere to unachievable environmental standards in Bloodwood Creek . The Qld Govt has already shown that it doesn't need much of an excuse to shut everything down .

I may look to rebuild my position if it drops to 3.2c - 3.3c or when progress is made on an overseas project in a country where they have no alternatives so are prepared to be realistic about what is achievable environmentally and acceptable in a remote location .

I'm not saying UCG is an environmental nightmare . Far from it . Just that it is carried out quite close to the surface and that the heat does crack the cap rock .