Ann: Preparation of Resource Estimate Commences a, page-11

re: Ann: Preparation of Resource Estimate Com... The Project is located in the heart of Coal Valley which has been a major Canadian coal mining province since the 1920's having produced in excess of 300 million tonnes of coal. Currently the region produces in excess of 6mtpa of coal for export which is split between two mines; Coal Valley and Cardinal River. Furthermore since the second half of 2009 the Obed mine will be bought back into production and will be exporting coal from its rail load-out terminal which is approximately 10km to the North East of the Project. All the mines in the area are at a mature stage of development with some having been producing coal for over 30years. This represents opportunities for Xenolith to leverage of these existing assets and may include access to third party infrastructure, mobile equipment and personnel.