speak to the md, page-19

Guys,

Ingwe didn't sell the tenement they relinquished it i.e. they willingly gave it back to the government for free. Scorp can you elaborate on what you mean by the drilling wasn't done correctly? Also go and have a look at a tenure map for Queensland. There are large areas there under application that don't even have coal under them.

I will keep quiet until the new results are announced. But a couple of things.

Secondly they did not mention that they had drilled any core holes to date. Only grab samples. No way of telling what you have from chip samples. Maybe I'm wrong on that but thats how it was announced.

Core drilling will take a bit of time, a good driller and equipment can belt out 500m or more of shallow chip hole drilling in a day. Coring will take a bit longer although diamond will be pretty quick. I am also surprised to see that they will be doing a diamond coring program. Slim cores are less than ideal for seams with that amount of complexity so I'm wondering why they don't undertake a 4" conventional coring program as this would give them more sample mass to do all the requisite testing.

Its damn wet in the basin at present so there may be a delay in the drilling if the rain continues.

Wash testing in the labs won't be quick. Takes quite awhile to size, dry and test the samples. I would guess a minimum of 2 months turnaround and generally it can be alot longer than this.

There is no 2 doubts its a variable resource. It will take alot of drilling to bring it up to a status suitable for Jorc measured and inferred. So it will also be interesting to see of how they categorise the resource with their next round of drilling and testing.

NRL could end alot of speculation if they released a geophysical log or 2. A good announcement with some more of the technical information would be well received and could see the huge volumes return.

No two doubts its trading strongly. Not a good week for the markets but NRL holding on declining volumes.

Gaz