Ann: Baru Resources Limited - Prospectus , page-6

You're not the only one James.

Here is an overview.

* Large scale coal exploration targets and acreage in under explored but prospective area North Western Galilee Basin

* Objective to prove up JORC resources in the short term

* Tight capital structure

* West Galilee Project

o 6 granted EPCs, 1 EPCA
o 80/20 joint venture earn in for $2,000,000 expenditure
o Large area - 2,100 sub blocks (5,880 sq km)
o Drill ready - no native title or strategic cropping issues
o Three overlapping basins - Galilee, Eromanga and Millungera
o Galilee and Eromanga known to be coal bearing
o Millungera - recently delineated and interpreted as potentially hosting significant coal seams
o Area largely underexplored
o Galilee Basin - sub crops in the north, Betts Creek Beds on the margin with seams up to 4m thick
o Eromanga Basin - known to host economic thermal coal - Winton Formation at surface on EPC 2078
o Millungera Basin - sits on heat producing granite - potential granitic source upgrading to coking coal

West Galilee Project - Exploration Program

Year 1

* 9 holes - majority shallow
* Rotary Chip
* $940,000

Year 2

* 7 holes
* Rotary Chip and partially cored
* Coal quality testing
* $820,000

West Galilee Project - Adjacent Activity

o Guilford Coal (GUF)
- Hughenden Project
- 11.9 metres net coal seam intersections
o Cullen Resources
o Waratah Coal(Palmer)
o Linc Energy

West Galilee Project - Infrastructure

o Project area transversed by Mt Isa - Townsville Rail line (Eastern Rail Corridor)
o Potential ports - Townsville and Abbott Point
o Feasibility studies commencing for Townsville port upgrade
o Abbot Point Coal Terminal expansion - Adani group, T2/T3, T4/T7

Capital Structure and Cash

o Shares on Issue
- Founder 12,900,000
- Seed (5 Cents) 7,600,000
- IPO ($6,000,000 at 20 cents) 30,000,000

Total on issue at IPO 50,100,000

o Market Cap at Listing (max subscription) $10,020,000

o Cash Post IPO $5,595,000

* Ongoing and increasing demand for export thermal coal

* Large under-explored prospective ground with identified targets

* Potentially rapid return for conservative exploration spend