ann request, page-40

from todays MNM ann:

'Bacchus Marsh Coal Project (VIC):

Contains a 1-2Bn tonne brown coal Exploration Target (see last page).

Detailed laboratory results have now been received for the first 4 holes and are being interpreted and prepared for release as soon as interpretations are complete.

Access agreements for majority of the last 11 holes have been executed and registered. The drill rig has been contracted to remobilise during the first half of December.

Joint Venture Agreements with Exergen Pty Ltd are being actively progressed.'

Good to hear that the 15 hole BM drill program is now well on track for completion in December/January.

Exergen will clearly not commit to a BM JV until the resource is JORC'd and the suitability of the coal in MNM's BM tenements to exergen's CHTD procerss is established. It looks like this information could be available by year end.

The next BM news should be the lab results of the first four test holes.

If the quality of that coal is similar to the coal from the Maddingly minesite (that has been proven to work with the CHTD process) then the way should be clear for the JV to proceed provided exergen are still keen to move forward at BM.

As the four drill samples currently being tested were sourced only a few km away from the Maddingley coal I like the chances of a positive lab result.

The recent Indonesian crisis that has crippled major exergen rival WEC means it would be an ideal time for exergen to be seen to move from out of the lab and into the field.

For Jack Hamilton & Co at exergen it will soon be time to put up or shut up about their brown coal upgrading and export vision.