announcement purchase of lignite project, page-4

Further information about the tenement and prospect.

The Zanthus project is located in the Dundas Mineral Field in the south-eastern part of Western Australia.

The Zanthus project area is located on the southwest margin of the Eucla Basin on the eastern flank of the Fraser Range, 220 kilometres south east of Kalgoorlie.

The Basin is comprised of flat lying marine and continental
sediments of Cretaceous and Tertiary age. Sediments in the project area range from 20 to 80 metres in thickness and overly metamorphosed igneous and sedimentary rocks of the Fraser Range metamorphic complex. Within these sediments are lignite layers up to 20 metres thick with an average
of 12 metres. The overburden thickness varies from 15 to 27 metres, averaging 20 metres and consists of clay to sandy gilt by recent sands
and clays.

Previous exploration completed on the Zanthus project by The Griffin Coal Mining Company Ltd. has been successful in identifying the occurrence of lignite beds and is outlined in an Independent Geologist's Report (the "Maynard Report").

The Zanthus lignite deposit represents a potentially substantial energy resource which may be exploited in the future and with appropriate developments in technology could provide the raw material for the following types of industrial complexes: thermal power generation, oil
extraction plants, petrochemical plants, coal conversion plants and cement manufacturing utilizing local limestone.

It has also been demonstrated that parts of the deposit contain well above average amounts of a potentially valuable volatile fraction and Montan wax.

(N.B) Montan Wax is used as a car polish. Valuable apparently.