it is out, page-2

MONGOLIAN COAL LICENCES DRILLING UPDATE
* Further drill work completed on Ovorhangay licences
* Coal intersected on BTE‐5 at 38m depth for 12m and again at 141m depth for 15m
* BTE‐5 is located approx 6km from BTE‐1 & BTE‐2 which both had significant coal intersections
C @ Limited (CEO) is pleased to announce that it has successfully completed its technical due
diligence exploration program on the coal licences located in the South Gobi province and the
adjoining Ovorhangay province in southern Mongolia, which it holds under an option agreement with
a major international developer.
Exploration work by CEO has discovered two significant coal intersections on the Ovorhangay
licences, located 280m apart. The first hole (BTE‐1) produced a coal seam thickness of 60m from
surface and was estimated to comprise one major coal seam. The second hole (BTE‐2) achieved a
40m coal seam thickness commencing at 89m in depth, which was also estimated to comprise one
major seam. It is still unclear if these two intersects form part of the same coal seam or are two
different structures.

In an effort to further understand the orientation of these coal seams and their structure, the
Company continued to focus its exploration efforts on this licence. The third hole (BTE‐3) was drilled
north‐west of BTE‐2 and did not produce any results. The fourth hole (BTE‐4) was drilled north northwest
of BTE‐2 and showed evidence that it was just outside of the estimated synclinal structure.
This lead to a fifth hole (BTE‐5) which was drilled slightly south south‐west of BTE‐4 and intersected
coal at 38m for 12m, and then a shaley coal sequence, with occasional siltstone partings at 141m for
15m before the drill bit got stuck at 156m, having to be abandoned. BTE‐5 is located approximately
6km from BTE‐2. It still remains unclear if the potential coal bearing sequence in BTE‐5 forms part of
the coal seams and geological structures intersected in BTE‐1 and BTE‐2.
The 60m coal seam intersected in BTE‐1 and 40m coal seam intersected in BTE‐2 have both logged
geophysics which indicate hard coal for 36m and 30m in each respective hole. Due to the thickness of
the seams and large number of mining options available to maximise the coal quality, we are looking
to engage experts in Australia to assist with the correlation and potential market positioning for the
coal.
A sixth hole (BTE‐6) was drilled on a second licence in Ovorhangay as part of initial reconnaissance on
this licence. This particular licence covers a significantly large area covering approximately 145km2
and although this licence remains highly prospective, BTE‐6 produced no results.