Folks, recent correspondence that will give you and update what...

Folks, recent correspondence that will give you and update what is going on..... This went out to a reporter about a week ago.

Good Afternoon ____________

A few competingpriorities at the moment, however at a high level the overview is as such:

Approx. 30 formerMoreton Resources Limited creditors and shareholders have been seeking toadvance options of how the Company can be resurrected and the interest of theformer shareholders and creditors be protected. The basis for that is thefollowing-

• The Company fell into financial trouble based upon one major factor and a secondary matter, which were relevant to legal proceedings. The most significant impact upon the Company was the determination of Dept of Environment and Science that MRV Metals was required to pay an approx. $11,500,000 Financial Assurance, essentially to pay for a prior bankrupt operators harm to the Texas Silver Mine. Whilst those proceedings were ongoing DES held $4,000,000 in a bond, to which after multiple attempts to access DES refused from late 2017 through to mid 2020 when the Company went into Administration. Even though it was found in the 2020 Court Case that MRV Metals was correct and DES had unlawfully applied the Financial Assurance calculator for prior harm to MRV. (Those funds should have been returned by DES and those funds should have been pursued by the Administrator)(see attached Court Decision)

• The Company as a secondary issue had a R&D Dispute with the ATO and AusIndustry. This commenced in 2014 and plagued the Company for the entire duration, however in May 2019 the Full Bench of the Federal Court handed down one of the biggest R&D decisions in the last couple of decades, being the Moreton Resources Limited v Innovation Australia case. Moreton Resources Limited was correct in its views of what constitutes R&D and hence it was handed back to the Administrative appeals tribunal to remake the decision, this was reheard on Feb 2020, only a couple of months before administration. (This case which was already paid for and run, simply requires the Administrators to wait for the decision however instead it was recommended to sell the Company through a DOCA, when if MRL prevailed, it was due another 6-8M in cash, plus interest, and the entire ATO debts would be negated, being almost a 20M swing from the ATO claiming MRL owed then $11M.)(see attached Court Decision)

Those two mattersalone, should the Company have been put into administration and wait, had thepotential to gain some $16,000,000 for the Company, totally wiping all debtsand making Moreton Resources Limited debt free and the owner of significantmining Assets throughout QLD. However the Administrator did not pursuethose funds, instead recommended to see those interests in that potentialreturn of cash and valuable assets for $500,000. Hence the Shareholdersand Creditors have significant questions as to how that could be seen as aneffective and diligent administrative process.

In the meantime,Melgear and a former secured creditor sort to appoint a receiver over the MRVMetals Assets and sell them for $6,500,000, that is 13 times the recommendedamount suggested by Deloitte for sale of those assets and the above Courtoutcomes. Deloitte (as administrator/liquidator) prescribed nilvalue to the remaining assets in Bowen Basin and they have handed back Coalleases for Tarong and Surat Basin.

Therefore the groupof interested parties, owning in total over 33% of the former share equity(which no longer exists) and having debts owed of more than $17,000,000 bothsecured and unsecured are looking to bring the Companies back into operationfor the following purpose:

• Review and seek to advance the interested of the MRV Bowen Basin Coal Assets which are prescribed nil value as they are now in poor standing owing the QLD Government rents and fees, along with the ATO Mortgage stilling over it, but with work the group believes it holds value moving forward.
• Look to acquire and develop other mining assets and bring them into the Moreton Resources Limited group of Companies to resurrect the advancement options of the Company
• Review what rights are available to the Companies either directly or on behalf of all former shareholders and creditors for any negligence from the actions just prior to administration or whilst in administration and liquidation of multiple parties, if any.
• Seek to make enquiries as to how a Director of the Company in May 2020 could place the Company in administration in June 2020, when at the same time proposing the DOCA arrangement and takeover offers that were not released to market. Followed by within days of the administration, brokering for the assets and Company on behalf of the same party who made undisclosed offers for the Company in the earlier months. That same conflicted director now sits upon a ASX listed Company’s management team, which also purports to have a binding agreement to purchase the assets of MRV Bowen Basin Coal, when they in fact legally have no right or claim over those assets, yet make market disclosures that they do….

This same group hasmade representations to ASX, ASIC, relevant local Ministers and others, howevergiven the Company has nil value in the view of the liquidators, there is littleinterest in assisting the former creditors or shareholders.

That is the summaryoverview for the advancement of the DOCA and what is intended for next steps. The intent is without the support of the regulators such as ASX and ASICwhom have legislative obligations to assist and enforce the law, formershareholders and creditors are seeking to do it themselves.

Regards