Key Quarter HighlightsExploration Tenements in Mozambique•...

Key Quarter Highlights
Exploration Tenements in Mozambique
• Exploration on the Benga licence is progressing rapidly with over 84 boreholes and 31,000 metres drilled to date.
• Drilling results confirm open-cut mining potential in some areas of the licence as well as underground operations.
• Initial assay results indicate that the Benga coking coal has the potential to qualify as a hard coking coal.
• Negotiations on access to rail and port infrastructure are progressing.
• A MOU has already been signed to review the viability for a thermal coal fired power plant. A scoping report is currently being compiled in association with ELGAS and Suez Energy.
Zululand Anthracite Colliery (ZAC)
• 3000 fatality free production shifts were achieved during June 2007.
• Saleable production for the June quarter was 172,839 tonnes and 661,217 tonnes for the year, an increase of 100,430 tonnes or 18.0% to the prior year.
• June quarter yield was maintained at 78.6% and 79.6% for the year.
• Product sales for the June quarter were 218,881 tonnes, of which export sales contributed 55.1%.
• Product sales for the fiscal year amounted to 785,995 tonnes an increase of 283,292 tonnes or 56.4% to the prior year, representing increased production and drawdown of stockpiles.
• The exploration program is progressing as expected with significant potential indicated at the Ngwabe Block.
• Coal reserves at 30 June 2007 were 11.4 million run of mine tonnes and represent a 42% increase since June 2006.
Corporate
• Cash on hand of A$ 49.0 million
• Bank borrowings of A$ 3.2 million
1