positive outlook, page-14

Boris,
See Ann Investor Briefing 8/9/2008.
8 million to finish from then.
19mill in the bank..so they should have some left over..lol
Pete.

2008 OVERVIEW
2008 has been a remarkable year in the Company’s development culminating in a change of name to
Carbon Energy Ltd (ASX :CNX) from Metex Resources Ltd (previously ASX: MEE), and a commitment to
develop the world’s first commercial scale, oxygen-injected Underground Coal Gasification (UCG)
trial based on a standard 1 petajoule (PJ) per year UCG syngas module at its Bloodwood Creek site in
Queensland. During the last twelve months the Company reached an agreement with the CSIRO and
Others to acquire the balance of shares it did not already own in Carbon Energy (Operations) Pty Ltd
(CEOPL), completed the feasibility to undertake the Bloodwood Creek UCG demonstration trial at an
estimated cost of A$20 million, secured all development approvals necessary and committed to the
construction and development of the UCG trial. To assist in this development CNX entered into a
Memorandum of Understanding (MOU) with leading Australian company Incitec Pivot Limited (IPL) whereby
IPL subscribed for shares to a value of $11 million, coupled with the grant of global rights to access CNX’s
UCG technology for the production of ammonia and ammonia derived products. This was followed shortly
thereafter by further capital raisings during May and June that brought the total raised to $36 million.

In October 2007, as the funding requirement for the demonstration trial was under consideration it was clear
that the development of the UCG industry provided a unique opportunity. Strategically, the Board viewed the
opportunity presented by the UCG production of syngas (the gas produced by the gasification of coal) as
what could truly be described as a “Company Making Opportunity”. Since then, and in a difficult market for
any emerging technology we have successfully committed to the UCG trial, with gasification due to start in
late September or early October, together with having leading Australian company Incitec Pivot Limited (IPL)
become our second largest shareholder following a placement of 55 million shares and the signing of a
Memorandum of Understanding (MOU) to assess the feasibility of syngas as feedstock for the production of
ammonia. This was followed shortly thereafter by further placements of $22 million leading to combined
raisings totalling $36 million. This period coincided with expertise in the energy and gas business being
sourced by the Board with the appointments of Dr Cliff Mallett as Technical Director –UCG, and Mr Andrew
Dash as Chief Operating Officer. It is expected that Andrew’s role will see him assume the role of Chief
Executive towards the end of the year. Recently, we have also appointed Dr Shad Linley and Mr Peter
Hogan to the Board as non-executive Directors.
Elsewhere in Australia, our uranium exploration activities