targeting plus 1billion tons plus tassie

Current JORC Resource

Across the three properties, CDS has reported an initial inferred resource estimate of
415Mt, split into approximately 35% coking grade and 65% thermal grade. Zoetfontein
and Lisbon are considered to be mainly coking coal type properties whilst Koert Lou
Zyn Pan is majority thermal. RBSA approval of the transaction, Comdek will
aggressively target +1Bt coal resource across these three properties.

Geological Formation

A thin layer of overburden is present (~16m) and the open pit stripping ratio is
estimated to be 1:1. The mineralization extends to 110m in depth, but the resource
calculation is based on a depth of only ~75m, thus, there is high potential for the
resource to be increased. Additionally, the resource has a similar geological sequence
to the Grootegeluk (811Mt Reserve), providing further optimism. Koert Lou Zyn Pan’s
formation exhibits all 11 zones shown in figure 2, whilst Zoetfontein and Lisbon are
shallower with zones 1-4 at the surface

Nearby Rail

Approximately 40km South East of Comdek’s properties is a rail line servicing RBCT,
that is currently undergoing expansion plans to increase export capacity to 91Mtpa
(Expected completion in early 2009). The expansion gives higher preference to pro-
BEE companies and Comdek will look to tender an application. Current spot prices
out of RBCT are well above historical prices.
The Witbank power region is also connected via rail and the coalfields in this area are
maturing with approximately 10-20 year mine life remaining. Total Witbank capacity
is 40-50Mtpa and power stations will need new sources of coal



TASMANIAN COAL AQUISITIONS
During the last quarter, Comdek signed an agreement to acquire EIL, a company that
has applied for two coal projects located in Tasmania - Woodbury and Bonnie’s Tier
(Latrobe). These properties were previously owned by BHP and pre-JORC historical
drilling indicates between 12 to 22 million tonnes of black bituminous thermal coal.
Comdek believes that there is potential for significant upgrades to this resource and
is targeting an initial resource of 100-160 million tonnes of thermal coal.
Ideally located, both projects are close to rail infrastructure with multiple port
infrastructure options. Potential buyers of the coal can be local power stations or
commercial industry clients, such as cement manufacturers near Latrobe.