TCM announcement out - HRS has a strategic investment of 30...

TCM announcement out - HRS has a strategic investment of 30 million ordinary shares (60.6%) and 20 million options in Tiaro Coal Limited (TCM).

30 September 2008

Company Announcement Office
Australian Securities Exchange Limited

Shareholder Update
· Tiaro completes seismic survey
· Follow up drilling programme commences
· Dynasty increases funding to $1.5 million
· Tiaro increases interest over Tiaro Coal Measures
· Tiaro interest in TCJV to increase to 47%
· Maryborough Coal Limited IPO opens

Tiaro completes seismic survey over Tiaro Coal Measures
Encouraging results have been obtained from the recently completed seismic geophysical survey. 29 line kilometres of data were acquired (from a planned 38 line kilometres) over the Tiaro Coal Joint Venture (TCJV)tenements.

The geophysical survey was designed to provide more accurate information on the geological structure and
location of potential coal-bearing horizons. The initial results generally show greater structural detail, possible
coal seams and provide for the better delineation of drilling targets.

Follow up drilling programme commences

A 2,750 metre drilling programme has commenced based on the interpreted results of a high quality petroleum
grade seismic lines programme. Consisting of 13 non-core percussion drill holes and 2 diamond core
stratigraphic holes, the programme has been designed to confirm the stratigraphy and to test directly for the
presence of coal seams, working sections and coal quality..
Drilling is focused on EPC 956 and EPC 957 (Tenements), where Dynasty Metals Australia Limited (Dynasty) is
earning up to 51% interest through progressive payments of up to $5 million.

Budgeted expenditure is in the order of $650,000 which will be funded through contributions by Dynasty
pursuant to Dynasty Farm-In Agreement (Agreement).
Seismic Lines Programme – TCJV
Tiaro Coal Limited Shareholder Update Page 2
Dynasty - $750,000 further funding
Dynasty has elected to make a further payment of $750,000 ($1.5 million total) toward expenditure on the
Tenements and will be deemed to have earned 15% of the Tenements pursuant to the Agreement effective 30
September 2008.

Tiaro increases interest over Tiaro Coal Measures

Tiaro recently applied for additional ground over the Tiaro
Coal Measures. EPCA 1540, consisting of 133 sub-blocks
(approx. 399 sq km) and EPCA 1553, consisting of 64 subblocks (approx. 192 sq km) have been applied for. These
areas are able to be incorporated into the TCJV.

Tiaro Coal Joint Venture

Participants of the TCJV are Tiaro Energy Corporation Pty
Limited’s (TEC), Core Coal (Qld) Pty Limited and Jandale
Pty Limited. Dynasty will also become a TCJV Participant
through its further contribution toward expenditure. TEC is
a wholly owned subsidiary of the Company.

The TCJV holds EPC 956, 957, 967, 972 and EPCA 1151
which is under application.

TEC has the right to earn up to 80% interest in the TCJV by
sole funding $5 million exploration expenditure over 4
years commencing August 2007. TEC’s current interest in
the TCJV is approximately 40% and will increase to
approximately 47% as a result of expenditure on the
drilling programme on EPC 956 and EPC 957.

These tenements cover most of the known exposures of the Tiaro Coal Measures within the Mesozoic
Maryborough Basin, located between Gympie and Maryborough in southeast Queensland.

The TCJV was formed in 2005 to undertake exploration in the Tiaro Coal Measures on the basis of wide ranged
scout drilling to identify the existence of an economic coal mineralization.

Excluding the current programme, 51 holes (48 open holes and 3 diamond holes) have been completed for a
total of approximately 5,000 metres (average depth of a hole is 94 metres).

Coal intersections were made in several holes.
The exploration tenements are well serviced by nearby infrastructure, including manpower, mining support
services, road and rail and port facilities.

The TCJV exploration tenements are located approximately 250 km from Gladstone coal terminal by rail and
approximately 200 km from the Brisbane terminal. The rail line bisects the exploration tenements.

Maryborough Coal Limited IPO opens

As previously advised, the directors are of the view that exploration on EPC 972 be expanded and they are
supporting a public fundraising through Maryborough Coal Limited, a wholly owned subsidiary of the Company.
Maryborough Coal is acquiring a 25% interest in EPC 972 and has offered for subscription 12.5 million shares in
the capital of Maryborough Coal at an issue price of $0.20 per share to raise $2.5 million (Offer) and has
applied for listing and quotation of its shares on the ASX.
Further details of the transaction and Maryborough Coal’s public offer can be found in the prospectus lodged by
Maryborough Coal with the ASIC on 5 September 2008. The Offer opened on 29 September 2008.

The Offer of the securities has been made in the prospectus. To subscribe for Shares, applicants will need to complete the application form that is in, or accompanies, the prospectus. Applicants should consider the
prospectus in deciding whether to acquire the Shares.
The prospectus and application form can be obtained by phoning Maryborough Coal on +61 2 9251 7177 or it
can be viewed and downloaded at www.maryboroughcoal.com.au.