the company is of the view that it has suffici, page-2

The Company is considering if there are grounds upon which to challenge DERM's decision and
whether there is scope to contest some or all of the proposed amendments to the Environmental
Authority. The Company is concerned that the interim report prepared by the ISP appears to contain
factual errors and wishes to explore the extent to which DERM may have relied upon this report.
If the Company is not able to convince DERM through consultation that it should be permitted to
recommence operations at Kingaroy, consideration will need to be given to whether there would be
any merit in challenging DERM's decision by making an application to the Planning and Environment
Court. Any such decision would require careful analysis of the legal and commercial merits
associated with undertaking what could be expensive and protracted legal action