update #4: tpl (..in a nutshell)

Update #4 (as at 8 Mar 2011): In an attempt to keep existing investors/potential investors informed I have re-issued Pros/Cons with updates from the last quarterly (i.e. items altered start with capital X.).

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The following is a description of the pros and cons of TPL as I know them at this time. If you have any others to add to the list or if some are incorrect then let me know and I'll reissue the list below.

Pros
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x. TPL has 209 occurrences of outcropping coal i.e. at surface. REY have 36, Cullen have none that Im aware of. These are part of the Lightjacket coal formation

x. Initial drill targets Id'ed on 3 tenements and will be drilled at the end of the Kimberley wet season which company advises is April. TPL is targeting near surface, quality bituminous thermal coal such as that found by Rey (Source: TPL ASX Ann 21 Dec 2010)

X. TPL has 11 tenements approved (2779km2) of 61 applied for in the Canning Basin. (Source: ASX TPL Qtrly 1 Jan 2011). Most of these tenements were applied for at least 12 months ago. Some 36 were recommended for grant. Further approvals must be imminent. (Source: TPL ASX Ann 27 May 2010, TPL ASX Qtrly 31 Jan 2011, TPL ASX Ann 22 Feb 2011)

x. One of largest land positions in Canning Basin 14,000km2 (if applications approved). Rey has only 8000km2, Cullen 4500km2 (Source: TPL ASX Investor Presentation 2 Nov 2009)

x. Active coal region likely only 20km of 600km strike investigated so far (Source: TPL ASX Investor Presentation 2 Nov 2009)

x. Actively looking for acquisitions coal opportunities in Mongolia and Queenslands Galilee Basin

X. Acquires "1st" tenure 100% of 32km2 (called Mount Tutah) in the Northeast Galilee Basin. With total strike estimated 14km and Conservative target of 140 - 500 mill tonnes of thermal coal in emerging world class coal district. Historic coal seam intersections totalling 15-20m (Source: ASX Announcment 21 feb 2011)

X. Recently granted Qld tenement is approx 100km from proposed railway line to Abbot Point Termnal. (Source: ASX Announcment 21 feb 2011)

x. Potential for future, significantly larger ship loading facilities with the WA Govt supportive of the development of a deep water port just north of Derby at Port Torment.

x. Land adjacent to REY resources which have defined 500mt thermal coal (approx.) with a exploration target of 11-13bt coal within 300mt of surface. (Source: TPL ASX Investor Presentation 2 Nov 2009)

x. Rey resources has recently been re-rated with SP rising more than 300% in the last 4 months ... as it increases in value "Nearology" will become more of a feature of TPL's SP IMO

x. Close to India/China in terms of shipping time. Canning Basin is 6-9 days closer by ship to India and China than coal shipped from QLD (Source: ASX TPL Qtrly 31 Jan 2011)

x. Mark Gunther CEO is Ex Atlas mining exploration manager and was responsible for the managing the discovery and resource delineation of over 180 million tonnes of direct shipping iron ore and 2 billion tonnes of magnetite resource;

x. Independent expert reports insitu coal volumes between 188-50 Bill Tonnes of coal in the Lightjacket Formation. (Source: OBL ASX Investor Presentation 7 Dec 2010)

x. Maps show some granted applications are approx 30-40km away to the Great Northern Highway (Sealed Road). This could be used to truck coal to Derby where barge loading for transport to ship in the short term is possible.

x. Likely low risk drilling if drilling in vicinity of surface Outcrops.

x. Low MCap at time of writing $10m @ 1.9c (undiluted)

x. Cash $1.9m approx (Source: ASX Qtrly 31 Jan 2011)

x. Potential for shared infrastructure (i.e., Rail Electricity ) costs with Rey Resources or other players in the area.

x. Corporate activity, REY has be subject to takeover attempt, AFA Group backed by Chinese, BRU Sign $140m deal with Japanese. How long before TPL becomes a target? Most likely suitor would be REY.

x. Possible underground coal gasification potential as well as open cut mining potential for coal (thermal)

x. Year round water supply available for mining

x. Local Govt is Pro Mining.



Cons
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x. Lack of Infrastructure i.e., rail / road in the eastern section of the Canning Basin. There are secondary roads and pastoral roads through most of TPL staked land. Except for the tenements to the extreme south east where roads are not shown.


x. Information Flow from Mgmt currently is "thin" perhaps due to the fact that there is little to report currently.

x. Native title negotiations ongoing

x. Will need a JV partner

x. Will need to raise cash after drill program, however, if they hit coal the share price will rerated and spike significantly so for early investors dilution will be minimal.

x. Distance to Port (i.e. Derby) and uncertainty when deep water port will be available.

x. Possible need for barge to cape size vessel transfer in interim before port gets upgraded ...costly, is small window for loading due to large tides (i.e. Poss 6-7 hours)? This will cause bottlenecks and restrict volume.

x. Slow approval of tenement applications (..uncertainty due to lengthy delays so far)



General Comments: If the Coal is occurring at surface then it should be pretty easy to define a drill target and very low risk. Compared to its peers in the region I think it is very undervalued right now. Further grants of tenements will boost the SP dramatically IMHO.



Please DYOR to confirm the above.