Purni Coal Project Combined annual report for the period ending 31 August 2013

Abstract

The assets of Merlin Coal Pty Ltd were sold during the term to Frid Energy Pty Ltd. Past exploration by the previous owners has focused on the extensive coal deposits of the Pedirka basin and has consisted of a review of available data, creation of a digital terrain model of the top of the Cadna-owie and Purni Formations, stratigraphic interpretation of existing water bores, stratigraphic drilling and testing and analysis of coal samples from the drilling. The previous owners also undertook a first pass compilation of the prospectivity of the tenements for the potential to hold other economic minerals. The work failed to identify additional targets outside of the coal and coal related targets. No on site exploration activity has been carried out in the current reporting year due to acquisition of the tenements. However the new owners are developing an exploration program to undertake further drill testing of the shallower coal targets as the focus of exploration moves to targeting coal measures within the top 500m.