Purni Coal Project Year 6 Combined annual report for the period 1 September 2014 to 31 August 2015

Abstract

No on ground exploration activity was carried out during the reporting period to the 31 August 2015. An attempt to access the 3 drill sites of SHEL27109-1 and 2, and SHEL28095-1 was thwarted by impassable access tracks due to inclement weather in April 2014. The purpose of this visit was to assess any required outstanding rehabilitation of the drilling areas, assess the locations of undrilled holes and for possible infill seismic work. Merlin Coal will attempt to visit these sites in late 2015. Merlin Coal has also been awaiting the outcome of a confidential Concept Study by China Shenhua that was started 18 months ago. This has now been completed. However, current world commodity market conditions has made it increasingly difficult for Merlin Coal to secure and finalise an Asian joint venture partner to fund ongoing exploration and development work for the Purni Coal Project.