Combined Annual Report for period ending 8 August 2013 EL 24899, 24900, 24901, 24902, 24903, 24904, 24913, 24914, 26045, 27219, 27347, 27348, 29685, 29702, 29703, 29704, 29705, 29714, 29715 and 29716

Abstract

This Group Annual Technical Report for Exploration Licences (EL) 24899, 24900, 24901, 24902, 24903, 24904, 24913, 24914, 26045, 27219, 27347, 27348, 29685, 29702, 29703, 29704, 29705, 29714, 29715 and 29716 ('Tenures') provides a summary of the activities undertaken on the Tenures since August 2012, including any results produced by these activities. On 9 August 2012, Exploration Licences EL 24899, 24900, 24901, 24902, 24903, 24904, 24913 and 24914 were due for renewal. Tri-Star applied for the renewals and sought a waiver of reduction on the basis that the renewed Exploration Licences would be split to comply with the maximum block requirements of the Mineral Titles Act 2010. The Department of Mines and Energy permitted Tri-Star's request for a waiver of reduction and on 20 December 2012, Tri-Star was granted the renewal of EL 24899, 24900, 24901, 24902, 24903, 24904, 24913 and 24914 and granted EL 29685, 29702, 29703, 29704, 29705, 29714, 29715 and 29716 as a result of splitting the renewed tenures. Tri-Star Energy Company is the sole titleholder of these tenures and Tri-Star Coal Operations LLC is the operator of these tenures. The exploration program for these tenures is aimed at identifying the location and the structure of the Permian coals and ironstones of the Purni Formation, with the ultimate goal of determining their potential for mining. During this reporting period, Tri-Star conducted an exploratory drilling program a cultural heritage and sacred site investigations, an environmental audit and environmental site assessment, geological field mapping, compiled a conceptual development plan and conducted a review of its drilling procedures against plan requirements. As detailed in Table 1, drilling consisted of 12 HRD holes totalling 4064m, and 5 HRD and DCD holes totalling 1662m. During the next term, Tri-Star intends to undertake further drilling activities to collect coal quality data and assess results obtained, with a continued focus on the coal formations and the presence of other minerals across the project area to assess potential mineability.