Combined Annual Report for period ending 8 August 2011

Abstract

This Group Annual Technical Report for Exploration Tenures EL 24899, 24900, 24901, 24902, 24903, 24904, 24913, 24914, 26045, 27219, 27347 and 27348 provides a summary of the activities undertaken on the permit since September 2010, including any results produced by these activities. These tenures were granted on 10 August 2006, 8 September 2006, 3 December 2007 and 4 November 2009. 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 programme 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 completed its initial seismic acquisition program, consisting of 32.71 kilometres of seismic line, conducted cultural heritage and sacred site investigations, continued geological field mapping, procured a conceptual development plan and conducted a review of its drilling procedures. Tri-Star personnel travelled to Darwin in June 2011 to make a presentation to the Titles Advisory Board, providing the Board with an update on the project and its progress. Tri-Star has amended its Mining Management Plan and submitted it to the Department for approval. Tri-Star further finalised project management of its next seismic acquisition program, which commenced on 22 August 2011, and has continued its planning for a coal and iron drilling program to commence in late 2011. Given the recent encouraging field data received from Tri-Star's exploration activities and delays in contractor availability, Tri-Star will continue its seismic acquisition and drilling programs into the next term. During the next term, Tri-Star will focus on the completion of two (2) seismic programs and a twenty (20) core hole drilling program, consisting of ten (10) iron holes and ten (10) coal holes, with a focus on both the coal and iron formations to assess their potential mineability.