Combined Annual Report for period ending 8 August 2012 Exploration Licences 24899, 24900, 24901, 24902, 24903, 24904, 24913, 24914, 26045, 27219, 27347 and 27348

Abstract

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 completed additional stages of its seismic acquisition program, consisting of 526.70 kilometres of seismic line, completed cultural heritage and sacred site investigations, continued geological field mapping, compiled a conceptual development plan, conducted a review of its drilling procedures against plan requirements and completed 23 HRD holes (4843m), 1 DCD hole (69m) and 2 HRD and DCD holes (508m). Tri-Star Energy Company has made great progress towards locating the coal subcrop of the Permian Purni Formation coals, as well as identifying their depth, thickness, lateral extent and quality through field operations and office-based studies during the reporting period. Tri-Star's field operations during the term consisted of a 133.35 km seismic program in August 2011 and a 393.35 km program in January 2012. Tri-Star drilled 9 ironstone holes, but encountered no subsurface ironstone deposits. It is likely that the ironstones are confined to outcrop zones. Further fieldwork and geological mapping will explore the extent of the ironstone deposits. Tri-Star also drilled 12 coal coreholes in the period on PB-1108 and PB-1107. These holes encountered significant coal seams of greater than 15 metre thicknesses. Tri-Star further carried out a number of office-based studies including the processing of seismic data obtained from field operations, geological field mapping, cultural heritage and sacred site investigations and landowner liaison. Tri-Star has also continued its project assessment through the procurement of a conceptual development plan and the review of its drilling procedures, with the assistance of third party contractors. Tri-Star has amended its Mining Management Plan and Risk Management Plan, to take into consideration an extension of planned activities over the next 12 month period. In addition, Tri-Star has finalised project management activities for its August 2011 seismic acquisition program, which commenced on 22 August 2011 and continues to date.