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

This Group Annual Technical Report for Exploration Tenures EL 24899, 24900, 24901, 24902, 24903, 24904, 24913, 24914, 26045, 27219, 27347 and 27348 ('Tenures') provides a summary of the activities undertaken on the Tenures since August 2011, including any results produced by these activities. 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 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 and conducted a review of its drilling procedures against plan requirements. As expanded in Table 1, drilling consisted of 23 HRD holes totalling 4843m, one (1) DCD hole at 69m, and two (2) HRD and DCD holes totalling 508m. During the next term, Tri-Star intends to drill up to an additional twenty-five holes to collect coal quality data and assess the results, with a continued focus on both the coal and iron formations to assess their potential mineability.