Updated Combined Annual Report for period ending 8 August 2014 EL 24899, 24900, 24901, 24902, 24903, 24904, 24913, 24914, 26045, 27219, 27347, 27348, 29685, 29702, 29703, 29704, 29705, 29714, 29715, 29716, 29233, 29234 and 29235

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, 29716, 29233, 29234 and 29235 ('Tenures') provides a summary of the activities undertaken on the Tenures since August 2013, including any results produced by these activities. Tri-Star Energy Company is the sole titleholder of the tenures and Tri-Star Coal Operations LLC the operator of the 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 mining these resources. During this reporting period, Tri-Star conducted a further exploratory drilling program, cultural heritage and sacred site investigations, environmental site assessments, 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 5 HRD holes totalling 1752.5m. On 16 June 2014, Tri-Star presented to the offices of the Chief Minister, Treasurer and Minister for Mines and Energy its application for exercise of Ministerial discretion in support of the mineral tenure structure required for a detailed appraisal program to be conducted across the project area prior to development (?Tri-Star?s application?). That application is presently under consideration by the Minister and other relevant members of the Executive. On 9 August 2014, Exploration Licences EL 24899, 24900, 24901, 24902, 24903, 24913, 29702, 29703, 29705, 29714, 29715 and 29716 were due for renewal. Tri-Star applied for the renewals and sought a waiver of reduction on the basis that the waiver will preserve the status quo pending a determination of Tri-Star?s 16 June application and will assist Tri-Star to effectively carry out its exploration and appraisal activities for the Pedirka Coal Project Area, including the modelling of economically mineable coal seams. During the next term, Tri-Star plans to develop an infill drilling program aimed at more reliable verification of the parameters and qualities of previously-identified coal deposits across the project area. Tri-Star will undertake further drilling at locations across the Pedirka Basin Project Area for that purpose in connection with the commencement of pre-feasibility assessment and evaluation of mine viability.