News from 2007:

Announcement of Development of Lake Vermont

The Lake Vermont Coal Project Joint Venture, which consists of QCMM (Lake Vermont) Holdings Pty Ltd (70%), Marubeni Coal Pty Ltd (10%), Catherine Hill Resources Pty Ltd (10%) and Coronar (Australia) Pty Ltd (10%), announced today that it has formally resolved to proceed with the development of a new 4 Mtpa mining operation, to develop the Lake Vermont resource, 18 km north east of Dysart, in Central Queensland. Lake Vermont Resources Pty Ltd will manage the project on behalf of the participants.

The new mine will be built and operated under contract to the Lake Vermont Coal Project Joint Venture by Thiess Pty Ltd with first ground being broken in early November 2007. The construction workforce will peak at 350 and steady state mining operations will employ approximately 280 people. The resultant coking and PCI product coals will be marketed by the Joint Venture participants to the major steel producers in Japan, South Korea, China, Taiwan, Brazil and Europe. First shipments are planned for the first quarter of 2009.

Production will be exported through the Gladstone Port Authority facilities at Gladstone, with Queensland Rail providing the railing capacity to Gladstone. The Lake Vermont Coal Project is also a registrant for additional port capacity at Dalrymple Bay as well as an active participant in the Wiggins Island feasibility study at Gladstone and the proposed expansion of Abbot Point by the Ports Corporation of Queensland.

The Lake Vermont Coal Project participants acknowledge the support of the Queensland Government, through its various agencies, in assisting the Lake Vermont Coal Project progress to this important decision.

10 October, 2007

Enquiries to:

Mr Greg Chalmers
Chief Executive
Lake Vermont Resources Pty Ltd
Telephone 3877 6700 Top