Pentland Coal Mine Project

The Pentland Coal Mine Project is owned, and will be developed and operated through AFE’s wholly owned subsidiary company, Great Northern Energy Pty Ltd (“GNE”).

GNE has 100% ownership of the Pentland Coal Mine Project (MDL 361).

GNE is currently finalising the preparation of its Initial Advice Statement for the Pentland Coal Mine Project (to Queensland Government) for the development of the project for an initial 6.0 mtpa ROM coal operation, with allowance for expansion of the project for up to 9.0 mtpa ROM coal operation.

In its first phase of operation, 4.5 mtpa of coal is planned for export to Asian markets, with the balance of 1.5 mtpa for feedstock to a future proposed coal gasification project.

It is anticipated, based on current planning, for the project to be operational in 2022.

The Pentland Coal Mine Project has a 266 million tonne coal resource in place.

A drilling program is planned on MDL 361 to commence late 2018, to expand the size and the overall quality and understanding of the resource.

Location in Queensland of MDL361 – 230km West Pentland to Townsville via Great Northern Line; junction at Stuart with North Coast Line