Ann: Quarterly Activities Report, page-2

The Resource re-estimate for Cooroorah will be interesting to see. The prior HDR Salva estimate [AQC release of 29/11/2013] resource variography (and JORC points of observation maximum spacing) was based on coal quality parameters appropriate for the PCI product targeted at that time. If BCB are now targeting a coking product then the variography and points of observation maximum spacing will need to consider additional coal quality parameters appropriate for coking coal. This may have a material impact on the JORC categorisation (and tonnage) - potentially to reduce both total JORC tonnes and resource confidence if the variography indicates a reduced spacing (from the previously applied 250m Measured, 750m Indicated and 2000m Inferred).