COAL OPERATIONS Record Production and Sales Tonnages for the 6 months to January 2008 Coal produced and sold from New Hope Corporation’s Queensland operations for the 6 months to January 2008 was at record levels, due to increased production and sales from the New Acland mine during the period. Production for the 6 months of 2.166 million tonnes was 21% higher than the 6 months to January 2007, while sales of 2.301 million tonnes for the current half year were 20% higher than the previous corresponding period. Group quarterly production and sales was also significantly higher in the 3 months to January 2008 compared with the 3 months to 31 January 2007. New Acland’s quarterly production was 59% up on the previous corresponding period last year, with sales from the mine increasing by 56% compared with the corresponding quarter last year. While total production from the West Moreton operations was lower than the corresponding quarter last year, due to the closure of the Jeebropilly mine in early 2007, production at New Oakleigh was similar to last year. Total coal sold in the 3 months to January 2008 of 1.222 million tonnes was a new quarterly record and 27% higher than the previous corresponding period. New Hope exported approximately 880,000 tonnes through the Queensland Bulk Handling (QBH) facility at the Port of Brisbane during the quarter. QBH continued to operate as a predominately despatch port during the period. New Hope Corporation Limited Quarterly Activities Report – 31 January 2008 PAGE 2 OF 2 EXPLORATION Exploration activities during the last 3 months have continued on the Darling Downs EPC’s and in Central Queensland. Heavy rain interrupted exploration activity in mid December 2007 in Central Queensland and drilling equipment was moved to the Darling Downs EPC’s and to drilling activities around Acland. New Saraji Project The New Saraji Project is held by New Hope under EPC 837, and lies directly to the east of the BMA Saraji Open Cut Mine which supplies premium hard coking coal to the international coal markets. New Hope’s exploration activities to date have identified a significant inferred metallurgical coal resource of the Moranbah Coal measures with a JORC compliant inferred insitu resource of 678 million tonnes. A mining lease application for New Saraji was made to the Queensland Government on the 13th October 2007 and which commences the statutory process including a voluntary Environmental Impact Statement. The process is expected to take approximately 2 years. Four drilling rigs were employed on the New Saraji Project during the quarter. A total of 5,934 metres of open hole and 1,056 metres of conventional and wireline coring was completed. Exploration progress during the quarter was hindered by intermittent to heavy rain and poor serviceability of some of the drilling rigs employed on the project. In addition to the 2 drill rigs that New Hope owns and operates, a new larger drill rig has been ordered to assist at the New Saraji Project. It is due for delivery in April 2008. An acoustic scanner tool has been purchased and is under going commissioning. It will be installed in one of the New Hope’s 2 geophysical wireline logging trucks. New Hope has appointed an experienced “in house” project team to manage the numerous engineering assessments which are now underway. The coal seams identified to date present a rare opportunity to establish a significant underground complex, utilizing multi-seam longwall operations. The thick seam opportunities present an added advantage, with longwall technology improving, to allow for increased resource recovery either through conventional techniques or the longwall Top Coal Caving process. The New Saraji Project is in very close proximity to the services required to support the operation. Rail, water and power infrastructure are located within the MLA area and discussions with the controlling government departments have commenced to ensure these services are available to meet the projects demands. Mine operations could commence in about 2012 subject to the delivery of rail and port infrastructure.
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