BLACK ROCK MINING LIMITED — Capital/Financing Update 2013

Oct 3, 2013

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ASX Announcement

4 October 2013

INDEPENDENT RESOURCE EVALUATION OCEAN HILL BLOCK (100% GRK)

• Independent resource certification of the Ocean Hill Block delivers 2C Contingent Resources of 360 Bcf Gas and 1,191 Mbbl of Condensate

• Additional structures and prospects in the block represent Prospective Resources of 809 Bcf (Best Estimate)

• Discussion with potential farm-in partners are ongoing

Green Rock Energy (ASX:GRK) is pleased to announce the completion of an independent evaluation of Contingent and selected Prospective Resources in the Ocean Hill Block (STP EPA 0090, formerly designated Bid Area L12-7), located in the North Perth Basin (Figure 1).

The evaluation was completed by DeGolyer and MacNaughton and certified contingent gas and condensate resources on the Ocean Hill-1 structure are:

Table 1: Ocean Hill Block Contingent Resources[1 ]

	Gross Seperator Gas
1C	2C	3C
24 BcF	360 BcF	796 BcF
	Gross Condensate
1C	2C	3C
145 Mbbl	1,191 Mbbl	2,558 Mbbl

Table 2: Ocean Hill Block Prospective Resources[2]

Low Estimate	Best Estimate	High Estimate
557 BcF	809 BcF	1,155 BcF

Green Rock Energy Limited: Level 9,The Quadrant, 1 William St, Perth, WA6000 Australia. Postal Address: PO Box 1177, West Perth WA 6872, Australia T: +61 (0)8 9326 1766 E: rberesford@greenrock.com.au W: www.greenrock.com.au ABN: 59 094 551 336

Ocean Hill Block (100% GRK)

The Ocean Hill Block (STP EPA 0090, formerly Bid Area L12-7) comprises 297 km[2] and is located in the North Perth Basin, about 225 km north of Perth and 90 km southeast of Dongara (Figure 1).

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The Dampier to Bunbury Pipeline runs directly through the Ocean Hill block and a compressor station is located 6.5 km from the Ocean Hill-1 location, providing excellent infrastructure access and a substantial benefit for the project economics.

Native Title and Heritage negotiations are currently in progress, and planning is underway for a 250km[2] 3D seismic survey to be acquired in Q1, 2014. The survey will provide high quality 3D data coverage over the Ocean Hill structure and the other prospects and leads identified and will allow exploration, appraisal and development to proceed quickly as positive results are achieved. Drilling is anticipated to commence in early 2015.

Environmental studies are currently underway and the Environmental Plan for the survey will be submitted shortly. Green Rock Figure 1: Ocean Hill Block Location Energy is the Preferred Applicant for the Ocean Hill Block, and the area will be converted to an Exploration Permit once Native Title negotiations have been concluded.

Recent mapping of the available 2D seismic data indicates the presence of a substantial closure associated with the Ocean Hill-1 location and a number of additional prospects and leads have been identified (Figure 2). The Ocean Hill structure has 2 culminations and the northern one has been assigned 2C contingent resources of 360 Bcf and 1.2 MMbbl of condensate by DeGolyer and MacNaughton (Table 1).

The Ocean Hill-1 well was drilled in 1991 and tested a substantial structure within the Ocean Hill block. The well drilled to a total depth of 3840m within the Jurassic Cattamarra Coal Measures (CCM) and encountered over 800m of gas shows within the Cadda Formation and CCM.

Evaluation of electric logs from the well indicates the presence of over 100m of net gas pay. DST-2 flowed gas at a rate of 0.7 MMcfd from the interval 3063-3130m.

Green Rock Energy Limited: Level 9,The Quadrant, 1 William St, Perth, WA6000 Australia. Postal Address: PO Box 1177, West Perth WA 6872, Australia T: +61 (0)8 9326 1766 E: rberesford@greenrock.com.au W: www.greenrock.com.au ABN: 59 094 551 336

A series of additional tests flowed gas at low rates, confirming the presence of moveable gas in multiple zones. The gas pay is situated in the same interval as the Red Gully field, which was recently placed on production by Empire Oil.

In addition, prospective resources for 3 of the other prospects identified in the recent mapping – Ocean Hill South, Lead D and Lead F, along with additional potential below the total depth drilled by the Ocean Hill-1, were evaluated by DeGolyer and MacNaughton. The results are summarised in Table 2. Note that the volumes do not include any prospective resources associated with Leads A, B, C or E.

Green Rock Energy Chairman, Richard Beresford, commented on the resource evaluation: “This is a very exciting result for Green Rock, as these contingent resources greatly demonstrate the potential of the Ocean Hill block as a development project to supply gas into the WA domestic market. The development of the Red Gully Field demonstrates the impact of significant advances in drilling and completion techniques since the original Ocean Hill discovery, along with an increased domestic gas price, increases confidence that Green Rock Energy’s substantial contingent resource may now be commercial.”

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Figure 2: Prospects and Leads

Green Rock is currently holding discussions with a number of parties that have expressed an interest in farming in to the block and the company anticipates bringing in a partner prior to commencement of the seismic survey.

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Richard Beresford, Executive Chairman

Investors and Media T: +61 (08) 9326 1766 E: rberesford@greenrock.com.au

About Green Rock Energy Limited

• A 100% interest in the L12-7 area in the Perth basin, subject to the successful completion of Native Title negotiations.

• MoU with AWE to demonstrate the development potential of geothermal power generation in hot sedimentary aquifers in the north Perth Basin in the Mid West of WA

• An alliance with leading Australian renewable power developer Pacific Hydro for conventional geothermal power generation in GRK’s permits in the Mid West of WA and Pacific Hydro’s licences in the Great Artesian Basin in SA

• A joint venture with MOL in Hungary for geothermal power generation (GRK 50%)

Green Rock Energy Limited: Level 9,The Quadrant, 1 William St, Perth, WA6000 Australia. Postal Address: PO Box 1177, West Perth WA 6872, Australia

T: +61 (0)8 9326 1766 E: rberesford@greenrock.com.au W: www.greenrock.com.au ABN: 59 094 551 336

Competent Person

The information in the DeGolyer and MacNaughton reports was compiled by Mr R. M. Shuck, Senior Vice President of DeGolyer and MacNaughton who is qualified in accordance with the ASX listing rule 5.11. Mr Shuck, a practicing Petroleum Engineer for over 35 years and has given his consent to the release of the resources contained in this report.

The estimates of contingent and prospective resources included in this announcement have been prepared in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) approved by the Society of Petroleum Engineers (SPE). The PRMS defines prospective resources as those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations.

IMPORTANT NOTES TO RESOURCES ESTIMATES

1. Contingent Resources

• a) Values include the combined total for the Cadda Formation and Cattamarra Coal Measures.

• b) Application of any risk factor to contingent resources quantities does not equate contingent resources with reserves.

• c) There is no certainty that it will be commercially viable to produce any portion of the contingent resources evaluated herein.

• d) All contingent resources have an economic status of "Undetermined."

• e) All separator gas quantities are expressed at a temperature base of 60 [o] F and 14.7 psia.

2. Prospective Resources

• a) Figures include 4 prospects only: South Ocean Hill, Ocean Hill Deep, D and F, as shown on Figure 2

• b) Application of any geological and economic chance factor does not equate prospective resources to contingent resources or reserves.

• c) Recovery efficiency is applied to prospective resources in this table.

• d) The prospective resources presented above are based on a statistical aggregate method.

• e) There is no certainty that any portion of the prospective resources estimated herein will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources evaluated

• f) The prospective resources shown in Table 2 have not been adjusted for the probability of geologic success.

Green Rock Energy Limited: Level 9,The Quadrant, 1 William St, Perth, WA6000 Australia. Postal Address: PO Box 1177, West Perth WA 6872, Australia T: +61 (0)8 9326 1766 E: rberesford@greenrock.com.au W: www.greenrock.com.au ABN: 59 094 551 336