BLACK ROCK MINING LIMITED — Interim / Quarterly Report 2013

Oct 29, 2012

ASX Announcement

Company Announcements Office Australian Securities Exchange

By e-lodgement

30 October 2012

(ASX Code GRK)

Quarterly Activities Report

for the three months ending 30 September 2012

Highlights

• East Blina–1 well: rig contract executed, project and site approvals granted and well spudded on 16 October 2012

• Airborne Gravity Survey undertaken in the Laurel Project Area, Seven Lakes SPA and EP417

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----- Start of picture text ----- Location map ofGreen Rock’sinterests in theCanning Basin,Western Australia----- End of picture text -----

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Backreef Area, Canning Basin

In May 2012 Green Rock executed a Share Sale Agreement with Oil Basins Limited (ASX:OBL) (“Oil Basins”) to acquire beneficial rights to a 20% net beneficial joint venture interest in the highly prospective Backreef Area in the Canning Basin by the payment of $2.5 million for future operations such as an Extended Production Testing of Backreef-1 and the drilling and completion of a second exploration well by 31 October 2012.

This acquisition enabled Green Rock to increase its footprint in the Canning Basin and gain exposure to a production test for oil in the Backreef-1 well. Other commercial oil discoveries in the area include the producing Blina Oilfield and the Ungani well, both operated by Buru Energy Limited.

Backreef-1 Production Tests

OBL as Operator of the Backreef Area secured a low-cost ‘fit-for-purpose’ drilling rig from Australian Drilling Services Pty Ltd (ADS) and from 16 to 30 May 2012 deployed ADS Rig#2 for the Backreef-1 cased hole production test.

Before the production test it was independently postulated by OBL’s technical adviser RPS that Backreef-1 was positioned off-structure at the shallower target and may have clipped the edge of a shallower “roll-over” structure and possibly at the edge of a shallow field oil/water contact within the transition zone between the oil column and underlying water. The test program included two test zones within the carbonates of the Gumhole and Yellow Drum Formations.

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Oil from formation floating in the annulus at the rig floor at Backreef-1

Summary of Test Results

A 4m interval 957m to 961mRT (Zone 1 – Gumhole Formation) was perforated underbalanced with nitrogen and observed surface pressure build-up was rapid to 364 psig and over 800m influx (approximately 12 bbls) of mostly fresh water was observed in test string. Evident initial flow rates were recorded in excess of 1000 bpd with permeability estimated at between 700 to 750 millidarcy (mD). After reverse circulation, the packer was unseated. Oil was observed at the surface of the well. Oil and water samples were taken for further laboratory analysis.

Underbalanced perforation of the upper 22m interval between 918m to 940mRT (Zone 2 – Yellow Drum Formation) was again conducted using nitrogen. Evident permeability was observed to be quite tight at between 0.1 to 10 mD (similar to the nearby Blina oil field). No traces of oil were observed at the surface. Water samples were taken for further laboratory analysis.

At the completion of both tests, OBL as Operator of the Backreef Area JV reported the discovery of oil to the Minister and stakeholders as required under the WA Petroleum and Geothermal Energy Resources Act 1967.

Specifically the oil observed in the Gumhole Formation (Zone 1) appears to be the first such oil discovery within this potentially high quality reservoir formation in the region of Licence L6, and as such, enhances the assessment of the shallow oil play potential within the Kimberley Downs Embayment.

Follow-up Well - East Blina -1

The analysis of the Backreef-1 production test results, finalising the drilling program and environment management program submissions for a follow up well at East Blina-1 in the Backreef Area was undertaken in September 2012 with the intention of OBL lodging all documentation by mid-August 2012 such that upon receiving usual stakeholder consents operations be resumed early October 2012.

In mid-August OBL announced that it had entered into a Letter of Intent to contract a petroleum drilling rig for the drilling of East Blina -1 following an exhaustive search of available rigs through a formal Letter of Interest tender process sent to 18 rig contractors. This process was managed by drilling engineer consultant Du-el Drilling Services Pty Ltd.

In late August 2012 a Joint Venture Meeting finalised the preferred rig selection and approved an indicative budget for the proposed drilling of East Blina -1.

A draft bridging Environment Management Plan was lodged in mid-August. Following discussions and advice from DMP Environment, contractors re-inspected the proposed site and conducted a survey of selected vegetation and pegged both the site and proposed short roadway area for East Blina -1. When the proposed cleared area was found acceptable a Preliminary Drilling Program using Dynamic Drilling Rig # 17 was lodged with the Department of Mines and Petroleum (DMP) on 7 September and a contract was executed with Dynamic Drilling on 17 September for the provision of Petroleum Drilling Rig # 17.

The primary well objective is the highly permeable basal Yellow Drum dolomite reservoir formation which OBL has recently re-interpreted and prognosed at 27 m thick at East Blina-1.

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Location of East Blina -1 within Production Licence L6 (courtesy of Oil Basins Limited)

Site clearing operations commenced on 6 October and rig-up with the Dynamic Drilling Rig #17 commenced on 14 October. Spudding occurred on 16 October with no rig or equipment standby cost penalties incurred, with the expectation that the well would be completed by 31 October to meet the Backreef Area farm-in commitment. On 29 October total depth was reached. With the drilling of East Blina-1 the Backreef Play Agreement farmin commitments are now complete.

Green Rock prepaid to OBL $2.5 million of the well costs and will be liable for 20% of any costs in excess of this.

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Dynamic Drilling Rig#17 (courtesy of Oil Basins Limited)

EP 417, Canning Basin and Area of Mutual Interest Agreement with New Standard Energy (NSE)

Green Rock successfully earned 15% interest in EP417 by funding 27.5% of the first $4.0 million of costs and 15% of further well costs in the process of deepening Lawford #1.The Company has the right to increase its interest in EP417 by funding 22.5% of the first $10 million of the costs of drilling a second well and 20% of any further costs such that after the completion of the earning phase of this farm-in arrangement, Green Rock will have a 20% interest in permit EP417.

Through the establishment of an Area of Mutual Interest Agreement with New Standard Energy the company has moved to secure additional acreage through the granting of a Special Prospecting Authority (SPA) for the Seven Lakes area in the Canning Basin. In this new acreage, Green Rock will have rights to a 40% interest.

Airborne Gravity Survey Undertaken

An airborne gravity survey over the Seven Lakes SPA and EP417 (the Laurel Project) in the Canning Basin was commenced on 23 August 2012, with initial results available within 40 days of the completion of data collection.

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Location of Seven Lakes SPA and EP 417 showing area of Gravity Survey (courtesy of New Standard Energy Limited)

The blocks are located in the south eastern Fitzroy Trough of the Canning Basin which has strong geological similarities to Buru’s recent discoveries in the Fitzroy Trough within the Laurel

Formation at Valhalla, Paradise and Yulleroo. Potential for oil discoveries similar to the Ungani Field also exist given the positive oil indications in nearby wells.

The gravity survey will acquire approximately 3,695 line kilometres of data, providing block wide coverage over both the Seven Lakes SPA and EP 417. The results will contribute valuable data that will be analysed together with the available seismic and well information over the area, and will be used to help define the extent of the prospective basin-centred plays in the Laurel Formation. This will assist in the selection of blocks within Seven Lakes SPA for conversion to a full Exploration Permit. This survey exceeds the minimum Work Program commitment for the SPA.

The survey will also improve the Joint Venture’s understanding of the structure and stratigraphy of EP 417 area that will be incorporated in to the assessment of the results of Lawford -1 well deepening undertaken by the Joint Venture in 2011 and help guide the future exploration program in the area. The survey and associated technical studies will fulfil the 2012 and 2013 Work Program commitments for EP 417.

The survey was completed within the estimated timeframe and in line with the pre-survey cost estimates.

Mid West Geothermal Power Project

Progress was made during the quarter to secure government and joint venture partner funding for the project, with the target of drilling the first well in 2013.

WA Government Low Emissions Energy Development (LEED) Fund

Green Rock was advised on 25 June 2012 of the success of its application for Low Emissions Energy Development (LEED) funding for the Mid West Geothermal Power Project. The funding applied for was $5.38 million. This success will support Green Rock’s case to the Commonwealth’s Emerging Renewables Program which puts a strong emphasis on State support.

Commonwealth Government Emerging Renewables Program (ERP) Fund

Securing LEED funding is a major step towards ERP funding for the project. Green Rock considers that its project is a strong contender for ERP funding and discussions with the ERP fund managers indicate that the key to securing funding will be bringing a joint venture funding partner into the project.

Conventional geothermal power alliance with Pacific Hydro

In August 2011 a binding Memorandum of Understanding (MoU) with leading Australian renewable energy company Pacific Hydro to cooperate on the development of power projects based on geothermal exploration permits and licences held by the companies in the North Perth Basin (“NPB”) in the Mid West region of WA and the Great Artesian Basin (“GAB”) in South Australia was signed. Initial power projects of at least 25MW are contemplated in both the NPB and the GAB. The agreement defines the key steps towards first power production and the rights and obligations of Green Rock and Pacific Hydro.

The parties have jointly developed an Information Memorandum (IM) for the two projects directed at potential upstream ‘farm-in’ partners to substantially fund the drilling of the wells required to fully prove up the conventional geothermal resource. The IM is being marketed globally through Green Rock’s and its advisers’ networks. Potential investors are expressing interest in the opportunity.

Key terms in the initial joint venture agreement with the upstream partner and in the shareholders’ agreement for the future power project companies are included in the MoU. Pacific Hydro will have the right to at least 51% interest in each power project company, with the buy-out of Green Rock’s and the upstream partner’s interests set according to a valuation formula to be agreed in the initial joint venture agreement.

During the quarter the parties agreed to extend the MoU until August 2013.

Hungarian Geothermal JV with MOL

In Hungary our 50% owned geothermal developer Central European Geothermal Energy Company Ltd (CEGE) is preparing for the first geothermal concession tenders in Hungary which it was anticipated would be issued in the second half of 2012. Public comment on the Environmental Impact Assessment of the target concession area closed on 15 January 2012.

From the work undertaken to date including well testing, both MOL and Green Rock are of the view that an economic geothermal resource exists in the area of focus. Data acquired from the well now owned by CEGE indicate a geothermal reservoir capacity expected to be capable of supporting several MW of power generation capacity. Subject to securing the concession, project activity will step up in 2013 with first power production around a year after the drilling of a second well has been completed. Green Rock will seek to fund a large part of its interest from European investors.

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Nigel Hodder Company Secretary

Investors and Media T: +61 (0) 9482 0482 E: info@greenrock.com.au

About Green Rock Energy Limited

Listed on the ASX in 2005, Green Rock (GRK) is a geothermal and hydrocarbons explorer and developer with geothermal interests in Western Australia, South Australia and Hungary and hydrocarbons interests in Western Australia. Its key projects are:

• A 15% interest in EP417 in the Canning Basin with a right to earn up to 20% through a farm-in agreement with New Standard Energy (NSE) together with an Area of Mutual Interest Agreement for other potential opportunities including the Seven Lakes Special Prospecting Area awarded to NSE

• • The beneficial right to a 20% JV interest in the Backreef Area in the Canning Basin operated by Oil Basins Limited (OBL)

• 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 GRK’s 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%)