GREENVALE ENERGY LTD — Interim / Quarterly Report 2006

Oct 25, 2006

ACN: 660-743-555

ABN 54 000 743 555

CONSTITUE MUNICIPALE PROPERTY

SURSIDEARIES

Suite 305 (3^st Floor), Angela House, 30-36 Bay Street DOUBLE BAY NSW 2028 AUSTRALIA

ALL CORRESPONDENCE TO:

P.O Box 366, DOUBLE BAY NSW 1360 AUSTRALIA

(61 2) 9327 2553 Tel: $(61\ 2)$ 9327 2028 Fav: e-mail ecgres@bigpond.com ASSOCIATED COMPANIES MINGA PTY LIMITED TEVAS ENGROV CORROR ATION N.L. AUSTRAL PACIFIC ENFROY AND RESOURCES CORPORATION (USA)

QUARTERLY REPORT

PERIOD ENDED 30 SEPTEMBER 2006

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NEW TECHNOLOGIES

Idaho National Laboratories patented a new Technology for "Reduction of Regulated Emissions in Coal Fired Power Plants Using Oil Shale". This technology combined with MOBOTEC USA, Injection Technology is an environmental breakthrough.

During the quarter after lengthy negotiations Greenvale and our associated company Esperance Minerals secured an Exclusive Licensing Agreement in these technologies for Australia, New Zealand, India and Japan using our oil shale.

In August $16^th$ 2006 we had an oil shale symposium for the press and analyst. Five executives form Idaho National Laboratory and Mobotec USA joined us and gave a power point presentation.

It is envisaged that after bulk testing and environmental studies, we could achieve a 50 thousand tonnes a day operation producing crushed oil shale for local and export consumption.

Since balancing date the Federal Government has announced a 150 million dollars grant to eliminate pollution caused by Coal Fired Power Stations. We will apply for this $R \& D$ grant as our Idaho Technology is a perfect answer to Emission Control.

The World Bank wants Carbon Trading introduced as announced on Monday. The Oueensland Government is also looking at Carbon Trading, which would encourage Power Stations to use our Technology.

Extracting Oil from Oil Shale

Since our combined reserves are 6 billion plus tonnes of oil shale of which 75% is Greenvale and Esperance share, there is opportunity to research new technologies for oil production.

One of those environmentally friendly technologies is the Thermal Solution Process also known as Solvent Technology.

Tests of Nagoorin and Lowmead oil shale samples with Solvent Technology were finalised and reported to the Stock Exchange on 11 September 2006.

The result show a more then three fold increase in the recovery of oil products compared to the previously conducted Fischer Assay. The Solvent Technology supposably recovers 80% of the oil content of the shale and almost 100% of improvement of fisher assay as they only measure up to 40-45%.

Test Results:

From our Nagoorin sample Solvent Technology extracted oil at the rate of 400 litres to the tonne where conventional retorting and Fischer Assay had shown 119.4 litres to the tonne.

From our Lowmead samples Solvent Technology extracted oil at the rate of 358 litres to the tonne where conventional retorting and Fischer Assay has only shown 116.2 litres to the tonne.

The tests were done by HRL Technology Pty Ltd located in Mulgrave Victoria. Mr John Blumer of Robsearch is involved in the technology.

Increase in size of deposits:

It must be stressed that these results are preliminary as they come from one sample of Nagoorin and three samples from Lowmead.

The results of these tests, if applied to the whole of the deposits at Nagoorin and Lowmead, would increase the deposits by more than three fold. Therefore at Nagoorin the current estimated deposit of 2.65 billion barrels would increase to over 8.8 billion barrels of contained oil. Nagoorin is owned 50% by Greenvale Mining N.L. and 25% By Esperance Minerals N.L.

Similarly at Lowmead, which as presently calculated has some 738 million barrels, this would increase to about 2.2 billion barrels of contained oil. Lowmead is owned 25% by Greenvale Mining N.L. and 50% by Esperance Minerals N.L.

On this basis these two deposits would contain about 11 billion barrels of oil insitue of which 75% (some 8.25 billion barrels) would be owned by Greenvale Mining N.L. and Esperance Minerals $N.L.$

Bulk Sampling

These tests are very encouraging and we plan a large scale bulk testing.

Environmentally Friendly:

Perhaps the most important thing about the Solvent Technology is that it is environmentally friendly as the solvents can be reused. The estimated cost of using this technology is some US\$25 per barrel of oil produced.

Alpha Deposit:

It is intended to test our Alpha oil shale which with conventional retorting showed a 400 Litres per tonne yield and it will be interesting to see if the increase in yield would be similar to that experienced at Nagoorin and Lowmead.

During the year The Commonwealth Bank of Australia and its subsidies which are managed by Colonial First State Investment Managers became substantial share holders with the voting power of 10.33%. This also shows the interest in oil shale with larger Investment Groups.

It is our considered opinion that we have a World Class Deposit.

CHANGES IN ISSUED CAPITAL

889,625 contributing shares were converted to fully paid shares in this quarter.

In response to numerous enquiries we wish to inform the contributing shareholders that their holdings can be converted to fully paid shares by paying 15 cents per share at any one time.

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OIL SHALE DEPOSITS

MINERAL DEVELOPMENT LICENCE NO. 330 - ALPHA

Joint Venture partners are:

Greenvale Mining N.L.	50%
Esperance Minerals N.L.	50%

The oil content is 89.5 million barrels.

MINERAL DEVELOPMENT LICENCE NO. 188 - LOWMEAD

Joint Venture partners are:

Esperance Minerals N.L.	-50%
Greenvale Mining N.L.	-25%
Queensland Energy Resources Limited	25%

MINERAL DEVELOPMENT LICENCE NO. 234 APPLICATION - NAGOORIN

Joint Venture partners are:

Greenvale Mining N.L.	-50%
Esperance Minerals N.L.	-25%
Queensland Energy Resources Limited	-25%

The Company's interests in related Public Companies investments are as follows:

DIRECT INVESTMENT

Esperance Minerals N.L.	967,750	Contributing shares
East Coast Minerals N.L.	5,601,868	Fully paid shares

INDIRECT INVESTMENT

The Company holds 45% of the issued capital in Minga Pty. Ltd., which in turn has the following investments:

Esperance Minerals N.L.	6,100,000	Contributing shares
Greenvale Mining N.L.	96.100	Fully paid shares
East Coast Minerals N.L.	3, 465,000	Fully paid shares

ON BEHALF OF THE BOARD OF GREENVALE MINING N.L.

L. WHITE

Chairman

26 October 2006

The information on mineralisation contained in this report accurately reflects information compiled by a Competent Person (as defined by the Australian Code for Reporting of Identified Mineral Resources and Ore Reserves) with relevant experience in relation to such mineralisation.