REENVALE MINING N.L.

ABN 54 000 743 555

ESPERANCE MINERALS N.L.

ACN 009 815 605

ACN 000 743 555

ABN 59 009 815 604

Suite $305\,(3^{\rm st}\,\mathrm{Floor}),$ Angela House, 30-36
Bay Street DOUBLE BAY NSW 2028 AUSTRALIA ALL CORRESPONDENCE TO: P.O.Box 366, DOUBLE BAY NSW 1360 AUSTRALIA

Tel: (61 2) 9327 2553 $(61\ 2)$ 9327 2028 Fav: e-mail [email protected] SURSIDEARTES ONSLOW MINING PTY LIMITED

ASSOCIATED COMPANIES MINGA PTY LIMITED TEVAS EMERCY CORPORATION M.L. AUSTRAL PACIFIC ENERGY AND RESOURCES CORPORATION (USA)

Progress Report

Melbourne Institute $\bullet$ Background Issues on Economic Policy Towards Climate Change.
Indian Coal Industry meeting in Brisbane ۰

Melbourne Institute

Your company was invited to send representatives to a seminar run by the Melbourne Institute on Climate Change held on Thursday 19^th April at the Old Parliament House, Canberra. Your Chairman, Leslie White and chief geological and technical consultant Professor Adrian Hutton attended the Seminar. We presented technical reports about the Idaho-Mobotec USA technology for the reduction of gaseous emissions from coal burning furnaces using the injection of crushed oil shale. Your companies have the licence for this technology for Australia, New Zealand, Japan and India. Our reports were well received and we took the opportunity to press for government funding to complete our testing program.

India

India has a very serious problem of acid rain, caused mainly by the emission of Nitrogen and Sulphur gasses from coal burning power stations. The government has mandated that these emissions be controlled and has placed a time limit for compliance.

Your Chairman and Professor Hutton met an Indian delegation representing Coal Fired Power Stations and Energy companies in Brisbane on Friday $20^{\text{th}}$ . April. The delegates were extremely impressed by the Idaho-Mobotec USA oil shale bases emission control technology and have agreed to work closely with your companies on a far ranging technical appraisal.

In furtherance of this the Power Companies will send samples of their coal to Idaho where the Idaho laboratory will mix it with samples of our oil shale from Lowmead and Nagorin to conduct laboratory testing of emission control. A successful outcome of this testing would establish the percentage of oil shale this will be needed to be injected into the furnaces for the optimum emission reduction.

We are very encouraged by the possibilities opened up for both the use of the emission control technology of which we are the licencee and also for the prospects for utilization of our oil shale in the process. The Indian market is enormous, and will be almost about the same size and scale as China.

To inform the market we are attaching a SUMMARY OF IDAHO NATIONAL LABORATORY (INL) PROJECT.

ON BEHALF OF THE BOARD OF GREENVALE MINING N.L. & ESPERANCE MINERALS N.L.

lo _ ch

L.White Chairman 26 April 2007

SUMMARY IDAHO NATIONAL LABORATORY (INL) PROJECT

Idaho National Laboratory (INL) Process

The INL process is a process in which an additive, in this case oil shale, is injected into the process line above or after the coal combustion chamber in a pulverised coal fired power station (Idaho National Laboratory (INL). The kerogen products released during the pyrolysis stage create a fuel rich environment that effectively reduces NOx gases to nitrogen and also effectively changes other gases such as SOx gases. The spent oil shale subsequently provides a high sorbent surface area that adsorbs elemental mercury, mercuric chloride, and many acid gases and halide compounds. Hence, oil shale has ideal properties to reduce multiple pollutants from power stations.

The effectiveness of the process lies in the properties of the oil shale and properties of the products formed when the oil shale is either pyrolysed or burnt. The Idaho National Laboratory states the process works in two ways:

$\sim$ as the cil shale is heated in the cil shale injection chamber, the organic constituent (kerogen) is ovrolvsed or broken down to form light or small molecular weight hydrocarbons which are a firel. The abundance of the hydrocarbons results in a reducing environment in the combustion chamber and NOx (nitrogen oxide) gases, which are one of the main groups of deleterious gaseous products of coal combustion, are converted to nitrogen. The NOx gases are effectively reduced to nitrogen, a relatively inert gas that constitutes approximately 78% of the atmosphere.

the mineral component of the oil shale is calcined (mineral types, physical properties and ŤŤ. texture) resulting in a pozzolanic (or cement like material) material which has greatly increased sorbent properties. SOx (sulphar oxide gases), heavy metals such as mercury (Hq), acid gases. mercuric chloride and halide compounds (for example, chlorine compounds are absorbed). The heated oil shale particles have a similar texture to limestone (which is a major component of cement) which also has pozzolanic properties.

The deleterious SOx and other materials are adsorbed onto the solid oil shale product and can be readily removed from the system.

As stated above, the process effectively reduces NOx to nitrogen and water and further provides a sorbent for SOx, elemental mercury, mercuric chloride, and many acid cas and halide compounds. The process is reported to be simple, very economical, efficient, and easy to retrofit on existing plants. The Idaho National Laboratory state that NOx emissions are reduced by 70%. SOx emissions by 50% and Hg emissions by 90%. The company estimates that to install the process will cost a 500 MW power plant \$2.6 million per year.

The process has been investigated for United States oil shales. Both types of USA oil shales have significant carbonate content. The older marine oil shales contain significant calcite whereas the Tertiary Green River oil shales contain several carbonates. It appears that the levels of carbonate in the oil shales are high enough to permit the heated oil shale to behave as does a limestone when it the latter is heated.

Greenvale Mining NL and its associated company, Esperance Minerals NL, (the parent companies of Alpha Resources Pty Ltd) have obtained sole rights for the INL process in Australia