GREENVALE ENERGY LTD — Management Reports 2007

Mar 14, 2007

GREENVALE MINING N.L.

ACN: 000 743 555

ABN 54 000 743 555

ESPERANCE MINERALS N.L.

$\&$

ACN: 009 815 605

ABN 59 009 815 604

Suite 305 (3rd 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: Fax: $(61\ 2)$ 9327 2028 ecgres@bigpond.com e-mail

SUBSIDIARIES ONSLOW MINING PTY LIMITED

ASSOCIATED COMPANIES MINGA PTY LIMITED TEXAS ENERGY CORPORATION N.L. AUSTRAL PACIFIC ENERGY AND RESOURCES CORPORATION (USA)

Progress Report

The companies received permission to bulk sample the Alpha deposit, (which is owned 50% Greenvale and 50% Esperance). We are having the Alpha oil shale tested using a number of technologies for oil extraction and emission control. We believe these technologies hold out great hopes for the economic extraction of oil from shale or for the sale of oil shales for emission control without the environmental costs and risks associated with conventional retorting.

The aim is:

• a) Test samples at IDAHO- Mobotec in USA for Emission Control Technology using oil shale on Coal Fired Power stations. Idaho National Laboratories patented technology is exclusively licensed to our companies for Australia, New Zealand, India and Japan (as announced by our group on 16 August 2006).
• b) Test samples for Alpha torbanite and cannel coal with Solvent Technologies, the same process that increased three fold Nagoorin and Lowmead reserves (established originally by Fischer assays) in their laboratory tests (see our announcement $11^th$ September 2006).
• c) Test samples with XTRACT CSIRO research also to extract oil from oil shale.
• d) Send samples to ECO Heat Technology in Haifa, their extraction is based on reaction of a mix of oil residue and oil shale. Within a few months their Pilot Plant will be ready and accept a bulk sample from Alpha.
• e) Global Technologies in New Jersey USA, patented a Microwaves process. They claim that their technology is cost effective, it is estimated that producing a barrel of oil will cost approximately US\$30. It produces Fractionalised Petroleum Products, diesel fuel and it eliminates Refining process. Global will come back to us within the next 2 weeks to establish the amount of samples required.

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

L.White Chairman 15 March 2007