HELIOS ENERGY LTD — Capital/Financing Update 2012

Mar 27, 2012

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Level 1, 33 Ord Street West Perth, Western Australia 6005 Australia

Telephone: +61 8 9420 9300 Facsimile: +61 8 9420 9399

28 March 2012

NEW HORIZON COAL COMMENCES PRE‐FEASIBILITY STUDY ON HIGH QUALITY THERMAL COAL PROJECT

The Board of New Horizon Coal Ltd ( NHO or Company ) is pleased to announce the commencement of a Pre‐Feasibility Study ( PFS ) on the company’s Kinney Coal Project ( Project ) located near Scofield, Utah, United States.

This is the first stage of the Bankable Feasibility process which commenced upon settlement of the acquisition. The study follows the Company’s 2 February 2012 announcement of a 26.1 million tonne JORC resource of bituminous, high‐calorific, low sulphur, export quality thermal coal, of which 92% is in the Measured and Indicated category. The Project is located within 1km of a rail spur and within 30km of a main line served by three Class 1 rail carriers, offering access to export markets through the west coast of North America as well as the Gulf of Mexico.

Commenting on the PFS, Michael Placha, NHO Managing Director and CEO, “ The Company has reached a significant and exciting stage of its development path. Our JORC Resource Study, completed earlier this year, identified potential mining blocks of high‐volatile B bituminous coal suitable for the thermal coal market. With over 92% of our resource in the Measured and Indicated category, the Company has the potential to develop a high quality thermal coal suitable for both domestic and export markets. We expect that our PFS will provide encouraging results when the development work related mining synergies, increased production rate, extended mine life and market opportunities are factored into the mine plan. ”

NHO has contracted with John T. Boyd Company ( JT BOYD ) for the Project PFS.

JT BOYD is an internationally recognised mining consulting firm exclusively serving the US and international coal, mineral and natural gas industries. JT BOYD brings proven expertise to the project in mine planning and design, equipment selection, mining evaluation, geology and resource valuation, marketing, strategic planning and financial analysis. JT BOYD has extensive experience evaluating projects in central Utah and western Colorado for major operators, potential investors and financial institutions.

Additionally, NHO has engaged Taggart Global, LLC ( Taggart ) to develop for JT Boyd the design, capital and operating costs related to the surface coal handling, loadout and coal preparation requirements.

Taggart is an international engineering and construction company with expertise in turnkey design, supply, construction and commissioning of coal preparation plants and material handling systems for the mining and utility industries. Taggart has project experience and engineering offices in the United States, Canada, China, Australia and South Africa. Taggart has recently completed major projects in the region of the Kinney Project, including major coal preparation and coal handling project work in Utah, Colorado, Montana and Wyoming.

The PFS is expected to be completed in the third quarter 2012 with a focus on:

• Project Annual Capacity

• Coal Reserves

• Coal Quality

• Mine Planning, Scheduling and Sequencing

• Transportation and Market Price Forecast

• Infrastructure, transport and logistics

• Capital and Operating Cost Assessment

Enquiries:

Mike Placha – Managing Director Carl Coward – Non Executive Director Phone: +1 412 296 1473 +61 8 9322 5944 +61 421 237 941 E mail: mp@newhorizoncoal.com.au ccoward@wasatchnr.com

NEW HORIZON COAL LTD OVERVIEW

Company Overview

New Horizon Coal Ltd is an ASX listed company focused on becoming a high quality coal producer and eventually becoming a mid tier North America focused coal miner.

New Horizon Coal has recently acquired a high quality thermal coal project in Utah called the Kinney Coal Project. The acquisition was finalised in November 2011. In February 2012 the company announced a maiden JORC resource of 26.1 million tonnes, of which 92% was Measured or Indicated. With the initial JORC resource and now commencing PFS, the Company is on its way to become the next coal producer in a very mature coal producing region.

Coal JORC Resource

ource	ource	ource	ource	ource
	KINNEYPROPERTYJORC RESOURCE(METRIC) (million tonnes)
Seam	Measured	Indicated	Inferred	Total
Hiawatha Seam	9.0	7.2	2.0	18.2
UP Seam	3.3	4.4	0.2	7.9
Total	12.3	11.6	2.2	26.1
Resource Estimate per JORC criteria

Coal Quality

2006 DRILLING PROGRAM HIAWATHA SEAM QUALITY SUMMARY (dry basis)

al Quality	al Quality	al Quality	al Quality	al Quality	al Quality	al Quality	al Quality	al Quality
2006 DRILLINGPROGRAMHIAWATHASEAMQUALITYSUMMARY (dry basis)
Core Hole ID	Thickness feet (metres)	Ash %	Sulfur %	V.M. %	F.C. %	Btu/lb	kcal/kg	lbs SO2 per million Btu
CR‐06‐01	7.6(2.3m)	11.04	0.69	40.02	48.95	12,575	6,986	1.09
CR‐06‐02	8.5(2.6m)	8.45	1.04	41.99	49.57	12,883	7,158	1.62
CR‐06‐05‐A	7.5(2.3m)	14.01	0.80	39.28	46.70	12,114	6,730	1.32
CR‐06‐09‐BLW	10.9(3.3m)	4.29	0.67	42.31	53.40	13,506	7,504	0.99
CR‐06‐10	9.0(2.7m)	5.30	1.02	42.71	51.98	13,506	7,504	1.51
**Average **	8.7(2.6m)	8.62	0.84	41.26	50.12	12,917	7,176	1.31

COMPETENT PERSON’S STATEMENT

The information in this report that relates to Exploration Targets and Exploration Results, is based on information compiled by Mr James Kohler, who is a Registered Member of the Society of Mining, Metallurgy and Exploration (SME) and independent consultant to the Company. Mr Kohler is an Associate of Behre Dolbear & Company (USA), Inc and has over 35 years of exploration and mining experience in a wide variety of mineral deposit styles including coal. Mr Kohler has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Kohler consents to the inclusion in the presentation of this information in the form and context in which it appears.

FIGURE 1: KINNEY COAL PROJECT LEASE BOUNDARY AND DRILLING MAP

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FIGURE 2: KINNEY COAL PROJECT LOCATION MAP

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FIGURE 3: KINNEY COAL PROJECT LOCATION AND TRANSPORTATION OPTIONS

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Westshore Kinney
Terminals, Project
Canada Proposed
Ports
Existing
Ports
Railway
line
Neptune Bulk
Terminals,
Canada Port of Houston,
Port of Houston
Stockton
Port of Long
Beach
Port of Corpus
Christi, Texas
Source: Union Pacific
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