METRO MINING LIMITED — Capital/Financing Update 2013

Oct 23, 2013

==> picture [127 x 101] intentionally omitted <==

ACN 117 763 443

ASX ANNOUNCEMENT

24 October 2013

BUNDI PROJECT UPDATE

Highlights

• Successful completion of the Bundi 2013 drilling program

• Geological Model updated

• Bundi Resource estimate, including Juandah, reaches 2 Billion tonnes (296Mt Indicated and 1705Mt Inferred)

• Preferred Mining Areas identified

MetroCoal Limited ( ASX: MTE ) wishes to announce a resource upgrade for the Bundi underground thermal coal project in the Surat Basin.

Following successful completion of the Bundi 2013 drilling program in August the geological model has been updated to include the latest available structural and quality information.

The Bundi Resource estimate tonnage has increased by 11% and including the Juandah Project, has now reached 2 Billion tonnes of which 296Mt is Indicated and 1705Mt is Inferred based on the JORC 2012 Code.

MetroCoal Resource Inventory

Project	MTE Ownership	Resources (Mt)	Resources (Mt)	Resources (Mt)	Reserves (Mt)	Applicable JORC
		Indicated	Inferred	Total
Columboola	49%	94.7	1,618.0	1,712.7		2004
Goombi	49%	4.9	13.8	18.7	26.2	2004
Bundi (includes Juandah)	100%	296.0	1,705.6	2,001.6		2012
Dalby West	100%		520.0	520.0		2004
Norwood	100%		156.0	156.0		2004
TOTAL		395.6	4,013.4	4,409	26.2

Refer:-

MTE ASX Announcement 9 December 2011 – Dalby West Project – Maiden Inferred Resource of 520Mt MTE ASX Announcement 6 September 2012 – Maiden Indicated Resource for Columboola JV plus 26% increase in Inferred Resource

MTE ASX Announcement 19 December 2012 – Goombi Maiden Reserve Announced

==> picture [79 x 63] intentionally omitted <==

Figure 1

==> picture [440 x 361] intentionally omitted <==

Mine Planning

The mine plan has been reviewed using the latest geological information and a preferred mining area has been identified. This area is sufficient to support a modern longwall mining operation and will form the basis for a mining prefeasibility study.

Figure 1 above shows the location of the conceptual mine plan.

Schedule

In September2013 Glencore Xstrata announced that they had shelved their Wandoan project. This will have the inevitable effect of delaying the start of the Surat Basin Railway (SBR). Although MTE has joined together with other Surat Basin coal companies to consider other options for the construction of the railway it is now accepted that the Bundi project will be delayed beyond our previous timetable.

In light of this delay, and in order to preserve cash, MTE has suspended further operations in the field including the EIS and no longer intends to submit the mining lease application this year. The Company will review the timetable when there is further information on the start date of the SBR and when the overall coal market and coal price improves.

2

==> picture [79 x 63] intentionally omitted <==

About the Bundi Project

The Bundi Project Area is located in the northern part of EPC1164 and includes several sub blocks from the adjoining EPC1251 and EPC1609. The JuandahProject area is also located in EPC1164, contiguous with the south east corner of the Bundi Project. The proposed Bundi mining area is in the down dip extensions of the Kogan and Macalister Coal Seams immediately south of Xstrata’s proposed Wandoan Open Cut Mine development and New Hope Coal’s proposed Elimatta Mine.

The coal seams will be mined underground utilising a modern high productivity longwall mining system. This will produce approximately 5 Million tonnes per year of medium ash, low sulphur thermal coal suitable for steam raising in thermal power plants. This production target is based in part on Inferred Resources. There is a low level of geological confidence associated with Inferred mineral resources and there is no certainty that further exploration work will result in the determination of Indicated mineral resources or that the production target itself will be realised

The Appendix to this release details sections 1, 2 and 3 of the JORC Code Table 1.

For further information, please contact: Mr Mike O’Brien Chief Executive Officer Phone: +61 (7) 32493040 Fax: +61 (7) 32493041 Email: admin@metrocoal.com.au Postal Address: GPO Box 122, Brisbane QLD 4001

Further information on MetroCoal can be found on our website www.metrocoal.com.au

With Reference to the MetroCoal ResourceInventoryTable excludingthe Bundi and Juandah Resources

Competent Person Statement

The information in this announcement that relates to the Compilation of existing data and Exploration Results is based on information compiled by Mr Ed Radley who is a Member of the Australian Institute of Mining and Metallurgy (MAusIMM) (Membership No 300512). Mr Ed Radley is a fulltime employee of MetroCoal Ltd, in the role of Geological Manager, Mr Ed Radley 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 ‘Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Ed Radley has consented in writing for inclusion in this announcement the matters based on the information in the form and context it appears.

With Reference to the September 2013 Bundi and Juandah Resource (EPC1164, EPC1251 and EPC1609)

Competent Person Statement

The information in this statement that relates to in situ coal resources potential is based on information compiled by GeoConsult Pty Ltd and reviewed by Warwick Smyth, who is a member of the Australasian Institute of Mining and Metallurgy (CP) Geology; and the Australian Institute of Geoscientists. Warwick Smyth is a qualified geologist (BSc Geology, Grad Dip AF&I, MAusIMM (CP), MGSA, MAIG), and a Principal Consultant for GeoConsult Pty. Ltd. and has over 20years of experience which is relevant to the style of mineralisation, the type of deposit under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined by the 2012 edition of the Australian Code for Reporting of Coal Resources.

Neither Warwick Smyth nor GeoConsult Pty Ltd has a material interest or entitlement, direct or indirect, in the securities of MetroCoal or the Projects. GeoConsult has been commissioned to provide geological services and geological modelling to MetroCoal since early 2008. Fees for the preparation of this report are on a time and materials basis. Warwick Smyth and GeoConsult Pty Ltd consent to the use of this statement and references to it and extracts from it, in the form and context in which they are included. Apart from the above, neither the whole nor any part of the statement document, nor references thereto, may be included in, or with, or attached to any document, circular, resolution, letter or statement without the prior written consent of Warwick Smyth or GeoConsult Pty Ltd.

3

==> picture [79 x 63] intentionally omitted <==

JORC Code, 2012 Edition - Table 1 Checklist of Assessment and Reporting Criteria

MetroCoal Limited Bundi Coal Project, (EPC1164, EPC1251 and EPC1609) Geological and Modelling Report, Resource Estimation

Date: September 2013 Principal Geologist: Warwick Smyth Modelling Geologist: David Kingsford Review: Adrian Buck

Document Control Record

In general, future drill programs would include the expansion of the Inferred and Indicated resource as well as eventually defining a maiden Measured resource. This would include further Geotechnical study along with an EIS in preparation of applying for an ML over the resource. Areas for future expansion include the eastern limb of the deposit and continuing it down to former application MDLa 406.

Author: Adrian Buck, David Kingsford, Warwick Smyth Name: Bundi Coal Project, Geological and Modelling Report

Change History:

Version	Status	Date	Details of Changes	Author
1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 2.0	Draft Draft Draft Draft Draft Draft Draft Final Final Final	28/05/2009 10/06/2010 14/08/2010 18/10/2010 11/05/2011 3/06/2011 2/09/2011 12/10/2011 29/06/2012 26/09/2013	Created Bundi Project Resource Norwood Project Resource Bundi Project Resource Bundi Project Resource Update Bundi Project Resource Update Bundi Project Resource - Indicated Bundi Project Resource - Update Bundi Project Resource - Update Bundi Project Resource - Update JORC 2012	WDS/AB WDS/AB WDS/AB WDS/AB AB/DK LB/AB WDS/AB/DK WDS/AB/DK WDS/AB/DK WDS/AB/DK

4

==> picture [79 x 63] intentionally omitted <==

JORC TABLE 1

Section 1: Sampling Techniques and Data

Criteria	Project Details
Sampling Techniques	HQ Core samples were analysed for raw proximate coal analysis and testing on the coreholes WW5C, WW20C, WW25C, WW27C, WW29C, WW30C, WW32C – WW71C, WW85 – WW92C, WW98 – WW100C and WW108C – WW165CR (up to March 2013). RD analysis was completed for samples from WW20C, WW25C, WW27C, WW29C, WW30C and WW32C – WW71C, WW85 – WW92C and WW98 – WW100C and WW108C – WW165CR (up to March 2013). Analysis on the MetroCoal 2013 drill cores (WW166C - WW173C) is currently underway and results were not available at the time of report. Unsampled stone within the Bundi area has been given an estimated stone analysis based on similar material within the section. All coal and stone within the seam has been composited to reflect the underground mining working section. Washability results were available for densities F1.4 to S1.6 for 26 holes selected from holes WW72C onward. WW22C had float sink results from drilling carried out in 2009 as an initial trial to see how the material would wash. A calculated insitu density was used over the Bundi resource area. WW5C was not included in this resource estimation due to RD not being tested.
Drilling Techniques	Details on the types of drilling methods used are available in QDEX reports and include open holes, and partially cored HQ coreholes. Cored holes WW5C, WW08C, WW09C, WW13C, WW14C, WW20C, WW23C, WW27C, WW29C, WW30C and WW32C-WW39C, WW40C-WW173c were all HQ3, 61mm diameter standard tube diamond cores. Each partial partially cored HQ corehole had on average 50m of core with a tail of 20m below the target Macalister Upper seam. To date two PQ cores, 85mm diameter (PQ1 and PQ2) have been drilled to assess bulk washability testing on the cores. Up to end of March 2013, all cored holes up to WW165CR have had Coal Quality analysed and tested in a NATA accredited laboratory.
Drill Sample Recovery	Sampling strategy of the Macalister Upper Seam through the study area has generally been lithologically based. Samples have been taken at a scale detailed enough to allow compositing into the correlated Ply’s. Where core recovery was assessed to be excessive (<95% recovery) the hole was redrilled to ensure the entire resourcable section was tested. Target seams were drilled to maximise that the seam was cored in one core barrel, thus minimising coal seam loss. Working section proximate analysis composites were used to assess the resource.
Logging	All holes were lithologically logged. Brightness logging has been conducted on the coreholes in the Bundi Area. Holes drilled in the 2008-2013 exploration programs were geophysically logged. Typically gamma, density and calliper were run by Geoscience until late 2009 and Geolog Pty Ltd in 2010-2013. Pre 2006 holes, and Petroleum and CSG wells used in the model were all geophysical logged including density. Density logs were used from both LAS and PDF formats. All holes drilled in the Bundi Project have complete photos of the core sections including a photo run board detailing core run particulars.
Sub-sampling techniques and sample preparation	All core is housed on site in an undercover coreshed arranged by hole ID. All coal quality core is sent to Brisbane for analysis in whole core to ensure maximum material is present for testing (especially washability testing) and is sealed in UV resistant plastic bags and double cable tied for transport. Only core samples were sent for analysis. All samples from WW94C are received from the field, dried in drying racks then crushed to 11.2mm for testing. Prior to WW94C, WW series samples were initially crushed to 4mm before being split for further tests. Samples are mixed using a rotary splitter (2 passes) to ensure homogenisation and then divided for further analysis. Half the resulting sample is send for Washability testing (11.2mm topsize), 1/8 is sent for Proximate Analysis and ground to -212µm for 1gm of sample per test. The remaining sample is ground to - 212µm, sealed and kept in archive for future testing.
Quality of assay data and laboratory tests	The WW series coal quality testing is carried out using NATA accredited laboratories for all tests conducted. This covers instrument calibration, standardisation and reporting. To ensure acceptable levels of accuracy are achieved, samples are sent to multiple labs (GeoConsult Pty Ltd and Preplab Pty Ltd - SGS in the past) and data is assessed to identify any outliers. Any erroneous results are sent back to the lab for clarification. Standards adopted include Total Moisture (AS1038.1), Ash, Inherent Moisture and Volatile Matter (AS1038.3), Calorific Value (AS1038.5), Total Sulphur (1038.6.3.3), Relative Density (AS1038.21.1.2), Float/Sink (AS4146.1) and Sample Preparation (AS4264.1).

5

==> picture [79 x 63] intentionally omitted <==

Verification of sampling and assaying	All results are verified by both MetroCoal Ltd and GeoConsult Pty Ltd to ensure sampling in the field and laboratory assay results are without error. MetroCoal has carried out several twinned holes to assess variability in Coal Quality analysis over the mining section as well as several different core sizes to complete different tests including bulk tests and DST gas tests to assess how gas impacts on the deposit. Data accumulated from the field is stored on both MetroCoal and GeoConsult's servers back in Brisbane. Hard copy data is filed out on site in the MetroCoal site office in Wandoan. Once data is entered digitally, both the corrected and uncorrected data is emailed back to Brisbane for verification where it is copied to the servers. For external review, the data is arranged into a data room which is provided to external technical staff and potential JV partners.
Location of data points	The database consists of a significant number of non MetroCoal holes (previous coal exploration drilling, departmental stratigraphic drillholes, petroleum and CSG wells); Stage 1 – 2008 WW1-8 series, Stage 2 – 2009 WW9-19 series, Stage 3 – 2010 WW20C-42C, Stage 4 – 2011 WW43C-113C, Stage 5 – 2012 WW114C-165CR have been surveyed by external, licenced surveying contractors. The 2013 drilling currently taking place (WW166C - WW173C) will be surveyed on completion of the drilling campaign. A GPS coordinate is acquired by the field geologist in this occurrence. The locations of the non MetroCoal holes are based on the survey locations reported in well completion and department reports. Unrecorded and anomalous collar elevations reported for non Metrocoal drillholes were adjusted to the 2012 MetroCoal Bundi DTM. This survey was carried out by Fugro Spatial Solutions Pty Ltd. Both holes with surveyed and DTM collar elevations are used for modelling resources. All hole coordinates are recorded in GDA94 - Zone 55.
Data spacing and distribution	Drillhole spacing is variable, typically 800m. Chip holes have a variable spacing; typically 3km. 214 drillholes with MU Seam intersections form the basis of the Bundi Area model and resource estimation. Data spacing is sufficient to establish the degree of geological and grade continuity for a resource with >90% of holes recording both stratigraphic and quality data with most holes drilled by MetroCoal containing LAS data (besides WW3 which had issues with gas and had to be sealed before Geophysical logging took place). Where a hole does not contain LAS data, the intervals can only be used in an advisory sense. Samples have been composited using Maptek Vulcan compositing samples menu. The compositing was also manually calculated to cross check.
Orientation of data in relation to geological structure	In general, future drill programs would include the expansion of the Inferred and Indicated resource as well as eventually defining a maiden Measured resource. This would include further Geotechnical study along with an EIS in preparation of applying for an ML over the resource. Areas for future expansion include the eastern limb of the deposit and continuing it down to former application MDLa 406.
Sample security	All samples are stored in a locked shed while on site to ensure heat and UV do not break the sample down. Once a batch of samples is brought back from the field and provided to the Nata accredited and ISO9000 laboratory for testing, a sample manifest is provided to the laboratory with the client name, project name, borehole and interval tested listed on it. No sample location data is provided.
Audits or reviews	Sampling techniques are continually being assessed to ensure best practice is being applied to the coal quality testing on the Bundi Coal Project. Both procedures produced and applied by MetroCoal are checked by GeoConsult to ensure they fit with the current ply model in terms of ply sampling and geotechnical roof and floor samples. Quarterly audits take place out on site to ensure the procedures take place within specifications and adjusted if an issue arises.

6

==> picture [79 x 63] intentionally omitted <==

JORC TABLE 1

Section 2: Reporting of Exploration Results

Criteria	Project Details
Mineral tenement and land tenure status	Resources estimated are within EPC1164, EPC1251 and EPC1609 and are wholly owned by MetroCoal Pty Ltd. Native title interests over the tenements include the Mandandanji People (QUD366/2006, QC2008/010) over the south western portion of the resource and the Iman People #2 (QUD6162/1998, QC1997/055) over the rest of the resource. Mt Organ State Forest lies in the middle of the resource however no drilling has taken place in the forest at this time. Hinchley State Forest lies to the south of the resource area.
Exploration done by other parties	Sporadic coal exploration was carried out by Xstrata (Relinquished), CSG exploration by Pure Energy (QGC) and OCA (Relinquished) and QGC (Relinquished). See report Table 1 - Drillhole Collars for full details
Geology	The coal seams within the Bundi Coal Project area form part of the Walloon Subgroup, namely the Juandah and Taroom Coal Measures and dip gently to the south.Kogan 10, 30, 50 Seams and Macalister Upper Seam are the conventional underground mining target seams. The Lower Macalister Seam is present, but requires further investigation. The Macalister Lower Seam is not included in the resource estimate at this stage.
Drill hole Information	MetroCoal drillhole data is stored in a GPAC database. The database contains all header, lithological, LAS downhole geophysics, raw coal quality and washability data. This database is exported to Vulcan for modelling. Up to end of July 2013, MetroCoal drillholes up to WW170C had been included in the database. Detailed information for the boreholes within the Bundi Coal Project area is included as Depth to roof (DR) and structure roof (SR) contour plans. All grids and values in the model take into account the borehole information so the individual borehole results are not needed in this case.
Data aggregation methods	Quality analysis over the intervals have been weighted averaged (thickness - density) using the industry standard technique. Coal and stone bands are analysed within the seam and are composited in the working section.
Relationship between mineralisation widths and intercept lengths	A working section model is generated for the Macalister Upper Seam based on maximum parting thickness of stone bands MU20 and MU40. Starting with the MU30, MU20 and MU10 were added to the top when MU20 was less than the maximum parting thickness of 0.5m. MU40 and MU50 were added to the floor where MU40.ST was less than the maximum parting thickness of 0.5m. KO90 and KO99 were added to the roof where KO99.ST was less than the maximum parting thickness of 0.5m. KO70 and KO80 were added to the roof where KO80.ST was less than the maximum parting thickness of 0.5m and the KO90 was added previously. MU80 and ML10 were added to the floor where MU80.ST was less than the maximum parting thickness of 0.5m. Areas where the MU10-MU20 and MU50-MU40 have been included in the working sections are defined by the respective, MU10 and MU50 split lines. Working section grids were generated from automated scripts as well as from manually derived and verified points.
Diagrams	See figures included in Appendix A - Resource Polygons & Modelling Plans Figure 9 - Macalister Upper Seam - Correlation Schematic Section Figure 10 – Typical Macalister Upper Seam Profile with Raw Coal Quality Ranges Figure 11 – Typical Kogan 10 and 30 Seam Profile with Typical Coal Quality Ranges Figure 12 – Interpreted Seam Profile
Balanced reporting	When reported, resource variables are expressed in an average, maximum and minimum to present an unbiased representation of exploration results. Variables reported in this way include depth to roof (DR), insitu density (ID), relative density (RD), structure thickness (ST), raw ash (AS%), total sulphur (TS%), inherent moisture (IM%), calorific value (CV) and fixed carbon (FC%).
Other substantive exploration data	A number of studies has been undertaken to better learn the deposit. MetroCoal ran a 2D seismic survey in 2012 to identify subsurface structures as well as a LIDAR survey in 2012 to get a more accurate topographic surface that what was freely available. MetroCoal also engaged E3 consulting to undertake a groundwater survey with the installation of several vibrating wire peisometers.

7

==> picture [79 x 63] intentionally omitted <==

In general, future drill programs would include the expansion of the Inferred and Indicated resource as well as eventually defining a maiden Measured resource. This would include further Geotechnical study along with an Further work EIS in preparation of applying for an ML over the resource. Areas for future expansion include the eastern limb of the deposit and continuing it down to former application MDLa 406.

8

==> picture [79 x 63] intentionally omitted <==

JORC TABLE 1

Section 3: Estimation and Reporting of Mineral Resources

Criteria	Project Details
Database integrity	The current Bundi exploration database is stored in GeoConsult Pty Ltd's GPAC database and then exported via ASCII to Vulcan for modelling. The data is stored by hole ID and all data is stored within the database. Validation takes place on the data within GPAC to ensure keying errors are rectified and an english log is produced for a manual check of the data. If information needs further QA/QC, the original hole records can be scrutinised to rectify the issue identified. Data validation also takes place within Vulcan while modelling to ensure no overlapping horizons occur. Once identified the errors can be amended manually.
Site visits	When site operations occur, the site is visited by the CP and an exploration supervisor to ensure the data being collected from the field is of the highest quality. Activities observed include: drill rig operations, core markup, lithological logging, sample selection and preparation for analysis, corebox labelling and storage, record keeping particularly in respect to lithology, core run and core loss and ensure samples and core are stored in a suitable environment to ensure they are kept as a record. Site visits are also used to communicate procedure changes in sampling and upcoming tests on the boreholes. The latest seam correlation and seam sections are also prepared and brought out to site to ensure field staff know the importance of good field data making its way to the model. A site visit will occur every three months and runs on the back of a safety audit on the site. CP conducts annual inspections of the site to ensure sampling and ply correlation is carried out according to the stratigraphy
Geological interpretation	The Macalister Upper Seam correlations within the Bundi area were checked against slimline geophysical logs. Geophysical logs including density are available for all drillholes used in the model. LAS data is available for most drill holes post 2000. Pre 2000 has limited hard copy and PDF files. An ash-density regression was applied to the wireline density logs to calculate an approximate ‘synthetic’ log. Correlation between CQ-ash and LAS- ash was tested; LAS-ash working section composites reviewed for all holes, the results are supportive but, have not been used to constrain the working section. Up to end of June 2013, all MetroCoal LAS up to WW171C had been included in the database. Ten seam packages were identified and correlated across the deposit. Correlation of the seams was undertaken using geophysical logs. Modelling is based on stratigraphic units. The target Macalister Upper Seam was correlated in detail. Ply by Ply correlation of each Macalister Upper Seam intersection within all holes in included in the Bundi area model. Split lines where the stone bands in the seam reach >0.5m define the resource in certain areas and can restrict the resource from reaching a minimum working section thickness of 1.8m. Other factors such as coal quality (% raw Ash) limit the resource in places.
Dimensions	The strike of the current MUWS Inferred resource is 26km west to east and following the dip is 8km. The current MUWS Indicated resource lies in the middle of the Inferred resource and is 12km in strike and 4km in dip. The depth to roof of the MUWS is recorded as 80m to 339m across the resource. There are resources on other seam sections within the Kogan including the KO10, KO30 and KO50
Estimation and modelling techniques	A geological model was created using Vulcan software based on grid models. Grid mesh size was 50m. Structure surfaces were generated using a triangulation, analytical grids modelled using inverse distance.
Moisture	Resource tonnages were estimated on a dry basis using Insitu Densities derived from existing laboratory testing and analysis of coal quality data. Insitu Density was also calculated using the Preston and Sanders formula (1993).
Cut-off parameters	In 2010, MetroCoal and GeoConsult derived a set of parameters at which the resource could be defined to make the resulting resource a marketable grade. The grade is as follows: Maximum (ad) ash limit of up to 35% raw ash, Minimum seam thickness of 1.8m for the Macalister Upper Seam and 1.5m for Kogan Seams, Minimum depth of 80m (for Underground Resource) depth of cover and a maximum in seam stone parting of 0.5m. With the progression into a mining model, the parameters were kept the same except for the raising of Maximum (ad) ash limit of up to 40% raw ash. A higher ash polygon has been included and will be assessed with the washability data.

9

==> picture [79 x 63] intentionally omitted <==

Mining factors or assumptions	The Macalister Upper Seam is being targeted for underground extraction. Extraction parameters were considered for target. Australian analogues for the conventional underground mining coal working section heights, and depths were identified. The coal quality for the working section is comparable to other deposits currently operating in the Surat Basin. In June 2012, MCS completed a concept mining study with the view to draft a plan for the underground mine with panel design, equipment needed to mine, target tonnages and initial CAPEX calculations but is currently not been made public. MCS's results do not filter back to the model at this stage.
Metallurgical factors or assumptions	All raw coal quality data is stored in the ‘metwan.geo.isis’ ISIS database under the CQR tab. This dataset contains all analysis data performed on core samples organised by hole and sample number. Where coal quality data was unavailable for a Plies MU40 and MU50 in holes WW5C and WW27C, raw coal analysis from a drillhole with comparable lithological and wireline geophysical characteristics was substituted. A default stone analysis (WW37_CQ4 within MU30) has been applied for stone bands not analysed in the working section. The default stone analyses have values for all coal quality parameters modelled. Where the default stone analysis has been used the sample number has been denoted in the sample identification number “Hole_CQN#”. Up to the end of March 2013, all cored holes up to WW71C, WW85 – WW92C and WW98 – WW100C and WW108C – WW165CR had been analysed and tested in a NATA accredited laboratory and were included in the model. Samples from WW166C - WW173C have been sent to the laboratory for analysis and results are expected within three months.
Environmental factors or assumptions	In general, future drill programs would include the expansion of the Inferred and Indicated resource as well as eventually defining a maiden Measured resource. This would include further Geotechnical study along with an EIS in preparation of applying for an ML over the resource. Areas for future expansion include the eastern limb of the deposit and continuing it down to former application MDLa 406.
Classification	KO10 - Indicated and Inferred Resource Identified, including higher raw ash (>40%) polygons KO30 - Indicated and Inferred Resource Identified MUWS - Indicated and Inferred Resource Identified, including higher raw ash (>40%) polygons
Audits or reviews.	Internal reviews and audits were undertaken. MetroCoal has also reviewed and given input into the correlation in areas where separation between minable seams was <0.5m.
Discussion of relative accuracy/ confidence	GeoConsult have estimated and inferred a level of confidence to the Coal Resource Estimate depending on the seam and drillhole spacing, as described in the section 'Resource Estimation' of this report. Faulting is noted but not been taken into account in this resource until further infill drilling can confirm the location. Factors that could affect accuracy could include further structure between points of observation, errosional surfaces or in seam partings increasing in size between points of observation.

10