PACIFIC RESOURCES LIMITED — Interim / Quarterly Report 2011

Oct 26, 2011

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Date : 27 October 2011

To : Australian Securities Exchange Companies Announcement Office Electronic Lodgment System

Dear Sir

ACTIVITIES REPORT FOR QUARTER ENDED 30 SEPTEMBER 2011

ACTIVITIES RELATED TO ENERGY PROJECTS:

Blackall-Tambo Project

During the quarter Coalbank commenced its 2011 drilling program on 29th August, beginning in Exploration Permits for Coal 1993 and 1719 near Blackall. To date 18 chip-holes have been completed and geophysically logged (see Figure 1 for location).

The drilling program is confirming the Company’s expectations of a significant coal discovery at its Blackall Project with results continuing to demonstrate the presence of coal seams at shallow depths in line with our geological model.

Total coal thicknesses have exceeded 10 metres in several holes, based on analysis of wireline geophysical logs. Coal seams have been intersected in all but the most northerly hole where deeper river gravels were intersected and the outcrop location of the Winton Formation remains to be confirmed.

Further drilling is planned to increase knowledge of the areal extent of the coal seams. Two rigs are now under contract.

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Figure 1: Location of Drilling

COALBANK LIMITED

ABN 20 075 877 075

Level 1 101 Edward Street Brisbane Queensland 4000  GPO Box 762 Brisbane Queensland 4001 Australia T +61 7 3229 6606  F +61 7 3221 6625  info@coalbank.com  www.coalbank.com

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During the next quarter the Company plans to begin drilling additional priority targets commencing in EPC 1415 near Tambo, in parallel with ongoing activities in the Blackall region. Figure 2 shows Coalbank’s further priority drilling targets within the Blackall –Tambo Projects.

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Figure 2: Blackall-Tambo Drilling Targets

Landholder access arrangements are progressing with several agreements concluded or at advanced stages.

Moreton Energy Project

Lodestone’s Moreton Project consists of four EPCs located near Beaudesert in South Queensland. No field activity was undertaken in the quarter.

Central and Eastern Queensland Projects

Compilation and analysis of existing geological data was undertaken as part of the planning for the 2012 exploration program. Site visits were undertaken as part of the planning process.

Surat Gas

Further transcription of historical seismic data in ATP1020 has been completed. Discussions are continuing with interested parties with regard to joint ventures or other transactions for the Surat Gas portfolio.

ACTIVITIES RELATED TO MINERAL PROJECTS:

An independent technical review of the company’s minerals holdings was undertaken during September following the copper discovery confirmed from the October 2010 drilling program at Chillagoe Project in North Queensland where significant intersections of copper mineralisation were identified in assays.

COALBANK LIMITED

ABN 20 075 877 075

Level 1 101 Edward Street Brisbane Queensland 4000  GPO Box 762 Brisbane Queensland 4001 Australia T +61 7 3229 6606  F +61 7 3221 6625  info@coalbank.com  www.coalbank.com

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From the initial results from this review, the Company is excited about the potential for its Chillagoe copper discovery and its Mount Morgan area projects along with the future possibilities the Company’s 100% subsidiary, Harvest Metals Pty Ltd (Harvest Metals).

The board has commissioned an Independent Expert’s Report, on receipt and consideration of which the Company will consider its options for funding new drilling activities within these projects. This may involve farm out of the metals projects, further internal funding, or outside investment in/spin off of the Harvest Metals subsidiary.

CORPORATE ACTIVITY:

During the quarter the Queensland Minister for Employment Skills and Mining wrote to the holders of exploration tenure regarding the declaration of Restricted Area (RA) 384 around urban centres around the state. While in place the declaration means that within RA384 no new applications will be accepted for exploration tenure (other than industrial minerals for use in the construction industry). The Minister asked for the voluntary relinquishment of subblocks within certain local government areas for existing exploration permits and exploration permits in application affected by RA384. The Minister also offered local government the option to request to “opt out” of the impacts of the proposed policy.

In the case of COALBANK, Exploration Permits for Coal 1302, 1788 and 2240 were affected, as was EPM17850 (Mt Morgan). In response the Company has offered certain relinquishments subject the passage of the relevant legislation. In the case of EPM 17850 the Rockhampton Regional Council which covers the Mt Morgan area has responded to the Minister’s invitation and written to the Minister seeking to opt out of any changes to existing urban land use and exploration arrangements.

As previously advised, COALBANK has continued its discussions with various parties regarding commercial arrangements for future joint ventures, farm-outs, spin-offs and project funding/capital raising options to advance its minerals and energy projects.

The Company continues to be approached by potential strategic partners/investors. The Company is continuing to engage in such discussions with a view to outcomes that would help advance its projects and benefit shareholders.

Yours faithfully,

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Roger Clarke Chairman

Further information:

	Bruce Patrick Chief Executive Officer 07-3229-6606	Greg Baynton Deputy Chairman (Executive) 07-3229-6606

COALBANK LIMITED

ABN 20 075 877 075

Level 1 101 Edward Street Brisbane Queensland 4000  GPO Box 762 Brisbane Queensland 4001 Australia T +61 7 3229 6606  F +61 7 3221 6625  info@coalbank.com  www.coalbank.com