PACIFIC RESOURCES LIMITED — Interim / Quarterly Report 2013

Jan 30, 2014

Date: 31 January 2014

To: Australian Securities Exchange Companies Announcement Office Electronic Lodgment System

Dear Sir

ACTIVITIES REPORT FOR QUARTER ENDED 31 DECEMBER 2013

CORPORATE ACTIVITIES:

Proportional Takeover Transaction

COALBANK LIMITED (ASX: CBQ), completed the proportional takeover by Treasure Wheel Global Limited (Treasure Wheel) in which Treasure Wheel attained an interest of 62.29% in Coalbank.

As a consequence of the change of control the Coalbank Limited Board now comprises:

Mr Anthony Chan as Non-Executive Chairman,

Mr Nick Bolkus as a Non-Executive Director,

Dr George Lam as a Non-Executive Director,

Mr Daniel Chan as a Non-Executive Director and

Mr Ron Marks as a Non-Executive Director.

Partial Asset Sale

The partial asset sale announced on 27th August 2013 has been completed.

Under the sale arrangements, subject to Ministerial approval (where required), Treasure Wheel agreed to acquire COALBANK's Biloela South, Coalbank South, and Chinchilla East EPCs, and Harvest Metals Pty Ltd for $2,000,000 independently of the proportional takeover of Coalbank Limited.

Issue of New Shares and Unlisted Options Cancelled

As announced on 25 October 2013 the company cancelled by agreement, between the Company and the Option Holder, 40 million unlisted options exercisable at 25 cents each. This cancellation satisfied the conditions of the Treasure Wheel Offer outlined in the Target Statement lodged with ASX on 20 September 2013.

The Company also issued 8,250,000 fully paid ordinary shares upon exercise of Performance Rights as a consequence of the change of control in the company.

COALBANK LIMITED

ABN 20 075 877 075

Strategic Direction

On 13 November 2013 COALBANK provided an update on the Company's strategic direction following the announcement of the successful proportional takeover offer by Treasure Wheel. As previously announced, this change-of-control provides shareholders and new investors with the opportunity to participate in the Company's future.

Treasure Wheel's parent company, Loyal Strategic Investment Limited has experience of successfully sourcing and trading Australian coal into China. The principals of Loyal Strategic also have significant business networks within China, Hong Kong and Macau, together with well-established relationships with trade and investment financiers and coal users. With this valuable combination of experience in coal trading and business and finance networks in China, the new controlling shareholder of COALBANK has advised its intention to pursue a dual strategy for COALBANK focusing on:

• 1. Coal procurement and trading to pursue short-to-medium term revenue opportunities; and
• 1. Exploration and development of existing and new coal projects for the creation of longer-term shareholder value.

This dual strategy provides a long-term solution for building shareholder wealth by introducing new revenue opportunities. A more detailed strategic approach is expected to be refined over coming months as the Company's exploration portfolio is reviewed and as the Company explores new opportunities for coal trading and long term off-take with third-party producers.

In this regard, COALBANK welcomes expressions of interest from both thermal and metallurgical coal producers to discuss possible future business.

Executive Appointments

On 2 December 2013 the Company announced the appointment of a new Chief Executive Officer, Mr Andrew Fogg.

With his accounting and tax background and wealth of managerial experience, he is looking forward to managing the day to day affairs of the business to enable it to move forward and grow.

Mr Fogg's remuneration package has now been finalized and will consist of a base salary of $190,000 p.a. plus proposed incentives consisting of 5 million Performance Rights, the issue of which will be subject to shareholder approval.

Mr Bruce Patrick, who has been Chief Executive Officer of Coalbank since 30 August 2011, continues to provide his services to the company in the role of Chief Operating Officer.

COALBANK LIMITED

ABN 20 075 877 075

ACTIVITIES RELATED TO ENERGY PROJECTS:

Coal Projects - Tenement Portfolio Update

Mining tenements held at the end of the quarter and their location

With the completion of the sale of COALBANK's Biloela South, Coalbank South, and Chinchilla East EPCs, and Harvest Metals Pty Ltd to Treasure Wheel COALBANK now holds a portfolio of 31 granted EPCs.

TENEMENT HOLDINGS 31 DECEMBER 2013
TENEMENT	PROJECT NAME	INTEREST	COMMENT
EPC 1484	AUGATHELLA NORTH EAST	100%	GRANTED
EPC 1621	TAMBO SOUTH EAST GAP	100%	GRANTED
EPC 1784	WAROONGA	100%	GRANTED
EPC 1800	MARANOA RIVER	100%	GRANTED
EPC 1719	BARCOO RIVER‐BLACKALL RAIL	100%	GRANTED
EPC 1482	AUGATHELLA EAST 2	100%	GRANTED
EPC 1697	ALPHA RAIL	100%	GRANTED
EPC 1624	MORVEN NORTH EAST	100%	GRANTED
EPC 1632	TAMBO	100%	GRANTED
EPC 1633	AUGATHELLA SOUTH EAST 1	100%	GRANTED
EPC 1776	UPPER SURAT EAST 1	100%	GRANTED
EPC 1777	UPPER SURAT EAST 2	100%	GRANTED
EPC 1794	MORVEN NORTH	100%	GRANTED
EPC 1644	AUGATHELLA SOUTH EAST 2	100%	GRANTED
EPC 1789	MUCKADILLA NORTH EAST	100%	GRANTED
EPC 1795	ROMA NORTH WEST	100%	GRANTED
EPC 1788	MUCKADILLA NORTH	100%	GRANTED
EPC 1786	DUBYDILLA	100%	GRANTED
EPC 1993	BLACKALL SOUTH CORNER	100%	GRANTED
EPC 1623	BYMOUNT WEST	100%	GRANTED
EPC 1481	AUGATHELLA EAST 1	100%	GRANTED
EPC 1625	ALPHA SOUTH WEST 2	100%	GRANTED
EPC1414	MARANOA RIVER	100%	GRANTED
EPC1415	WARREGO	100%	GRANTED
EPC1418	TAMBO EAST 2	100%	GRANTED
EPC1417	TAMBO EAST1	100%	GRANTED
EPC1622	ALPHA SOUTH WEST 1	100%	GRANTED
EPC1524	MORETON SOUTH	100%	GRANTED
EPC 2239	COAL CREEK	100%	GRANTED
EPC1249	RATHDOWNEY	100%	RENEWAL IN PROGRESS
EPC2376	WALLOON WEST	100%	GRANTED

TENEMENT	PROJECT NAME	INTEREST	COMMENT
EPC 2376	WALLOON WEST	100%	GRANTED
EPC 2056	CHINCHILLA EAST	0%	SOLD
EPC 2240	COALBANK SOUTH 1	0%	SOLD
EPC 2359	COALBANK SOUTH 2	0%	SOLD
EPC 2241	BILOELA SOUTH	0%	SOLD
EPM 11980	LIMESTONE CREEK	0%	SOLD
EPM 18325	BALD HILLS	0%	SOLD
EPM 17850	MOUNT MORGAN	0%	SOLD
EPMA 19537	MITCHELL RIVER SOUTH	0%	SOLD

Mining tenements acquired and disposed of during the quarter and their location

Beneficial percentage interests held in farm-in or farm-out agreements at end of the quarter

Nil

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter

Nil

Coal Projects – General

The Company has identified additional coal intersections in COALBANK's South East Queensland EPCs and further validated the Company's existing data set. The additional data has enabled the refinement and prioritisation of the next phase of drilling targets for these EPCs. It is planned to undertake an initial drilling programme within EPC 2239 in the first quarter of 2014.

Statutory reporting and where relevant relinquishments of sub-blocks have been made in accordance with the conditions of the various exploration permits and the Mineral Resources Act (1989) as required.

Commodity Trading

As previously announced in the Chairman's address at the 2013 Annual General Meeting, Coalbank intends to introduce commodity trading, to allow the company to improve its cash flow and to provide further funding for the development of projects.

Annual General Meeting

The Annual General Meeting of the Company was held at 9.00am 29th November 2013.

Yours faithfully,

Anthony Chan - Chairman

Further information:

Andrew Fogg - Chief Executive Officer Bruce Patrick - Chief Operating Officer

COALBANK LIMITED

ABN 20 075 877 075