PACIFIC RESOURCES LIMITED — Interim / Quarterly Report 2016

Jul 28, 2016

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Date : 29 July 2016 To : Australian Securities Exchange Companies Announcement Office Electronic Lodgment System

Dear Sir

ACTIVITIES REPORT FOR QUARTER ENDED 30 JUNE 2016

ACTIVITIES RELATED TO ENERGY PROJECTS:

Coal Projects

A further review of coal exploration permit holdings was undertaken during the quarter. With no change to the likelihood for infrastructure and the near to medium term coal market the company has decided to surrender four coal exploration permits. Three of these were surrendered in the quarter with the fourth (EPC1418) targeted for surrender in the next quarter.

The company has undertaken only desktop activities with no drilling in its permits in the quarter.

Surat Gas

Coalbank continues to seek opportunities with potential partners to advance exploration of its three petroleum and gas permits in central Queensland.

Farm-in and Farm-out Arrangements

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

Coalbank Projects - Tenement Portfolio Update

Mining tenements relinquished at the end of the quarter and their locations are as follows:-

ENEMENTPROJECTINTERESTAT STARTOFQUARTEREPC 1414Maranoa River100%EPC 1415Warrego100%EPC 1417Tambo East 1100%	TENEMENTPROJECTINTERESTAT ENDOFQUARTEREPC 1414Maranoa River0%EPC 1415Warrego0%EPC 1417Tambo East 10%

No tenements were acquired during the quarter.

COALBANK LIMITED ABN 20 075 877 075 Level 6 344 Queen 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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Mining tenements held at the end of the quarter and their locations are as follows:-

TENEMENTPROJECTINTERESTEPC 1418Tambo East 2100%EPC 1625Alpha SW 2100%EPC 1632Tambo100%EPC 1719Barcoo River/Blackall100%EPC 1993Blackall Sth Corner100%	TENEMENTPROJECTINTERESTATP 1072Charleville South100%ATP 1095Augathella East100%ATP 1098Morven South100%

CORPORATE ACTIVITIES:

On 15th July 2016 Coalbank Limited ( ASX: CBQ ) announced that it had entered into an Agreement to subscribe for shares representing a 25% shareholding in Utilitas Pty Ltd (Utilitas) for $1 million. The transaction will be settled upon completion of legal due diligence to the satisfaction of Coalbank.

Utilitas is a privately owned company focussed on the emerging biogas industry in Australasia and represents a unique opportunity for Coalbank as it provides an additional investment in the energy and resources sector to diversify its existing portfolio.

The Federal Government’s Clean Energy Finance Corporation (CEFC) puts the investment opportunity in this sector to be between $3.5 billion to $5 billion by 2020[1] . With only 0.9 per cent of Australia’s electricity output currently being deployed from this sector compared to that of 2.4 percent average by OECD countries, the opportunity exists for Utilitas to further develop this market.

Australia’s bioenergy and energy from waste market is currently under-developed but has considerable potential, which makes the investment very attractive to Coalbank.

During the quarter the Company received $1,220,000 as an unsecured loan from Treasure Wheel Global Limited (Treasure Wheel), a company associated with Mr Anthony Chan, Chairman of Coalbank. It is anticipated that the unsecured loan will, subject to shareholder approval, be replaced with a Convertible Note.

Yours faithfully,

Anthony Chan – Chairman

Further information:

Andrew Fogg – Chief Executive Officer

Bruce Patrick – Chief Operating Officer

1 ”The Australian bioenegy and energy from waste market” ‐ Clean Energy Finance Corporation, November 2015

COALBANK LIMITED ABN 20 075 877 075 Level 6 344 Queen 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