PACIFIC RESOURCES LIMITED — Management Reports 2020

Nov 29, 2020

Holdings Limited

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Year in Review

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Year in Review

Ladies and Gentlemen, 2020 has been like no other for all of us due to the COVID-19 Pandemic which has and continues to disrupt the world.

COVID restrictions have had relatively minor impact on the Company as no field work had been planned at the time the pandemic struck. Administrative functions carried on albeit in separate locations to the norm, but the administrative function carried on.

The Company has throughout the year continued its objective with commodity trading, but with the volatility and risks of commodity trading over the past few years have not, in the view of the directors, justified the commitment of shareholder funds. The directors continue to monitor the market for any entry opportunities.

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Blackall Project

In December 2019, the Company . undertook additional exploration to increase the knowledge of the coalresource contained in the Blackall Project.

A cored drilling programme targeted to increase the stratigraphic, structural and coal quality knowledge of a section within the overall resource area was successfully completed in EPC 1993.

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Blackall Project

Drill hole spacings were reduced allowing a section of the deposit to be elevated to Indicated Resource status under the Australasian Code for . Reporting of Mineral Resources and Ore Reserves (The JORC Code).*

Following the update of the Competent Person Report on the Coal Resources, the Company was pleased to report the inclusion for the first time of an Indicated category resource of 30 million tonnes in EPC 1993.

An Indicated resource is a pre-requisite for any future application for higher tenure such as a Mineral Development License.

The Company is continuing to look at alternatives for the utilization of the coal resource it holds at its Blackall project.

• Refer ASX Announcement “Updated Coal Resource Statement for Blackall Project” lodged on 16 June 2020.

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Utilitas Group

Utilitas Group, through the leadership of CEO Ms Fiona Waterhouse is focused on the emerging biogas and bio-refining industries in Australia.

A Utilitas bioHub is centred around anaerobic digestion of wet organic waste streams. It includes upstream and downstream processing and creates a platform for co-location of other biomanufacturing industry.

The following schematic shows the process in which Utilitas will strive to achieve on each and every one of its bioHubs sites.

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Utilitas Group

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Utilitas Group

During the year, Utilitas Group, acquired its first asset development site at Bundaberg in Queensland.

Work has commenced to prepare the 9.5 acre site for new tenancies in the master planned industrial park. Expressions of interest from potential tenants are being received including Utilitas’ own biogas to hydrogen project.

With renewable energy set to increase, Utilitas sees itself as well positioned to develop this industry across Australia.

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Sector Projects

Sector undertook further geophysical exploration (IP) focusing on the area surrounding one drill hole from the recent 2,700m diamond drill program (completed in July 2019) which encountered obvious and visible chalcopyrite over a 500m continuous length of core. This work provides improved areal data additional to an earlier electromagnetic survey undertaken during the second half of last year that was inconclusive.

Additional lines of IP proximate to the 2019 drill hole, and in the same regional area as the electromagnetic survey, have resulted in the definition of a zone of high conductivity approximately 400 metres south-west of the earlier drill hole. An obvious high priority drill target has resulted and will form a part of the next phase of drilling.

AustChina will continue to hold its investment in Sector Projects with the prospect of additional exploration in 2021 and beyond.

AustChina is pleased to report that Sector Projects has continued to make repayments on the Convertible Note with current balance outstanding being $330,000.

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Sector Projects

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