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PILBARA GOLD LIMITED Capital/Financing Update 2012

Feb 28, 2012

65554_rns_2012-02-28_d5442879-224e-439f-beb3-c1a410e46306.pdf

Capital/Financing Update

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COMPANY ANNOUNCEMENT

Further coal exploration permit acquisition

29 February 2012

Mining Projects Group Limited (ASX : MPJ) (“the Company” OR “MPJ”) has executed an agreement to acquire coal exploration permit EPC 1992, subject to its granting, from New Coal Energy Pty Ltd (“NCE”). This application sits adjacent to Coalbank Limited’s Central Project (refer figure 1) which is targeting Walloon coal measures in the Western Surat Basin.

The Company was attracted to this transaction due to the exploration success of Coalbank Limited (ASX:CBQ), the price of the acquisition, the size of the permit (300 sub-blocks) and the fact this permit has been approved for granting subject to satisfaction of standard conditions imposed by the Department of Employment, Economic Development and Innovation (“DEEDI”). As such the board believes this transaction provides strong leverage between its price and potential exploration upside of the lease.

The consideration for the acquisition will be completed on the following basis;

$40,615 payable in rent to the DEEDI
$25,000 payable to NCE on EPC 1992 becoming granted and NCE transferring the lease to MPJ
The issue of 2.5 million MPJ fully paid ordinary shares at 2 cents per share to Subiaco Capital Pty Ltd for introduction of the opportunity. These shares will be issued under the Companies 15% capacity and will then be ratified at the Company’s upcoming meeting expected to be held in early April.

MPJ has commissioned its own independent geological report on EPC 1992 from which it will design its first drilling program.

The Company looks forward to advising the market of the granting of EPC 1992 and its transfer from NCE to MPJ. Recently MPJ announced its intention to acquire Delcarmen Energy Limited which possesses two exploration applications near Kingaroy which both demonstrate potential high energy thermal coal and semi-soft coking coal. This acquisition is the Company’s next step in its establishment of a strategic portfolio of coal based exploration assets within Queensland, Australia.