Proston Area Has Been Known for Many Years with Records in the Department of Mines and Energy Dating Back to 1912

EPM 16799 KUMBIA

REPORT ON SUB -BLOCKS RELINQUISHED DECEMBER 2010

TARONG ENERGY CORPORATION LIMITED

J. E. Siemon

December 2010 TABLE OF CONTENTS

SUMMARY 1

INTRODUCTION 2

LOCATION AND ACCESS 2

TENURE 2

AREA RELINQUISHED 2

PREVIOUS INVESTIGATIONS 4

REGIONAL GEOLOGY 4

EXPLORATION MODEL 7

PREVIOUS EXPLORATION SUMMARY 8

CONCLUSIONS 10

REFERENCES 11

FIGURES 1. Location Map 3 2. Regional Geology 5 3. Regional Geology Legend 6 4. Prior Company Exploration 9

APPENDICES 1. West Goodger 2. Haly Creek

EPM 16799 Kumbia Report on Sub-blocks relinquished December 2010 J. E. Siemon Pty Ltd

SUMMARY

Previous exploration for kaolin in EPM 16799 undertaken in the period 1969 to 1994 identified a number of areas containing small areas of weathered granite containing primary kaolin and some areas with thin layers of transported kaolin. Exploration data available is limited mainly to drill logs and drill hole location maps.

No exploration was undertaken by Tarong Energy Corporation Limited in the area relinquished.

EPM 16799 Kumbia Report on Sub-blocks relinquished December 2010 J. E. Siemon Pty Ltd

INTRODUCTION

The presence of kaolin in the Kingaroy – Proston area has been known for many years with records in the Department of Mines and Energy dating back to 1912. Natural exposures are limited, and most records refer to samples from shallow water bores. Detailed exploration in the area commenced in the 1960’s when the Black and Bjelke Peterson (B-BP) partnership applied for a number of Mining Leases in the Kingaroy and Cooyar areas. In the 1970’s J.M Huber Corporation of the United States undertook detailed investigations on the B-BP Authority to Prospect and leases. While raw clay was extracted from the leases, primarily for use at the Petrie paper mill, it was not until the 1990’s that Kingaroy Kaolin commenced production of washed grades of clay. In recent years Unimin Australia Limited acquired the operations of Kingaroy Kaolin, but closed the processing plant.

The Application for EPM 16799 was lodged by Tarong Energy Corporation Limited (TEC) as part of a program to identify sources of kaolin suitable for use at Tarong Power Station.

LOCATION AND ACCESS

EPM 16799 is located approximately 3 km southwest of Kingaroy (Figure 1).

The areas relinquished lie between Kingaroy and the township of Kumbia which is approximately 2.5 km southwest of the EPM boundary. The principal access through the area is the Bunya Highway, and the Mannuem Creek and Burrandowan Roads.

TENURE

All land within the EPM is freehold.

There are no Mining Leases within the area relinquished.

AREA RELINQUISHED

EPM 16799 was originally granted to Tarong Energy Corporation over 74 sub-blocks on 9 January 2008. Thirty seven sub-blocks were relinquished in December 2009,while the 19 sub-blocks described below and shown in Figure 1 were relinquished in December 2010.

Block Identification Map: Brisbane

Block Sub-blocks 2182 q, r, t, v, y, z 2253 x, y, z 2254 a, b, f, g, q, r, v, 2325 b, c, d

No exploration was undertaken by Tarong Energy Corporation Limited in the area relinquished.

EPM 16799 Kumbia Report on Sub-blocks relinquished December 2010 J. E. Siemon Pty Ltd

 FIGURE: 1 5 yy aa ww hh gg iiiigg HH HH rrr aa iiiillll iiii LOCATION MAP uu uu EPM 16799 KUMBIA

gg kilometres AA AREAS RELINQUISHED ''''AA DD Projection: Longitude / Latitude (NAD 83) J.E. Siemon Pty Ltd KingaroyKingaroyKingaroyKingaroyKingaroyKingaroyKingaroy KingaroyKingaroyKingaroyKingaroyKingaroyKingaroyKingaroy KingaroyKingaroyKingaroyKingaroyKingaroyKingaroyKingaroy KingaroyKingaroyKingaroy KingaroyKingaroyKingaroy Kingaroy KingaroyKingaroyKingaroyKingaroyKingaroyKingaroyKingaroy KingaroyKingaroyKingaroyKingaroyKingaroyKingaroyKingaroy KingaroyKingaroyKingaroyKingaroyKingaroyKingaroyKingaroy 0 1.25 2.5 TARONG ENERGY CORPORATION LIMITED CORPORATION ENERGY TARONG Author: Author: Office: Drawing: Scale: 1:125000 Project: Date: 4/1/10 AREAAREAAREAAREA AREA AREA AREA AREAAREAAREAAREA AREA AREA AREA AREAAREAAREAAREA AREA AREA AREA AREA AREAAREAAREA AREA AREA AREA AREAAREAAREAAREA AREA AREA AREA AREAAREAAREAAREA AREA AREA AREA AREAAREAAREAAREA AREA AREA AREA RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED RETAINED

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PREVIOUS INVESTIGATIONS

The regional geology of the area was mapped initially by Murphy and others (1976). Detailed mapping of the Yarraman Subprovince began in the late 1990’s and was published by Cranfield and others (2001). This mapping was then included in the digital Southeast Queensland GIS 1:100 000 scale map.

A detailed investigation of the kaolin resources of the Kingaroy – Proston region, including drilling, was undertaken by the Department of Mines as part of the Wide Bay – Burnett study (Geological Survey of Queensland, 1981).

Records on file at the Department of Mines indicate that kaolinitic clays were first identified in the Kingaroy area about 1912 when settlers began to dig wells. In about 1950 Mining Leases (MLs) were pegged in the Goodger area by Nev Hanson. Because of a lack of funds he sold a half share to Joh Bjelke –Peterson. Following the death of Hanson his share was sold to R.E. Black.

Company exploration in the area commenced in 1969 on Authority to Prospect 642M held by Bjelke- Peterson and Black. Exploration within the ATP was undertaken by J.M. Huber Corporation of the United States; in 1971 the ATP was assigned to Huber. The tenement was relinquished in about 1976, but only after extensive drilling and testing had been completed.

Between 1980 and 1986 Nyora Mining Company Pty Ltd (Nyora Mining, 1986) undertook extensive investigations including drilling and testing on ATPs 2254, 3128, 3622 and 3715. In the period 1987 to 1993 Nyora Mining continued exploration on ATPs 4732, 4733, 4734 and 8828.

REGIONAL GEOLOGY

The oldest rocks in EPM 16799 are several phases of Permian Triassic granites of the Boondooma Igneous Complex (Figures 2 and 3). A major development of laterite and silcrete occurred in post- Miocene time in areas which were probably valley floors and drainage basins in the landscape (Cranfield and others, 2001). Younger units comprise basaltic flows and sediments of Tertiary age Main Range Volcanics and Quaternary alluvium. Although intrusions of "granitic" composition are widespread, the proportion which has undergone kaolinisation is very limited.

EPM 16799 Kumbia Report on Sub-blocks relinquished December 2010 J. E. Siemon Pty Ltd

 FIGURE: 2

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QfQfQf EvergreenEvergreenEvergreen Formation FormationFormation MISCELLANEOUSMISCELLANEOUSMISCELLANEOUS UNCONSOLIDATED UNCONSOLIDATEDUNCONSOLIDATED SEDIMENTS SEDIMENTSSEDIMENTS ARENITE-MUDROCKARENITE-MUDROCKARENITE-MUDROCK

QaQaQa PrecipicePrecipicePrecipice Sandstone? Sandstone?Sandstone? ALLUVIUMALLUVIUMALLUVIUM ARENITEARENITEARENITE

TQrTQrTQr TarongTarongTarong beds bedsbeds COLLUVIUMCOLLUVIUMCOLLUVIUM SEDIMENTARYSEDIMENTARYSEDIMENTARY ROCK ROCKROCK

TQr>TQr>TQr> Boondooma BoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplex TarongTarongTarong beds/k beds/kbeds/k MISCELLANEOUSMISCELLANEOUSMISCELLANEOUS UNCONSOLIDATED UNCONSOLIDATEDUNCONSOLIDATED SEDIMENTS SEDIMENTSSEDIMENTS SEDIMENTARYSEDIMENTARYSEDIMENTARY ROCK ROCKROCK

TQfTQfTQf PRgg-SEQPRgg-SEQPRgg-SEQ MISCELLANEOUSMISCELLANEOUSMISCELLANEOUS UNCONSOLIDATED UNCONSOLIDATEDUNCONSOLIDATED SEDIMENTS SEDIMENTSSEDIMENTS GRANITOIDGRANITOIDGRANITOID

TQr\w->MainTQr\w->MainTQr\w->Main Range RangeRange Volcanics VolcanicsVolcanics BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexCoComplexmplex (Permo-Triassic) (Permo-Triassic)(Permo-Triassic) MISCELLANEOUSMISCELLANEOUSMISCELLANEOUS UNCONSOLIDATED UNCONSOLIDATEDUNCONSOLIDATED SEDIMENTS SEDIMENTSSEDIMENTS GRANITOIDGRANITOIDGRANITOID

Td\rTd\rTd\r BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplComplexex (Permo-Triassic)-PRgb(w) (Permo-Triassic)-PRgb(w) FERRICRETEFERRICRETEFERRICRETE BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplComplexex (Permo-Triassic)-PRgb(w) (Permo-Triassic)-PRgb(w) GRANITOIDGRANITOIDGRANITOID

TdTdTd BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplComplexex (Permo-Triassic)-PRgb/k (Permo-Triassic)-PRgb/k FERRICRETEFERRICRETEFERRICRETE BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplComplexex (Permo-Triassic)-PRgb/k (Permo-Triassic)-PRgb/k GRANITOIDGRANITOIDGRANITOID

Td\sTd\sTd\s BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplComplexex (Permo-Triassic)-PRgb/g (Permo-Triassic)-PRgb/g SILCRETESILCRETESILCRETE BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplComplexex (Permo-Triassic)-PRgb/g (Permo-Triassic)-PRgb/g GRANITOIDGRANITOIDGRANITOID

MainMainMain Range RangeRange Volcanics/u(w) Volcanics/u(w)Volcanics/u(w) PRg-SEQPRg-SEQPRg-SEQ BASALTBASALTBASALT PRg-SEQPRg-SEQPRg-SEQ GRANITOIDGRANITOIDGRANITOID

MainMainMain Range RangeRange Volcanics VolcanicsVolcanics BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexCompComplexlex (Triassic)-Rgbo(w) (Triassic)-Rgbo(w) BASALTBASALTBASALT BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexCompComplexlex (Triassic)-Rgbo(w) (Triassic)-Rgbo(w) GRANITOIDGRANITOIDGRANITOID

Td?Td?Td? BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplex (Triassic)-Rgbo/k (Triassic)-Rgbo/k(Triassic)-Rgbo/k FERRICRETEFERRICRETEFERRICRETE BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplex (Triassic)-Rgbo/k (Triassic)-Rgbo/k(Triassic)-Rgbo/k GRANITOIDGRANITOIDGRANITOID

Td>BoondoomaTd>BoondoomaTd>Boondooma Igneous IgneousIgneous Complex ComplexComplex ( (( BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplex (Triassic)-Rgbo\p (Triassic)-Rgbo\p(Triassic)-Rgbo\p DURICRUSTDURICRUSTDURICRUST BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplex (Triassic)-Rgbo\p (Triassic)-Rgbo\p(Triassic)-Rgbo\p GRANITOIDGRANITOIDGRANITOID

TsTsTs BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplex (Triassic)-Rgbo/a (Triassic)-Rgbo/a(Triassic)-Rgbo/a SEDIMENTARYSEDIMENTARYSEDIMENTARY ROCK ROCKROCK BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplex (Triassic)-Rgbo/a (Triassic)-Rgbo/a(Triassic)-Rgbo/a GRANITOIDGRANITOIDGRANITOID

TbTbTb BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplex (Triassic)-Rgbo\m (Triassic)-Rgbo\m(Triassic)-Rgbo\m BASALTBASALTBASALT BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplex (Triassic)-Rgbo\m (Triassic)-Rgbo\m(Triassic)-Rgbo\m GRANITOIDGRANITOIDGRANITOID

Td\rTd\rTd\r BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplex (Triassic)-Rgbo/d (Triassic)-Rgbo/d(Triassic)-Rgbo/d FERRICRETEFERRICRETEFERRICRETE BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexComplex (Triassic)-Rgbo/d (Triassic)-Rgbo/d(Triassic)-Rgbo/d GRANITOIDGRANITOIDGRANITOID

MainMainMain Range RangeRange Volcanics? Volcanics?Volcanics? BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexCoComplexmplex (Triassic)-Rgbo (Triassic)-Rgbo(Triassic)-Rgbo BASALTBASALTBASALT BoondoomaBoondoomaBoondooma Igneous IgneousIgneous Complex ComplexCoComplexmplex (Triassic)-Rgbo (Triassic)-Rgbo(Triassic)-Rgbo GRANITOIDGRANITOIDGRANITOID

Ts?Ts?Ts? ChahpingahChahpingahChahpingah Meta-igneous Meta-igneousMeta-igneous Complex ComplexComplex POORLYPOORLYPOORLY CONSOLIDATED CONSOLIDATEDCONSOLIDATED SEDIMENTS SEDIMENTSSEDIMENTS ChahpingahChahpingahChahpingah Meta-igneous Meta-igneousMeta-igneous Complex ComplexComplex GRANITOIDGRANITOIDGRANITOID

MainMainMain Range RangeRange Volcanics>Tarong Volcanics>TarongVolcanics>Tarong beds bedsbeds ChahpingahChahpingahChahpingah Meta-igneous Meta-igneousMeta-igneous Complex? Complex?Complex? BASALTBASALTBASALT ChahpingahChahpingahChahpingah Meta-igneous Meta-igneousMeta-igneous Complex? Complex?Complex? GRANITOIDGRANITOIDGRANITOID

Td-SEQ>TarongTd-SEQ>TarongTd-SEQ>Tarong beds(w) beds(w)beds(w) MaronghiMaronghiMaronghi Creek CreekCreek beds bedsbeds DURICRUSTDURICRUSTDURICRUST MaronghiMaronghiMaronghi Creek CreekCreek beds bedsbeds MIXEDMIXEDMIXED SEDIMENTARY SEDIMENTARYSEDIMENTARY ROCKS ROCKSROCKS AND ANDAND MAFITES MAFITESMAFITES

MaronghiMaronghiMaronghi Creek CreekCreek beds/h beds/hbeds/h SEDIMENTARYSEDIMENTARYSEDIMENTARY ROCK ROCKROCK

MaronghiMaronghiMaronghi Creek CreekCreek beds/mc beds/mcbeds/mc MUDROCKMUDROCKMUDROCK

MaronghiMaronghiMaronghi Creek CreekCreek beds(w) beds(w)beds(w) SEDIMENTARYSEDIMENTARYSEDIMENTARY ROCK ROCKROCK

REGIONAL GEOLOGY LEGEND FOR KUMBIA AREA FIGURE 3 7

EXPLORATION MODEL

Within the Kingaroy – Proston area three major types of kaolin deposits related to alteration / deep weathering of granites and deep weathering of sediments have been recognised. They are:

1. Primary kaolin derived from in situ weathering of granites. The material is characterised by the decomposition of the feldspar to white clay. Quartz is the major impurity with minor chlorite and mica. Primary kaolin is restricted to the Permian to Triassic Boondooma Igneous Complex.

2. Primary kaolin derived from the in situ weathering of granite sands and feldspathic sediments derived from granitic intrusions. Feldspars in the sand / sandstone have undergone kaolinisation in part or fully. Sedimentary units commonly affected by in situ weathering are the Devonian – Carboniferous Maronghi Creek beds and the Triassic Tarong beds.

3. Secondary or transported clays derived from weathering of granitic intrusions. White clay underlying basalt and silcrete horizons is generally quartz poor, with the quartz present in discrete sandy horizons. These kaolin deposits commonly occur at or near base of Tertiary sequence.

In the area relinquished the kaolin occurrences are primarily Types 1and 2.

EPM 16799 Kumbia Report on Sub-blocks relinquished December 2010 J. E. Siemon Pty Ltd

PREVIOUS EXPLORATION SUMMARY

Areas within the relinquished part of EPM 16799 which have previously been explored (Figure 4) include:

• Golf Course, and • West Goodger, • Haly Creek

Note 1: Locations for prior exploration were reported as Portion and Parish. The current protocol is to report Lot and Plan numbers. In most instances the Portions are readily recognisable as there has been no reconfiguration of the Lots.

Note 2: The accuracy of drill hole locations is not known.

Note 3: Early reports prepared by Nyora Mining had similar drill hole numbers. In CR15451 the numbers were changed and logs reported for each area as shown below.

2254M 1 – 155 now K1 to K155 3128M 1 – 105 now K156 to K 260 3622M and 3715M RDH 157 -193 now K261 to K297 3622M and 3715M RDH N1A-N63 now K298 to K361 Various K362 to K389

Note 4: Estimates of tonnes contained within deposits described below are taken from the referenced reports. The estimates do not comply with the JORC Code (JORC, 2004).

Golf Course

Exploration by Nyora Mining (1986) in the vicinity of the Kingaroy Golf Club indicated white clay with an average thickness of 5 m and a deposit potentially containing up to 2.5 million wet tonnes. Because of the proximity of this deposit to residential development no further evaluation of this site was undertaken.

West Goodger

The northern part of this area was originally described as part of the Morrissey's Corner area (Nyora Mining, 1986). Exploration in this area was generally unsuccessful with only thin intersections in 3 holes in Lot 38 (Appendix 1). To the south in Lot 182 kaolin was intersected in a single hole “at 13-14 m and 15.5 to 16 m interbedded with coarse ancient river gravels” (Nyora Mining, 1986).

Nyora Mining (1989, 1990) reported that kaolin had been intersected within Portion 41 Parish of Taabinga where 3 to 5 m of secondary kaolin was recorded under about 20 m of overburden along the eastern boundary.

Haly Creek

Nyora Mining (1990) reported that 7 holes tested a small kaolinised granite outcrop in Portion 55 Parish of Taabinga (Appendix 2). In two holes the grit content exceeded 50%. The report stated "This appears to be another of the small primary "shows" common in this area."

EPM 16799 Kumbia Report on Sub-blocks relinquished December 2010 J. E. Siemon Pty Ltd

7,050,000 mN mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 7,050,000 mN mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 7,060,000 7,050,000 mN mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 7,050,000 mN mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 7,060,000 7,050,000 mN mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 7,050,000 mN mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 7,060,000 7,050,000 mN mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 7,050,000 mN mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 7,060,000 7,050,000 mN mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 7,050,000 mN mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 7,060,000 7,050,000 mN mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 7,050,000 mN mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 7,060,000 7,050,000 mN mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 mN 7,050,000 7,050,000 mN mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 mN 7,060,000 7,060,000

360,000360,000 mEmE 360,000360,000 mEmE EPM boundary EPM MDL boundary MDL ML boundary ML Lot boundary Lot Area of prior exploration prior of Area LEGEND

370,000370,000 mEmE 370,000370,000 mEmE West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West West Goodger West West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West Goodger West Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek Haly Creek RETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINED RETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINED RETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINED RETAINED RETAINEDRETAINEDRETAINED RETAINEDRETAINEDRETAINED RETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINED RETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINED RETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINEDRETAINED 380,000380,000 mEmE 380,000380,000 mEmE

380,000380,000 mEmE AREA AREA AREA AREA AREA AREA AREA 380,000380,000 mEmE AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA AREA GolfGolf CourseGolf CourseGolf CourseGolf CourseGolf CourseGolf Course Course GolfGolf CourseGolf CourseGolf CourseGolf CourseGolf CourseGolf Course Course GolfGolf CourseGolf CourseGolf CourseGolf CourseGolf CourseGolf Course Course GolfGolf CourseGolf Course CourseGolfGolf CourseGolf Course Course Golf Course GolfGolf CourseGolf CourseGolf CourseGolf CourseGolf CourseGolf Course Course GolfGolf CourseGolf CourseGolf CourseGolf CourseGolf CourseGolf Course Course GolfGolf CourseGolf CourseGolf CourseGolf CourseGolf CourseGolf Course Course Scale: 1:125000 Scale: Drawing: Office: Author: 21/7/2007 Date: Project: TARONG ENERGY CORPORATION LIMITED 01.252.5 J.E. Siemon Pty Ltd Pty Siemon J.E. Projection: MGA Zone 56 (GDA94) 56 Zone MGA Projection: 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 kilometres EPM 16799KUMBIA EPM PRIOR COMPANY COMPANY PRIOR EXPLORATION

390,000390,0005 mEmE 390,000390,000 mEmE 7,050,000 m m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 7,050,000 m m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 7,060,000 7,050,000 m m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 7,050,000 m m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 7,060,000 7,050,000 m m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 7,050,000 m m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 7,060,000 7,050,000 m m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 7,050,000 m m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 7,060,000 7,050,000 m m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 7,050,000 m m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 7,060,000 7,050,000 m m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 7,050,000 m m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 7,060,000 7,050,000 m m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 m 7,050,000 7,050,000 m m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 m 7,060,000 7,060,000 FIGURE: 4 FIGURE:  N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N 10

CONCLUSIONS

Previous exploration within the relinquished part of EPM 16799 identified transported kaolin in the West Goodger and Haly creek areas; these intersections are generally thin with high overburden ratios.

The only “large” deposit is located in the Golf Course area in the northeast of the relinquished area; unfortunately residential development in this area will prevent development.

EPM 16799 Kumbia Report on Sub-blocks relinquished December 2010 J. E. Siemon Pty Ltd

REFERENCES

Cranfield, L.C., Donchak, P., Randall, R.E., and Crosby, G.C., 2001: Geology and mineralisation of the Yarraman Subprovince, Southeast Queensland. Queensland Geology 10. Department of Natural Resources and Water.

Geological Survey of Queensland , 1981: Mineral Resources of the Wide Bay – Burnett Region. Queensland Government Mining Journal, 82 (954), 153 – 178.

JORC, 2004: Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC). Murphy, P.R., Schwarzbock, H., Cranfield, L.C., Withnall, I.W., and Murray, C.G., 1976: Geology of the Gympie 1: 250 000 Sheet area. Geological Survey of Queensland Report 96.

Nyora Mining Company Pty Ltd, 1982a: Authority to Prospect 3128M. Exploration Progress for the six months ended 7th March 1982. CR 10662

Nyora Mining Company Pty Ltd, 1982b: Final and Annual Report on Exploration for the period 7th September 1981 to 10th November 1982. CR 12281

Nyora Mining Company Pty Ltd, 1986: Authorities to Prospect 3622M and 3715M S.W. Kingaroy area. Composite Final Report on Exploration. CR 15451

Nyora Mining Company Pty Ltd,1989a: Authority to Prospect 4733M (Area 2) South-West Kingaroy District. Six monthly Report on Exploration for the Period 5.5.88 to 5.11.88. CR 19987.

Nyora Mining Company Pty Ltd, 1990a: Authority to Prospect 4733 (Area 2 only) South-West Kingaroy District. Annual Report on Exploration for the period 5.5.89 to 3.2.90. CR 21726.

EPM 16799 Kumbia Report on Sub-blocks relinquished December 2010 J. E. Siemon Pty Ltd

APPENDIX 1

DRILL HOLE LOCATIONS – WEST GOODGER AREA

EPM 16799 Kumbia Report on Sub-blocks relinquished December 2010 J. E. Siemon Pty Ltd

APPENDIX 2

DRILL HOLE LOCATIONS – HALY CREEK AREA

EPM 16799 Kumbia Report on Sub-blocks relinquished December 2010 J. E. Siemon Pty Ltd