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BOWEN ENERGY LIMITED ABN 71 120 965 095 Activities Report for October- December 2012 For personal use only BOWEN ENERGY LIMITED Company Back Ground Bowen Energy Ltd (ASX Code: BWN) listed on the Australian Securities Exchange on the 15 February 2007 and is a Queensland based coal and mineral exploration company. Bowen Energy holds a significant land position, principally within the Bowen Basin and is exploring for coking, PCI and thermal coal deposits. Currently Bowen Energy holds 4 Exploration Permits for coal and a further 4 EPC’s in Joint Venture with Bhushan Steel (Australia) Pty Ltd and EP C930 in Joint Venture with Rocklands Richfield Ltd (RCI). Bowen Energy currently holds 7 granted exploration leases for base metals, uranium and precious metals. Tenement Summary The exploration interests described in this report are as listed in below (table 1). Bowen Energy has a 40% interest in EPC 930-Richfield and retains a 10% interest in EPC 1001 and EPC 1002, and a 15% interest in EPC 1045 and EPC 1206 in Joint Venture with Bhushan Steel (Australia) Pty Ltd. Table 1: Current Bowen Energy Tenements AREA DATE OF DATE OF TENEMENT PROJECT SUB -BLOCKS GRANT EXPIRY EPC 930 * (2) Cosmos Field 240 7.4.2005 6.4.2014 EPC 1001 (3) Mt Cheops 22 12.1.2006 11.1.2015 EPC 1002 (3) Kia Ora 40 25.9.2007 24.9.2013 EPC 1014 (4,~) Cockatoo 18 20.3.2006 19.3.2012 EPC 1045 (3,~) Shotover 201 23.5.2007 22.5.2012 EPC 1083 (1,^) Cooyar 145 26.3.2008 25.3.2011 EPC 1084 (1) Springsure South 26 23.1.2007 22.1.2013 EPC 1085 (1) Middlemount North 3 23.1.2007 22.1.2013 EPC 1187 (1,~) Buckland Coal 300 4.8.2010 3.8.2012 EPC 1206 (1) Planet Downs Coal 27 19.6.2008 18.6.2013 EPM 14910 (1, ^) Glen Isla 5 26.5.2006 25.5.2014 EPM 16267 (1,~) Clara River 1 25 20.1.2009 19.1.2012 EPM 16269 (1) Bullseye Creek 1 98 16.12.2011 15.12.2014 EPM 16270 (1) Bullseye Creek 2 99 29.11.2011 28.11.2014 EPM 16272 (1) Clara River 2 24 20.1.2009 19.1.2015 EPM 16274 (1,~) Clara River 3 22 20.1.2009 19.1.2012 EPM 17364 (1) Norman River 13 4.11.2009 3.11.2012 Notes: ~ Renewal pending * Partial monitoring of expiry date only ^ Surrender lodged For personal use only 1. Principal Holder: Bowen Energy Limited 2. Principal Holder: Rocklands Richfield Limited 3. Principal Holder: Bhushan Steel (Australia) Pty Ltd 4. Principal Holder: Golden Country Resources (Australia) Pty Ltd South Blackwater Project EPC 1045 Shotover (201 sub-blocks) EPC 1206 Planet Downs (27 sub-blocks) The Katrina Prospect is located within EPC 1045 and is now considered by Bowen Energy to be at an advanced exploration stage. As previously announced Bowen Energy Limited is in Joint Venture with Bhushan Steel (Australia) Pty Ltd over EPC 1045 in the Bowen Basin of Central Queensland. Preliminary exploration completed by Bowen Energy had identified two possible seams at the Katrina Prospect within EPC 1045, with thickness of greater than 1.6m below 370 to 640 metres from surface. Following the completion of two independent scoping studies that confirmed the presence of two correlated Coal Seams, the Aries 1 and the Castor 1 the Joint Venture partners awarded project management for the Katrina project to SRK Consulting (Australasia) in October 2011. As previously reported, interpretation of the 2011 2D Seismic performed by SRK, has indicated a number of faults across the project area this information is useful for preliminary evaluation of resources and potential mining method and design. The survey also indicated that the target coal-bearing stratigraphic packages are laterally extensive across the coverage area. This has allowed for a drilling program to be designed to test the target seams for potential resource definition during 2012. The 2012 drilling and coring program continued during the quarter. Wells have been designed to primarily test the Castor 1 lower seam, for which preliminary results have indicated potential metallurgical coal properties. The planned bore holes have an average TD of 750m, ranging from 575m to 850m. The drill program ended on 13 December after drilling 36 holes, with 24,345.75m having been drilled (Figure 1). To complete the objectives of the drill program, further holes are required comprising an estimated 7214m (Figure 1). These drillholes are planned to be completed in Q1 2013 subject to any significant weather delays. This will make a total of 44 drill holes in the resource drilling program. For personal use only Figure 1: Map showing the location of drilled holes (Green) and further planned holes (red) to be completed in Q1 2013. Roads, camp and licence boundaries are also marked All wells are being open-hole wire-line logged, tested and sampled for different designed measurements. Cores and drill holes are being tested for gas composition and volumes, hydrology and water testing, and geotechnical parame ters as well as for coal quality. Figure 2. Katrina Prospect completed and current boreholes December 2012 with preliminary thickness of interpreted Castor1Lower seam. Figure also displays area of 3D seismic survey (dotted polygon) and completed 2D s eismic lines. Table 2. Drill hole locations and depths Longitude Latitude Bore ID RL Open Core (m) Total Depth hole (m) (m) 148.847 -24.413 KT12DH20 271 447.8 118.4 566.2 148.861 -24.404 KT12DH21 274 445.6 70.6 516.2 148.893 -24.451 KT12DH22 306 620.0 175.4 795.4 148.908 -24.429 KT12DH23 280 574.8 184.7 759.5 148.898 -24.415 KT12DH24 281 603.9 65.4 669.3 148.898 -24.415 KT12DH24W 281 488.6 156.7 645.3 148.900 -24.394 KT12DH26 288 723.2 723.2 148.870 -24.444 KT12DH30 280 90.0 0.0 90.0 KT12DH30R 598.0 122.2 720.0 148.885 -24.439 KT12DH31 289 577.9 139.1 717.0 148.887 -24.416 KT12DH32 280 547.9 157.7 705.6 148.872 -24.451 KT12DH33 283 541.8 150.2 692.0 148.922 -24.449 KT12DH34 293 588.0 150.2 738.2 148.892 -24.433 KT12DH35 282 548.2 203.1 751.3 148.860 -24.413 KT12DH39 268 474.5 141.6 616.1 148.867 -24.416 KT12DH40 285 470.0 175.5 645.5 148.873 -24.406 KT12DH41 422 491.1 163.3 654.4 148.862 -24.422 KT12DH42 270 505.0 149.3 654.3 148.875 -24.429 KT12DH43 279 533.8 138.6 672.4 148.883 -24.431 KT12DH44 281 569.2 143.1 712.3 148.890 -24.425 KT12DH50 280 572.0 0.0 572.0 148.899 -24.427 KT12DH51 278 607.9 157.4 765.3 148.901 -24.435 KT12DH52 282 596.0 141.5 737.5 148.894 -24.442 KT12DH54 284 595.0 125.2 720.2 148.879 -24.446 KT12DH56 282 596.0 85.9 681.9 148.878 -24.438 KT12DH57 285 545.0 172.4 717.4 148.863 -24.448 KT12DH58 286 533.3 166.2 699.5 148.860 -24.456 KT12DH59 281 574.0 149.5 723.5 148.850 -24.453 KT12DH60 280 472.8 217.7 690.5 148.852 -24.444 KT12DH61 280 536.0 133.5 669.5 148.862 -24.440 KT12DH62 282 540.0 141.7 681.7 148.861 -24.431 KT12DH63 286 514.9 150.9 665.8 148.917 -24.467 KT12DH72 280 188.4 628.0 816.4 148.900 -24.478 KT12DH71 280 637.9 184.3 822.2 148.854 -24.437 KT12DH50R 280 651.1 148.887 -24.448 KT12DH55 284 687.2 For personal use only Preliminary results have confirmed the continuity of coal seams across the prospect and have increased the area for future potential coal resources. Further drilling is continuing and interpretation an d final results are still pending. This work will commence in Q2 in 2013 when all 2012 drill holes are complete and results of analyses confirmed. However the work done so far shows the CS1L seam to be laterally continuous with a majority of drillholes in tersecting >2 m of coal ( Figure 2). Only 24 drill holes have complete analyses . However only 19 have washability results. Samples from the 12 remaining holes have been submitted and are currently being analysed. A preliminary review of the data completed by SRK , indicates promising coking results. Figure 3. Geological drill section demonstrating continuity of CSL1 seam. For personal use only The 3D and 2D seismic data acquisition was completed by Terrex Seismic during the the reporting period. The objective of the seismic program is to complement the drill program and help to define the coal seam surface and continuity. It will also assist in providing constraints to any potential long wall mineable blocks if a satifactory resource is determined for this project. The 3D survey covered an area of 31.5 km², comprising of 321.8 line km’s of receiver points. The 2D survey consisted of 4 lines covering a total of 30 line km’s. The 3D survey was completed initially and the 2D survey was started immediately after the completion of the 3D. Data acquisition for the 3D survey was completed in 31 days from 24 October to 23 November. The 2D survey took 5 days to complete from 25 November until 29 November.