BOWEN ENERGY LIMITED ABN 71 120 965 095

Activities Report

for October- December 2012 For personal use only use personal For

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 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 () 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) 13 4.11.2009 3.11.2012 Notes: ~ Renewal pending * Partial monitoring of expiry date only

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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 . 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.

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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

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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.

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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. It is envisaged that if the results of the 3D seismic program and the current drilling program prove favourable, SRK Consulting (Australasia) will commence working on a JORC compliant Indicated and Inferred Resource estimate using the results of all drilling completed. It is envisaged that this will be available from the end of Q1 to early Q2 2013.

Figure 4: Map showing the location of 2D survey lines (Green). The 3D survey area is also depicted (blue box)

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Regional Coal Projects

West Rolleston Project EPC 1001 10% (22 sub-blocks) Mt Cheops EPC 1002 10% (50 sub-blocks) Kia Ora EPC 1084 100% (26 sub-blocks) Springsure South EPC 1187 100% (300 sub-blocks) Buckland

The intersection of only minor thin coal in 2009 and 2011 exploration drilling on EPC 1002 and the eastern part of EPC 1187 has resulted in reinterpretation of the regional geological potential of the region and led to the development of an exploration program involving the drilling of additional open holes within EPC 1001 and EPC 1084 and further to the west along EPC 1187 and EPC 1002.

In 2012 exploration drilling in EPC’s 1001, 1002, 1084 and 1187 was commenced on 19 May 2012 and completed on 1 August 2012. A total of 6 exploration drill holes including 1 redrill hole were completed targeting the potentially coal bearing Bandanna Formation. A total of 1,607m was drilled throughout the duration of the programme and across the project area with drill hole depths ranging between 180.25m and 569.55m. A total of 1 open hole was drilled in EPC 1001 (Mt Cheops), 1 open hole was drilled in EPC 1002 (Kia Ora), 1 open hole was drilled in EPC 1084 (Springsure South) and 2 open holes were drilled in EPC 1187 (Buckland). Drilling was undertaken by Drillstralis who completed all 5 drill holes at West Rolleston. Two minor coal seams were intersected in holes BC021 and BC028 confirming the distribution of minor coal in those areas.

Figure 5. Tenement and 2012 drill hole locations

A review of the 2012 and previous exploration on the project area was conducted by GeosMining on behalf of Bowen energy during the quarter. The findings of that review are summarised below. For personal use only use personal For Four areas exist in the West Rolleston tenements where the coal exploration potential has not been fully tested, while an additional area exists near other historical drill holes which could possibly contain shallow resource potential in Seams A and B. Although the likelihood of intersecting any coal seams of the Bandanna Formation is low, further exploration is warranted in these areas. GeosMining recommends that five holes be drilled (three in EPC 1187 Buckland and one each in EPC 1002 Mt Cheops East and EPC 1084 Springsure South). It is also recommend that a number of areas be relinquished prior to drilling of the recommended holes.

Mineral Projects

Croydon Project EPM 16267 100% (25 sub-blocks) Clara River 1 EPM 16272 100% (25 sub-blocks) Clara River 2 EPM 16274 100% (24 sub-blocks) Clara River 3 EPM 17363 100% (13 sub-blocks) Norman River GeoDiscovery Group has completed a remodelling of the regional magnetics for this project. A work program of 2 to 4 combined chip and diamond core cores has been proposed with bore-hole modelling and positioning currently in progress. The Drilling contract was awarded to Drill Torque with drilling taking place in December 2012. One hole was completed for 201.5m. This hole intersected magnetic basalt below Mesozoic cover. The hole is located on the northern magnetic anomaly on line N1. The hole contained no alteration or indications of mineralisation, and due to this negative result no further drilling was undertaken on this project and the target has been downgraded. The magnetic complex is now reinterpreted to be a synformal basalt with no associated mineralisation.

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Figure 6. proposed bore hole locations on regional magnetic image

Bullseye Creek Project EPM 16269 100% (99 sub-blocks) Bullseye Creek 1 EPM 16270 100% (98 sub-blocks) Bullseye Creek 2

Following a detailed appraisal of the exploration potential of this project, commenced by GeoDiscovery Group on behalf of Bowen Energy, an exploration program was developed. A work program has commenced on this project with field reconnaissance and geological mapping initiated and the collection of 1,300 soil samples, 23 stream sediment samples and 27 rock chip samples to date. In addition a total of 132 line kilometres of ground magnetic survey have been completed, covering some 16 geophysical target zones.

Best soil and rock geochemistry occurred at Target C, a known epithermal prospect called Langlo where Keela Wee Exploration drilled historical holes with best result of 30m of 0.15g/t Au.

Mapping identified epithermal veining focused on margins of Permian Rhyolite Porphyry in north west structural corridor near intersection with Croydon Fault Corridor with at least four fault zones with silicification and chalcedony veining occurring near the palaeo-surface.

Any significant gold and silver potential is believed to potentially occur in the “boiling zone’ at depth in the major faults where crustiform banded quartz veins may occur.

Figure 7. Soil lines in green over the H-A corridor and selected targets where sub-crop suspected. Backdrop is the RTP magnetic image.

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Figure 8. Ground magnetic lines over selected target areas against a backdrop of RTP magnetics.

Following early encouraging results from the regional sampling, four reverse circulation holes were selected and drilled for a total of 467m of drilling during the reporting period. Locations and summaries are provided below.

Table 3. Drill hole locations and depths

Hole GDA_Eas t GDA_ Zone Azimuth Incl/Dip Final North Depth (m) BCRCC001 707567 7972175 54 26 -60.0 148 BCRCC002 707548 7972171 54 232 -60.0 124 BCRCY001 707572 7984898 54 -90.0 100 BCRCZ001 711750 7984371 54 37 -60.0 95

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Table 4. Geological summaries of Drill holes

Hole No From To Geology Comments BCRCC001 0 9 Proterozoic Malacura Local chalcedony veining Sandstone BCRCC001 9 43 Proterozoic Granite Part sericite altered with weak local chalcedony veins BCRCC001 43 148 Permian rhyolite porphyry Patchy silicification and sericite alteration with chalcedony veining and local minor pyrite define broad fault zone

BCRCC002 0 11 Proterozoic Malacura Essentially unveined Sandstone BCRCC002 11 60 Proterozoic Granite Sericite altered with weak to patchy chalcedony veining BCRCC002 60 124 Permian rhyolite porphyry Patchy silicification and sericite alteration with chalcedony veining and minor local pyrite define broad fault zone

BCRCY001 0 47 Mesozoic sandstone Unmineralised cover rocks BCRCY001 47 66 Rhyodacite Finer grained part silicified intrusive phase or dyke? with trace pyrite

BCRCY001 66 100 Granite Strong to patchy silicification and sericite alteration with pyrite - (pyrrhotite) veining (5%) and dissemination throughout

BCRCZ001 0 36 Mesozoic sandstone Unmineralised cover rocks BCRCZ001 36 95 Proterozoic Langdon River Strongly carbonaceous with Mudstone patchy pyrite banding

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Target C (Langlo) two holes, BCRCC1-2 tested two silicified, chalcedony veined zones where Permian rhyolite porphyry has intruded Precambrian sandstones and granite.

Weakly to moderately anomalous Au and Ag occurs through much of both holes indicating near surface dispersal of mineralising fluids after mixing with ground waters. These results confirm a permissive prospect with fluid system driven by heat from the rhyolite porphyry which may have also provided the metals.

Deep drilling is needed to target main structures within this system where it is envisaged sulphides may occur in banded Au-bearing quartz veins with potential for significant Au mineralisation.

Target Y Drilling (BCRCY001), this hole was planned to test a large gravity anomaly under Mesozoic cover in the extension of the broad Croydon Fault Corridor. This hole produced an interesting drill result in BCRCY1 where strong silica and sericite alteration of granite has associated pyrite and pyrrhotite veining and dissemination (and probable arsenopyrite). Geochemical results shows elevated As and anomalous levels of Au and Cu.

Figure 9: Drilling cross-section Target C (Langlo)

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Figure 10: Drilling cross-section Target Y

The information in this report that relates to exploration results is based on information compiled by Mark Sheppard MSc, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Sheppard, MSc, MAusIMM, MAAG is a geologist with twenty five years exploration experience in a number of different commodities and geological regions within Australia. He is a full time employee of Bowen Energy Limited. Mr Sheppard has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of exploration results, mineral resources and ore reserves’. Mr Sheppard consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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