The HOUSING OPPORTUNITY An Investment in the Future PRECINCT

The Rockhampton Regional Council includes four main residential centres being: Rockhampton City, Gracemere, Mount Morgan and . The nearest major centres to Rockhampton are Gladstone (one hour drive to the south) and Mackay (three hours drive to the north).

The Rockhampton Regional Council is estimated to have a population of 114,105 as at 30 June 2009*. This represents an increase of 2.203 persons over the prior year.

The Bowen Basin is an area of coal reserves and mining related communities that extends over approximately 60,000 square kilometers of Central from the town of Collinsville in the north to Theodore in the south. This is the largest coal reserve in Australia.

* Queensland Office of Economic and Statistical Research, Population and housing profile – Rockhampton Regional Council, April 2010 Operating Mines & Townships

As detailed in the map* (left), the is ideally placed to accommodate the fly in, fly out (FIFO) mining and mining services workforce. It is this proximity together with the significant mining investment that will underpin housing/accommodation demand in the medium term.

* University, Bowen Basin Mining Communities Research Exchange, 2003 Infrastructure

Rockhampton is also intrinsically connected to the Bowen Basin though the rail infrastructure which forms part of the Central Queensland Coal Network (depicted left*). QR National is a major employer in the region with a workforce of 3,215 in Central Queensland as at 30 June 2010*.

Within the Bowen Basin proper there are 15 townships, with an estimated combined population of 93,506 (as at 31 July 2009 ). Of this number, 12.228 are considered non-resident workers*. The relatively small size of these communities creates a heavy reliance on nearby regional centres and the infrastructure that they offer. This infrastructure includes health service, retail and leisure, and onward transport (heavy rail and air).

* Department of Local Government and Planning, Coal Transport System Map, August 2010 * QR national, Share Offer Document, October 2010 * Queensland Office of Economic and Statistical Research, Bowen Basin Population Report, April 2010 RESOURCES & Associated Demand

A significant and growing contributor to the Rockhampton region’s economy is mining and mining services. Underpinning the future success of this industry are positive global demand drivers. Coal

Australia is the world’s fourth largest coal Complimentary to the strong global To satisfy the global demand for coal, Australian producer and the world’s largest net exporter demand detailed above, is the rapid coal exports are expected to grow over the next due to the relatively small level of domestic growth estimated within within the Asia five years at rates in excess of the previous five consumption. The majority of the resource is Pacific region. China and India’s combined years (depicted left*). located in Queensland and . import coal demand is estimated to grow Within Queensland this resource is sourced by an average of 8.6% per annum during The additional output will be met from both almost entirely from the Bowen Basin. the calendar years 2010 to 2015*. This is new and existing mining operations. In particularly significant given demand from Queensland there were 54 operating coal mines Global import demand for coal is expected to developed economies including Japan as at 30 June 2010. At this time, four mines be strong in the medium term with Compound (Australia’s largest customer) is expected were under construction (three of which are in Annual Growth Rates (“CAGR”) for thermal to remain stable. the Bowen Basin) and a further 28 projects coal predicted to be 3.0% over the calendar have mining leases granted or under years 2010 to 2015. For metallurgical coal the application*. CAGR for the same period is predicted to be 5.6%. Queensland is involved predominantly in metallurgical coal exportation. QR National, Share Offer Document, October 2010 Queensland Government Department of Employment, Economic Development and Innovation, Queensland’s Coal – mines and advanced projects, June 2010 Coal Seam Gas

The Queensland Coal Seam Gas (CSG) industry is undergoing a remarkable transition. Explorations have confirmed that the Bowen Basin and Surat Basin have commercial CSG accumulations. Production in these Basins has increased significantly as depicted below*.

Queensland Government Department of Employment, Economic Development and Innovation, Queensland coal seam gas overview, April 2010 Liquid Natural Gas

Export Liquid Natural gas (“LNG”) project have the potential to further transform this growing industry. Eight plants have been announced with a collective export capacity of 43 Million tones per annum (“Mtpa”) . The project construction schedule of the five most advanced projects as at 30 June 2010 is depicted below*. Anticipated LNG Projects

A summary of the Liquid Natural Gas (LNG) projects anticipated in the region follows:

01. Santos Ltd/Petronas 02. Queensland Gas Company/BG 03. LNG Limited (Gladstone LNG 04. ConocoPhillips/Origin (Gladstone Liquefied Natural Group Plc subsidiary (Queensland Project) – proposes to develop a Energy (Australia Pacific LNG Gas project or GLNG) – Curtis LNG Project or QCLNG) – LNG plant at Fisherman’s or APLNG) - proposes to proposes to develop a LNG proposes to develop a LNG plant Landing, Gladstone. develop a LNG plant at Laird plant at Hamilton Point West at North China Bay on Curtis Point on Curtis Island on Curtis Island: Island.

05. Shell (CSG) Australia Pty 06. Impel (Southern Cross 07. Sunshine Gas/ Sojitz 08. Energy World Ltd/Royal Dutch Shell Plc LNG) – proposes to Corporation (Sunshine Gas Corporation – proposes to subsidiary – proposes to develop an open access now owned by QGC) - develop a LNG plant at develop a LNG plant at LNG plant on Curtis Island proposes to develop a LNG Abbott Point Boatshed Point on Curtis Island plant at Fisherman’s Landing on Curtis Island HOUSING DEMAND

The resource endowed state of Queensland is expected to experience nation leading population growth as a result of Australia’s two speed economy. Population Considerations

At this juncture it is worth highlighting some of the emerging social trends in mining and the From a national perspective, these trends already associates impact on communities and populations. A 2007 study by Rolfe et al points to the impact net migration figures, with resource endowed following: states the beneficiaries of the two speed economy. Western Australia, Queensland and the Northern There is an increase trend towards block shift work patterns and a non- Territory have and are expected to grow faster than resident workforce, coupled with increased mobility and more lifestyle the other states as illustrated in the following chart “ (left*). drivers shifting or cycling people out of mining communities. These factors are causing population to concentrate in regional hubs and larger With a significant amount of new activity expected in mining towns , where the services tend to be focused*’ the Rockhampton region, a material number of skilled workers will be required to construct and operate the various projects and associates infrastructure. A selection of employee intensive works follows.

. Rural Society, Mining developments and Social Impacts on Communities: Bowen Basin Case Studies, Volume 19 November 3 October 2009 + Australian Bureau of Statistics, Population projections, Australia, 2006 to 2101, September 2008 Employee Intensive Works

Wiggins Island Coal Export Terminal (WICET) – Located at Golding Point, Gladstone, this $4b industry funded terminal will increase export coal capacity through the port of Gladstone in the order of 80Mtpa to 90Mtpa. Stage 1 is expected to be completed in 2014*. Additional rail project will be required to support this new terminal.

Moura System Upgrade - Track capacity is currently 17Mtpa with a 2010 study identifying individual projects which bring additional capacity of up to 71Mtpa*. The two year program is expected to commence in 2011.

LNG Developments – The magnitude of the LNG developments proposed for Queensland has At Appendix A, we have provided resulted in Energy Skills Queensland preparing a number of documents which deal with the extracts from the ABARE list of major expected labour requirements to construct and operate the LNG plants. Should he five most mineral and energy projects. This list advanced applications proceed, a workforce in the order of 14,800 to 18,300 may be required*. details additional employment requirements (where available) and further supports the need to provide suitable accommodation in the region now and into the future. Combining this regional migration with natural changes to population creates an expectation that Rockhampton Regional Council will *Lonergan Edwards & Associates Limited, Takeover offer for Northern Energy Corporation Limited, November 2010 have a population of approximately +Construction Skills Queensland, CGS/LNG Construction Workforce Plan, November 2010 ++Queensland Office of Economics and Statistical Research, Household and dwelling 153,200 by 2031**. projections – Queensland local government areas 2010, May 2010 Demand for New Dwellings

Workforce migration as a result of employment creation, coupled with underlying population growth, is expected to create significant underlying demand for new dwelling in the medium to long term. Modeling undertaken by Queensland Government Office of Economics & Statistical Research, projects that the Rockhampton Regional Council will require constriction of 22,945 new dwelling during the period 2006 to 2031. For Gladstone the number is 21,093*. These projections are depicted graphically in the chart below. The robust demand identified is to be contrasted with housing supply laminations for the region which follow.

* Queensland Office of Economics & Statistical Research, Household and Dwelling projection - Queensland local government areas 2010, May 2010 HOUSING SUPPLY

The ability to satisfy robust hosing demand in the Rockhampton region is problematic. Geographical constraints limit development in Rockhampton City which is bounded by flood plains to the south and southwest and the Berserker Ranges to the north and northeast. As a June 2010, the Rockhampton Regional Council had 2,604 hectares of broad hectare land available for residential development. This is projected to yield approximately 10,000 dwellings*.

* Queensland Office of Economics and Statistical Research, Residential land and dwelling activity profile – Rockhampton Regional Council, June Quarter 2010 Housing Approvals

The table which follows details the number of housing and unit approvals in the Fitzroy area (Rockhampton/Gladstone). The data depicts a sharp decline during the Global Financial Crisis (“GEC”) to levels below the seven year average. The moderate level of approvals against a back drop of projected annual population growth of 2.3% * and the additional housing needs as a result of significant mining investment is expected to result in a housing shortage in the absence of material new product in the region.

Supporting the viability of development projects in the region in housing affordability. Exponential growth in median rental prices (table below) among smaller mining communities is supporting the economic need for reasonably priced “off side’ accommodation, while at the same time being complimentary to the social preference of miners for FIFO arrangements.

The supply and demand factors already discussed underpin the feasibility of this concept. This is confirmed by a recent publication from Australian Property Monitors which forecast median housing prices through to 2020. Results for the suburbs where projects await development follow each anticipated to grow rapidly during this time**.

*The Midwood Report, Regional Queensland, November 2010 +Australian Property Monitors, House Values in 2020, March 2010 THE PILBARA

The Western Australian Experience

The housing demand projected in the Rockhampton region off the back of significant mining investment, is not dissimilar to the recent experience observed in the Pilbara. Both regions exhibit a high concentration of operational mines and reserves. By way of comparison, we present historical housing data in the town of Karratha. This data serves to support the feasibility of the contemplated development to be undertaken in Central Queensland. The Pilbara Region

The Pilbara region covers an area of 507,896 km2 (including off shore islands). It has an estimated population of 47,000 people as at 30 June 2009*, most of whom live in the western third of the region, in towns such as Port Hedland, Karratha, Wickham, Newman and Marble bar.

The majority of Australia’s iron ore is mined in the Pilbara with mining operators including BHP, Rio Tinto, Fortescue Metals. The region is also the gateway to the offshore Carnarvon Basin which includes the North West Shelf venture, Woodside’s Pluto project and the Gordon gas project.

The beginning of what would become known as Australia’s mining boom commenced in 2003. In Western Australia, this activity has seen mining employment grow on average by 8.5% per annum resulting in 75,615 persons employed as at December 2009**.70% of the state’s mineral and petroleum production occurs in the Pilbara and this high concentration of mining activity has resulted in abnormally high housing demands for the region**.

Australian Bureau of Statistic, National Regional Profile: Pilbara (Statistical Division), November 2010 ** Government of Western Australia’s resource industry. February 2011 ** Western Australia Prospect magazine, Pilbara Focus, March-May 2010 Karratha & Dampier

The town of Karratha which adjoins the port of Dampier had a population of 11,728 at the time of the 2006 census* and along with Port Hedland are the region’s biggest towns.

Median house prices in Karratha have a strong correlation with the mining activity which accelerated in 2003/04. As depicted in the following graph, during this period, the strong housing demand has resulted in the median house prices far exceeding those in the state’s metropolitan areas *.

The median house price in Karratha in the December quarter of 2010 was $950,000. This is up to the same quarter of 2003**.

*Australian Bureau of Statistic, 2006 Census Quick Stats: Karratha (Urban Centre/Locality), October 2007 + Landgate, House Sales Statistical Analysis, February 2011 Rental Income

Rental income streams are also strong in Karratha. The weighted average weekly cost of advertised rents (for 3+ bedroom properties) in the December 2010 quarter was $1,609*. A breakdown of rentals by property type is depicted graphically here.

As is projected in the Rockhampton region, the extended periods of housing demand combined with moderate new supply is expected to translate into higher prices for housing in the medium term.

*Government of Western Australia, Pilbara Housing & Land Snapshot-Quarter Ending December 2010, 2011

One Bedroom ($550)

Two Bedroom ($1,168)

Three Bedroom ($1,399)

Four Bedrooms or more ($1,801) An Investment made today for your Future

MOUNT MORGAN INVESTMENT OPPORTUNITY Location

Mount Morgan is a town located in central Queensland, Australia. It is situated on the Dee River, 38 kilometres south of the , and is 680 kilometres north of the state capital, . The passes through the town and is an important gateway to the Bowen Basin region which is responsible for much of the state’s mining and natural resources related industries. The town currently has a population of approximately 3000 people.

The Capricorn region of Central Queensland has experienced tremendous growth over the last few years driven primarily by the resource and mining boom. Major regional centres of Rockhampton and Gladstone have reflected this growth with population and property prices forcing residents to look for more affordable alternatives within close proximity. With Mount Morgan located 30 minutes from Rockhampton, it offers home owners & investors alike an opportunity to buy an affordable property offering opportunity for sustained capital growth on the back of the mine about to reopen. With only a handful of new building consents over the past ten years and the majority of housing consisting of up to 100 yr old ―MINER’S COTTAGES; quality accommodation in Mt Morgan is not just scarce it is non existent. Development of the area has only just begun with developers now realising the potential of the town and all it has to offer. This is always the precursor to significant growth in any area. Geography Demographics of Mt Morgan The geographical location and the established social and physical infrastructure of the Rockhampton district make The future growth and prosperity of Mount MMPAD will push hard for funding from this program it ideally placed to capitalise on further developments in Morgan will be driven by 4 key areas which make for infrastructure such as; the following industries as they grow in our region; the township unique within the region for its  Revitalisation of town’s main streets *Mining *Agricultural *Manufacturing potential; Infrastructure, Economic Opportunity,  Multi-purpose community and resource centres *Utilities *Construction *Transportation Lifestyle, and Geography.  Major sport and recreational venues *Communications *Service *Tourism *Retail Infrastructure  Community transport infrastructure This potential for growth in the Central Queensland The platform of infrastructure that Mount Morgan As the Government looks to create jobs, and shore up region was recognised by Professor Ross Garnaut in his presently enjoys is far more superior to its closest the economy with its Nation Building scheme, where study “Australia and the North Asian Ascendancy”, as rival residential area – Gracemere and includes; better to improve infrastructure than in a township each of the key elements outlined in his economic  Primary School with as much economic growth potential as Mount strategy is present within the Rockhampton Region.  High School Morgan. As Rockhampton grows, and people search for affordable  Hospital Economic Opportunity housing without sacrificing lifestyle, Synergy Mount  Day Care Centres The township itself has enormous potential for Morgan, with access to more facilities than is offered at  Aged Care Facilities economic growth through the following areas; Gracemere will be well placed to capitalise on the growth  Community Recreation Facilities including Tourism that the Rockhampton Region will and is enjoying. bowls, tennis, swimming and sports grounds Mount Morgan enjoys  Pristine Recreational Dam that also supplies  A number of key historic attractions making Mount Lifestyle the town with clean water. Morgan a unique destination; Residents can choose from large family home blocks or This level of infrastructure not only means that  Heritage listed gold mine and important semi-rural lots as their base to enjoy the small close knit Mount Morgan has more to offer its residents palaeontology discoveries. community lifestyle, gatherings at the local recreational than Gracemere, but also means that it’s potential  Recognised historic township with many heritage dam and regular craft markets, with the security enjoyed to adequately handle the growth we are listed buildings and monuments. by all of the other facilities identified in this document predicting is also superior.  Caravan Parks can cater for large caravans/motor- such as the hospital. homes; Not to mention of course, that residents escape the heat Government Social Infrastructure  Golf Course that Rockhampton has to offer, being always 4-6 degrees Projects cooler due to its elevation. All the while Mount Morgan is only 25 minutes away Better Regions Program - $176 Million Dollars Mining from the hub of Rockhampton for work, an hour from the The Mount Morgan Promotion and Development The reopening of the Mount Morgan mine to extract southern Mining communities or a pleasant 60 minutes Board (MMPAD) have also developed strategic gold, copper and pyrites identified in a 643 ha drive away from the pristine beaches of the Capricorn plans to tap into available Government Funding registered mining lease surrounding the township, will Coast for play on the weekends. for further infrastructure improvements. of course mean that the employees of the mine and The MMPAD has identified Mount Morgan as an associated service industries will drive up the demand ideal candidate for funding from the 176 million for housing in the region. This project is scheduled to Summary dollar Better Regions program, which the run 12 years, providing, and especially with the current Our meticulous research into the area and common Government has created in an effort to deliver on gold trends, an initial springboard for rapid growth, sense dictate that Mount Morgan is the next logical step. its election promise to provide regional Australia which, when the project is completed will have It is the next boom town, and the timing with the current with much needed community facilities and opened the doors for sustained growth and service to economic climate could not be better. services. further CQ industries that the township of Mount Crisis or not, as outlined above, Rockhampton and Mount Morgan can both drive and benefit from. Morgan will grow, and with that growth will come demand Regional Drivers  Serviced Apartment rates have doubled in Rockhampton **Property Investors/Occupiers are queuing up in Central Qld** Investing in Gracemere/Mount Morgan/Emu Park/Yeppoon  Gladstone’s, Rockhampton’s serviced apartments/units fully booked with some 2bed  Current Under supply of property 2bath units demanding $8000p/mth+ - 12 + 12mth  Affordable Housing and set for capital growth leases from Industry players  Positive returns for Investors are imminent due to rental crisis  Demand now outstrips supply in Central Qld due  Biggest Industrial Investment ever seen in Australia to Mass Mining approved contracts  Over $200 Billion worth of LNG and Coal projects by some of the biggest players in  Rockhampton preferred Airport, fly in fly out the World including Petronas and British Gas, BMA,RIO and Santos etc  only one large enough to  LandTrak have secured all of the available Mt Morgan land for current and future support large cargo planes development  Rockhampton Preferred site for international  Sites are suitably positioned to absorb the housing demand from Gladstone (GAS and military base for USA ( training minerals processing), Rockhampton’s growth and servicing, surrounding Coal mining facility ) towns including Callide, Baralaba, and Moura etc  Singapore Air force use Rockhampton as military  Mt Morgan town is undervalued by 60% MEDIAN PROPERTY VALUES to the property training base prices only 10 minutes away being Gracemere  Rockhampton Rural economy set to explode due  New hospital in the town and water infrastructure is being upgraded to favourable weather conditions  Norton Gold Fields Mine to start production in very near future  Regional tourism set to explode with multi  9000+ jobs being created today over all Mining sectors with lack of accommodation $Billion plans to upgrade to house the Executive staff and employees and permanent workers  $14Million expansion to Mount Morgan Hospital  Rockhampton Airport to cater for most of Mining companies inwards/outwards approved – start January 2011 – 50+ construction goods and services (Canadians & Americans flying in their machinery etc) workers – 100 full time when complete. NO rental  100 jobs for Gracemere Shopping Precinct (No avail serviced acc in Gracemere) property available to meet growing demand. Mt Morgan Hospital Mt Morgan Hospital Redevelopment $14M and 111 jobs

SUNSHINE Coast firm Evans Harch has won the tender to build Mt Morgan’s $14 million hospital.

The hospital, to be built next to the existing facility in Black Street, will include 10 acute and 10 aged-care beds, two emergency treatment bays, support services, a community health area, a dental clinic, and GP private practice space.

It will also provide six “virtual beds” in the “Hospital in the Home” program for clinical care of patients in their own home.

Councillor Sandra O’Brien is excited. “I just think it’s going to be great, because we know Mt Morgan’s population is going to be growing over the next 10 years.” Artist Impression Under Construction Jan 2011 **Over serviced **Underpopulated **Under Valued by 60% to all neighbouring Townships

“The Golden Triangle” depicting other employment areas Mt Morgan’s new housing estates will also service

North West North East

Blackwater Rockhampton Gracemere

South West South East

Baralaba Gladstone Moura South Biloela Callide Mt Morgan “ April 26th 2011” Another Mine requiring housing in Mt Morgan!

Eastern Iron (ASX: EFE) was originally formed to investigate the potential for iron ore on the infrastructure rich, eastern seaboard, which is home to the bulk of Australia’s industrial The acquisition is a valuable addition to the company’s growing portfolio of capacity, population, workforce and markets. quality iron ore prospects within its Central Queensland Iron Project. Eastern Iron to acquire Eulogie Iron Project in central Queensland The Eulogie project is located 23km south of Mount Morgan in Central Queensland, close to world class bulk tonnage infrastructure, including sealed roads and the main Moura – Gladstone railway line.

Importantly, the railway is part of the Central Queensland coal network leading to the expanding deepwater export port of Gladstone.

The geology and nature of the ferrigabbro layers is almost identical to that at Eastern Irons' Hawkwood iron project, located 220km to the south.

Wednesday, January 19, 2011 Eastern Iron believes there is potential to prepare a JORC resource estimate, as well as investigating the exploration upside within areas untested by previous explorer, Following completion of due diligence, Eastern Theiss Contractors Pty Ltd. Iron (ASX: EFE) has signed the sale and purchase agreement with RMM Capital Pty Ltd The company plans to carry out further resource drilling and metallurgical studies in for the Eulogie Iron Project. 2011 and will assist Eastern in assessing the potential to develop a large scale iron export operation. The agreement is now subject only to approval by the Queensland Government for the transfer of the related project tenement. Adelaide, Australia - April 11th 2011: Astra Mining Ltd has been featured in Capricorn News, a Central Queensland based newspaper, in an article that explores Astra Mining’s plans to begin an industry- based housing development in the Rockhampton region.

Large 445m2 to 1029m2 lots in Panorama Ridge

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