EXPLORATION PERMIT COAL 1147 QUINALOW FINAL AND RELINQUISHMENT REPORT FOR TARONG ENERGY CORPORATION LIMITED J.E. Siemon March 2009 TABLE OF CONTENTS SUMMARY 1 INTRODUCTION 2 LOCATION AND ACCESS 2 TENURE 2 EPC DESCRIPTION 2 REGIONAL GEOLOGY 4 PREVIOUS INVESTIGATIONS 6 GEOLOGICAL RECONNAISSANCE 6 CONCLUSIONS 8 REFERENCES 9 FIGURES 1. Locality Map 3 2. Regional Geology 5 3. Location of Drilling 7 APPENDICES 1. Drill Logs BJ45, BJ46 – BHP (1983) Final and Relinquishment Report EPC 1147 Quinalow March 2009 J.E. Siemon Pty Ltd 1 SUMMARY A review of the regional geology and past exploration within EPC 1147 indicated that the area was unlikely to contain any resources of coal within the Jurassic Marburg Subgroup. The tenement was formally relinquished on 5 March 2009. Final and Relinquishment Report EPC 1147 Quinalow March 2008 J.E. Siemon Pty Ltd 2 INTRODUCTION Tarong Energy Corporation Limited (TEC) holds the Exploration Permit for Coal EPC 1147 Quinalow, which is approximately halfway between Oaky and Yarraman in Southern Queensland. EPC 1147 was relinquished on 5 March 2009. This report has been prepared by J.E. Siemon Pty Ltd on behalf of Tarong Energy Corporation Limited as the Final and Relinquishment Report for EPC 1147.. LOCATION AND ACCESS EPC 1147 is in Southern Queensland approximately 30 km north-northwest of Oakey, 45 km southwest of Yarraman and about 45 km southwest of the Tarong Power Stations (Figure 1). The township of Quinalow is located just north of the EPC boundary. The principal access is the Dalby to Cooyar Road. Access within the tenement is via a network of sealed and unsealed roads. TENURE There are no Mining Leases or Mineral Development Licences within the Relinquished area. EPCs 1106 and 1111 held by TEC lie immediately to the east and north of EPC 1147. The majority of the EPC is agricultural and grazing land. EPC DESCRIPTION Exploration Permit for Coal EPC 1147 was originally granted over 17 Sub-Blocks on 27 September 2007 for a period of five (5) years. A decision was made in early 2009 to relinquish the whole of EPC 1147. The area relinquished is described below. Block Identification Map: Brisbane Block Sub-blocks 2684 m, n, o, p, r, s, t, u, w, x, y, z 2756 c, d, e, j, k Final and Relinquishment Report EPC 1147 Quinalow March 2008 J.E. Siemon Pty Ltd KingaroyKingaroy 7,060,0007,060,0007,060,000 mNmNmN 7,060,0007,060,0007,060,000 mNmNmN 350,000 mE 330,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 370,000 mE 400,000 mE 410,000 mE 330,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 370,000 mE 400,000 mE 410,000 mE 330,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 370,000 mE 400,000 mE 410,000 mE 330,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 330,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 370,000 mE 400,000 mE 410,000 mE 330,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 370,000 mE 400,000 mE 410,000 mE 330,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 370,000 mE 400,000 mE 410,000 mE 330,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 360,000 mE 380,000 mE 390,000 mE 340,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 370,000 mE 400,000 mE 410,000 mE 330,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 370,000 mE 400,000 mE 410,000 mE 350,000 mE 330,000 mE 7,050,0007,050,0007,050,000 mNmNmN NanangoNanango7,050,0007,050,0007,050,000 mNmNmN 7,040,0007,040,0007,040,000 mNmNmN 7,040,0007,040,0007,040,000 mNmNmN 7,040,0007,040,0007,040,000 mNmNmN TarongTarong PowerPower7,040,0007,040,0007,040,000 mNmNmN StationsStations 7,030,0007,030,0007,030,000 mNmNmN YarramanYarraman7,030,0007,030,0007,030,000 mNmNmN 7,020,0007,020,0007,020,000 mNmNmN 7,020,0007,020,0007,020,000 mNmNmN CooyarCooyar EPCEPC 11061106 7,010,0007,010,0007,010,000 mNmNmN 7,010,0007,010,0007,010,000 mNmNmN EPCEPC 11111111 7,000,0007,000,0007,000,000 mNmNmN 7,000,0007,000,0007,000,000 mNmNmN DalbyDalby 6,990,0006,990,0006,990,000 mNmNmN 6,990,0006,990,0006,990,000 mNmNmN EPCEPC 11471147 CrowsCrows NestNest 6,980,0006,980,0006,980,000 mNmNmN 6,980,0006,980,0006,980,000 mNmNmN 6,970,0006,970,0006,970,000 mNmNmN 6,970,0006,970,0006,970,000 mNmNmN OakeyOakey 6,960,0006,960,0006,960,000 mNmNmN 6,960,0006,960,0006,960,000 mNmNmN ToowoombaToowoomba TARONG ENERGY CORPORATION LIMITED 6,950,0006,950,0006,950,000 mNmNmN 6,950,0006,950,0006,950,000 mNmNmN Project: LOCATION MAP Date: 12/2/2009 Author: Office: EPC1147 QUINALOW Drawing: 6,940,0006,940,0006,940,000 mNmNmN 6,940,0006,940,0006,940,000 mNmNmN Scale: 1:500000 Projection: MGA Zone 56 (GDA 94) 0510 20 kilometres J.E.