Nagoorin Oil Shale Deposit Resource Estimate Update September 2014 Nagoorin Oil Shale Deposit STATEMENT - SPE-PRMS PETROLEUM RESOURCE ESTIMATE - NAGOORIN This report is an update on the initial SPE-PRMS report for the Nagoorin Oil Shale deposit issued in April 2014. The criteria and assumptions which underpin the estimate were reviewed and remain unchanged. The Petroleum Resource estimate is based on the discovered Petroleum Initially in Place (PIIP); estimated using polygonal blocks. The methodology used is a deterministic method where the JORC 2012 guideline levels of categorisation (Measured, Indicated and Inferred) quantify the range of uncertainty or confidence levels for the deposit. The estimate is based on the following constraints and data: • Interpretation of intersected stratigraphy in 53 pre-collared cored and auger sample drill holes drilled to a maximum depth of 687 metres below surface for an aggregate 10,566 metres. • The maximum depth for the estimate is 502 metres. • Oil grade has been determined by modified Fischer Assay (ASTM D3940-90) on 3,716 core samples representing approximately 7,400 metres of cored material. • Preliminary interpretation of 24.7km of 2D seismic land lines and core data from five CSG wells • An in-situ grade cut-off of 50 litres per tonne at zero per cent moisture (50LT0M) has been applied. • The resource is contained within an elongate surface area of 18.1 square kilometres. • A recovery factor of 0.95 has been applied to the in-situ estimate based on published recovery data from a number of conventional retort technologies both operating and under development. • The total estimate as at 30 September 2014 is apportioned to the tenement holders according to their beneficial interests in the Nagoorin deposit in Table 1. Table 1: SPE-PRMS Petroleum Resource Estimate. Total Resources Beneficial 1C 2C 3C (Mbarrels) Interest Greenvale 66.7% 211 634 1497 QER 33.3% 104 312 737 TOTAL 100% 315 946 2234 Contingent Resources are those quantities of petroleum estimated, as of this report date, to be potentially recoverable from known accumulations using established technology or technology under development. Commercial recovery of oil from Nagoorin shale has not been established and as such the contingent resources cannot be classified as petroleum reserves. At Nagoorin, resource development is considered unclarified or not viable based on the current immature state of knowledge of commercial recovery due to one or more of the following contingencies. • Development requires the application and grant of a mining lease and environmental approvals from the Queensland Government based on a commercial mine and Nagoorin Oil Shale Resource Statement September 2014 Page 2 of 10 Nagoorin Oil Shale Deposit processing proposal; i.e. legal, environmental, social and governmental factors for development have not been either established or approved. • A commercial mine and processing development has not at this time been assessed against any current and forecast economic conditions to support commercial viability. • Commercial recovery is dependent on the suitability of Nagoorin oil shale to be processed in current retorting technology or technology under development. Competent Person The petroleum resource estimates for MDL 234, Nagoorin Oil Shale Deposit provided in this statement were determined by Mr Graham Pope, a full-time employee of QER Pty Ltd, Brisbane, Australia, in accordance with Petroleum Resource Management System guidelines. He has given his consent to the use of the resource figures in the form and context in which they appear in this statement. Mr Pope: • has a BSc(Applied Geology) and MSc and is a Member of the Australian Institute of Geoscientists, Australasian Institute of Mining and Metallurgy and Petroleum Exploration Society of Australia. • has more than 30 years’ experience in the exploration, development, assessment and evaluation of oil shale deposits and is a qualified person as defined under the ASX Listing Rule 19.12. • is a full-time employee of QER Pty Ltd, Brisbane, Australia and is independent of Greenvale Mining NL • does not receive any remuneration that is linked to the admission or value of the applicant • is not a sole practitioner. Nagoorin Oil Shale Resource Statement September 2014 Page 3 of 10 Nagoorin Oil Shale Deposit ADDITIONAL INFORMATION Project Description The Nagoorin Oil Shale Deposit is situated in the northern part of the Boyne Valley, which marks the axis of the Nagoorin Graben, a Tertiary structural basin, 60 kilometres south west of Gladstone in central Queensland (Figure 1). The small townships of Nagoorin and Ubobo lie to the west of the deposit that occupies the western and central portions of the Boyne Valley. There are road and rail links from the townships to Gladstone. Tenement Status Title to the resource is held by virtue of Mineral Development Licence 234 and EPM 7721 granted in November 2013 and March 1991 respectively. Mineral Development Licence 234 and EPM 7721 are current to 31 October 2017 and 21 March 2015 respectively. Interest in the Nagoorin Oil Shale Deposit is held by a joint venture, consisting of Greenvale Mining NL (66.67%) and Queensland Energy Resources Limited (33.3%). Geological Setting Regional geological setting The Nagoorin Beds are contained within the Nagoorin Graben located at the intersection of three major structural features - the Boyne Valley Fault, the Yarrol Fault and the Borilla Shear Zone. The graben is surrounded by north-northwest-trending Middle and Late Devonian to Carboniferous and Permian sediments, volcanics and low grade metamorphics. To the east, a north-trending belt of Permian granodiorite (Miriam Vale Granodiorite) intrudes tuff, quartzite and shale of the Early Carboniferous Wandilla Formation. Immediately west of the graben the Triassic Glassford Complex trends northeast, cutting across the Palaeozoic sedimentary rocks. During the Triassic, the Muncon Volcanics, comprising intermediate and basic lava, tuff, agglomerate, mudstone, silts and sands, was deposited over a wide area surrounding the graben. Cretaceous acid volcanic plugs intrude the Glassford Complex. To the south the Nagoorin Beds continue in the Nagoorin South Oil Shale deposit. The western extent of the Nagoorin Beds is not as well defined, but it extends no further than scattered outcrops of granite and volcanics to the west. The Nagoorin Graben trends north-northwest and underlies the Middle Boyne River Valley. It extends for about 30 kilometres, with a width of up to 4.5 kilometres. Geophysical data suggest the bounding faults of the graben are very steep dipping to vertical. Again, based on gravity data, it has been calculated that the sequence within the graben is approximately 1.3 kilometres thick. Dolerites intruded the Phanerozoic rock sequence and Tertiary oil shale sequence during the Oligocene. A number of possible vents and flows are recorded in the vicinity of the Nagoorin Graben. Nagoorin Oil Shale Resource Statement September 2014 Page 4 of 10 Nagoorin Oil Shale Deposit The Nagoorin Graben Sequence Tertiary Nagoorin Beds Outcrops of Tertiary sedimentary rocks within the Nagoorin Graben are sparse. Rare, highly weathered outcrops are restricted to some creek beds. There is one known outcrop of fresh oil shale in Ubobo Creek. The geological data from drill core logging at the Nagoorin Deposit, together with that at the adjacent Nagoorin South Deposit, have been used to subdivide the interbedded sequence of the Nagoorin Beds into eight conformable sedimentary units - Units B to J (Henstridge & Hutton, 1986). These units comprise cannel coal, oil shale, mudstone, siltstone, sandstone, conglomerate and minor limestone. Table 1 gives a brief lithological description of the five units, Units B to F, that are intersected in the Nagoorin Oil Shale Deposit. The stratigraphic sequence to the west of the resource bounding fault comprises undifferentiated Tertiary sediments. On the basis of an analysis of well-preserved spore and pollen, a Middle to Late Eocene age has been proposed (Wood, 1982). Samples were examined and palynomorphs identified from Units C, D and E. Table 2: Nagoorin oil Shale Deposit, Nagoorin Beds – Summary Description of Units. Average Grade Average Intersected Member Lithologic and Stratigrapic Description LT0M thickness (range) m F The youngest unit intersected in the Nagoorin Deposit. It consists of interbedded oil shale and cannel coal, brecciated in part with 83 > 169.5 minor mudstone, siltstone and sandstone. E Conformably overlies Unit D and is lithologically distinctive. It 79.8 94 comprises uniform cannel coal and oil shale. (60 -108) D Conformably overlies Unit C and changes facies from interbedded cannel coal, and subordinate oil shale to variably- 165.2 77 interbedded cannel coal, carbonaceous oil shale, oil shale, (117 - 220) mudstone, siltstone and sandstone. Conformably overlies Unit B and comprises six alternating sub- C units of cannel coal and oil shale in the central part of the basin but becoming less distinct towards the north, where more rapid 255.5 104 interbedding of lithologies occurs. The seams have recognisable (180 - 318) characteristics on the oil yield histograms, by which they are defined. The oldest stratigraphic unit, it consists of fine grained to granular B quartz/lithic argillaceous sandstone, conglomerate, mudstone, siltstone and varying proportions of interbedded cannel coal and 70 At least 156.8 oil shale. There are minor, thin carbonaceous bands throughout the unit. Dolerite has intruded Units C, D, E and F in the central eastern Dolerite portion of the deposit. Where intruded, the oil shale units have 0 variable undergone natural pyrolysis and have been excluded from the resource. Quaternary Unconsolidated Quaternary, primarily Holocene, alluvial sediments up to 21 metres thick unconformably overlie the majority of the Tertiary sediments in the Nagoorin Graben. The alluvial overburden is predominantly unconsolidated pebble to boulder-bearing sandy silts and clays, with a distinct boulder and/or gravel layer at the base and has an average thickness of 12.6 metres. Alluvial silt is very sparse, generally being less than one metre thick.