EPC 1748
CGE considers EPC 1748 covering an area of 280 km2, which sits mostly in the Surat Basin, to be the best conventional thermal coal mining asset in its exploration portfolio. An initial drilling program of 3 to 4 holes to target a resource of 300MT is expected to commence drilling activities in Q1 2012. CGE is currently working on land access agreements, conducting stakeholder engagement and preparation for drilling. Major road and rail infrastructure runs through EPC 1748. The Macalister coal seam which is part of the Walloon Coal Measures is considered to be the primary coal target.



Strategic Cropping Legislation is a Manageable Risk
Legal advice indicates EPC 1748 should not be much affected by the Queensland Government's proposed Strategic Cropping Land (SCL) legislation. The tenement is not within the highly restrictive "protection zone". It is only partially overlapped by the "management zone". The company believes this risk can be removed by proving that just one of the 8 SCL criteria can be discounted, involving matters such as the slope and rockiness of the land and that there is no history of cropping.

Urban Development Legislation is not a Risk
Legal advice indicates EPC 1748 is not affected by this proposed legislation announced August 15 2011, as it sits 37km from Dalby and 25km from Tara, and therefore outside the SEQ Regional Plan 2km buffer zone of urban areas with populations larger than 1000.