Ann: Notice of General Meeting/Proxy Form, page-2

In summary BDO valuation came out uncannily close to traded share price - range of 1.35 to 2.14 cps with preferred value of 1.76 cps (i.e. shares are FULLY valued for current state of play). The value after the transaction with Cape Coal dilutes and detracts from BCB SH value to drop to 1.04 to 1.81 cps with preferred value 1.43 cps - and this is OVERVALUED as it excludes the royalty obligation on Hillalong East to Rio Tinto not included in consideration by Independent Expert report according to BDO. These Cape Coal additional assets are both essentially cash sinks, not revenue generators (which would have been a weight around the neck of Cape Coal - now being transferred to BCB) and you need to look at expenditure commitments and relinquishment obligations closely.

The section 13.4 stated benefits are partly right in that without the RT exploration tenure BCB simply never had/has a potentially viable project there at Hillalong, and after acquisition there is some possibility that - subject to substantial exploration and proving of economics - there may or may not be a project there. After Rio Tinto's recent coal exit (and with interest I note that the Hail Creek divestment was announced 20th March which is a few days prior to 23rd March of BDO's report), I can't see RT having any interest on re-entering the coal business, particularly as their past interests have only been in Tier 1 projects and it is highly unlikely that Hillalong will be. In all of this I am assuming that it is actually RT that has retained EPC2141 and 1860, however if Glencore picked these up as well as part of the Hail Creek transaction, then its highly unlikely that there would be any joy in that prospect.

Not a convincing SH value proposition, and IMO mostly of value to Management.