Ann: Coal Seam Development Extends West 400m , page-11

I agree the grade of coal is questionable.

However i believe the vast big of the coal project will make any value adding costs to form a better coal quality is viable.

We have to be realistic here. Australia is home to the best of the best coal quality with all coals +6000kj. We are used to having top notch coal but we need to know that this is not available anywhere else in the world. The type of coal from TVN project can be described at typical mongolian coal- the average type of coal available in mongolia.

I note too that the Koreans are wanting to be active in the Mongolian economy- they are the biggest donors to mongolia before Mongolia was on the map due to RIO etcs coal/copper mines. So im expecting the Mongolia to return the favour to the koreans in one way or another. Koreans are proposing to share their advanced coal technology with Mongolia. Any technology that can upgrade/improve coal qaulity is beneficial to the world and TVN. I hope TVN management are keeping a close eye on this development because this could be very beneficial to TVN.

So currently we have a coal strike of over 2.6km and now we have discovered coal 400m away from the strike. This seam was also over 100m long, this increases the probability that this project is going to be a big resource!

I was also surprised with the selling, but given the current pessimistic outlook, i wouldnt be surprised to see many taking a risk-off approach to any stock.

overall, i expect costs to be low. We have an existing mine next to us in peabody. this means that water and electrocity is available in the area, not requiring TVN to spend a lot of money for this. We are also 6km from rail ways, this significantly reduces operating costs.

Should TVN decide not to add value to its coal, operating costs have to be minimised and very efficient in order to maximise profit.

I am not being baised in my review of TVN. I am simply stating information TVN has provided and information i have come across through research.

DYOR