this is a worry, page-2

In response to my email on this, this was the reply from Tony Teng, Secretary of Coalworks.

We have explained the changes at our annual meetings and presentations and in turn filed the presentations with the new timetables on the ASX which we note you have extracted. Unfortunately there are many changes to our project plans that require explanation and at presentation and briefings we are asked many such questions but it is not generally practical to provide footnotes for each change.



With respect to the change of timetable here, the original timetable targeting 2014 for Coal production at Oaklands mentioned by you envisaged export coal production as the leading component of the project and in fact our original plan was stage 1 Coal Production, Stage 2 CTL or Power Plant.



Following the Global Financial Crisis, thermal coal prices halved cutting export thermal coal margins substantially and this prompted a re structuring of the project for CTL or power to lead the project. Accordingly this strategy saw Coalworks sign strategic alliance with Synthesis Energy Systems Inc which initiated a Coal to Liquids Feasibility Study which has just been completed. (This means we have spent over $9 million on Oaklands to date)



The timetable for a new CTL project is generally 4-5 years and so this re-structured project which is now technically well defined has caused our new timetable to be amended to the present timetable of first petrol in 2017 (subject to forming a consortium). This builds in a period for us to complete a Preliminary Feasibility Study with Minarco Mine Consult (leading to bankable feasibility study (BFS) ) so that the CTL feasibility study can become a component of our proposed BFS . However the project will need to be financed and this require the formation of a consortium of which we would only be one partner. This BFS will then allow us to form a consortium for the AUD$2.6 Bn project which would produce 6% of Australia?s petrol . Forming a $2.6 Bn consortium will be a significant undertaking.?