12m mc, 3m cash, 400mt jorc!! 2bt target!!, page-13

I have been in contact with Mark Major today via email with regards to the coal quality at the prospects. I think his response speaks wonders!!

Dear Charles,

Firstly let me welcome you to Hodges.

To answer your question, there have been minimal wash tests completed thus far; however, those that have been done have shown we can get Grade A export coal at viable yields. The percentage and yields are the critical thing over the entire deposit, not just a few holes. It is true we do have similar (if not better) raw coal qualities as many of the other companies which are in the area; and we do expect to get similar results, but until we do the work, these are all just assumptions.

Hodges is a tightly held company that has been flying below the radar for years. It will take time for the news to flow out into the broader market, but we will be working hard to increase our profile once we complete the due diligence on both projects. We will definitely take up the options if there are no issues with the titles/companies and technical review. Only time will tell on this.

You mention AFR. They are at least a year ahead of us, and if you look further out we have CIC Energy at the forefront of successful Botswana coal companies. I too believe we are undervalued at the moment. If we take the option we will be aggressively exploring and converting the targets into JORC resources, as well as initiating mining studies. It could be a very exciting 12 months for all our shareholders.

I hope you find this email to your satisfaction.

Kind regards,

MARK MAJOR
Managing Director
HODGES RESOURCES LIMITED

Level 2 / 38 Richardson Street, West Perth, WA, 6005
Tel: +61 8 93226412 | Fax: +61 8 93226398 | Mbl: 0447954112