Ann: 2016 Annual Report & Corporate Governance Statement-CNX.AX, page-2

It's a shame someone from CNX ran over a black cat!

Moving forward the Company remains in an outstanding position strategically and will continue to play to its strengths: !

We have a unique, Australian-developed technology: keyseam, which has been scientifically proven and acknowledged by experts that it is an innovation and more effective than other UCG technologies; !

keyseam has been tested through the Bloodwood Creek Pilot project with stringent technical and environmental conditions; !

Our achievements at Bloodwood Creek have enabled us to negotiate a joint venture in China with JinHong;

We have unique IP and an excellent team of people who can now deploy keyseam in other environments. This positions us well to provide full spectrum consulting services to support licencing agreements; and !

Having completed a successful pilot project and obtaining sign-off from Queensland's Chief Scientist, we will be able to negotiate licencing agreements in other jurisdictions; !

! Through our MOU with Photon Energy, we are able to explore both development of a commercial scale solar generation plant and the feasibility of using the site for an innovative power storage system.

These present potential commercial outcomes for the site and our assets.