Ann: AGM Presentation , page-3

A note from Paul Atherley, Managing Director:

A print of the photo of the girl was purchased by the Managing Director in Beijing over five years ago at the same time as it was being used by the Project Hope "I Want School" campaign.

It has hung in the Beijing office since then.

The Company has reproduced and used the photo with full permission of the Photographer for the current campaign.

Mei Qi is the pinyin of a common girl's name. It is also the pinyin for "Coal Gas". She very clearly represents the thematic that China's rural provinces remain underdeveloped despite the decade of record growth in the country as a whole and that the next phase in China's growth is the industrialization of the rural communities rather than further urbanization of the cities.

This is a key element of the Shanxi gasification programme which the company is hoping to participate in through the discovery and development of the Zijinshan gas project.

We are glad that shareholders have noticed the picture and are raising questions about it. Far from being "cheeky" it is in our view a thoughtful representation of the potential societal benefits that arise from the Company's investment in this part of rural China.

The Company has previously sponsored the "Coal For Kids Charity" and will in future look to find other ways to participate in the development of the community in which it operates.

Paul Atherley
Managing Director