Australian Pacific Coal Limited (“AQC”) is pleased to report...

Australian Pacific Coal Limited (“AQC”) is pleased to report that Cuesta Coal Limited (“Cuesta Coal”) has announced that at their Extraordinary General Meeting held on 2 February 2012 shareholders have approved their proposed transaction with Beijing Guoli Energy Investment
Co. Ltd (“Guoli”) as detailed in the following release by Cuesta Coal.

Cuesta Coal was formed in September 2011 to acquire all of the securities on issue in Blackwood Coal Pty Limited in preparation for a public listing. On 10th January 2012 Cuesta Coalannounced that it had executed a legally binding conditional subscription agreement valued at$20million with Guoli. The next steps are to obtain Chinese Regulatory and FIRB approval,which the relevant documents have been lodged with the relevant bodies and for Guoli to complete their due diligence.

AQC Group joint ventured four EPCs out to unlisted coal explorer Blackwood Coal Pty Ltd subsidiary, Blackwood Resources Pty Ltd, in April 2010. AQC Group retains a 10% free carried interest up to feasibility study stage. Under the terms of the JV, Blackwood pays AQC $125,000 upon grant of each EPC and is required to expend at least the minimum exploration commitment with the aim to prove up a coal resource and complete a feasibility study for the project(s). Blackwood can withdraw at any time and offer the project(s) back to AQC at no cost.

AQC Group retains its 10%free carry interest up to feasibility stage in the four EastWandoan joint ventured coal exploration tenements. The Cuesta Coal subscription agreement “allows Cuesta Coal to continue as planned its 2012 exploration activities at the company’s key project areas” and this “will enable Cuesta Coal to continue to increase the coal resources base quickly and sustainably over the coming 6 to 18 months”.