In response to a question or two about the lignite I mentioned....

In response to a question or two about the lignite I mentioned.

From memory Heron looked at the Lignite initially then spun off the projects into Epsilon (only Uranium rights??). Uranium can be trapped in lignite hence their appeal as uranium prospects.

Below is some info from Heron Resources in 2000 on these lignite projects -

The 6,353km2 Balladonia, Dundas and Ravensthorpe project areas located 200km S of Kalgoorlie in the
Bremer-Eucla Palaeodrainage Province and have indications of substantial oil shale and lignite resources,
exceeding 1.57 billion tonne at an indicative oil yield of 95 litres per tonne (“l/t”).
- Page 17 -
Quarterly Report
March 2000
Based on Heron’s GIS compilation, the Company controls in excess of 600km2 of prospective oil shale basins.
Documented oil shale-lignite resources are held at Balladonia, Balladonia West 1-9, Coobaninya, Florabel,
Mount Beaumont, The Yates, The Cups and Flower.
Heron is finalising a Scoping Study using Balladonia West 7 as the conceptual ore model (high oil yield, low
strip ratio, proximity to downstream energy users). The minimum economic oil shale target is felt to be:
• Minimum oil yield of 70-100 litres per tonne.
• Minimum resource 1 billion tonne.
• Waste to ore less than 2.0.
• Overburden depth not to exceed 25m.
• Scale of operation 50,000 barrels per day of oil/diesel.
• Mine life 20 years.
Potential production of syncrudes from lignite by pyrolysis, gasification or hydrogenation is also being
assessed, and a joint venturer who is prepared to evaluate alternate technologies could be sought.
With the capital costs of such projects around A$2.0-2.5 billion, Heron will continue to advance its Bremer-
Eucla projects to a stage where a joint venture will be sought. Development decisions will be made once the
Scoping Study has been finalised.
Following the GIS study, some tenement rationalisation was completed, particularly where the target
carbonaceous units are thin or at excessive depth. Expressions of joint venture interest have been received, and
the comprehensive data base is being made available at the Perth office of Heron’s Consultant

From memory another mob were looking at a $1b oil shale to diesel project a few years ago in the region.

Disclosure: I don't hold. Got out this morning, but would buy back in if they got the oil shale rights off Heron.

BLK also have ground in the region but smaller resource.