asx singpore and hong kong may 2011 finalpower > actively encouraging galilee proponents to apply...

Company Review

May 2011

1www.bandannaenergy.com.au

Important NoticeThi t ti (P t ti ) h b d b B d E Li it d (ABN 34 009 356 665) (B d )This presentation (Presentation) has been prepared by Bandanna Energy Limited (ABN 34 009 356 665) (Bandanna).Summary informationThis Presentation contains summary information about Bandanna and its activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete. It should be read in conjunction with Bandanna’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.N t fi i l d t d iNot financial product adviceThis Presentation is for information purposes only and is not a prospectus under Australian Law financial product or investment advice or a recommendation to acquire Bandanna shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Bandanna is not licensed to provide financial product advice in respect of Bandanna shares Cooling off rights do not apply to the acquisition of Bandanna sharesto provide financial product advice in respect of Bandanna shares. Cooling off rights do not apply to the acquisition of Bandanna shares.Financial dataAll dollar values are in Australian dollars (A$) unless other stated. Future performanceThis presentation may contain certain statements and projections provided by or on behalf of Bandanna with respect to anticipated future undertakings Forward looking words such as “expect” “should” “could ” “may” “predict” “plan” “will” “believe” “forecast” “estimate” “target”

Bandanna undertakings. Forward looking words such as, expect , should , could , may , predict , plan , will , believe , forecast , estimate , target and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. These forward-looking statements reflect various assumptions by or on behalf of Bandanna. Accordingly, these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control of Bandanna which could cause actual results or trends to differ materially including but not limited to price fluctuations exploration

Profile

control of Bandanna which could cause actual results or trends to differ materially, including but not limited to price fluctuations, exploration results, ore reserve and mineral resource estimation, environmental risks, general operating risks, commodity, legislative and regulatory changes, project delay, ability to meet additional funding requirements, factors relating to title to properties, native title and aboriginal heritage issues, dependence on key personnel, share price volatility, approvals and cost estimates. Consequently, there can be no assurance that such statements and projections will be realised. Neither Bandanna, or any of its affiliates, advisers, consultants, agents or any of their respective officers or employees make any representations as to the accuracy or completeness of any such statement of projections or that any forecasts

2

p y y p y p y p j ywill be achieved. Such forward-looking statements only speak as to the date of this Presentation and Bandanna assumes no obligation to update such information.

Contents

Golden Triangle Projects Bowen Basin Assets2

Investment Highlights1

Golden Triangle Projects – Bowen Basin Assets2

A Springsure Creek Project

B A t P j t

i j

B Arcturus Project

C Arcadia Project

Contents

Dingo West Project3

South Galilee Project4

Strategic Review6

Corporate, Financial & Managment5

3Thermal Coal Demand7

Investment Highlights

> Approximately 1.483 billion tonnes (Bt)* of JORC compliant coal resources located in Queensland’s Bowen and Galilee Qbasins.

> Potential for >20Mtpa of export coal from the Bowen Basinp p

> Potential for >15Mtpa gross export coal from the Galilee Basin

Potential for near term PCI production from Dingo West

Investment

> Potential for near-term PCI production from Dingo West

> Access to infrastructure provides a clear path to export

t Highlights

> ASX 300 Company with approximately A$80 mil in cash

4* Refer Statement of Compliance Slide 37

Asset locationsAlmost 1 5 billion tonnes of JORC-code compliant resources situated within two of Australia’s most Almost 1.5 billion tonnes of JORC code compliant resources situated within two of Australia s most prospective coal bearing regions

Executive SSumm

ary

5





B A t P j t

i j

B Arcturus Project

C Arcadia Project

Contents

Dingo West Project3


Strategic Review6



Golden Triangle Complex

Comprises Springsure Creek, Arcturus and Arcadia projects which are all 100% owned by Bandanna : owned by Bandanna :

> Arcturus Project (206 Mt Resources i l di 44 Mt R )including 44 Mt Reserves);

> Springsure Creek Project (324 Mt Resources including 49 Mt

Bandanna gReserves);

> Arcadia Project (273 Mt Resources);

Projects

> Potential to develop major (>20 Mtpa) multi-source mine operation;

> Feasibility Studies completed for

7

> Feasibility Studies completed for Arcturus and Springsure Creek.





B A t P j t

i j

B Arcturus Project

C Arcadia Project

Contents

Dingo West Project3


Strategic Review6



Springsure Creek

Springsure Creek Project (EPC 891) is located in the Southern Bowen Basin, approximately 35 km south east of Emerald approximately 35 km south east of Emerald township.

> Underground, raw thermal coal opportunity - located within 20 km of existing rail infrastructure.

Bandanna

> Recent upgrade in resources and maiden 49 Mt mineable reserve.

> JORC resource currently 324 Mt.

Projects

> Potential for 2 longwall operations.

> Feasibility Study completed currently progressing environmental and approvals

9

progressing environmental and approvals processes. Image or Diagram Caption





B A t P j t

i j

B Arcturus Project

C Arcadia Project

Contents

Dingo West Project3


Strategic Review6



Arcturus Project

Arcturus Project (EPC 1221) is located in the Southern Bowen Basin, approximately 30 km south east of Emerald approximately 30 km south east of Emerald township.

> Following 20 cored hole program resource upgrade to 206 Mt thermal coal resource, including 102.6 Mt

Bandanna

Indicated and 44.3 Mt marketable reserves.

> Potential to develop in conjunction with dj S i C k

Projects

adjacent Springsure Creek.

> Feasibility Study completed currently progressing environmental and

l 11

approvals processes.





B A t P j t

i j

B Arcturus Project

C Arcadia Project

Contents

Dingo West Project3


Strategic Review6



ArcadiaProject - overview

> Third underground project in Golden Triangle precinct.g p

> Exploration focused on Purbrook Anticline.

> Integrated study commissioned in 2010 involving the establishment of a single high involving the establishment of a single high production underground longwall on the Purbrook Anticline.

> Coal quality testing indicates the potential

Bandanna

> Coal quality testing indicates the potential for a raw thermal coal, or a washed semi-soft coking product and lower ash thermal coal.

Projects

> JORC Inferred Resource of 273Mt.

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One Possible Development

1 Arcadia loading facility where coal is loaded into trucks for transport

Blackwater

One Possible Development Scenario1 Arcadia loading facility where coal is loaded into trucks for transport

to Arcturus

2 Haul road between Arcadia and Arcturus

Arcturus coal handling and product stockpile area where Arcturus

9

10

Emerald

3Arcturus coal handling and product stockpile area where Arcturusand Arcadia coal will be stored or blended prior to conveying to Springsure Creek

4 Overland conveyors to take Arcturus and Arcadia product coal to Springsure

765

4 the Springsure Creek Train Load-Out

5 Springsure Creek coal handling plant and product stockpiles (x4) for storing and blending coal from all three mine-sites

Arcturus

Springsure Creek 4

3

8

Bandanna

6 Springsure Creek Train Load-Out

7 Rail spur line connecting the existing Bauhinia line to the Springsure Creek Train Load-Out

2

Projects

Springsure Creek Train Load-Out

8 Existing Bauhinia rail line

9 Existing Central rail line from Emerald to Gladstone Arcadia

20km

1Rolleston

1410 Existing Minerva rail line

20km

Revenue synergies from blending:1

Benefits from Joint DevelopmentRevenue synergies from blending:

> A blended product can create an enhanced export-quality thermal coal to maximise the value of output from the complex

1

Cost synergies from infrastructure sharing:

> Different blends can be created to suit the needs of particular customers.

2 Cost synergies from infrastructure sharing:

> Operating and capital expenditures are expected to be lower on a consolidated basis as compared to the costs which would be incurred on a

2 Bandanna

stand alone project basis

Flexibility:3

Profile

> Unitisation of the Golden Triangle allows significant flexibility in optimising future development of multiple mines.

15

> Bowen Basin projects are located next to important rail infrastructure.

Clear Pathway to Portp j p

> Bandanna has secured a 4 Mtpa allocation for Stage 1 of new coal export terminal (Wiggins Island Coal Export Terminal – WICET)

> Bandanna has bid for 5 Mtpa allocation for Stage 2a of WICET.

> Stage 1 production from early 2014 provides a clear pathway from exploration to production for major greenfields mine. Bandanna Profile

16# Assumes AMCI farmin to 50% P.I.





B A t P j t

i j

B Arcturus Project

C Arcadia Project

Contents

Dingo West Project3


Strategic Review6



Dingo West Project

> Up to 1 Mtpa of export quality PCI open cut coal production PCI open-cut coal production starting in FY 2013.

> Dingo West is located on main go est s ocated o aBlackwater rail corridor and 60 km closer to port than any other mine

Bandanna mine.

> Feasibility Study Completed

Export possible without formal

Projects

> Export possible without formal port allocation.

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Conceptual Mine LayoutBandanna Projects

19





B A t P j t

i j

B Arcturus Project

C Arcadia Project

Contents

Dingo West Project3


Strategic Review6



South Galilee Project

Adani ‐ Linc

Bandanna Projects

South GalileeSouth Galilee

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South Galilee Project1173 Mt f JORC id tifi d t > 1173 Mt of gross JORC resources identified to date including 390 Mt of Measured and Inferred resource with ash <12% in South Galilee ProjectProject.

> AMCI farming in to earn 50% through operation and funding of SGP to September 2011.

> Pre-feasibility study completed; Feasibility Study to commence in June 2011.

B d i l ASX li d i h

Bandanna

> Bandanna is only ASX listed company with exposure to a Galilee Basin JORC compliant coal resource.

Projects

> Strong competitive interest following Adanipurchase of Linc Energy interests, possible sell-down of Hancock’s Kevin’s Corner & Alpha

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pprojects and Resourcehouse IPO.

SGP – Exploration & Coal

> Principal targets are the D1 and D2 seams

pResources

> Principal targets are the D1 and D2 seams

> 711.2Mt total resource from D1 seam, 467.2Mt resource from D2 seam

> bituminous coal yielding high quality thermal product> bituminous coal yielding high quality thermal product

> three plies, 0.5 to 4.5 metres in thickness

> depths consistent with commercial exploitation by both shallow open-cut and > depths consistent with commercial exploitation by both shallow open cut and underground operations

> 162 open holes, 118 partly cored holes, 16 fully cored holes drilled to date

Bandanna Projects

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SGP – Pre- Feas Mine LayoutBandanna Projects

24

Water

SGP - InfrastructureWater

> Estimated requirement of 3,000 ML per annum of off site water.> one of two proponents in water supply scheme proposed by SunWater.

Power> Actively encouraging Galilee proponents to apply as consortium to Powerlink for 132kV

power source.Rail

> Waratah Coal Hancock Coal and Adani Group each proposing to construct railway lines> Waratah Coal, Hancock Coal and Adani Group each proposing to construct railway linesto Abbott Point.

> JV will likely rely on third party access to one of these rail solutions.> QR also exploring options to use upgraded narrow gauge and link through Moranbah to

Bandanna

existing rail infrastructure.> JV will additionally require its own connecting rail spur, passing loops and a loop and car

dumper at the port.Port

Projects

Port> EOI submitted for 15Mtpa capacity in Abbott Point Terminal 4 expansion.> South Galilee will be required to fund its pro-rata share of construction costs.

25

South Galilee Project

BasisResources (Mt)

Inferred Indicated Measured Total

Resources

100% Project Basis 806 206 167 1,179

Bandanna Equity Share 403 103 83 589

Parameter 15% Ash Product 5,600 GAR Product

5,800 GAR Product Preferred Product

Coal Quality Bandanna

Total Moisture (%ar) 14.7 14.7 14.8 16.0

Inherent Moisture (%ad) 7.1 7.0 6.7 6.5

Ash (%ad) 15.0 13.8 11.0 13.0

Volatile Matter (%ad) 33 1 33 6 34 8 34 0

Projects

Volatile Matter (%ad) 33.1 33.6 34.8 34.0

Fixed Carbon (%ad) 44.8 45.6 47.5 46.5

Total Sulphur (%ad) 0.88 0.86 0.81 0.90

Calorific Value (kcal/kg ad) 5,998 6,106 6,352 6,250

26Calorific Value (kcal/kg gar) 5,508 5,600 5,800 5,615

> Intended that the 15 Mtpa project will be progressively ramped up in 3 distinct

SGP – Project Development> Intended that the 15 Mtpa project will be progressively ramped up in 3 distinct

phases.

> Stage 1 open-cut to target shallower portions of D1 and D2 seams.

> Modular processing plant design accommodates staged expansion.

Q209

FirstJORC

Q111Revised JORC resourceCompletePFS

Q312Complete

Q115Waterand Q117

Development timetable Production profile

141618

Bandanna

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

First JORC resource

Complete PFSMining lease application

Complete DFS

Water and Port T3

Q117Port T4

68

101214

Mt

Projects

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Q308JV signed

Q309Scoping study

Q411Complete

Q113All approvals

Q414First prod’n

Q215Power

024

Y15

Y16

Y17

Y18

Y19

Y20

Y21

Y22

Y23

Y24

Y25

Y26

Y27

Y28

Y29

Y30

Y31

Y32

Y33

Y34

Y35

Y36

Y37

Y38

Y39

Y40

Y41

Y42

27EIS Start constructionRail F F F F F F F F F F F F F F F F F F F F F F F F F F F F

Open Cut D1 Open Cut D2 Underground





B A t P j t

i j

B Arcturus Project

C Arcadia Project

Contents

Dingo West Project3


Strategic Review6



Corporate, Financial & Management

Total shares issued 426 mil

Market Capitalisation (@$2 00ps @ 16/05/11) $852 milMarket Capitalisation (@$2.00ps @ 16/05/11) $852 mil

Shares quoted on ASX 426 mil

Bandanna

Cash (@ 1/1/2011) $86.2 mil

Debt Nil Profile

Debt Nil

52 week high and low $2.32 – $0.49

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Strong Board & Management g gTeam

Jeremy W BarlowChairman

Has had diverse technical and

Dr Raymond ShawManaging Director

Over 30 yrs resources Has had diverse technical and commercial experience in the energy industry range of past directorships including Arrow Energy Limited.

Over 30 yrs resources experience including directorships of several public energy companies.

Bandanna

Robert K JohansenNon-Executive Director

David DH GrahamNon-Executive Director

I E ti Ch i f DDH Experience in Australia and

Profile

Is Executive Chairman of DDH Graham Limited, an advisory and funds management company he founded in 1981. Wide range of past directorships including Bank of

Experience in Australia and South Africa coal industries, a mining engineer with additional qualifications in law and commerce

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directorships including Bank of Queensland .

law and commerce.

Strong Board & Management g gTeam

Park Soon ILNon-Executive Director

Is the Senior Managing Director of

Matthew Scott CFO & Company Secretary

Is a Chartered Accountant with Is the Senior Managing Director of SAMTAN's Energy & Resources Development Division. Is a qualified mining engineer with 30 years experience in Korean and

Is a Chartered Accountant with twenty years accounting and commercial experience including substantial coal industry experience.

experience in Korean and Indonesian mines.

Bandanna

David CampbellManager Exploration

I “ ltidi i li d i i

Peter BinnieManager Infrastructure

With th 35 i d t

Profile

Is a “multidisciplined mining professional” with over 30 years of experience in the coal industry.

With more than 35 years industry experience. He has worked in project management, mechanical and electrical engineering in the coal and metals sector

31

and metals sector.





B A t P j t

i j

B Arcturus Project

C Arcadia Project

Contents

Dingo West Project3


Strategic Review6



Strategic Review Details> Bandanna is undertaking a transaction process, in conjunction with UBS, and is

currently seeking competitive expressions of interest for third party participation in its projects in order to assess the potential for funding its future capital requirements.

> A significant number of companies signed CA’s and reviewed a confidential Information Memorandum as part of a Stage 1 process earlier this year.

> Following submissions of non-binding expressions of interest in early May 2011 fBandanna has selected a number of parties with which it intends to proceed into a

second round of Due Diligence.

> Stage 2 proponents have expressed interests in both individual assets and in corporate i

Bandanna

transactions.

> Stage 2 may take a number of months and may or may not result in the board making a recommendation.

Profile

33





B A t P j t

i j

B Arcturus Project

C Arcadia Project

Contents

Dingo West Project3


Strategic Review6

Corporate, Financial & Management Team5


Thermal Coal DemandBandanna Profile

35ANZ Commodity Strategy – 30th March 2011

Coal Price TrendsBandanna Profile

36ANZ Commodity Strategy – 30th March 2011

Statement of Compliance*JORC – Statement of Compliance

The information compiled in this report relating to South Galilee resources is based on information compiled by Lynne Banwell. Lynne Banwell is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity she is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Lynne Banwell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information compiled in this release from Bandanna Energy Limited, including any relating to resources other than for the South Galilee Project, is based on information compiled by Gordon Saul, who is a member of the Australian Institute of Geoscientists and who is employed by Resolve Geo Pty Ltd. Gordon Saul has sufficient experience which is relevant to the style of mineralization and types of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves”. Gordon Saul consents to the inclusion in this report of the matters based on his information and in the form and context in which it appears. Resolve Geo Pty Ltd is a shareholder in Bandanna Energy Limited Com

plianc

Bandanna Energy Limited.

Opencut Reserves estimate for Arcturus has been prepared by Mr Ken Hill.Ken Hill is the Managing Director of Xenith Consulting Pty Ltd. He holds a Bachelor in Civil Engineering degree from the University of Queensland and a Post Graduate Diploma in Business Administration from University Queensland. He has over 20 years experience in the open cut coal mining industry and substantial experience in mining operations financial evaluations. Ken Hill is a Member of the Australasian Institute of Mining and Metallurgy and as such qualifies as a Competent Person under the JORC Code. Ken Hill consents to the inclusion in this report of the matters based on his information and in the form and context in which it appears ehis information and in the form and context in which it appears.

The Underground Reserve estimates for Arcturus and Springsure Creek have been prepared by Mr Jeremy Busfield, Principal Mining Engineer of MineCraft Consulting Pty Ltd. Jeremy holds a Bachelor of Mining Engineering degree from the University of Queensland. He is a Chartered Professional Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and a Registered Professional Engineer of Queensland (Mining) (RPEQ 10285). Jeremy Busfield has worked in various planning, operational and consulting roles for the underground coal industry for 26 years and as such qualifies as Competent Person under the JORC Code. The relationship between the Estimator and the Project owner is that of independent consultant Jeremy Busfield consents to the inclusion in this report of the matters based on his between the Estimator and the Project owner is that of independent consultant. Jeremy Busfield consents to the inclusion in this report of the matters based on his information and in the form and context in which it appears.

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Additional Materials Bandanna Profile

38

Reserves and Resource ese es a d esou ceSummary

Project BND %Inferred

Resource(Mt)

Indicated resources

(Mt)

Measured Resources

(Mt)

Total Resources

(Mt)

Marketable Reserve

(Mt)

Dingo West 100% 91.1 91.1

Springsure Creek 100% 252.0 72.2 324.2 49.2

Arcturus 100% 103.7 102.6 206.3 44.3

Arcadia 100% 272.9 272.9

Bandanna cad a 00% 9 9

South Galilee 50%* 461.0* 103.0* 83* 589

* Assumes AMCI

Profile

earns its max 50%; figures net to BND

TOTAL 1180.7 278 83 1483 93.5

39

Indicative Coal QualitySouth Di W t A t Springsure A di Golden South Galilee Dingo West Arcturus Springsure

Ck Arcadia Golden Triangle

Air Dried As

Rec’dAir

DriedAs

Rec’dAir

DriedAs

Rec’dAir

DriedAs

Rec’dAir

DriedAs

Rec’dAir

Dried

Moisture % Total 10.0 15.0 15.0 9.0 13.6Proximate Analysis I.M. 6.7 1.5 8.5 8.0 4.5 7.3

Ash 11.0 7.8 8.5 13 14 10.2 11 13.3 14.0 12.2Volatile Matter 34.8 13.6 14.9 26.7 28.8 26.2 28.4 28.6 30.0 28.6

Bandanna

F.C. 47.5 68.7 75.2 45.3 48.7 48.6 52.7 49.1 51.5 51.9

Total Sulphur (%) 0.81 0.55 0.60 0.34 0.37 0.23 0.25 0.33 0.35 0.30

Profile

Phos (%) 0.073 0.080 .06Chlorine

(%) .004 0.05 0.06 0.01 0.01 0.03 0.03 0.04 0.04 .02

Gross

40Cal Value Gross

(Kcal/kg) 6352 6990 7650 5540 5960 5830 6310 6140 6439 6279

Net (Kcal/kg) 5800 6770 5260 5662 5550 5880

Top Twenty Shareholders as at 13/05/11

UBS WEALTH MANAGEMENT AUSTRALIA NOMINEES PTY 1. UBS WEALTH MANAGEMENT AUSTRALIA NOMINEES PTY LTD 128,670,449* 30.17

2. DJ MINING PTY LTD 87,845,788 20.603. SAMTAN AURES PTY LTD 42,958,478 10.074. J BARLOW CONSULTANTS PTY LTD 19,521,287 4.585. MATHEW CONSULTING PTY LTD 18,955,846 4.446. MR NORMAN JOSEPH ZILLMAN 18,866,908 4.42

7. MR NORMAN JOSEPH ZILLMAN + MRS LORRAINE JEAN ZILLMAN <BANNERBLOCK SUPER FUND A/C> 10,133,092 2.38

8. GLOBAL RESOURCE ASSET EXCHANGE PTY LTD 9,056,524 2.129. J P MORGAN NOMINEES AUSTRALIA LIMITED 8,353,131 1.96 Bandanna

, ,

10. JP MORGAN NOMINEES AUSTRALIA LIMITED <CASH INCOME A/C> 5,486,809 1.29

11. CITICORP NOMINEES PTY LIMITED 3,913,402 0.92

12. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 3,752,170 0.88

13 NATIONAL NOMINEES LIMITED 3 304 201 0 77 Profile

13. NATIONAL NOMINEES LIMITED 3,304,201 0.77

14. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2 2,933,717 0.69

15. DR RAYMOND DOUGLAS SHAW 1,970,000 0.46

16. DR RAYMOND DOUGLAS SHAW + MS RITA BARBARA JONES <SHAW JONES SUPER FUND A/C> 1,852,000 0.43JONES <SHAW JONES SUPER FUND A/C> , ,

17. CS FOURTH NOMINEES PTY LTD 1,319,764 0.3118. SHIMMERING BRONZE PTY LTD 1,197,500 0.2819. TOWER HOLDINGS PTY LIMITED 1,094,424 0.26

20. UBS NOMINEES PTY LTD 981,978 0.23

41(*Includes shareholdings of Gordon Saul of 87,845,788 Shares (Resolve Geo Pty Ltd), Bruce Wood of 32,350,516 Shares (Locmaria Pty Ltd, Gas Strategies Pty Ltd)

Totals: Top 20 holders of ORDINARY FULLY PAID (TOTAL) 372,167,468 87.26

Total Remaining Holders Balance 54,348,014 12.74

asx singpore and hong kong may 2011 finalpower > actively encouraging galilee proponents to apply...

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