ACN 117 763 443

ASX Announcement 22 May 2012

3TL’s YARWUN COAL TERMINAL DECLARED SIGNIFICANT PROJECT

MetroCoal Limited (ASX: MTE) is pleased to announce that the Queensland Government has declared Tenement to Terminal Limited’s (3TL’s) Yarwun Coal Terminal project at Gladstone a Significant Project. 3TL is 20%-owned by MetroCoal Limited. The declaration means that approvals for the project will be assessed using a more streamlined whole-of-government approach, managed by the Queensland Coordinator-General. Timely development of 3TL’s Yarwun Coal Terminal is vital for MetroCoal’s Bundi and Columboola mining joint ventures in the Surat Basin as it offers direct port access to export markets. MetroCoal Chief Executive Officer Mike O’Brien said today’s announcement was an important milestone for the Bundi and Columboola projects.

“This declaration is a significant step forward for the economic viability of MetroCoal’s Surat Basin project areas, which will be enhanced via the construction of planned rail and port infrastructure,’’ Mr O’Brien said.

“It recognises the importance of our projects for the future prosperity of Queensland and will ensure that the Government assesses 3TL’s proposal using an appropriate level of resources and coordination.” MetroCoal has been advised that the Yarwun project will be the first to have its Environmental Impact Statement (EIS) Terms of Reference issued at the same time as the Coordinator-General’s declaration which provides an early indication of the scope of the detailed studies to be undertaken for the EIS. That scope will be finalised after public advertising and comments on the draft terms of reference. This innovation will expedite the first stage of the approvals process. 3TL’s proposed port construction timetable fits very well with MetroCoal’s plans. 3TL expects the Final Investment Decision to be made by December, 2014 leading to construction of the first stage of the terminal, which will handle up to 25 million tonnes per annum.

Commissioning of Stage 1 is planned for 2017/2018 and Stage 2 is planned to have a further 25 million tonne capacity, with a third stage increase of 25 million tonne capacity also possible.

A copy of 3TL’s Media Release is also attached.

For further information, please contact:

Mr Mike O’Brien Mr Theo Psaros Chief Executive Officer Chief Operating Officer Phone: +61 (7) 3249 3040 Fax: +61 (7) 3249 3041 Email: admin@metrocoal.com.au Postal Address: GPO Box 122, Brisbane QLD 4001 Further information on MetroCoal can be found on our website www.metrocoal.com.au

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22 May, 2012

3TL’s Proposed Yarwun Coal Terminal Achieves

Two Significant Approvals Milestones

1.0 Declaration as a Significant Project by State’s Coordinator-General

Queensland’s Deputy Premier, Minister for State Development, Infrastructure and Planning,

The Honourable Jeff Seeney, announced late yesterday that the State’s Coordinator-General

has declared 3TL’s Yarwun Coal Terminal project a significant project in accordance with the

State Development and Public Works Organisation Act 1971. 3TL congratulates the Deputy

Premier and the Coordinator-General for the reduced timeframe in which the decision was

made and appreciates the opportunity to prove the project’s viability at the earliest possible

date.

3TL is also delighted for the Yarwun project to be the first to have its Environmental Impact

Statement, (EIS) Terms of Reference issued with the Coordinator-General’s declaration.

These Terms of Reference, available on-line and at specified locations in Brisbane, Canberra

and the Gladstone Region from Monday 28 May 2012, will provide an early indication in

regard to the scope of the detailed studies to be undertaken for the EIS. That scope will be

finalised subsequent to the public advertising which concludes on Monday 25 June 2012 and

incorporation of comments into a final version of the terms of reference. This innovation by

the State Government will expedite the first stage of the comprehensive approvals process.

2.0 Commonwealth Department of Sustainability, Environment, Water, Population

and Communities, (SEWPaC) “Controlled Action” Decision on Environment

Protection and Biodiversity Conservation Act 1999 (EPBC Act)

On 15 May, 2012 the delegate of the Australian Government Minister for Sustainability,

Environment, Water, Population and Communities decided that 3TL’s proposed Yarwun

project is a “controlled action” and, as such will require assessment and an approval decision

under the EPBC Act before it can proceed. An EIS will also be required for the purposes of

assessment under the EPBC Act.

The two decisions outlined above mark the commencement of a very comprehensive

assessment of the environmental, social and economic impacts of the proposed facility. In

due course the EIS will be prepared and issued to the Queensland Coordinator-General and

Commonwealth Minister when complete for evaluation and decision regarding whether the

project should proceed. Both processes will include opportunities for the public to provide

comments on the proposal. 3TL is committed to developing the project to the highest

environmental standard.

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The infrastructure planned to be constructed as part of an initial 25 million tonnes per

annum, (mtpa) capacity includes the following:

(a) 14km of rail line from Mt Larcom to the proposed Mt Miller balloon loop;

(b) 6.5km balloon loop;

(c) rail receival station and inloading conveyors connecting rail receival to the

stockyard site;

(d) stockyard site;

(e) stacker/reclaimer machines;

(f) outloading conveyors;

(g) outloading trestle;

(h) wharves and shiploaders; and

(i) dredged approach channel, swing basin and berth pocket to access the

existing deepwater channel in Gladstone Harbour.

Approval will be sought for the first 50 mtpa of capacity, however the terminal could be

expanded in the future to 75mtpa.

Should the project be approved, for the first stage alone, approximately $2.2 billion will be

spent on its development with 600 construction workers needed and an operational

workforce numbering approximately 200 staff.

3TL plans to reach a final investment decision in late 2014 and envisages the terminal to be

operational by 2017/2018. Figure 1 attached outlines the broader 3TL Yarwun Coal Terminal

project, while Figure 2 details the possible future expansion pathway up to 75mtpa capacity.

For more information regarding this announcement contact 3TL’s

Managing Director, Mr Michael Schaumburg on (07) 3002 5901

or 3TL’s Chairman, Mr Everald Compton on 0407 721 710.

For more information regarding 3TL, visit our website at www.3tltd.com.au

The Deputy Premier advises that the draft Terms of Reference for the EIS will be available

from Monday 28 May, 2012 at the following locations:

On-line at www.projects.industry.qld.gov.au

Gladstone Regional Council, 101 Goondoon Street, Gladstone

Gladstone Regional Library, 39 Goondoon Street, Gladstone

Mount Larcom Library, Raglan Street, Mount Larcom

National Library, Parkes Place, Canberra

State Library of Queensland, Cultural Centre, Stanley Place, South Bank, Brisbane

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LEGEND

© 2012. While GHD Pty Ltd has taken care to ensure the accuracy of this product, GHD Pty Ltd, GA and DERM make no representations or warranties about its accuracy, completeness or suitability for any particular purpose. GHD Pty Ltd, GA and DERM cannot accept liability of any kind (whether in contract, tort or otherwise) for any expenses, losses, damages and/or costs (including indirect or consequential damage) which are or may be incurred

as a result of the product being inaccurate, incomplete or unsuitable in any way and for any reason.

Tenement to Terminal LtdYarwun Coal Terminal Project

Possible Future Expansion

Level 4, 201 Charlotte St Brisbane QLD 4000 T +61 7 3316 3000 F +61 7 3316 3333 E bnemail@ghd.com W www.ghd.com

Map Projection: Universal Transverse Mercator

Horizontal Datum: Geocentric Datum of Australia (GDA)Grid: Map Grid of Australia 1994, Zone 56

0 0.5 1

Kilometers

Based on or contains data provided by the State of QLD (DERM)

[2012]. In consideration of the State permitting use of this data youacknowledge and agree that the State gives no warrantyin relation

to the data (including accuracy, reliability, completeness, currencyor suitability) and accepts no liability (including without limitation,

liability in negligence) for any loss, damage or costs (including con-sequential damage) relating to any use of the data. Data must not

be used for marketing or be used in breach of the privacy laws.

o

Existing Railway

Highway

Main Road

Secondary Road

Proposed Jetty Approach

Option 1

Option 2

Proposed Infrastructure

Cadastral Boundary

In-loading Conveyor

Study Area

Possible Future Stockpile Area

Data source: © Copyright Commonwealth of Australia - Geoscience Australia: Watercourse, Railway/2007; DERM, Gazetted Placenames/ 2009, Road Physical Network/2010, Watercourse/2011, Cadastre/2012, Protected Areas of Queensland/2010; GHD Proposed Infrastructure/2011. Created by:AFeeney

Proposed Approach Jetty

Proposed Berths

Proposed Stockpile Location

Fisherman's Landing

Future GPN Wharves

1:35,000 (at A4)

WICET Wharves

Option 1

Option 2

,

,

Possible Future Berthsand Coal Stockpile Areas.

Subject to separate and futureapproval processes and export

capacity demand.

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