White Energy : Annual Report to shareholders 1987955

ANNUAL REPORT

2018/2019

MOUNTAINSIDE

COAL COMPANY

KENTUCKY

CONTENTS

Chairman's Letter. . . . . . . . . . . . . . . . . .	. . . . . . . . . . . 2. . . . . . . . . .
Managing Director's Report . . . .	. . . . . . . . . . . . . . . . 4. . . . . . . . . .
Coal Technology. . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . .6 . . . . . .
Coal Mining and Exploration..............	. . . . . . . . . .8. . . ..
Annual Financial Report.. . . . . . . .	. . . . . . . . . . . . . . . . . . . . . . . . 12
Director's Report . . . . . . . . . . . . . .	. . . . . . . . . . . . . . 14. . . . . . . . . . .
Annual Financial Statements. . . . .	. . . . . . . . . . . . . . . . .38. . . . .
Shareholder Information . . . . . . .	. . . . . . . . . . . . . . .110. . . . . . . . .
Corporate Directory. . . . . . . . . . .	. . . . . . . . . . . . . . . 114. . . . . . . . .

• WHITE ENERGY ANNUAL REPORT 2018/2019

RIVER ENERGY

SOUTH AFRICA

White Energy is a globally diverse ASX-listed company, structured around two core business divisions:

PRODUCTION

PLANT

CESSNOCK

WHITE ENERGY

HEAD OFFICE

BRISBANE

EXPLORATION

SOUTH

AUSTRALIA

COAL TECHNOLOGY

BENEFICIATION AND BRIQUETTING OF THERMAL AND METALLURGICAL COAL FINES.

UPGRADING OF SUB-BITUMINOUS COAL.

COAL MINING

AND EXPLORATION

COAL MINING AT MOUNTAINSIDE COAL.

EXPLORATION AT MOUNTAINSIDE COAL AND SOUTH AUSTRALIAN COAL.

WHITE ENERGY ANNUAL REPORT 2018/2019 // 1

CHAIRMAN'S//

LETTER

TRAVERS DUNCAN CHAIRMAN

DEAR SHAREHOLDERS

I am pleased to advise that some of the binderless briquetting projects that the Company's staff have been investigating over the past year are advancing to final documentation stage..

Due to the slowdown in requirements to upgrade Powder River Basin coal in the United States and our Board's reluctance to pursue sub-bituminous coal projects in Indonesia until our case with PT Bayan Resources Tbk and Bayan International Pte Ltd (Bayan) is finalised, the staff have

been concentrating on the briquetting of bituminous coal fines which are often sent to tailings dams..

Resolution of our court case against Bayan is taking a considerable amount of time..

I am pleased that we were able to advise shareholders that the Singapore Court of Appeal (CA) have dismissed Bayan's appeal and the Singapore International Commercial Court (SICC) have set the Tranche Three trial dates for 21 September 2020 to 30 September 2020 to determine the damages and loss that resulted from Bayan's actions..

This case in the SICC has been running for over seven years now.. White Energy has spent a significant amount of money on legal costs and on the plant when Bayan repudiated the KSC joint venture deed

in 2011.. Your Board intends to recover what rightfully belongs to the White Energy shareholders..

I thank my fellow directors, all staff and shareholders for their continual support during this past year and I recommend shareholder approval for the resolutions to be voted on at the 2019 Annual General Meeting..

TRAVERS DUNCAN CHAIRMAN

RECLAMATION,

MOUNTAINSIDE COAL COMPANY, KENTUCKY, USA

2 // WHITE ENERGY ANNUAL REPORT 2018/2019

COAL STOCKPILE,

MOUNTAINSIDE COAL COMPANY, KENTUCKY, USA

COAL WASH PLANT,

MOUNTAINSIDE COAL COMPANY, KENTUCKY, USA

WHITE ENERGY ANNUAL REPORT 2018/2019 // 3