Tiaro's business objectives

Exploration
To undertake exploration in the Maryborough Coal Basin for coal deposits with the potential to produce metallurgical (coking, PCI) and energy coal.
• Well-positioned coal play in SE Queensland between Bundaberg, Maryborough & Gympie
• Two Coal Measures in Maryborough
Coal Basin:

o Tiaro Coal Measures

o Burrum Coal Measures

• Large exploration area - 9 granted tenements - 2,013 km2; and
3 tenements - 930 km2under application
• Paragon Coal (55.6%) established to develop EPC 956 & EPC 957

o 87 Mt JORC Coal Resource on T9

West (See JORC Compliance Statements)

o Conceptual in nature Exploration Target 200 - 300 million tonnes in the Tiaro Coal Measures

(See JORC Compliance Statements)

o Potential Metallurgical (Coking & PCI) and Energy coals

Investment
To invest through equity participation in significant coal projects:
Galilee Basin
• 29.2% indirect interest in the Clyde Park Project with Guildford Coal Limited (ASX: GUF)
• 677Mt Inferred JORC Resource

(See JORC Compliance Statements)

Clarence - Moreton Basin
• 55% Interest in Clarence-Moreton Basin Project with CM Basin Coal Holdings Limited
West of Blair Athol & Clermont coal mines
• 50% interest in EPC 1262
NOTES:

1. http://www.newhopegroup.com.au/content/pr

ojects/development/colton

ASX Announcement

10 October 2013

EXPLORATION PERMITS GRANTED OVER BURRUM COAL MEASURES

Tiaro Coal Limited (Tiaro) has recently received notification from the Queensland Department of Natural Resources and Mines that Exploration Permits for Coal (EPC) Applications 2511 and 2513 have been granted.

EPC 2511 was been granted on 25 September 2013 for a term of

5 years. EPC 2513 was been granted on 27 September 2013, also for a term of 5 years.

Key points of these Tenements:

• EPCs 2511 and 2513 total 921 km2 and cover a sector of Burrum Coal Measures in the Maryborough Basin of South East Queensland (See Figure 1)

• Burrum Coal Measures have been mined historically in the Howard district, east of EPCA 2513. New Hope Group's proposed Colton Coal Project 1 is also located nearby (see Figure 1)

• Hard coking coal potential

• No coal exploration drilling to date in these EPCs but water bore data has reported coal intersections

• Large areas have been identified for initial coal exploration (see Figure 2) - at least 90km2 in EPC 2511 and 160km2 in EPC 2513

• Close to infrastructure, population and services centres

Exploration Program

• Geological field mapping to locate optimal drill sites for two to three initial stratigraphic / scout holes in each EPC

• Geophysical surveys to improve definition of targets

• Target drilling, sampling and testing to confirm coal sequences and coal quality

• Subsequent resource definition drilling in confirmed target areas to work towards JORC Resource estimation

Tiaro Managing Director, Dan Buckley said,

"The Burrum Coal Measures have been shown to contain seams with potential to produce high quality coking coals.

We are excited about the opportunity to explore our identified areas of interest within these EPCs with our aim of defining Coal Resources amenable to mining."


Level 2, 131 Macquarie Street Telephone +61 2 9251 7177
Sydney NSW 2000 Australia Facsimile +61 2 9251 7500 www.tiarocoal.com.au

Figure 1 - EPC 2511 and EPC 2513 Location Map

• Biggenden

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- O COAL .

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Figure 2 - EPC 2511and EPC 2513 showing Gravity Target Areas

PCA 1264 EPC 972 EPC957 - -t-+-a

EPCA 289

For further information please contact: Dan Buckley - Managing Director Telephone: +612 92517177

Henry Kinstlinger- lnvestor Relations

Telephone: +612 92517177

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COMPETENT PERSON / JORC COMPLIANCE

Paragon Coal Exploration Programs and Exploration Targets
The potential quantity and grade of exploration targets is conceptual in nature. Other than the declared JORC Resources, there has been insufficient exploration to define a further Mineral Resource and it is uncertain if further exploration will result in the determination of further Mineral Resources.
Technical information in this report that relates to Exploration Programs and Exploration Targets is based on information compiled by Jacob Rebek who is a member of Australian Institute of Mining and Metallurgy. Mr. Rebek is a qualified geologist and is a director of Tiaro Coal Limited. Mr Rebek has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he 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' (The 2004 JORC Code). Mr Rebek consents to the inclusion in the report of the matters based on information in the form and context in which it appears
T9 West JORC Resource
Please refer to ASX announcement by Tiaro Coal Limited dated 7 May 2013.
Galilee Basin Project
Please refer to ASX announcement by Guildford Coal Limited (ASX: GUF) dated 18 February 2013.

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