TMK Energy Limited advised that drilling on Snow Leopard - 03 (SL-03) has intersected approximately 47 metres of coal in the upper coal seam, from a depth of 190 metres. Coal core from the upper coal seam at SL-03 has been sampled for gas desorption testing and preliminary results indicate that the seams contain high gas contents. Downhole geophysical surveys and permeability testing have been successfully completed over the upper coal seam and included both Drill Stem Testing (DST) and Injection Fall Off Testing (IFOT).

Preliminary results from the testing are expected to be available shortly. Drilling resumed following the successful testing of the upper coal seam, however, drilling is currently paused at a depth of 318 metres pending a fishing operation. When drilling recommences, the well will target the lower coal seam interpreted to exist at this location and is expected to be drilled to a depth of approximately 650m.

SL-03 is the third well of the current four well exploration program. The results from SL-03 thus far are consistent with SL-01 and SL-02 located approximately three (3) kms to the west and east of SL-03 respectively, in that all wells have intersected a very thick upper coal seam with strong indications of high gas contents. The results to date demonstrate the continuity of the coal formations in the Narrin Sukhait area and validates the geological model that has been developed by the Company based on the extensive historical drill data that exists in the area.