LILYVALE JOINT VENTURE

Lilyvale Joint Venture - BCB 15%, Stanmore 85%

The Lilyvale project is located 25km north east of Emerald in the Bowen basin (Queensland Australia) and is in close proximity to the Sojitz-owned Gregory Crinum operating coking coal mine and bordering the Kestrel mine. BCB holds a 15% interest in the project, whilst the remaining 85% is held by Stanmore Coal (ASX:SMR)

A desktop review of the Lilyvale project identified the German Creek (or Lilyvale) seam as potentially amenable to underground extraction based on depth and estimated seam thickness. This seam is presently mined as a high quality coking coal at the adjacent Kestrel and nearby Gregory Crinum operations. The project is well located within 15km of existing rail infrastructure given the surrounding operating mines.

Based on analysis of historical geophysical logs and bore holes in the surrounding region (including the 2 cored holes with quality data within the project area) Xenith Consulting estimated an Inferred JORC 2012 Resource of 33Mt. The Joint Venture estimates that the Lilyvale project hosts the German Creek seam from 336m in depth (at hole C2059) with a typical thickness across the project area of 2.2-2.5m which demonstrate attractive coking properties including CSN values of 5.5 – 6.5. The north of the project area is estimated to host the shallowest coal and is contiguous to the Kestrel mine MLA.

The Joint Venture plans to investigate the potential for a duel wash option, similar to the abutting Kestrel Mine

Table 1. Actual quality observed from two cored holes within the tenement area.

Lilyvale location map

The Joint Venture plans to investigate the potential for a duel wash option, similar to the abutting Kestrel Mine.