Company

The Company is a coal exploration company and its projects are at different stages of development. In its relatively short life Cockatoo Coal has achieved a number of significant milestones. The most obvious one has been its success in accumulating a large exploration tenement position with known coal resources in Queensland.

The Company's two lead projects, Wonbindi and Dingo, are in what we believe may become a new coal production region on the southeastern flank of the Bowen Basin in Queensland. This is due to the significant growth in the low volatile Pulverised Coal Injection ('PCI') coal market over the last decade and the recent significant price increases for PCI coal which have fundamentally changed the economic profile of this portion of the basin. At the Wonbindi project, the Company proposes to aggressively move its already defined resources towards open cut coal production in the next two years. At the same time, further exploration of the Wonbindi tenements and the Dingo project, which adjoins Wonbindi, will hopefully yield economically exploitable coal deposits.

History and Purpose

Cockatoo Coal was incorporated and registered in New South Wales under the Corporations Act 2001
on 28 January 2005. The Company was formed to acquire rights to coal projects, explore those projects and, based on successful exploration results and economic conditions, develop those projects to produce and sell coal. The Company will also consider new acquisitions. If the Company raises more than the minimum subscription of $15 million but less than the full subscription amount of $20 million, the proposed use of funds will not be materially affected, however, the Company's financial reserves to progress beyond the proposed exploration and pre-development programs will be reduced. If oversubscriptions of up to $5 million (making a total of $25 million) are accepted, expenditures on the proposed exploration and pre-development programs may be increased, allocations to new project acquisition may be increased or the Company's financial reserves to progress beyond the proposed exploration and pre-development programs will be increased. The Board is of the opinion that there will be sufficient working capital to carry out the stated objectives if only the minimum subscription of $15 million is raised.