Lacerta Operations Update

The Lacerta 38 CSG core-hole (drilled by Mitchell Drilling Rig 123) is currently at a depth of 306 meters and coring ahead in the Walloon Coal measures. Lacerta 38 is designed to investigate the extent, gas content and permeability characteristics of the Walloon Coal Measures in the western portion of the Lacerta CSG project. Additional pilot wells (Lacerta 41 and 42) are planned to assess the productivity of the Walloon coal seams in this section of the permit(s). Lacerta 41 and 42 will be drilled by Mitchell Drilling Rig 101, which is anticipated to be on site by the end of next week.