Australian Pacific Coal – Technical Support Agreement

In March 2014 Cape Coal entered into a 12 month Technical Support Agreement with Australian Pacific Coal (ASX: AQC) which was extended with a further 12 months in March 2015. The skills of the Cape Coal team are applied to review, analyse and advance the AQC projects and to provide a day to day technical support service and opportunity assessments in exchange for equity in AQC.

AQC has a strategic holding of coal exploration tenements located in Queensland's Bowen, Surat and Clarence- Moreton basins covering both metallurgical and thermal coal exploitable by open cut and underground mining. The tenements are well placed in terms of rail and road infrastructure among mining majors. The philosophy of AQC's management has been to secure strategic tenure by identifying available tenements close to operating mines or in areas with proven or potential in-ground resources in regions suitable for short term development. AQC also has joint ventures with Rio Tinto (Hail Creek area) and Questa Coal (Surat basin).