#1ASX RELEASE 8 November 2011 Presentation at the Macquarie Western Australia Conference Aquila Resources Limited is pleased to attach a copy of the powerpoint presentation which is to be delivered by Mr Martin Alciaturi, General Manager Finance and Corporate, at the Macquarie Western Australia Conference this morning. Tony Poli Executive Chairman For personal use only For further information regarding this announcement, please contact Tony Poli. Telephone: Facsimile: Email address: Visit us at: (08) 9423 0111 (08) 9423 0133 [email protected] www.aquilaresources.com.au Perth: Level 2 Aquila Centre, 1 Preston Street, Como WA 6152 Telephone (61) 8 9423 0111 Facsimile (61) 8 9423 0133 Brisbane: Level 18, 10 Eagle Street, Brisbane QLD 4000 Telephone (61) 7 3229 5630 Facsimile (61) 7 3229 5631 Jakarta: Level 2 Zone B Wisma Raharja, JI. TB Simatupang Kav 1, Jakarta, Indonesia 12560 Telephone (62) 21 7884 7214 Facsimile (62) 21 7884 7215 Johannesburg: Block C, Ground Floor, 28 Sloane Street, Bryanston 2191, Gauteng, South Africa (27) 11 4631340 Facsimile (27) 11 4635083 Aquila Resources#2Aquila Resources Macquarie Western Australia Conference November 2011 For personal use only#3For personal use only Aquila Resources DISCLAIMER No representation or liability: No representation or warranty is made as to the fairness, currency, accuracy, completeness, reliability or reasonableness of this presentation, or any opinions, conclusions and forward-looking statements it contains or any other information which Aquila provides to you (whether in this presentation or otherwise). Except to the extent required by law, Aquila Resources Limited ("Aquila") does not undertake to advise any person of any information coming to its attention (including, without limitation, correcting or updating information) relating to the financial condition, status or affairs of Aquila or its related bodies corporate. To the maximum extent permitted by law, Aquila and its related bodies corporate and officers, employees and advisers are not liable for any loss or damage (including, without limitation, any direct, indirect or consequential loss or damage) suffered by any person directly or indirectly as a result of relying on this presentation or otherwise in connection with it. Forward-looking statements: This presentation is heavily dependent on forecasts, projections or forward-looking statements (together the "Forward-looking Statements"). No representation or warranty is given as to the accuracy, completeness, reliability, financial feasibility, likelihood of achievement or reasonableness of any Forward-looking Statements contained in the presentation. Forward-looking Statements are by their nature subject to significant uncertainties and contingencies and no representation is made that any Forward-looking Statements will come to pass. Seek your own independent advice: Do not rely on this presentation to make an investment decision. This presentation has been prepared without consideration of your objectives and needs (including, without limitation, the need if any for the information to be accurate, reasonable, complete or reliable) and financial situation. You should make your own independent assessment of the information in the presentation and seek your own independent professional financial, taxation and legal advice in relation to the information and before taking any action in relation to any matter contained in the presentation. Not an offer: This presentation is not intended to be an offer for subscription, invitation, solicitation or recommendation with respect to securities in Aquila in any jurisdiction. Without limiting the foregoing, this presentation is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in the United States, United Kingdom or Australia or to any person to whom it is unlawful to make such an offer, invitation, solicitation or recommendation. No shares or other securities in Aquila have been nor will be registered under the US Securities Act. This presentation does not constitute an advertisement for an offer or proposed offer of securities. It is not intended to induce any person to engage in, or refrain from engaging in, any transaction. 2#4For personal use only Aquila Resources ASX 200 public company with ➤ market capitalisation of ~A$2.3bn1 ~A$171m cash and liquids Focus on significant projects in the key steel making raw materials of metallurgical coal and iron ore Production and sales from Isaac Plains Coal Mine ✰ Significant near term growth from development of West Pilbara Iron Ore Project and Eagle Downs Hard Coking Coal Project 1. As at 7 Nov 2011 * Target production on 100% basis Avontuur (Manganese) 1-2Mtpa* COMPANY OVERVIEW Thabazimbi (Iron ore) up to 4Mtpa* West Pilbara (Iron Ore) >30Mtpa* 10Mtpa* Isaac Plains (Met/Thermal Coal) Eagle Downs (Metallurgical Coal) Washpool (Metallurgical Coal) Talwood (Metallurgical Coal) 3#5Aquila Resources ✓ Complete the Definitive Feasibility Studies for: ➤ the West Pilbara Iron Ore Project; and the Gravenhage Manganese Project ✓ Secure West Pilbara project financing For personal use only ✓ Complete asset divestments (Washpool & Avontuur) ✓ Secure infrastructure solution for Eagle Downs LL ✓ Progress exploration program on Aquila's significant portfolio of tenements 2011/12 OBJECTIVES#6For personal use only Aquila Resources WEST PILBARA IRON ORE PROJECT RESOURCES: 1, 223 MILLION TONNES @ 57.1% Fe RESERVES: 445 MILLION TONNES @ 57.1% Fe AUSTRALIA 5#7For personal use only Aquila Resources WEST PILBARA IRON ORE PROJECT 1.22Bt Resource across entire project area 445Mt Reserve to support Stage 1 production of 30Mtpa of West Pilbara Fines New 282km railway to an independent port development at Anketell Point Granted "Major Project Facilitation" status by the Federal Government 40 MoUs agreed and signed with steel mills - testing confirms up to 20% WPF can be added to sinter plant feeds Significant tenement position outside Stage 1 project area to support future expansions 0 15 30 45 60 Km DAMPIER WA PERTH ONSLOW NANUTARRA ANKETELL PORT CAPE LAMBERT Dixon Is.→ DAMPIER CAPE PRESTON PANNAWONICA STAGE Cochrane ரட Jewel Kens Bore Cardo Bore North Cardo Bore East Upper Cane WEST PILBARA IRON ORE PROJECT Proposed Rail Route (Stage 1) Rail Route (Later Stage) Selected Port Existing Railway Tenements (Stage 1+2) CID Resources Iron Ore Mine Existing Road Trinity Bore Catho Well Kumina Creek Robe exit Hardey STAGE 2#8For personal use only Aquila Resources Stage 1 WEST PILBARA IRON ORE PROJECT PANNAWO ICA West Pilbara Iron Ore Project ("WPIOP") has 3 stages: Stage 1 (Channel Iron - CID) Covers JVs with Red Hill Iron and Cullen and is the basis of the initial 30Mtpa mine development Incremental targets remain Stage 2 (Bedded Iron - BID) ❖ Hardey Pre-feasibility Study completed for a 10Mtpa project * Development will be sequenced Stage 3 ❖ Primary focus to identify additional CID and BID resources to increase infrastructure utility N mN 0 5 10 15 Kilometers 20 Red Hill Cochrane Jewel Cardo Bore East- Cardo Kens Bore Cardo Bore North Upper Cane Trinity Bore Mt Stuart Catho Well Australian Premium Iron JV WPIOP OVERVIEW Project Location t Tuckey Date: 29/03/2011 Version No: Scale 1:700,000 AS Projection Kumina Creek Robe Exit Stage 3 Stage 2 Hardey 7#9or personal use only Aquila Resources API WPIOP-STAGE 1 Key Facts Stage 1 production capacity of 30Mtpa ❖ Definitive Feasibility Study due for completion Q4 CY2011 Mining Lease applications submitted Environmental approval of the mine and rail development recommended by the EPA ✰ Preferred Project Managing Contractor (PMC) identified Mining & Processing ❖ 3 mining hubs: north, central and south Rail Drill & blast, load and haul operation Overburden to Ore ratio of 1.13:1 Negotiations under way for a State Agreement for the Project railway PROJECT DETAILS LOCATION Stage 1: 70km south of Pannawonica in the Pilbara region of Western Australia ESTIMATED MINE LIFE At least 15 years from Stage 1 RESOURCES AND RESERVES (4) Resources (JORC) Measured: 209Mt @ 57.8% Fe, Indicated: 392Mt @ 56.2% Fe and Inferred: 86Mt @ 55.4% Fe Total Resources: 687Mt @ 56.6% Fe Reserves (JORC) Proved: 165.7Mt @ 58.0% Fe, Probable: 279.4Mt @ 56.5% Fe Total Reserves: 445.1 Mt @ 57.05% Fe PRODUCTS Direct ship channel iron and bedded iron fines AQUILA INTEREST 50% PROJECTED PRODUCTION RATE At least 30Mtpa from Stage 1#10For personal use only Aquila Resources DIXON ISLAND TRAIN UNLOADER LEVEL CROSSING AECOM BOUGUER PASSAGE TRAIN UNLOADER ACCESS ROAD FMG (50 Mipe TERMINAL 1 4 BERTH 2 SHIPLOADER HELIPORT PORT ADMIN AQIS FUEL STORAGE FUTURE DEVELOPMENT 80ha (50 Міра) WPIOP-STAGE 1 APPROACH JETTY TUG HARBOUR CONSTRUCTION DOCK ANKETELL POINT FUTURE DEVELOPMENT 19ha NO NAME BAY Anketell Port Anketell Point has been identified by the State as a suitable site for a new deep-water, bulk loading port for the West Pilbara area WPIOP has been in the process of completing extensive technical & environmental studies to develop an expandable facility, capable of growing to 350Mtpa capacity as required Port environmental assessment currently before the EPA, with the EPA report expected in Q2 CY2012 Port layout for the Stage 1 DFS has been updated: to comply with the Dampier Port Authority's Anketell Port Master Plan; and to avoid Dixon Island following concerns raised through the EIS process Latest discussions with the Government suggest an initial port layout design based on a 100Mtpa capacity port ANKETELL PORT DEVELOPMENT PLAN SINGLE CAUSEWAY OPTION - 100Mtpal A3-1:25000 SEPT 2011 SK-070 9#11or personal use onl LL Aquila Resources WPIOP - STAGE 2 Key facts * Pre-feasibility Study for Hardey Iron Ore Deposit completed ❖ Targeted Hardey production rate of 10Mtpa Rail & Port ❖ Potential for an additional 150km of new rail to be constructed to connect with the proposed rail for Stage 1 Minimal incremental port capex with additional berth to be added to the Stage 1 jetty Marketing Hardey Deposit comprises both Brockman and Marra Mamba ores which will be blended to form a single fines product for export ❖ Slightly elevated phosphorus levels compared to current Pilbara norms Project Timeline ✰ Construction planned to be integrated with Stage 1 development activities (subject to approvals) First shipment of Hardey BID product expected in 2016 10#12Aquila Resources Buckland Hills - Channel Iron Buckland Hills Inferred Resources (4) WPIOP - STAGE 3 Weckl - Detrital Iron Weckl Inferred Resources (4) Tonnes Fe % SiO2 % Al2O3 % 101 54.4 11.94 3.60 P% LOI% 0.080 5.76 Tonnes Fe% SiO2 % Al2O3% P% LOI % Buckland Hills Buckland Hills - SE 149 57.0 7.01 2.41 0.135 8.28 Total 46 195 56.9 56.5 8.05 7.25 2.42 2.41 0.142 8.04 0.137 8.22 50% Fe cut-off For personal use onl 50% Fe cut-off E47/1280 Tenement Boundary 11 CID Resource Area RC Dnithole Cross Section 448,000 ME Buckland Hills E471270 Buckland Hills SE E47/1201 450.000 mt 452.000 ME 510,000 mE E47/1285 West Tenement Boundary DID Resource Area RC Drillhole Cross Section 0-0000 512,000 mE 514,000 mE 518,000 mE Central East 510,000 mE 512.000 mb 514,000 mE 516,000 m 11#13For personal use only> Aquila Resources ISAAC PLAINS COAL MINE (50%) RESOURCES: 127.9 MILLION TONNES RESERVES: 49.7 MILLION TONNES EAGLE DOWNS HARD COKING COAL PROJECT (50%) RESOURCES: 959 MILLION TONNES* RESERVES: 254.1 MILLION TONNES 69Mt of the Eagle Downs resource is deemed PCI quality CITERFILL DZ134 CAT B11R COAL 12#14or personal use on Aquila Resources EAGLE DOWNS HARD COKING COAL PROJECT Key facts Proposed underground longwall mine immediately adjacent to and down dip from BMA's Peak Downs Mine Hard coking coal from three target seams (Harrow Creek Upper, Harrow Creek Lower and Dysart) Product would peak at 5.9Mtpa and average 4.5Mtpa from one underground longwall over the first 10 years of full production Mining Lease granted in August 2011 Potential project sanction Q2 CY2012 subject to securing appropriate rail and port capacity for the Project ❖ Potential for installation of a second longwall for up to 8Mtpa of product coal at full production from 2020 PROJECT DETAILS LOCATION 25km south-east of Moranbah in Queensland's Bowen Basin region ESTIMATED MINE LIFE 47 years RESOURCES AND RESERVES (1) Resources (JORC) Measured: 648Mt, Indicated: 171Mt and Inferred: 140Mt Total Resources: 959Mt Reserves (JORC) Proved: 206.6Mt, Probable: 47.5Mt Total Reserves: 254.1 Mt PRODUCTS Hard coking coal AQUILA INTEREST 50% PROJECTED PRODUCTION RATE Up to 5.9Mtpa and an average of 4.5Mtpa of product from one underground longwall over the first 10 years of full production 13#15Aquila Resources EAGLE DOWNS HARD COKING COAL PROJECT For personal use only L Mining & Processing Longwall mining is the preferred method of high production underground coal extraction ✰ Proposed 1200tph CHPP to utilise a standard washing process (screens, dense media cyclones, spirals, flotation) and produce a single hard coking coal product Rail & Port An expression of interest was lodged for the Stage 2 expansion of the Wiggins Island Coal Export Terminal with availability between 2015 and 2016 In the queue for the next expansion of the Dalrymple Bay Coal Terminal with availability expected in 2017 Marketing Large sample testing underway with marketing program to commence soon Capital costs A$1,254m for a single longwall Operating costs Cash cost of A$94/tonne FOB (exc. royalties) 2011/12 Objectives Secure rail and port capacity Review tenders for project work packages 14#16or personal use only LL SAAC PLAINS COAL Aquila Resources ISAAC PLAINS COAL MINE Key facts Open cut contract operation moving 50Mbcm waste and 3.6Mt ROM coal to target 2.8Mtpa sales Produces metallurgical (over 70%) and thermal coal (less than 30%) No Lost Time Injuries in the past 12 months Mining & Processing Truck and shovel mining complemented by a dragline which commenced. operations in June 2011 Operations heavily affected by wet weather during the last summer wet season (rainfall from Nov 2010 - Mar 11 was 216% of average) however: ✰ Conditions have improved ❖ Contractor performance has improved Dragline performing well Presently mining the northern deposits with work underway to finalise approvals for southern deposits PROJECT DETAILS LOCATION 7km east of Moranbah in Queensland's Bowen Basin region ESTIMATED MINE LIFE +15 years RESOURCES AND RESERVES (2) (as at 30 Jun 2011) Resources (JORC) Measured: 56.0Mt, Indicated: 38.7Mt and Inferred: 33.2Mt Total Resources: 127.9Mt Reserves (JORC) Proved: 17.5Mt, Probable: 32.2Mt Total Reserves: 49.7Mt PRODUCTS Semi-hard coking coal, semi-soft coking coal/PCI coal, and thermal coal AQUILA INTEREST 50% PROJECTED PRODUCTION RATE 2.8Mtpa (saleable coal) 15#17or personal use only L Aquila Resources ISAAC PLAINS COAL MINE Rail & Port Logistics contracts in place with Queensland Rail, Pacific National and Dalrymple Bay Coal Terminal for full 2.8Mtpa Marketing Aquila has now assumed marketing responsibility for its 50% share of product from the Isaac Plains Coal Mine from November 2010 ❖ Approximately 70% of FY2012 sales now contracted Operating costs Average cash cost of ~A$95/tonne FOB (exc. royalties) 2011/12 Objectives ✰ Complete approvals for Isaac Plains South ✰ Agree long-term coal lifting agreement Stockpiles at Dalrymple Bay Coal Terminal 16#18personal use only Aquila Resources OTHER PROJECTS & EXPLORATION 17#19Aquila Resources TALWOOD COKING COAL PROJECT or personal use only பட Key facts Potential underground longwall mining operation producing coking coal and thermal coal Mining & Processing The tenement is adjacent to, immediately east of and down dip from the BMA Goonyella Riverside mining operations Targeted mining operations in the Leichhardt Seam in the Rangal measures with an exploration program being undertaken for the Pre-feasibility study that will provide further definition in both the Rangal and Moranbah Coal measures 2011/12 Objectives ❖ Continue Resource definition work ✰ Commence Pre-Feasibility Study PROJECT DETAILS LOCATION: 40km north of Moranbah in Queensland's Bowen Basin region RESOURCES (3) Resources (JORC) Indicated: 137.1 Mt and Inferred: 109.4Mt Total Resources: 246.5Mt PRODUCTS Semi-hard coking coal and thermal coal AQUILA INTEREST 100% PROJECTED PRODUCTION RATE 3Mtpa 18#20e only THABAZIMBI Aquila Resources THABAZIMBI IRON ORE PROJECT MELETSE RESOURCE Key Facts Two iron Prospecting Rights granted in the Thabazimbi Province east of Kumba Iron Ore's operating mines The Scoping Study for the Meletse Deposit has identified two viable options for producing 2Mtpa of "direct shipped" product sold either into the export market or domestically The study also confirmed that a larger Resource could support a 4Mtpa production Exploration drilling is ongoing to increase the size of the Resource and to improve the categories of the Resource 19#21for personal use only Aquila Resources THABAZIMBI IRON ORE PROJECT Rail & Port * Opportunities for export on existing rail network of Transnet Freight Rail to the ports at Maputo or Richards Bay, subject to available capacities ❖ Domestic customers hold existing contracts for rail haulage Marketing ❖ Anticipated that the Resource has the capacity to produce at least 60% of the product as high grade lump ore For supply to both international and potential domestic customers Capex & Operating Costs Estimated capital expenditure in the range of US$150m to US$190m Estimated operating costs of US$55/t FOB 2011/12 Objectives Pre-Feasibility Study to commence in Q4 CY2011 Revised Resource Statement expected in Q1 CY2012 PROJECT DETAILS LOCATION Adjacent to the township of Thabazimbi in the Limpopo Province of South Africa RESOURCES(5) Resources (JORC) Indicated: 16Mt @ 63.6% Fe Inferred: 32Mt @ 62.5% Fe Total Resources: 48Mt @ 62.9% Fe PRODUCTS Direct ship lump and fine hematite products AQUILA INTEREST 74% PROJECTED PRODUCTION RATE 2Mtpa 20 20#22For personal use only Aquila Resources FINANCING 21#23Aquila Resources China Development Bank * Debt funding negotiations with CDB nearing conclusion Expected to execute a term sheet before the end of the year for personal use only FINANCING Washpool Hard Coking Coal Project Following short-listing of bidders and detailed due diligence, a concluded sale agreement is expected before end 2011 Avontuur Manganese Project * Currently short-listing bidders and finalising the DFS * Detailed due diligence and site visits commencing in December 2011 with binding bids expected early 2012 Belvedere Hard Coking Coal Project Legal action by Vale to set aside the initial fair market valuation prepared for Aquila was struck out by the Supreme Court in June 2011 Strike out was appealed by Vale and Court of Appeal decision is pending * Determining Valuer appointment to follow once position re initial valuation ascertained 22#24Aquila Resources Capital Structure Share price (A$)¹ For personal use only 6.22 Shares on issue (m) 374.4 Market capitalisation (A$m) 2 2,329 Net cash and liquids (A$m) 3 ~171 2,158 Corporate Snapshot Key facts ✰ Experienced board and management team with a high degree of alignment with shareholders Strong institutional backing and ~4,000 shareholders Enhanced financing capability through Baosteel shareholding and China Development Bank relationship Enterprise value (A$m) 1. Closing price as at 7 Nov 2011 2. Based on undiluted shares on issue 3. As at 30 Sep 2011 Substantial Shareholders Directors 40% ✰ Charles Bass (N.E.D) M&G Investment Management 16% Baosteel Group 14% Board of Directors Tony Poli (CEO & Executive Chairman) Gordon Galt (Ind. N.E.D) Derek Galt (Ind. N.E.D) BlackRock Investment Management 5% Dai Zhihao (N.E.D.) 23#25For personal use only Aquila Resources COMPETENCY STATEMENTS (1) The information in this presentation that relates to the Eagle Downs Resource Statement has been based on information compiled by Mr Mal Blaik who is a member of the Australasian Institute of Mining and Metallurgy. Mr Blaik has over 30 years experience in geology and over 20 years experience in coal resource evaluation. Mr Blaik is a Principal Consultant of JB Mining Services Pty Ltd. Mr Blaik is a qualified geologist (BSC App Geol (Hons) University of QLD, 1979) and is a member of the Australasian Institute of Mining and Metallurgy and as such qualifies as a Competent Person under the JORC Code. Mr Blaik consent to the inclusion in the presentation of the matters based on their information in the form and context in which it appears. (2) The information in this presentation that relates to Eagle Downs Coal Reserves, is based on information reviewed by Mr J Steenekamp, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Steenekamp has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the JORC Code. Mr Steenekamp is a full time employee of Mining Consultancy Services (Australia) Pty Ltd and holds the position of Managing Director. Mr Steenekamp has consented to the inclusion in the presentation of the matters relating to Coal Reserves based on the information he has reviewed, in the form and context in which it appears. The information in this presentation that relates to the Isaac Plains Resource Statement has been compiled by Mr Mal Blaik. Mr Blaik is a Principal Consultant of JB Mining Services Pty Ltd. Mr Blaik is a qualified geologist (BSc App Geol (Hons) University of Queensland, 1979) with over 20 years experience in coal geology and over 15 years experience in resource evaluation. Mr Blaik is a Member of the Australasian Institute of Mining and Metallurgy and as such qualifies as a Competent Person under the JORC code. The Resource Statement has been prepared under the guidelines of the December 2004 edition of the Australian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code). Neither Mr Blaik nor JB Mining Services Pty Ltd (JBMS) have any material interest or entitlement, direct or indirect, in the securities of Bowen Central Coal or any companies associated with Bowen Central Coal. Fees for the preparation of this report are on a time and materials basis. The information in this presentation that relates to the Isaac Plains Reserves Estimate has been prepared by Mr Mark Bowater. The estimates of Coal Reserves for Isaac Plains North (ML 70342) and Isaac Plains South (MLa 70361) have been carried out in accordance with the 2004 edition of the Australian Code for Reporting of Mineral Resources and Ore Reserves (The JORC Code). Mr Bowater is the Director of Echelon Mining Services. Mr Bowater has a Bachelor in Civil Engineering from Queensland University of Technology and a Bachelor in Business from University of South Queensland. Mr Bowater has over 20 years experience in the open cut mining industry, including 18 years in Queensland coal. Mr Bowater has substantial experience in mining operations financial evaluations, including previously conducted reserves statements. Mr Bowater is a Member of the Australasian Institute of Mining and Metallurgy and as such qualifies as a Competent Person under the JORC Code. Neither Mr Bowater or Echelon Mining Services have any material interest or entitlement, direct or indirect, in the securities of Bowen Central Coal or any associated companies. Fees for the preparation of this report are on a time and materials basis. 224#26For personal use only Aquila Resources COMPETENCY STATEMENTS (3) The information in this presentation that relates to the Talwood Resource Statement has been based on information compiled by Mr Rod Doyle. He is a full-time employee of Aquila Resources Limited. He is a qualified Geologist (BSc Geology UOW 1978 and MAppSc UNSW 1988) with some 30 years' experience in coal geology, coal mining and resource evaluation. He is a member of the Australasian Institute of Mining and Metallurgy and qualifies as a Competent Person under the JORC Code. Mr Doyle consents to the inclusion of this information in this presentation, where the information presented is in the form and context in which it appears. (4) The information in this presentation that relates to Mineral Resource Estimates was prepared under the supervision of Mr Stuart Tuckey. Mr Tuckey is a member of the Australasian Institute of Mining and Metallurgy and full-time employee of the API Management Pty Ltd. Mr Tuckey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the 'Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Tuckey consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears. (5) The information in this presentation that relates to Ore Reserves is based on information compiled by Mr Steve Craig, Managing Director of ORElogy (Mining Consultants). Mr Craig is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Craig consents to the inclusion of the matters based on his information in the form and context in which it appears in this presentation. The estimates of iron ore Resources for the Meletse Iron Ore Deposit presented in this presentation have been prepared in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 ("the JORC Code"). The estimates are based on information compiled by Mr Brent E Green who is a member of the Australian Institute of Geoscientists and a full time employee of Aquila Resources Limited. Mr Green has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code. Mr Green consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears. 25