ASX announcement

1 ASX code: SMR

ASX announcement20 December 2013

Surat Basin Clifford Project –Exploration Joint Venture with JOGMEC

Highlights JOGMEC to provide $4.5 million of exploration funding over 3 years in exchange for a

40% interest in the Clifford Project, located in Queensland’s Surat Basin

The funding package will allow substantial exploration and studies of the open cut

thermal coal targets within the Project area

Exploration Joint Venture with a key Japanese Government owned corporation will

support exploration and development of the Northern Surat Basin

Stanmore Coal Limited (“Stanmore Coal”) and the Japan

Oil, Gas and Metals National Corporation (“JOGMEC”), a

Japanese Government owned corporation, will jointly

undertake an extensive exploration program in

Queensland’s Surat Basin. Under the terms of a Joint

Exploration Agreement (“JEA”) announced today,

JOGMEC will provide up to $4.5 million of exploration

expenditure to Stanmore Coal over a 3 year period for

the Clifford Thermal Coal Project. JOGMEC will earn up

to a 40% economic interest in the Clifford Project and

has the right to assign that interest to a Japanese

nominee company in the future, in order to progress the

project to development.

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Stanmore Coal is the first Queensland based company to benefit from the recent Japanese national interest

in Queensland resources since JOGMEC and the Queensland State Government signed a comprehensive

Memorandum of Understanding (“MOU”) on 30 September 2013. MOU sets out a framework for strong

bilateral cooperation on natural resources exploration and development in Queensland including coal, gas

and other mineral resources, as Japan considers Queensland one of the most strategically important

partners for its resources trade.

The Clifford Project (EPC 1274 and EPC 1276) is a 1161 km2 area within Queensland’s highly prospective

Surat Basin. The Surat Basin is an extensive basin featuring high energy, low emission thermal coal which is

well suited for efficient electricity generation in Asia. Surat Basin thermal coals typically feature excellent

environmental performance with low emissions of NO2, SOx, particulates and CO2 relative to other traded

coals.

There is a proven track record of Surat Basin coals being used for efficient power generation in Queensland

and also for export to the Japanese market. The Clifford Project adjoins Glencore’s Wandoan Project and is

targeting thermal coal deposits at depths amenable to open cut mining. The Clifford Project is also in close

proximity to Stanmore Coal’s The Range Project, a 5Mtpa open cut export grade thermal coal project,

which is at feasibility study stage and is completed to obtain its environmental approvals in 2014.

Through this joint exploration initiative with Stanmore Coal, JOGMEC will establish rights to an ownership

interest in the Surat Basin through which it will have an enhanced role in the development of a new, long

term source of high quality thermal coal highly suitable for Japanese electricity generators.

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The JEA provides Stanmore Coal with funding for all of the planned exploration expenditure over three

years including drilling, associated coal quality analysis and feasibility studies within the Clifford Project

area. Funding provided under the JEA will also allow Stanmore to build a comprehensive geological model

of the area utilising historical data within and immediately surrounding the tenement area.

Pre-drilling activities under the JEA have commenced and the first holes are expected to be drilled in the

first quarter of 2014. The initial drilling campaign will focus on areas within the tenement which are

expected to host the shallowest coal. Previous scout drilling by Stanmore and others within these target

areas has identified significant coal intersections which have the potential to shallow and extend up-dip.

Stanmore Coal’s Managing Director Mr Nick Jorss said, “Queensland’s Surat Basin presents Japanese

investors and electricity generators with a compelling and timely opportunity to build on the historically

strong relationships between Japan and Australia by securing long term off-take from a coal basin

containing a large amount of high energy, low emission thermal coal.”

Mr Jorss said, “We are very pleased to announce this partnership with JOGMEC today and we look forward

to working with them to explore this prospective area and increase our strategic footprint in the Surat

Basin, a major source of future thermal coal. We believe the excellent operational and environmental

features of Surat Basin coal will become increasingly sought after, particularly in Asia as the recent coal

market oversupply moderates. The path to market for Northern Surat Basin coal is well understood and

well supported, as demonstrated by this important commitment by JOGMEC.”

On behalf of the Board

D McAlpine

Joint Company Secretary

For further information, please contact:

Mr Nick JorssManaging Director07 3238 1000

Mr Doug McAlpineJoint Company Secretary07 3238 1008

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About Stanmore Coal Limited (ASX code: SMR)

Stanmore Coal is a growth focused, pure play coal exploration and development company with a number ofprospective coal projects and exploration areas within Queensland’s Bowen and Surat Basins. Stanmore Coal isfocused on the creation of shareholder value via the identification and development of coal deposits, with a focus onthe prime coal bearing regions of the east coast of Australia.

About the Japan Oil, Gas and Metals National Corporation (“JOGMEC”)

JOGMEC is a Japanese government owned corporation which was established for the purpose of securing a stablesupply of natural resources, including coal, to support Japan’s industrial activities. Further information on the MOUbetween JOGMEC and the Queensland Government can be found at:

https://www.jogmec.go.jp/english/news/release/news_10_000006.html

Stanmore Coal Limited ACN 131 920 968p: +61 (7) 3238 1000 | f: +61 (7) 3238 1098 | e: info@stanmorecoal.com.au | w: www.stanmorecoal.com.auStreet address: Level 8, 100 Edward Street, Brisbane QLD 4000 | Postal address: GPO Box 2602, Brisbane QLD 4001

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