December 19, 2013

NEWS RELEASE ｗｗｗ.jogmec.go.jp
Japan Oil, Gas and Metals National Corporation
Division in charge: Coal Exploration Division, Development Exploration Department
Arai and Muramoto FAX: +81-3-6758-8086
PR in charge: Public Relations Division, Administration Department
Nishikawa FAX: +81-3-6758-8008

JOGMEC launched coal JV exploration.
～JOGMEC signed a joint exploration agreement in Australia.～
Japan Oil, Gas and Metals National Corporation (JOGMEC, President: Hirobumi Kawano) is pleased toannounce that it entered into a new agreement to jointly explore coal in the Clifford Project Area as ofDecember 12th, 2013, with Stanmore Coal Limited, an Australian coal exploration and development
company.
JOGMEC has been conducting metal JV exploration abroad since 2003. However, this is the first JV for
JOGMEC in coal exploration since JOGMEC commenced coal JV exploration scheme this year.
The Clifford Project Area (Clifford) is situated in the northwest part of the Surat Basin, which is highly
prospective for thermal coal resources, in the southeast of Queensland. The new discovery of economical
thermal coal deposits with high volatile matter and high quality is expected through a new JV exploration.
In the recent energy situation in Japan, coal fired power generation has been anticipated as one of themain energy sources in Japan. If the Clifford Project JV, leads to future coal mine development, it willcontribute to a stable supply of high quality thermal coal to Japan.

■ Outline of the Project１）Exploration area
Clifford consists of two exploration tenements （about 1,100km2), in which some coal seams havebeen already identified. In the south of Clifford area, Glencore-Xstrata and its joint venture partners are
conducting coal exploration at the Wandoan project. In the further southeast of the Surat Basin, there
are a number of operating coal mines such as Cameby Downs, Kogan Creek and Wilkie Creek.
2） Agreement
JOGMEC will have a right to earn 30.67% participating joint venture interest in the project bycompleting the payment of AU$3.45 Million as an exploration expenditure over three years. JOGMEC
may elect to earn a further 9.33% (40% in total) participating joint venture interest by adding AU$1.05
Million over the subsequent 12 months. JOGMEC can transfer its position in the joint explorationagreement including its acquired interest to the Japanese company during the term of the agreement.
13） Exploration
Stanmore Coal and other previous tenement owners completed about 150 drillholes to date, by whichsome coal seams with a maximum thickness of about 10m have been identified at the prospective sites.
Although Stanmore already selected nine prospective exploration zones, further study and evaluationis necessary to evaluate distribution of promising coal seams because of the large tenement area.
■ Stanmore Coal Limited
It is a coal exploration and development company listed on the ASX (Australian Stock Exchange) andheadquartered in Brisbane, Australia. It owns thirteen coal exploration projects in Queensland. It is also
conducting advanced stage exploration and development activities at its other projects such as Belview(coking coal) and The Range (thermal coal). All the current properties in the Clifford project arepossessed by Stanmore Coal Limited through Stanmore Surat Coal Pty Limited, a wholly owned
subsidiary of Stanmore Coal Limited.

Location of Clifford project.

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