Dingo Coal project

MCG Resources was granted EPC1258 on 22 October 2008.

The tenement is located approximately 7km west of the town of Dingo in Central
Queensland, within the Central Highlands Regional local government area. It is
immediately west of EPC881 held by Dingo West Coal Pty Ltd, and immediately east of
EPC960 held by Aquila Coal Pty Ltd.

A high capacity rail corridor exists approximately 1km north the tenement, connecting
through to Gladstone. The distance from the tenement to the port facility is
approximately 250km.

Geology

Geological Structure and Setting

The Dingo area is contained within one of the principal structural units of the Bowen
Basin, the Dawson Fold Zone, west of the Gogango Overfold Zone, and east of the
Comet Ridge.

The trace of the Yarrabee Fault defines the coal bearing potential within EPC1258, which
runs through the centre of the tenement and trends in a north-west south-east direction.
Rangal Coal Measures are evident to the east of the Yarrabee Fault. The major seams of
interest include the Aries, Castor, Pollux, Orion and Pisces. 3 highlights the
potential coal bearing zones located east of the Yarrabee Fault.

The Dingo West exploration permit contains sediments of the Late Permian Blackwater
Group, comprising the Fairhill and Burngrove Formations, and the Rangal Coal Measures.
Overlying these sediments is the Triassic Rewan Group, comprising the Rewan
Formation.