Burnett Project

Location:	15km south of Monto, South Eastern Queensland
Basin:	Mulgildie Basin
Exploration Area:	594km²
EPC Status:	Granted
Target Coal Type:	Export quality thermal coal
Target Stratigraphy:	Mulgildie Coal Measures

Carabella Resources owns 100% of Burnett (EPC1175), which is located in Central Queensland within the Mulgildie Basin and covers a total area of 594 km². It lies immediately south of Peabody Energy's Monto Coal project which hosts a resource of 324 Mt containing high quality thermal coal. Burnett is also adjacent to a number of tenements held by Whitehaven Coal Limited. An existing railway line runs north-south through the tenement connecting it to Gladstone port, 180km away.

Historical exporation data indicates that shallow coal seams are present in the northern part of the tenement, which is believed to be an extension of the Monto deposit. An exploration review was recently carried out on Burnett which identified exploration target zones in the northern, central and southern areas of the tenement. An exploration target* of 50 Mt - 420 Mt was identified and planning for exploration activities is in progress. Regional data suggests that any coal produced from Burnett would likely be of export thermal coal quality.

Area and Stratigraphy	Exploration Target
Northern EPC 1175 - Evergreen Formation and Hutton Sandstone	20 - 250Mt*
Eastern EPC 1175 - Evergreen Formation and Hutton Sandstone	30 - 170Mt*
Total	50 - 420Mt*
^{* Exploration Target statement: The potential quantity and grade of the Exploration Targets identified herein are conceptual in nature, and there has been insufficient exploration to date to define a mineral resource in accordance with the JORC Code. Furthermore, it is uncertain if further exploration at its Exploration Targets will result in the determination of a mineral resource.}