Phulbari Coal Project

Asia Energy Corporation (Bangladesh) Pty Ltd (Asia Energy), the subsidiary of UK-based GCM Resources plc, is planning to develop and operate a world class open pit coal mine in its Phulbari Coal Project (the `Project’) in the district of Dinajpur, Northwest of Bangladesh. Asia Energy intends to develop and operate the mine adhering highest national and international environmental and social standards. In this regard, the Project’s Feasibility Study and Scheme of Development was submitted to the Government on 2 October 2005 for approval. At the same time Asia Energy delivered to the Government a proposal for developing a coal fired power station with up to 1,000 MW capacity at the mine site. The mine, in its full capacity, will produce annually 15.2 million tonnes of high-quality bituminous coal, capable of supporting over 60% of country’s thermal coal demand. Phulbari high-quality, high-energy coal can support generation of up to 6,600 MW of baseload power. The Department of Environment approved the Project’s Environmental Impact Assessment and granted environmental clearance.