EPSX00894413 · SCAP EXPLORATION PTY LTD

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   Permit Environmental Protection Act 1994 Environmental authority EPSX00894413 This environmental authority is issued by the administering authority under Chapter 5 of the Environmental Protection Act 1994. Environmental authority number: EPSX00894413 Environmental authority takes effect on 18 September 2017 Environmental authority holder(s) Name(s) Registered address SCAP EXPLORATION PTY LTD Level 33 225 George Street SYDNEY NSW 2000 Environmentally relevant activity and location details Environmentally relevant activity/activities Location(s) EPC1746 Resource Activity, Non-Scheduled, Mining Activity, Exploration Permit Coal - EPC Additional information for applicants Environmentally relevant activities The description of any environmentally relevant activity (ERA) for which an environmental authority (EA) is issued is a restatement of the ERA as defined by legislation at the time the EA is issued. Where there is any inconsistency between that description of an ERA and the conditions stated by an EA as to the scale, intensity or manner of carrying out an ERA, the conditions prevail to the extent of the inconsistency. An EA authorises the carrying out of an ERA and does not authorise any environmental harm unless a condition stated by the EA specifically authorises environmental harm. A person carrying out an ERA must also be a registered suitable operator under the Environmental Protection Act 1994 (EP Act). Contaminated land It is a requirement of the EP Act that an owner or occupier of contaminated land give written notice to the administering authority if they become aware of the following: _____________________________________________________________________________________________________________

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   Permit Environmental authority - the happening of an event involving a hazardous contaminant on the contaminated land (notice must be given within 24 hours); or - a change in the condition of the contaminated land (notice must be given within 24 hours); or - a notifiable activity (as defined in Schedule 3) having been carried out, or is being carried out, on the contaminated land (notice must be given within 20 business days); that is causing, or is reasonably likely to cause, serious or material environmental harm. For further information, including the form for giving written notice, refer to the Queensland Government website www.qld.gov.au, using the search term `duty to notify'. Take effect Please note that, in accordance with section 200 of the EP Act, an EA has effect: a) if the authority is for a prescribed ERA and it states that it takes effect on the day nominated by the holder of the authority in a written notice given to the administering authority-on the nominated day; or b) if the authority states a day or an event for it to take effect-on the stated day or when the stated event happens; or c) otherwise-on the day the authority is issued. However, if the EA is authorising an activity that requires an additional authorisation (a relevant tenure for a resource activity, a development permit under the Sustainable Planning Act 2009 or an SDA Approval under the State Development and Public Works Organisation Act 1971), this EA will not take effect until the additional authorisation has taken effect. If this EA takes effect when the additional authorisation takes effect, you must provide the administering authority written notice within 5 business days of receiving notification of the related additional authorisation taking effect. If you have incorrectly claimed that an additional authorisation is not required, carrying out the ERA without the additional authorisation is not legal and could result in your prosecution for providing false or misleading information or operating without a valid environmental authority. Delegate of the administering authority Coal & Gemstone Mining Phone: 07 4987 9320 Date issued: 25 November 2019 Email: crmining@des.qld.gov.au _____________________________________________________________________________________________________________

   Waste, Monitoring and reporting
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   Permit Environmental authority Obligations under the Environmental Protection Act 1994 In addition to the requirements found in the conditions of this environmental authority, the holder must also meet their obligations under the EP Act, and the regulations made under the EP Act. For example, the holder must comply with the following provisions of the Act: - general environmental duty (section 319) - duty to notify environmental harm (section 320-320G) - offence of causing serious or material environmental harm (sections 437-439) - offence of causing environmental nuisance (section 440) - offence of depositing prescribed water contaminants in waters and related matters (section 440ZG) - offence to place contaminant where environmental harm or nuisance may be caused (section 443) _____________________________________________________________________________________________________________

   Monitoring and reporting
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   Permit Environmental authority EPSX00894413 Legislative Requirements and Conditions of Environmental Authority Condition Eligibility Eligibility criteria Criteria a) The mining activity does not, or will not, at any one time, cause more than 10ha of land to be significantly disturbed; b) the mining activity is not, or will not be, carried out in a category A environmentally sensitive area or a category B environmentally sensitive area; c) the mining activity is not, or will not be, carried out under an environmental authority under which either of the following is, or is to be, authorised: i. an environmentally relevant activity to which a section of schedule 2 of the Environmental Protection Regulation 2008 applies and for which there is an aggregate environmental score; ii. a resource activity, other than a mining activity, that is an ineligible ERA; d) the mining activity is not, or will not be, carried out in a strategic environmental area, unless: i. the mining activity is authorised under an environmental authority for a mining activity relating to a mining claim, an environmental authority for a mining activity relating to an exploration permit or an environmental authority for a mining activity relating to a mineral development licence; or ii. the mining activity involves alluvial mining and is, or will be, carried out at a place that is not in a designated precinct in a strategic environmental area; or iii. the mining activity involves clay pit mining, dimension stone mining, hard rock mining, opal mining or shallow pit mining and is, or will be, carried out at a place that is not in a designated precinct in a strategic environmental area. e) the mining activity does not, or will not, at any one time, cause more than 5000m2 of land to be disturbed at a camp site; f) no more than 20m3 of any substance is, or will be, extracted from each kilometre of a riverine area affected by the mining activity in a year. www.ehp.qld.gov.au ABN 46 640 294 485

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   Permit Environmental authority EPSX00894413 General Condition A1 Financial Assurance The holder of the environmental authority must submit the required amount of financial assurance to the administering authority prior to carrying out any activities on the mining tenement. If the activities that are being carried out by the holder of the environmental authority are altered so as to cause a change in the category of total area of disturbance shown in Appendix 4 - Form 3: Schedule of Rehabilitation Costs, the holder of the environmental authority must submit an application to amend their financial assurance to the administering authority. If an application is lodged to transfer the environmental authority to another person or company, the proposed transferee must submit the required financial assurance prior to the transfer taking effect. Note 1 - Financial assurance must be calculated in accordance with Form 3: Schedule of Rehabilitation Costs in Appendix 4 of this environmental authority. Note 2 - Chapter 5, Part 12, Division 2 of the Environmental Protection Act 1994 requires that the holder of the environmental authority gives the administering authority a financial assurance in a form acceptable to the administering authority. When necessary, the holder of the environmental authority must submit an application to amend their financial assurance under section 302 of the Environmental Protection Act 1994. The holder of the environmental authority must lodge a single financial assurance with the District Mining Registrar, Department of Natural Resources and Mines. The financial assurance will consist of two components: (i) An amount to cover the potential costs to the Department of Environment and Heritage Protection of rehabilitating areas disturbed by mining activities should the environmental authority holder failure to do so; and (ii) An amount to cover the potential costs to the Department of Natural Resources and Mines of restoring property improvements disturbed by mining activities and the failure of the tenure holder to pay rents and royalties. www.ehp.qld.gov.au ABN 46 640 294 485

   Rehabilitation
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   Permit Environmental authority EPSX00894413 Condition A2 Land Disturbance The holder of the environmental authority must ensure that the area and duration of disturbance to land and vegetation is minimised. Not more than 1000 square metres can be disturbed at any one location, excluding campsites. Note 3 - To minimise the area and duration of disturbance to land and vegetation the following measures or similar measures can be used: - avoid disturbing large and or mature trees; - select specific trees to be cleared and avoid causing damage to surrounding vegetation; - where practical leave the rootstock intact to promote regeneration and regrowth. Note 4 - Before carrying out activities on the tenement refer to the Technical Guideline Good Relations with Landowners and the Department of Mines and Energy Code of Conduct, Procedure for Sound Landholder Explorer Relations. Condition A3 Air Quality The holder of the environmental authority must not cause an unreasonable release of dust. Note 5 - To prevent the unreasonable release of dust, the following measures or similar measures can be used: - altering work practices to avoid or minimise the generation of dust; - scheduling activities for times when they will have least impact; - spraying water on roads and tracks; - revegetating disturbed areas as soon as practicable; - leaving or creating wind breaks or screening; and - installing pollution control equipment (e.g. fitting bag filters or a cyclone to dust generating equipment). www.ehp.qld.gov.au ABN 46 640 294 485

   Air, Biodiversity
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   Permit Environmental authority EPSX00894413 Condition A4 Noise Emissions The holder of the environmental authority must not cause unreasonable noise at a noise sensitive place. Note 6 - To prevent causing unreasonable noise at a noise sensitive place the following measures or similar measures can be used: - construct and maintain noise barriers and enclosures around noisy equipment or along the noise transmission path; - implement noise reduction measures at noise sensitive places; - provide and maintain low noise equipment; - carry out routine maintenance on fans to minimise bearing noise; - repair or replace defective mufflers of vehicles and plant with suitable effective mufflers; and - limit the hours of operation of the project to between the hours of 7am to 6pm Monday to Saturday. Note 7 - If aircraft are being used for mining activities operate them so as to minimise disturbance to livestock (e.g. helicopters). Condition A5 Erosion and Sediment Control The holder of the environmental authority must design, install and maintain adequate banks and/or diversion drains to minimise the potential for storm water runoff to enter disturbed areas. Condition A6 The holder of the environmental authority must design, install and maintain adequate erosion and sediment control structures wherever necessary to prevent or minimise erosion of disturbed areas and the sedimentation of any watercourse, waterway, wetland or lake. Note 8 - When designing and constructing sediment ponds refer to the Engineering Guidelines for Queensland Construction Sites Soil Erosion and Sediment Control. Note 9 - Regularly clean out sediment traps, ponds and drains and maintain them in effective working order, until erosion stability has been achieved in disturbed areas. Note 10 - The capacity of sediment traps, ponds, drains and banks should not be reduced below 70 percent of their design capacity. www.ehp.qld.gov.au ABN 46 640 294 485

   Surface water, Noise and vibration, Land and soil
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   Permit Environmental authority EPSX00894413 Condition A7 Topsoils and Overburden Management The holder of the environmental authority must ensure that topsoil is removed and stockpiled prior to carrying out any mining activity. Prevent or minimise the mixing and erosion of topsoil and overburden stockpiles. Note 11 - To separate topsoil and overburden and to prevent or minimise the erosion of these stockpiles the following measures or similar measures can be used: - identify topsoil and overburden layers before stripping topsoil; - store topsoil and overburden in separate stockpiles; - install silt fences or bunding around the stockpiles; - where practical reuse topsoil stockpiles within 12 months; - establish and maintain a temporary cover crop on stockpiles; and - limit the height of topsoil stockpiles to 2 metres. Condition A8 Hazardous Contaminants The holder of the environmental authority must plan and conduct activities on site to prevent any potential or actual release of a hazardous contaminant. Note 12 - Section 442 of the Environmental Protection Act 1994 makes it an offence to release a prescribed contaminant. A prescribed contaminant is a contaminant prescribed by an Environmental Protection Policy. Note 13 - Section 443 of the Environmental Protection Act 1994 makes it an offence to cause or allow a contaminant to be placed in a position where it could reasonably be expected to cause serious or material environmental harm or environmental nuisance. Condition A9 The holder of the environmental authority must ensure that spills of hazardous contaminants are cleaned up as quickly as practicable. Such spillage must not be cleaned up by hosing, sweeping or otherwise releasing such contaminants to any watercourse, waterway, groundwater, wetland or lake. Note 14 - If a mining lease becomes Significantly Disturbed Land because it is contaminated, it ceases to be significantly disturbed land if a Suitability Statement is issued for the land. Refer to Chapter 7, Part 8 of the Environmental Protection Act 1994. Note 15 - A Site Management Plan approved under Chapter 7, Part 8 of the Environmental Protection Act 1994 may be required by the administrating authority for sites recorded on the Environmental Management Register or the Contaminated Land Register. Such sites may include acid producing waste rock stockpiles or tailings dams containing acid producing wastes. www.ehp.qld.gov.au ABN 46 640 294 485

   Groundwater, Surface water, Regulated structures, Waste, Land and soil
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   Permit Environmental authority EPSX00894413 Condition A10 The holder of the environmental authority must, where practical, separate acid producing waste rock from benign waste rock. Condition A11 The holder of the environmental authority must dispose of acid producing waste rock in an excavation or pit and backfill as soon as practical. Backfill the excavation or pit containing acid producing waste rock with benign, low permeability material and seal the excavation or pit with a compacted capping layer at least 1m thick. Note 16 - The owner or occupier of a mining lease must notify the administering authority if they become aware that a Notifiable Activity listed in Schedule 4 of the Environmental Protection Act 1994, is being carried out on the land within 30 days, by giving notice to the administering authority in the approved form. For example, an exploration or mineral development project that generates waste materials that contain hazardous contaminants must notify the administrating authority that this activity is being carried out. Refer to section 371 of the Environmental Protection Act 1994. Note 17 - For detailed information on the management of acid mine waste material refer to the Technical Guidelines for the Environmental Management of Exploration and Mining in Queensland, Part B, Assessment and Management of Acid Drainage and the Guidelines for Sampling and Analysis of Lowland Acid Sulfate Soils (ASS) in Queensland. Condition A12 Nature Conservation The holder of the environmental authority must prevent the spread of Declared Plants by ensuring that all vehicles and machinery are adequately cleaned before taking the vehicles and machinery out of a Declared Plant Area. Note 18 - Every precaution should be taken to ensure there is no dispersal of Parthenium weed or the seed of any other declared plant within the meaning of the Land Protection (Pest and Stock Route Management) Act 2002 as a result of mining activities or as a result of access to the area of the mining tenement. Note 19 - The Department of Agriculture and Fisheries provided Pest Fact sheets for declared plants in Queensland as well as clean down procedures for vehicles and machinery working in declared plant areas. For advice on declared plant areas contact the Department of Agriculture and Fisheries or your Local Government. www.ehp.qld.gov.au ABN 46 640 294 485

   Waste, Land and soil, Monitoring and reporting
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    Permit Environmental authority EPSX00894413 Condition A13 The holder of the environmental authority must not carry out activities in a category A or B environmentally sensitive area. Activities involving machinery must not be carried out within 1km of a category A environmentally sensitive area or within 500m of category B environmentally sensitive area. Prior to carrying out activities in a category C environmentally sensitive area, consult with the relevant administering authority and the Environmental Protection Agency. If it is determined through the consultation that additional conditions are necessary, the holder must comply with those conditions. Note 20 - Refer to Appendix 3 - Environmentally sensitive areas. Condition A14 The holder of the environmental authority must not carry out activities within 100m of a Historical, Archaeological or Ethnographic site. Note 21 - Refer to the Aboriginal Cultural Heritage Register established under the Aboriginal Cultural Heritage Act 2003 and the Queensland Heritage Act 1992. Prior to carrying out any activities on the mining tenement, the holder of the environmental authority should consult with the administrating authority if a site has the potential to be designated as a historical, archaeological or ethnographic site. Condition A15 Prescribed Environmentally Relevant Activities 1. The holder of the environmental authority must not carry out the following prescribed environmentally relevant activities (ERA) on the mining tenement: ERA 61 Waste incineration and thermal treatment at threshold 1 - incinerating waste vegetation, clean paper or cardboard; 2. ERA 52 Battery Recycling - operating a facility for receiving, and recycling or reprocessing, any type of battery; and 3. ERA 59 Tyre Recycling - operating a facility on a commercial basis for receiving and recycling or receiving and reprocessing 1000 or more equivalent passenger units of tyres, or parts of tyres, in a year. (The relevant activity does not include retreading tyres). Condition B1 Roads and Tracks The holder of the environmental authority must consult with the landowner prior to establishing any new roads and tracks. Note 22 - Refer to the Technical Guidelines in appendix 6 when planning and constructing all new roads and tracks. Note 23 - Repair all damage to existing private roads and tracks resulting from mining activities, so that they are as trafficable as they were prior to any damage. www.ehp.qld.gov.au ABN 46 640 294 485

    Waste, Biodiversity
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    Condition B2 Permit Condition B3 Environmental authority EPSX00894413 When constructing new roads and tracks, the holder of the environmental authority must ensure that the area and duration of disturbance to land, vegetation and watercourses is minimised. Note 24 - When planning and constructing new roads and tracks the following measures or similar measures can be used to minimise the area and duration of disturbance of land, vegetation and watercourses: - wherever possible use or upgrade existing roads and tracks; - construct roads and tracks along natural grades; - minimise the width of roads and tracks; - minimise the number of crossings in riverine areas; - construct crossings in riverine areas in a stable section of the bed; - avoid constructing roads or tracks that run straight down the bank to the crossing; - do not disadvantage other users of existing public roads & tracks; - construct a bed level causeway, a culvert or a bridge where natural bed conditions within a watercourse will not carry the intended traffic load or where crossing of the bed will generate a significant increase in turbidity; - minimise the number of cuts and fills in riverine areas; - position cuts and fills in riverine areas to minimise risk of erosion from subsequent flood events; - position crossings to prevent flow being directed towards the banks and provide erosion resistance to the bed and banks downstream of a crossing for a distance equal to the width of the normal flow channel; - do not create any downstream or upstream drops at the lip of culverts or causeways; - regularly clean out culverts, bridges and causeways to prevent flow being impeded or redirected; and - construct in-stream crossings outside of main fish migration periods. The holder of the environmental authority must consult with the landowner prior to establishing any campsites. www.ehp.qld.gov.au ABN 46 640 294 485

    Surface water, Land and soil, Biodiversity
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    Permit Environmental authority EPSX00894413 Condition B4 When establishing a campsite, the holder of the environmental authority must ensure that the area and duration of disturbance to land, vegetation and watercourses is minimised. Note 25 - When establishing and maintaining campsites the following measures or similar measures can be used to minimise the area and duration of disturbance to land, vegetation and watercourses: - locate campsites at least 100m from any riverine areas; - only disturb the minimum area necessary for the safe functioning of the campsite; - install an appropriate human waste disposal facility (e.g. portable self- contained toilets, pit toilets, septic tanks); - use absorption trenches, transpiration beds or spray irrigation to dispose of grey water; and - locate all disposal areas at least 100m distance from any watercourse, waterway, groundwater recharge area, wetland or lake. Note 26 - With regard to on site waste water management refer to the Environmental Protection (Water) Policy 2008. Condition B5 Waste Management The holder of the environmental authority must not directly or indirectly release waste from the project area to any watercourse, waterway, groundwater, wetland or lake. Note 27 - When managing waste materials the following strategy should be adopted: - avoid creating excess waste; - reuse waste materials; - recycle waste; - create and utilise energy from waste; - treat waste; and - dispose of waste (e.g. provide rubbish containers on site). Note 28 - Where practicable take all General Waste to a Licensed General Waste Disposal Facility. www.ehp.qld.gov.au ABN 46 640 294 485

    Groundwater, Surface water, Waste, Biodiversity
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    Permit Environmental authority EPSX00894413 Condition B6 The holder of the environmental authority must not dispose of more than 50 tonnes of general waste on the mining tenement per year. Note 29 -The holder of the environmental authority may bury up to 50 tonnes of general waste on the mining tenement per year. When burying general waste the following measures or similar measures should be used: - locate the waste pit so as to ensure that the waste will not contaminate any watercourse, waterway, groundwater, wetland or lake; - divert stormwater runoff from entering the pit; - crush drums and other containers to reduce the volume of waste; - make the pit safe and protect it from scavengers; - backfill the pit when the level of rubbish in the pit is not less than 1m below the surface; and - sufficiently overfill the pit to allow for settlement. Note 30 - The holder of the environmental authority may dispose of limited regulated waste to a licensed general waste disposal facility provided the annual volume of limited regulated waste does not exceed 10 percent of the annual volume of general waste (e.g. tyres). Condition B7 Service, Maintenance and Storage Areas The holder of the environmental authority must not directly or indirectly release fuels, oils, lubricants or other contaminants to any watercourse, waterway, groundwater, wetland or lake. Note 31 - To prevent the direct or indirect release of fuels, lubricants or other contaminants to any watercourse, waterway, groundwater, wetland or lake the following measures or similar measures can be used: - maintain all refuelling equipment in good working order; - use groundsheets or drip trays to capture spillage during maintenance of machinery and vehicles; - locate all fuel storages within an impermeable bund; - ensure all liquid containment, including fuel tank bunds and process water ponds, have a volume at least equal to the design volume plus an additional 10 percent of that volume; and - where practical, undertake all refuelling and routine maintenance of vehicles within designated service areas. Condition B10 The holder of the environmental authority must ensure that all chemical, fuel and oil storage facilities less than 10 000L on a mining tenement, must be designed and operated in accordance with Australian Standard 1940 - The storage and handling of flammable and combustible liquids, Section 2, Minor Storage. www.ehp.qld.gov.au ABN 46 640 294 485

    Groundwater, Surface water, Waste
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    Permit Environmental authority EPSX00894413 Condition B11 The holder of the environmental authority must ensure that: 1. all chemical, fuel and oil storage facilities of more than 10 000L on a mining tenement, must be bunded to contain at least one hundred percent of the volume of the largest container, plus twenty-five percent of the storage capacity of the largest container up to a maximum of 10,000L, together with ten percent of the storage capacity beyond 10,000L; and 2. the facility must be operated and maintained in accordance with the Australian Standard 1940 - "The Storage and Handling of flammable and combustible liquids". Condition B12 Drilling, Excavating and Sampling The holder of the environmental authority must ensure: 1. all marker pegs are marked with contrasting colour so as to be clearly visible; 2. all marker pegs are removed from the tenement at the completion of exploration activities; 3. all permanent markers (example, concrete plugs or steel plates) are installed at ground level and made safe. Condition B13 When drilling, excavating or sampling, the holder of the environmental authority must ensure that the area and duration of disturbance to land and vegetation is minimised. Note 32 - When drilling, excavating or sampling the following measures or similar measures can be used to minimise the area and duration of disturbance to land and vegetation: - consider seasonal influences, such as rainfall before excavating or establishing a drill site; - construct drill pads no larger than necessary to safely accommodate the drilling rigs and ancillary equipment; - use excavators or backhoes wherever possible in preference to bulldozers; and - use drilling fluids and other process fluids which are non-toxic. Note 33 - Prior to working in riverine areas refer to the Technical Guidelines for the Environmental Management of Mining and Exploration in Queensland, Part B, Exploration and Mining in Watercourses. Note 34 - Install and maintain adequate warning signs, fences and rock bunds to exclude people, livestock and native animals from excavations and shafts. Note 35 - Provide safe access to water for livestock and native animals by: - providing hard surfaces around water storage areas; and - fencing off any soft areas around the edge of water storage areas. www.ehp.qld.gov.au ABN 46 640 294 485

    Surface water, Biodiversity
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    Permit Environmental authority EPSX00894413 Condition B14 The holder of the environmental authority must not drill, excavate or clear vegetation: 1. in standing waters, wetlands or lakes; or 2. on the sloped banks or within 3m of the top of the bank or 5m of the toe of the bank; or 3. within, or on the levee banks of the normal flow channel. Note 36 - For representative diagrams that define the different landform elements that make up a watercourse refer to Figure 1 - Cross Section Through a Watercourse and Figure 2 - Plan View of a Watercourse. Condition B15 The holder of the environmental authority must not directly or indirectly release wastewater to any watercourse, waterway, groundwater, wetland or lake. Note 37 - To prevent the direct or indirect release of waste water to any watercourse, waterway or groundwater, wetland or lake the following measures or similar measures can be used: - where practical recycle all waste water (e.g. recycle waste water for drilling water); - use waste water for dust suppression; - discharge waste water onto benign overburden or waste rock heaps for absorption; and - discharge wastewater to an evaporation pond. Note 38 - With regard to the on site management of water refer to the Environmental Protection (Water) Policy 2008. Condition B16 Exploration drill holes The holder of the environmental authority must decommission all non-artesian drill holes, apart from those still required for monitoring purposes as soon as practical, but no later than 6 months after the hole was drilled by undertaking the following actions: 1. where practical dispose of all unused drill chips to the hole or to a sump pit and; 2. cap the hole at a depth that is appropriate for the previous land use of the area (unless the land owner stipulates a future use which requires the cap to be placed deeper); and 3. backfill the hole above the cap with soil or material similar to the surrounding soil or material. Note 39 - The following depths are considered as appropriate for capping: - surface level in rock outcrops; and - at least 1m below the surface on land used for cropping; and - at least 300 mm below the surface on other land. www.ehp.qld.gov.au ABN 46 640 294 485

    Groundwater, Surface water, Regulated structures, Air, Waste, Land and soil, Biodiversity, Monitoring and reporting
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    Permit Environmental authority EPSX00894413 Condition B17 The holder of the environmental authority must isolate non-artesian aquifers where a drill hole intersects more than one water bearing strata by casing or plugging the hole as soon as practical after the hole is no longer required, but no later than 2 months after the hole was drilled, apart from those holes that are still required for monitoring purposes if: 1. the flow difference between aquifers exceeds 500 litres per hour; and 2. the difference in electrical conductivity of water is greater than 10 percent of the lower value. Conditon B18 Conditions 16 and 17 do not apply to a non-artesian exploration drill hole if: 1. the land owner and the explorer have agreed that it should be left for conversion to a water bore; and 2. the landowner gives a written undertaking to accept responsibility for the hole; and 3. the details of the agreement and the drill hole (such as its GPS location and the drill logs showing the water bearing strata and flow rates) are provided to the Department of Natural Resources and Mines within 30 days of the land owner giving the undertaking; and 4. the hole is temporarily capped so as to prevent possible ingress of surface waters and associated sediments and pollutants. Note 40 - Drill holes that are to be converted to a water bore must be done so by a licensed water bore driller. Condition B19 The holder of the environmental authority must ensure that exploration drill holes that strike artesian flows of water that exceeds 500 litres per hour for seven days must be either: 1. decommissioned as soon as practical, but no later than 1 month after the hole was drilled, apart from holes that are still required for monitoring or evaluation purposes. Refer to Report No. SW4 - Minimum Construction Requirements for Water Bores in Australia, (ARMCANZ 1997); or 2. capped to allow for future conversion into a controlled artesian bore by a licensed water bore driller; or 3. converted into a controlled artesian bore by a licensed water bore driller, provided that: (a) the land owner has undertaken in writing to accept responsibility for the drill hole; and (b) the explorer provides details of the agreement and the drill hole to the Department of Natural Resources and Mines within 30 days of obtaining the landowner's agreement. Note 41 - Provisions apply under the Water Act 2000 with respect to the utilisation of ground water from boreholes in Proclaimed Areas (which include all Artesian Basin areas) and the rehabilitation of boreholes. www.ehp.qld.gov.au ABN 46 640 294 485

    Rehabilitation, Groundwater, Surface water, Land and soil, Monitoring and reporting
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    Permit Environmental authority EPSX00894413 Condition B20 The holder of the environmental authority must ensure that exploration drill holes that are to be retained for future mineral resource evaluation purposes are cased and capped. Holes to be retained for more than three years must be capped with steel casing and appropriately identified. Condition B21 Gridlines and Geophysical Surveys The holder of the environmental authority must plan and determine the final position of gridlines and geophysical lines in consultation with the landowner. Condition B22 When constructing gridlines and geophysical lines, the holder of the environmental authority must ensure that the area and duration of disturbance to land and vegetation is minimised. Note 42 - When constructing gridlines and geophysical lines the following measures or similar measures can be used to ensure that the area and duration of disturbance to land and vegetation is minimised: - conduct surveying of gridlines on foot; - use existing gates, tracks, roads and seismic lines; - before deciding on the location of new seismic lines, record the location of all underground or surface pipelines, cables, power lines, etc. and avoid these areas; - in planning for drilling and sampling activities, where possible, ensure the activities occur at least 100m from riverine areas; - construct seismic lines that do not exceed the width necessary to safely undertake the survey; - use Global Positioning Systems (GPS), or other techniques, to reduce the need for line of sight clearing; - maintain buffer widths of at least 25m between all disturbed areas; - minimise the use of bulldozers and excavators when cutting gridlines and/or seismic lines; and - notify landowners at least 24 hours prior to detonating seismic explosives. www.ehp.qld.gov.au ABN 46 640 294 485

    Biodiversity, Monitoring and reporting
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    Permit Environmental authority EPSX00894413 Condition B23 Monitoring, Reporting and Emergency Response Procedures The holder of the environmental authority must record and notify the administering authority of any emergency or incident which demonstrates non- compliance with the standard environmental conditions. Note 43 - A notification of any emergency or incident which demonstrates non- compliance to the standard environmental conditions cannot be used in evidence in any further action taken by the administrating authority as a result of the notification. Note 44 - To demonstrate ongoing compliance with the standard environmental conditions, the holder complete Form 1, Monitoring and Record Keeping Summary and establish programs to monitor project activities and maintain monitoring records for review by the administrating authority. Note 45 - To demonstrate compliance complete Form 2, Emergency Response Table. Provide and maintain appropriate emergency response equipment and inform all operational personnel, contractors and visitors of emergency procedures. Note 46 - Observe the provisions and regulations under the Fire and Emergency Services Act 1990 and the Mining and Quarrying Safety and Health Act 1999. Condition B24 Rehabilitation In Riverine Areas, the holder of the environmental authority must complete the Rehabilitation Processes on all areas disturbed by mining activities, apart from those areas currently being utilised for mining activities, as soon as practical and prior to the onset of the wet season. Note 47 - Condition B24 is to ensure that there is adequate erosion protection in riverine areas prior to the onset of the wet season. In Queensland the wet season is generally considered to be from November to April each year. Condition B25 For all other areas on the mining tenement, the holder of the environmental authority must complete the rehabilitation processes on all areas disturbed by mining activities, apart from those areas currently being utilised for mining activities, as soon as practical and at least within six months of the completion of works in those areas. Note 48 - Where practical undertake progressive rehabilitation of disturbed areas. Condition B26 The holder of the environmental authority must backfill all excavations, drill holes or sampling sites as soon as practical following the completion of exploration activities. www.ehp.qld.gov.au ABN 46 640 294 485

    Rehabilitation, Land and soil, Monitoring and reporting
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    Permit Environmental authority EPSX00894413 Condition B27 Condition B26 does not apply to any excavations, drill holes or sampling sites that are to remain after the completion of exploration activities, by agreement with the land owner. Condition B28 The holder of the environmental authority must rehabilitate areas disturbed by mining activities to a stable landform similar to that of surrounding undisturbed areas. Note 49 - When rehabilitating disturbed areas refer to the Technical Guidelines for the Environmental Management of Mining and Exploration in Queensland, Part D, Geo-technical Slope Stability. Condition B29 The holder of the environmental authority must spread seeds or plant species that will promote vegetation of a similar species and density of cover to that of the surrounding undisturbed areas or vegetation that is appropriate for providing erosion control and stabilisation of the disturbed areas. Note 50 - To revegetate disturbed areas the following measures or similar measures can be used: - for areas which have become compacted during the project, break up the soil surface to a depth - that is suitable for establishing vegetation; and - spread stockpiled topsoil over disturbed areas to a depth that is suitable as a rooting medium for the revegetation process; and - provide suitable nutrient conditions for planting by using fertiliser if necessary; and - collect and store native seeds to be used in rehabilitation. Note 51 - When revegetating disturbed areas, the holder of the environmental authority should plant native species endemic to the area and location in the landscape (e.g. if clearing has occurred in a riverine area, revegetate the disturbed area using local riverine species). Note 52 - Vegetation used to provide erosion protection and stabilise disturbed areas in the short term should be comprised of sterile, short-lived species (e.g. a cover crop). However, the long term aim of revegetating any disturbed area is to establish a stable vegetation community that is similar to that of the surrounding undisturbed areas or endemic species. Note 53 - The environmental authority holder is not liable for rehabilitating disturbed areas that existed prior to the grant of the tenure unless those areas are disturbed during the term of the tenure. Condition B30 For any Mine Infrastructure to remain after all mining activities have ceased, the holder of the environmental authority must obtain the written agreement of the land owner stating they will take over responsibility for that infrastructure. www.ehp.qld.gov.au ABN 46 640 294 485

    Rehabilitation, Land and soil, Biodiversity
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    Permit Environmental authority EPSX00894413 Condition B31 The holder of the environmental authority must complete rehabilitation of disturbed areas to the satisfaction of the administrating authority. Note 54 - Condition B31 is a requirement of the Environmental Protection Act 1994. The environmental authority holder must submit a Final Rehabilitation Report (FRR) and a compliance statement prior to the cancellation or expiry of the mining tenement. The surrender of the environmental authority will not be granted until the administrating authority has accepted the FRR and the compliance statement. www.ehp.qld.gov.au ABN 46 640 294 485

    Rehabilitation, Monitoring and reporting
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    Permit Environmental authority EPSX00894413 Appendix 1: General obligations under the Environmental Protection Act 1994 www.ehp.qld.gov.au ABN 46 640 294 485

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    Permit Environmental authority EPSX00894413 www.ehp.qld.gov.au ABN 46 640 294 485

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    Permit Environmental authority EPSX00894413 Appendix 2: Definitions www.ehp.qld.gov.au ABN 46 640 294 485

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    Permit Environmental authority EPSX00894413 Appendix 3: Environmentally sensitive areas www.ehp.qld.gov.au ABN 46 640 294 485

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    Permit Environmental authority EPSX00894413 End of Permit www.ehp.qld.gov.au ABN 46 640 294 485