20 15 ANNUAL REPORT

A significant milestone in the development of the Springsure Project occurred on 18th February 2015. The Company, on
behalf of its subsidiary Springsure Mining Pty Ltd, lodged with the Department of Mines and Natural Resources (DNRM)
a Mineral Development Lease (MDL) application (MDL3002) within the Springsure Project’s Exploration Permit for Coal
(EPC) No. 1674. Once awarded, the MDL will enable the Company to confirm feasibility of mining options for the Project
through its submitted 5 year program of exploration and development. Subsequent to year end Springsure Mining Pty Ltd
was granted the MDL over a portion of EPC 1674 effective from 1 August 2015.
North Galilee Project
The North Galilee Project is crossed by an existing underutilised rail line which connects to the Port of Townsville, as well as
being strategically located to supply the potential base load coal fired power station discussed as part of the government
funded North Queensland Sustainable Resource Feasibility Study.
In April 2015, the DNRM approved the consolidation of the Hughenden and Pentland Projects into the North Galilee
Project.
Continuing its strategic partnering with stakeholders in North and North West Queensland, the company continued to
be actively involved in Mount Isa to Townsville Economic Development Zone (MITEZ), the North Queensland Regional
Supply Chain Committee and the Townsville Enterprise Committee overseeing the federally funded investigation into the
feasibility of a coal fired base load power station in the Townsville/Pentland region.
EVENTS SUBSEQUENT TO REPORTING DATE
In the interval between the end of the financial year and the date of this report there has not arisen any item, transaction
or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the
operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years other
than the following:
• On 15 July 2015, the Company advised the market that their operational strategy at the Mongolian Baruun Noyon Uul
(BNU) mine should enable the company to ramp up to 125,000t coal per month production which was confirmed on
31 July 2015 when the company provided further operational guidance on the mine.
• Additionally on 15 July 2015, the Company announced the granting of two new exploration licences by the Mineral
Resources Authority of Mongolia (MRAM). The Baruun Termes exploration licences NE-025961 and NE-025966 are
prospective for potash and complement Terra Energy’s existing assets in Mongolia.
• On 21 July 2015 the results of ongoing resource definition and mine planning uncovered a shallow coking coal ‘micro
basin’ at the Mongolian BNU mine and that the operations were commencing in the area of the pit.
• The grant of the MDL over part of the Springsure Project was announced on 30 July 2015 along with coal quality wash
results confirming the high CV prime thermal product nature of the resource.
• The Company completed the share transfer on the acquisition of 100% of the equity interest in Enkhtunkh Orchlon
LLC from Noble Resources International Pte. Ltd (“Noble”). The purchase consideration of US$6.0 million is payable to
Noble. Subsequent to year end, Noble agreed to defer the receipt of the purchase consideration to 30 September
2015.
• On 21 August 2015, the Company provided an update on the lack of progress with the Tsaidam Project and advised
that action to recover this US$2.0 million deposit paid for the acquisition of Mongolian Petroleum Corporation LLC is
ongoing.
• Subsequent to year end the Group reached agreement with Noble to defer certain debt requirements to 30
September 2015. The Group is working to restructure the Noble debt via a listed fund raising process. Refer to Note 15
borrowings for further details on agreements reached with financiers. Although the repayment date is 30 September
2015, the Company is working with Noble to repay the principle repayments as part of the debt restructuring.
• To manage funding requirements the Company utilised existing facility capacity resulting from debt repayments
made up to 30 June 2015 and agreed for Noble to make additional funding available to the entity during October
2015.
• Following successful negotiations with OCP Asia, on 22 July 2015 the Company submitted a formal waiver request for
note holder’s formal approval of the deferral request. This was subsequently formally approved by the note holders
on 21 August 2015 on the following terms:
i. Convertible note maturity date extended to 8 December 2015 (from 8 July 2015);
ii. Amortising note payment of US$11 million principal deferred from 8 July 2015 to the earlier of 30 September
2015 or the date of completion of any future capital raising;
iii. Payment of accrued interest which was due 8 July 2015 deferred to the earlier of 30 September 2015 or the
date of completion of any future capital raising; and
iv. Adjustments to Convertible Notes and Amortising Notes detachable warrants previously issued by the
Company to OCP Asia subject to shareholders’ approval. (refer below)
• On 28 September 2015, the Company advised the market that it will hold an extraordinary general meeting on 30
October 2015, to approve, amongst other matters and subject to Shareholder Approval and Noteholder approval in
GUILDFORD COAL ANNUAL REPORT
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