1. THAR LIGNITE ITS EXPLOITATION AND USE BY DR LARRY THOMAS DARGO ASSOCIATES LTD

3. Thar Coalfield Distance from Karachi 380km Thar Coalfield Area9,100 km 2 Total Lignite Resources175x10 9 Lignite Quality:Lignite ‘A’ to ‘B’ Close proximity to Road & Power network

4. General Geology of Thar Area Thar area covered by dune sand Lignite seams are of Tertiary age Simple geological structure Main Coal Seam well developed Overlying strata made up of sandstone and mudstone

6. Opencast Mining Proven efficient mining method worldwide eg Europe, Australia, South Africa and USA Cheaper capital cost than underground mining technology Faster mine development Flexibility in changes of mine size

7. Truck & Shovel Operation

8. Thar Opencast Mining Opencast Coal (Lignite) Mine To access Main Lignite Seam 9-30m in thickness Overburden Thickness 160m Preferred Mining Method is Truck & Shovel Planned production 5 Mtpa

9. Global Lignite Qualities CountryMoisture % (ar) Ash % (ar) Volatile Matter % (ar) Sulphur % (ar) Calorific Value kcal/kg (gar) Australia65.50.617.60.12135 Bosnia512.030.30.052749 Germany551019.20.21900 Greece5215.118.80.21220 India486.125.60.62885 Kosovo511520.8<1.02008 Pakistan (Thar) 427.028.00.72900-3200 Poland52.89.820.00.62140 Serbia45.517.022.50.492151 Thailand30-3510-28320.8-1.52500-3000 Turkey501622.81.71130

10. LIGNITE USES Fuel for Electricity Generation Fuel for Cement Industry – Drying and Briquetting/Pelletising to produce 15% moisture product For Industrial Use: – Lignite has high volatile matter easier to convert to gas and liquid petroleum products – Briquetting for domestic fuel together with production of charcoal and gas for smokeless fuel – Horticulture as replacement for peat

11. Lignite Drying

12. Republic of Serbia Lignite Production: 36.5 Mtpa Lignite Use: – Thermal Power Plants34.3 Mtpa – Drying Plants 1.1 Mtpa – Heating Plants 0.2 Mtpa – Other Industry 0.9 Mtpa

13. Project Summary Block VI Licence area has thick coal & adequate resources Licence area suitable for mine & power plant development Licence area close to road and power network linking Karachi & Hyderabad Opencast mining cheapest and most efficient mining method Ability to supply lignite to thermal power plants within Sindh Province Ability to supply dried lignite to cement manufacturers and other industrial users