Oracle Coalfields PLC / Sindh Carbon Energy Limited (SCEL)

Oracle Coalfields PLC (or the “company”) was incorporated in July 2006 in United Kingdom as a public company specifically for investing in the coal mining sector in the Province of Sindh . The company is publicly listed in London and shares are traded on the exchange.

Sindh Carbon Energy Limited (SCEL) is a subsidiary of Oracle Coalfields PLC and is registered in Pakistan as a wholly owned subsidiary of the company.

A Memorandum of Understanding between Sindh Carbon Energy Limited and Mines & Mineral Development, Government of Sindh was signed in November 2007 regarding the exploration and development of Block VI, Thar Coalfield. Subsequently an Exploration Licence was issued to SCEL for three years.

Oracle Coalfields PLC has put in place a credible management team with international experience in natural resources, particularly in the coal mining and power industry. After assessing the potential of Thar coal, the company's project team concluded that for attracting the attention of and providing comfort for the international investment community, Thar coal should meet a defined standard to achieve international acceptance and recognition. The company put in place a drilling programme, which was designed to take the resource to international standard. The resource was therefore re-evaluated to JORC standard under principles of the JORC Code 2004 Edition. JORC is an abbreviation of Joint Ore Reserves Committee defined by The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia. By re-evaluating our block to an international standard, their announced findings under the JORC standard have added authenticity to the Thar coal potential. Their Block VI drilling validation has defined 1.4 billion tonnes JORC compliant Measured Resources with 371 million tonnes as Proved Reserves. The company envisages an open-pit mining operation using initially truck & shovel.

The coal quality analysis was done at the laboratories of the Pakistan Council of Scientific Research, Karachi and further extensive coal and rock analysis at TES Bretby in the United Kingdom . The quality of coal has been approved as suitable for power plant consumption. The moisture content, ash, sulphur and calorific value of the coal are deemed acceptable for power generation. The coal quality is lignite brown coal.

The company is now in the next phase of completing a series of technical studies and Environmental & Social Impact Assessment leading to a Bankable Feasibility Study and ultimately the commencement of mining. The company has appointed leading independent consultants to manage the feasibility study to bankable standard, including SRK Consulting of United Kingdom, Aquaterra of Australia and Dargo Associates (as technical advisers to Oracle Coalfields) of United Kingdom and Wardell Armstrong International of United Kingdom for the preparation of the Environmental & Social Impact Assessment (ESIA).

A comprehensive drilling program is underway at Block VI site with particular emphasis on geotechnical and hydrogeology analysis leading to the completion of a definitive Mine Design.

The company has entered a Memorandum of Understanding with Karachi Electric Supply Company (KESC) for supply of coal to support initially KESC's 300 MW mine mouth power plant in Block VI with the potential to generate up to 1,100 MW aggregate in staged development over a period of time. As per the MOU, KESC will complete a power plant feasibility study. KESC have visited the site.

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