White Energy 2006 Annual Report

Chairman’s Letter -

'It has been an extremely busy year for our Company. Significant corporate milestones have been achieved, the most critical being the acquisition of White Energy Technology Limited and its exclusive licence to patented technology developed by the CSIRO which processes relatively poor quality coal into a higher quality product with significant cost and environmental benefits.

There is significant demand for White Energy’s technology globally. The process is extremely effective when applied to sub-bituminous coal. These coals represent the most abundant form of coal resources. Historically however there has been minimal demand for this type of coal because its high moisture content makes it a relatively inefficient fuel source. Applying White Energy’s process to sub-bituminous coal redresses these inefficiencies and creates a higher quality fuel with all the characteristics of expensive bituminous coals.'