River Energy Joint Venture

Having identified the significant opportunity for the beneficiating and briquetting of thermal coal fines in Africa, White Energy established River Energy JV Company Pty Limited (“River Energy”). River Energy is a joint venture established by White Energy and Black River Asset Management (“Black River”). Black River is a private equity fund that seeks to identify alternate investment opportunities for its shareholders.

The River Energy joint venture merges White Energy’s technical, design and operational skills with Black River’s investment acumen and transactional expertise. River Energy will seek to commercialise opportunities in the African coal mining industry that leverage the BCB technology.

The key elements of the joint venture are as follows:

• River Energy JV Limited is established which is owned 51% White Energy and 49% Black River. Notwithstanding the equity ownership percentage, River Energy will be funded 66% by Black River and 34% White Energy;
• River Energy holds the exclusive license to use the BCB technology in the African continent.

Status

River Energy is currently in advanced discussions with a number of major coal producers in Africa who are interested in utilising the BCB technology to beneficiate and briquette thermal coal fines on their mine site. River Energy has commenced a detailed design and feasibility study which relates to the construction of a 500,000 tonne per annum coal fines upgrading plant at a mine site. Following completion of the feasibility study, River Energy plans to commit to constructing the plant by the end of 2011.

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