Phulbari Project

Asia Energy Corporation (Bangladesh) Pty Ltd is a wholly owned subsidiary of GCM. The Company has completed the Definitive Feasibility Stage of the Phulbari Coal and Power Project and is awaiting government approval for its Scheme of Development. GCM's commitment to sustainable development has been demonstrated by developing the Phulbari Coal Project (and Phulbari Power Project) to international standards and best practices which go beyond national environmental legislation. The project has conducted extensive Social and Environmental Impact Assessments and developed numerous Management Plans to mitigate against the potential social and environmental impacts and optimize potential development benefits at a local, regional and national level.

The Environmental and Social Impact Assessment and associated Action Plans have been shown through an independent evaluation to meet the revised Equator Principles, the new Performance Standards of the International Finance Corporation, the World Bank Group's specific guidelines on coal mining, and the Asian Development Bank's Safeguard Policies (which include involuntary resettlement and indigenous people). Component sub-action plans were prepared through consultation with relevant Government departments, the local community and other interested stakeholders. Key elements include the Resettlement Action Plan, the Indigenous People's Development Plan, the Public Consultation and Disclosure Plan, the Livelihood Restoration Plan as well as numerous others.

Upon approval from the Government of Bangladesh, the Company's performance against these Action Plans will be regularly reviewed and subjected to external audits with the aim of not only ensuring compliance with statutory requirements but continually improving the Project's environmental and social management. There is also a structured and rigorous performance monitoring for the Project with results being made transparent and accessible to GoB, local community stakeholders, lending institutions, shareholders, the London Stock Exchange, and the general public via the local information offices and the Company's Bangla website (www.phulbaricoal.com).

Asia Energy is seeking to work with development agencies and other stakeholders to ensure that the Project contributes to a regional development strategy for the northwest and western transport corridor. In terms of local economic impacts, and potential cottage industries, the Project will be providing significant quantities of industrial materials currently scarce in Bangladesh, eg; rock aggregate, silica, sand and Kaolin. Studies were commissioned to demonstrate the potential national economic impacts.

The aim is that local communities impacted by the Project both in the area of the mine and along the transport corridor are better off as a result of the Project. The Project will stimulate and strengthen local and regional economies and assist poverty alleviation through job creation, training and development opportunities for local communities, establishing local cottage industries and generally improving standards of living, for example through investment in education and health facilities and improved infrastructure.