MESSAGE FROM THE GENERAL MANAGER, DAVE PALMERWelcome to the second community update about the Boundary Hill South project. We are pleased to advise you that the Environmental Impact Statement (EIS) will be submitted to the Department of Environment Heritage Protection in early November. The public comment period begins approximately one month after submission.

Boundary Hill South is an important project required to secure the future of Callide mine. With the current operation at Boundary Hill exhausting coal reserves by 2016, the Boundary Hill South Mining Lease will extend the life of Callide mine and provide continued employment for more than 250 local people. We expect to begin mining operations at Boundary Hill South in late 2015, with the project increasing Callide’s mine life by 20 years. As we develop the project, we will work closely with our neighbours to minimise the impacts of the future operation. Because the

project is an extension of the existing operation, minimal impacts in the broader community are expected.

We will be completing extensive consultation throughout the duration of the project and will continue to work with all affected stakeholders as we develop the future mining operation. If you have any questions, you will find the contact details for the relevant project team members below. Thank you for your support and we look forward to working with you in the months ahead to secure the future of Callide mine and continue to support the Biloela community.

Yours Sincerely,

Dave Palmer General Manager, Callide mine

ABOUT THE BOUNDARY HILL SOUTH PROJECTThe existing Boundary Hill operation has a limited life span with resources expected to be exhausted by 2016. The successful approval and construction of the Boundary Hill South project on Mining Lease Application (MLA) 80121, will allow the mine to continue to provide local employment opportunities for local business and maintain continuous coal supply to our existing customers.

The Boundary Hill South project involves developing an open cut mining operation south of the existing Boundary Hill area, using the existing infrastructure and equipment.

The activities associated with the project will include:

• Developing a new open cut operation in the project area

• Constructing a haul road north from the project’s new open cut pit for overburden transport for backfilling into the existing Boundary Hill pit

• Constructing a new overburden dump area to the west of the area to be mined

• Relocating a section of Inverness Road, currently located within the project area.

COMMUNITY NEWS ISSUE 2 OCTOBER 2013

ANY QUESTIONS? PLEASE CONTACT:Steve Voke Environmental Project Specialist, Phone: (07) 4990 1681, Email: steve.voke@angloamerican.com Phillip Casey Stakeholder Engagement Officer, Phone: (07) 4990 1625, Mobile: 0437 087 724, Email: phillip.casey@angloamerican.com

We look forward to hearing from you to assist us in building on our long standing partnership with the Banana Shire community as a major partner and employer in the area.

This newsletter provides an introduction to Callide mine’s Boundary Hill South project for the local community and interested stakeholders. It provides relevant information outlining the need for the project, what it involves, the approvals process and how you, as a community member, can be involved in the process. We welcome and encourage your feedback and look forward to working in partnership with all of our stakeholders as we work to maintain sustainable mining operations for the future of Callide mine and our local workforce.

BOUNDARY HILL SOUTH PROJECTA project extending the life of Callide mine and securing local jobs

THE ENVIRONMENTAL IMPACT STATEMENT TIMELINE PROGRESS.

Submission to draft ToR

Public notification of draft ToR

Final ToR issued – EIS in preparation

Public notification of EIS

Proponent responds to submissions

EIS assessment report

WE ARE AT THIS POINT

METALLURGICAL COAL

201 Charlotte Street Brisbane QLD 4000 GPO Box 1410 QLD 4001 Australia

T +61 (0) 7 3834 1333 F +61 (0) 7 3834 1366

www.angloamerican.com.au

BOUNDARY HILL SOUTH COMMUNITY NEWS ISSUE 2 OCTOBER 2013

MINING LEASE APPLICATION CHANGES Since announcing the Terms of Reference (ToR), a minor amendment has been made to land parcel MLA 80186, reducing the mining lease footprint.

Why the mining lease footprint was reduced?

• Preserves the cultural heritage of the area, which is significant to the Gaangulu Nation people

• Preserves the Callide Timber Reserve within the area

• Reduces impacts on flora and fauna

• Improves realignment of Inverness Road.

BEST PRACTICE ENVIRONMENTAL MANAGEMENTCallide mine will adopt best practice environmental management techniques in the Boundary Hill South project area to reduce impacts on the local community. This will include:

• Water trucks in regular use to reduce dust

• Air quality monitoring

• Modelling all blasts to assess impacts prior to blasting.

Legend

Existing Mining Leases

Proposed Mining Areas

Proposed MLA80196 Boundary

Existing Roads

PROPOSED MINE PLAN AREA

Argoon Kilburnie Road

New Inverness Road Alignment

Proposed Alignment Concept

Inverness Road

PROPOSED OVERBURDEN DUMP AREA

1,000 m0

N

CALLIDE MINE AND THE COMMUNITYCallide mine is proud to support the local Biloela community. Through Boundary Hill South, we will continue to deliver our annual social investment and donations program for Biloela, through which we support local schools, sporting groups and community associations.

Over the past year, we have supported many initiatives such as:

• Biloela Panthers Rugby League 2013 Sponsorship

• Scripture Union Queensland Callide Valley Chaplaincy Service for 2013

• Banana Shire Art Gallery Association’s Brigalow Arts Festival

• Banana Shire Industry Summit

• Circus Quirkus 21st Annual Special Children’s Fundraiser, which allows disabled children from Biloela to attend.

In late 2011 Anglo American brought the Brisbane Broncos to Biloela through their Regional Partnership. Broncos player Ben Hannant, pictured, met with local students, ran skills clinics and hosted motivational goal setting sessions at schools.

BOUNDARY HILL SOUTH MINING LEASE