ABN 13 112 682 158

Level 2, 66 Hunter Street Sydney NSW Australia 2000 T: (61 2) 9300 3333 F: (61 2) 9221 6333

E: pnightingale@cockatoocoal.com.au W: www.cockatoocoal.com.au

26 April 2012 The Manager Companies ASX Limited 20 Bridge Street Sydney NSW 2000 (13 pages by email) Dear Madam

BOWEN BASIN PROJECTS DRILLING UPDATE Highlights

Core and open hole drilling continued with a focus on the Baralaba South project (MDL 352). The planned drilling programs in the Baralaba North project (MLA 80170) and northern extension of the Baralaba mine project (MLA 80169), as well as in the Baralaba South project (MDL 352) were successfully completed.

The first coring phase in Baralaba South has been completed. All raw coal quality and washability results for the Baralaba South project area have been

received and are now being interrogated as part of the planning for the large diameter (200mm) drilling. This includes data for the Boyd, Cameron, Sub-Cameron, Reid, Doubtful, Dawson, Dunstan, Wright, Coolum, and Dirty seams.

The raw coal quality results continue to illustrate the low ash and high energy values observed in the existing operational pit of the Baralaba mine.

Additional core and open hole drilling for raw coal quality in Baralaba South has now commenced and core and open hole drilling for geotechnical, fugitive gas and structural data is planned.

Since the last update: o A total of 106 holes for 19,337 metres have been drilled in the Bowen Basin

projects. o 11 open holes for 1,691 metres have been drilled in the Baralaba North project. o 3 open holes for 592 metres have been drilled in the Baralaba mine project. o 84 open holes for 16,024 metres have been drilled in the Baralaba South project. o 8 cored holes for 1,030 metres have been drilled in the Baralaba South project for

coal quality test work. Recent drilling in MLA 80169 has cumulative down hole coal intercepts of up to 24.3

metres with an average thickness of 12.2 metres. Exploration potential remains open in most directions. F

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The Bowen Basin projects The Company's Bowen Basin projects comprise:

• MLs 5580, 5581, 5590, 5605 and 80157, MDL184 and MLA 80169 (Baralaba mine project), which are held by the Company's 62.5% owned subsidiary, Baralaba Coal Pty Limited;

• MDL 352, EPCs 1047, 2107 and 2143 to the south of Baralaba Township ( Baralaba South project) and EPC 1047, MDLA 416 and MLA 80170 to the north of the Baralaba mine (Baralaba North project) which are held by the Company's 80% owned subsidiary, Wonbindi Coal Pty Limited; and

• The Dingo project comprising EPCs 862 (Dingo South), 863 (Middle Creek) and 1063 (Tryphinia) which are which are currently 49% owned by the Company's 100% owned subsidiary, Independent Coal Pty Limited and which are subject to a Joint Venture Farmout agreement.

The Company's Bowen Basin projects extend from the Dingo project in the north to the Baralaba South project in the south and have contiguous target areas covering an area of approximately 56,320 hectares with Permian age, Rangal Coal Measures sub-cropping over a strike length of approximately 92 kilometres. Production at the Baralaba mine has demonstrated that the seams of the Rangal Coal Measures in this area have PCI and thermal coal properties. The seams mined at the Baralaba mine have been intersected in the Baralaba South and Baralaba North target areas. Since the last update the Company has continued exploration and development drilling activities at full capacity. Seven exploration rigs, carrying out open hole chip drilling and coal quality coring for raw coal were operating in the Baralaba North, Baralaba Mine and Baralaba South project areas, moving the projects towards the necessary knowledge base for mine planning to occur. The main focus of exploration activities was shifted to the Baralaba South project. The first coal quality coring program in Baralaba South project area has been completed and all raw coal quality results have now been received. The next coal quality coring program in the Baralaba South project area has commenced. An interrogation of the Baralaba South project area geological and coal quality model was carried out and an upgraded JORC compliant resource estimate is expected to be released during the next quarter. The Company envisages future production from the Baralaba Mine, Baralaba North and Baralaba South project areas, subject to rail and port upgrades, as a key step in the realisation of the Company’s strategic goals.

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Bowen Basin project areas.

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A summary of the Company's Bowen Basin projects' currently defined and reported coal reserves and resources, by project on a 100% basis, is as follows:

Project Ownership (%) Tenement

Depth of Resource

(m) JORC Classification

Reserves Resources

Marketable

(Mt) Measured

(Mt) Indicated

(Mt) Inferred

(Mt) Total (Mt)

Baralaba mine 62.5 MLs 5605 and 80157 <200 1.2** 4.7 8.4 4 17* 62.5 MDL 184 (MLA 80169) <200 0 2.7 1.9 12 17*

Baralaba North 80.0 MDLA 416 (MLA 80170) <200 6.4 7.4 15.5 23 46*

Baralaba South 80.0 EPC 1047 <200 0 0 0 25 25*

80.0 MDL 352/EPC 1047 <175 25.8 0 44.7 19 64*

Bowen Basin Total 33.4 14.8 70.5 83 168*

* Denotes unchanged JORC estimate from previous announcements. ** Mine reserves depleted since the previous announcement by coal production. The fault-bound structural domains are comprised of JORC Measured, Indicated and Inferred categories depending on the number of Points of Observation (drill holes) within each area and the probability of economically viable development. Drilling activities and coal quality analytical efforts have focused on the distinct structural domains and as such upgrades in the JORC Resource categories have occurred within these defined areas. In the Dingo project, open hole drilling has continued since the last update in the Pearl Creek target. Having earned a 51% interest in the project, the Company's joint venture partner, Boardwalk Dingo Resources Pty Limited, now manages the Dingo project. Since the last update, a total of 54 holes for 12,519 metres have been drilled in the Pearl Creek area, comprising 43 open holes for 10,642 metres and 11 cored holes for 1,876 metres.

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Dingo drill hole locations.

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Statement of Compliance The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Dr Oliver Holm, geologist, who is a Member of the Australasian Institute of Mining and Metallurgy. Oliver Holm is a full-time employee of the Company who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Oliver Holm has consented to the inclusion in this report of the matters based on his information in the form and context in which they appear. For further information, contact Andrew Lawson, Mark Lochtenberg or Peter Nightingale on (61-2) 9300 3333. Yours faithfully

Peter J. Nightingale Director pjn6677

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Appendix 1

Drill hole coordinates and cumulative thickness of coal in the Baralaba Mine, Baralaba North (MLA 80169, MLA 80170) and Baralaba South (MDL 352, EPC 1047) projects of holes drilled since the last update are listed below. CH denotes a slim diameter cored hole, while R denotes a redrill. Coal intercepts, as determined from down-hole geophysical logging are as follows:

Drill Hole Tenement Area Easting 94

Northing 94

RL (m)

Total Depth (m)

Cum. Coal Thick. (m)

Depth of Cum. Coal Thick. (m)

BCM/T Ratio at Base of Coal

Depth of Best BCM/T Ratio (m)

Best BCM/T Ratio

Comments

BM0581 MDL184 Baralaba Mine 783728 7328188 92 200 9.7 169 11.1 116 9.9

BM0582 MDL184 Baralaba Mine 783592 7327844 110 192 13.2 187 8.9 136 7.2

BM0583 MDL184 Baralaba Mine 783443 7328241 86 200 4.5 66 9.2 66 9.2

BN0328R1 EPC1047 Baralaba North 784019 7329456 96 163 9.8 91 5.6 47 4.5

BN0330 EPC1047 Baralaba North 784132 7329497 96 29 - - - - - No coal

BN0330R1 EPC1047 Baralaba North 784138 7329501 96 151 - - - - - No coal

BN0331 EPC1047 Baralaba North 783352 7328231 85 202 24.2 194 4.8 194 4.8

BN0332 EPC1047 Baralaba North 784219 7329182 82 150 3.9 44 6.9 44 6.9

BN0333 EPC1047 Baralaba North 784382 7328875 98 160 4.7 34 4.3 34 4.3

BN0334 EPC1047 Baralaba North 784312 7328850 104 134 7.6 84 6.8 27 3.8

BN0335 EPC1047 Baralaba North 784122 7329147 91 201 10.8 147 8.5 147 8.5

BN0336 EPC1047 Baralaba North 784182 7328808 120 150 1.1 87 52.9 87 52.9

BN0337 EPC1047 Baralaba North 784024 7329114 131 201 11.3 90 4.7 33 3.0

BN0338 EPC1047 Baralaba North 784467 7328734 110 150 2.8 27 5.7 27 5.7

BS0082CH MDL352 Baralaba South 789741 7313917 89 192 6.6 183 18.0 30 9.8

BS0085CH MDL352 Baralaba South 791493 7313053 110 98 2.9 83 19.1 83 19.1

BS0086CH MDL352 Baralaba South 791680 7312734 110 77 7.1 63 5.3 47 5.0

BS0087CH MDL352 Baralaba South 791433 7313007 111 43 3.1 39 7.7 39 7.7

BS0087CHR1 MDL352 Baralaba South 791426 7312989 111 202 21.8 185 5.1 111 4.0

BS0088CH MDL352 Baralaba South 791831 7311196 103 188 7.1 174 15.9 174 15.9

BS0089CH MDL352 Baralaba South 791871 7311212 106 54 1.7 47 17.6 47 17.6

BS0090CH MDL352 Baralaba South 792458 7311469 96 176 5.6 169 19.9 64 15.8

BS0091 EPC1047 Baralaba South 789733 7314993 113 18 - - - - - No coal

BS0091R1 EPC1047 Baralaba South 789729 7314997 113 20 - - - - - No coal

BS0092 EPC1047 Baralaba South 789620 7314935 89 200 18.8 183 5.9 76 3.6

BS0093 EPC1047 Baralaba South 789205 7314695 87 205 17.4 188 6.7 28 5.1

BS0094 EPC1047 Baralaba South 789707 7314985 89 201 4.9 133 17.6 41 17.1

BS0095 MDL352 Baralaba South 790599 7313756 98 211 14.6 196 8.4 196 8.4

BS0096 MDL352 Baralaba South 790275 7313758 93 200 14.9 196 8.2 187 8.0

BS0097 MDL352 Baralaba South 790038 7313767 93 201 16.9 184 6.7 150 6.3

BS0098 MDL352 Baralaba South 790493 7313701 96 196 11.3 177 9.9 22 3.8

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BS0099 MDL352 Baralaba South 790411 7313654 95 200 12.7 180 8.9 146 7.3

BS0100 MDL352 Baralaba South 789875 7313669 93 201 12.5 164 8.2 30 4.0

BS0101 MDL352 Baralaba South 790304 7313587 96 202 10.9 197 11.5 34 8.5

BS0102 MDL352 Baralaba South 790119 7313682 97 200 - - - - - No coal

BS0103 MDL352 Baralaba South 790699 7313641 100 210 13.5 106 4.6 106 4.6

BS0104 MDL352 Baralaba South 790219 7313540 100 200 15.1 195 8.0 33 7.4

BS0105 MDL352 Baralaba South 790127 7313494 103 200 11.5 177 9.7 55 6.7

BS0106 MDL352 Baralaba South 789994 7313613 99 201 7.9 183 15.0 163 14.1

BS0107 MDL352 Baralaba South 790036 7313446 102 200 9.3 181 12.6 148 10.9

BS0108 MDL352 Baralaba South 790582 7313579 102 200 9.0 173 12.4 173 12.4

BS0109 MDL352 Baralaba South 789790 7313618 91 201 13.1 193 9.3 22 4.6

BS0110 MDL352 Baralaba South 789855 7313353 92 200 17.2 187 6.7 17 3.5

BS0111 MDL352 Baralaba South 790515 7313544 101 200 9.9 181 11.7 161 10.9

BS0112 MDL352 Baralaba South 790968 7313460 109 207 7.8 200 16.8 108 10.1

BS0113 MDL352 Baralaba South 790947 7313604 110 201 7.2 175 15.7 99 15.1

BS0114 MDL352 Baralaba South 791167 7313266 111 200 12.8 167 8.2 63 5.4

BS0115 MDL352 Baralaba South 790922 7313436 109 201 13.9 194 8.7 128 7.3

BS0116 MDL352 Baralaba South 790771 7313512 106 201 17.7 190 6.6 31 4.5

BS0117 MDL352 Baralaba South 790469 7313519 99 200 17.2 185 6.6 137 5.7

BS0118 MDL352 Baralaba South 790989 7313168 109 200 11.6 166 9.0 137 8.2

BS0119 MDL352 Baralaba South 790904 7313120 107 200 24.3 188 4.6 118 3.8

BS0120 MDL352 Baralaba South 790833 7313389 108 201 18.2 181 6.0 45 2.5

BS0121 MDL352 Baralaba South 790248 7313392 102 201 9.6 184 12.3 184 12.3

BS0122 MDL352 Baralaba South 790443 7313168 102 201 11.4 185 10.3 185 10.3

BS0123 MDL352 Baralaba South 790313 7313256 102 202 12.4 183 9.3 32 7.8

BS0124 MDL352 Baralaba South 790918 7313279 107 201 19.1 180 5.7 180 5.7

BS0125 MDL352 Baralaba South 790141 7313333 104 207 16.4 195 7.4 29 5.6

BS0126 MDL352 Baralaba South 790356 7313117 105 201 14.5 191 8.2 132 6.7

BS0127 MDL352 Baralaba South 790207 7313196 103 201 9.6 179 11.9 95 11.5

BS0128 MDL352 Baralaba South 789859 7313178 90 201 12.8 172 8.4 13 3.9

BS0129 MDL352 Baralaba South 790743 7313182 103 208 16.7 200 7.4 121 5.8

BS0130 MDL352 Baralaba South 790775 7313045 104 201 8.1 163 13.0 163 13.0

BS0131 MDL352 Baralaba South 790112 7313150 99 200 9.4 162 11.0 54 8.7

BS0132 MDL352 Baralaba South 790180 7312556 94 202 15.6 177 7.0 31 3.8

BS0133 MDL352 Baralaba South 790647 7312970 105 200 12.1 162 8.4 120 8.1

BS0134 MDL352 Baralaba South 789939 7313052 91 205 13.1 199 9.5 133 8.8

BS0135 MDL352 Baralaba South 790559 7312919 107 200 11.2 193 11.0 96 9.2

BS0136 MDL352 Baralaba South 790488 7312720 105 204 8.5 197 15.1 60 13.5

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BS0137 MDL352 Baralaba South 790657 7313133 100 202 9.8 185 12.0 164 10.9

BS0138 MDL352 Baralaba South 789944 7313227 96 201 10.7 176 10.4 125 9.9

BS0139 EPC1047 Baralaba South 788982 7314265 87 202 12.6 197 9.9 89 8.4

BS0140 MDL352 Baralaba South 789890 7313026 90 207 14.7 197 8.4 17 3.2

BS0141 MDL352 Baralaba South 790614 7313108 102 202 17.8 185 6.3 42 4.1

BS0142 MDL352 Baralaba South 790531 7312746 107 200 8.8 96 6.7 96 6.7

BS0143 MDL352 Baralaba South 790055 7313282 102 201 11.7 164 8.8 66 8.0

BS0144 EPC1047 Baralaba South 788806 7314472 88 200 9.9 190 12.4 94 10.6

BS0145 MDL352 Baralaba South 790000 7312767 90 201 14.7 192 8.2 43 5.6

BS0146 MDL352 Baralaba South 790471 7312869 108 200 12.8 183 9.0 93 6.1

BS0147 EPC1047 Baralaba South 789062 7314270 89 200 10.0 181 11.6 158 10.7

BS0148 MDL352 Baralaba South 790123 7312668 94 202 13.4 174 8.1 79 7.4

BS0149 MDL352 Baralaba South 790384 7312820 108 201 8.0 182 14.8 66 13.3

BS0150 EPC1047 Baralaba South 789153 7314312 89 200 14.2 192 8.5 192 8.5

BS0151 MDL352 Baralaba South 790297 7312768 105 200 11.3 188 10.6 73 7.9

BS0152 MDL352 Baralaba South 790263 7312914 110 24 - - - - - No coal

BS0152R1 MDL352 Baralaba South 790271 7312920 107 208 13.2 200 9.6 31 7.8

BS0153 MDL352 Baralaba South 790574 7312770 109 200 11.3 183 10.3 38 8.1

BS0154 MDL352 Baralaba South 791138 7312948 111 200 20.5 188 5.5 188 5.5

BS0155 EPC1047 Baralaba South 789256 7314373 89 200 14.0 176 7.9 23 4.5

BS0156 EPC1047 Baralaba South 789304 7314399 89 200 11.4 184 10.2 184 10.2

BS0157 MDL352 Baralaba South 791044 7312900 111 200 16.0 195 7.5 128 7.0

BS0158 MDL352 Baralaba South 790308 7312937 108 207 10.6 200 12.1 200 12.1

BS0159 MDL352 Baralaba South 790996 7312599 107 200 9.6 166 11.0 166 11.0

BS0160 MDL352 Baralaba South 790897 7312802 117 19 - - - - - No coal

BS0160R1 MDL352 Baralaba South 790876 7312797 109 200 13.2 174 8.3 40 6.3

BS0161 EPC1047 Baralaba South 789454 7314477 89 201 8.4 180 13.9 180 13.9

BS0162 MDL352 Baralaba South 789169 7313958 90 200 15.1 154 6.2 56 4.5

BS0163 MDL352 Baralaba South 789648 7314226 89 200 8.0 183 14.8 161 13.7

BS0164 MDL352 Baralaba South 789381 7314066 89 200 12.9 185 9.0 29 4.2

BS0165 MDL352 Baralaba South 790319 7312485 101 200 13.1 189 9.1 43 6.4

BS0166 EPC1047 Baralaba South 788983 7314566 76 23 - - - - - No coal

BS0166R1 EPC1047 Baralaba South 788986 7314569 87 160 2.2 118 35.6 118 35.6

BS0167 MDL352 Baralaba South 791004 7311765 98 210 15.3 196 8.0 196 8.0

BS0168 MDL352 Baralaba South 789507 7313791 89 206 12.6 200 10.1 200 10.1

BS0169 MDL352 Baralaba South 790569 7312353 100 200 16.2 189 7.2 36 4.9

BS0173 MDL352 Baralaba South 791183 7311847 103 234 13.5 173 8.0 173 8.0

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Appendix 2 Drill hole coordinates and total depth in the Dingo Project of holes drilled since the last update are listed below. C denotes a slim diameter cored hole, while R denotes a redrill.

Drill Hole Tenement Area Easting 94

Northing 94 RL (m)

Total Depth (m)

DG0384 EPC862 Pearl Creek 759607 7364265 97 252

DG0386 EPC862 Pearl Creek 759768 7364384 99 252

DG0388 EPC862 Pearl Creek 759936 7364494 101 252

DG0389 EPC862 Pearl Creek 760012 7364560 102 240

DG0392 EPC862 Pearl Creek 759142 7364918 105 247

DG0393 EPC862 Pearl Creek 759017 7365009 105 247

DG0394 EPC862 Pearl Creek 759274 7365174 104 241

DG0396 EPC862 Pearl Creek 759748 7364617 103 235

DG0397 EPC862 Pearl Creek 759655 7364548 103 273

DG0398 EPC862 Pearl Creek 759569 7364501 102 253

DG0399 EPC862 Pearl Creek 759483 7364434 102 262

DG0400 EPC862 Pearl Creek 759381 7364588 105 253

DG0401 EPC862 Pearl Creek 759471 7364638 105 247

DG0402 EPC862 Pearl Creek 759540 7364706 100 219

DG0403 EPC862 Pearl Creek 759185 7365111 104 247

DG0404 EPC862 Pearl Creek 759105 7365071 104 247

DG0405 EPC862 Pearl Creek 758955 7365126 105 274

DG0406 EPC862 Pearl Creek 759218 7364712 95 247

DG0407 EPC862 Pearl Creek 759018 7365178 104 247

DG0408 EPC862 Pearl Creek 759098 7365243 104 247

DG0409 EPC862 Pearl Creek 759317 7365023 104 253

DG0410 EPC862 Pearl Creek 759382 7365077 103 241

DG0411 EPC862 Pearl Creek 759462 7365127 102 247

DG0412 EPC862 Pearl Creek 759527 7365182 101 259

DG0413 EPC862 Pearl Creek 759181 7365295 104 252

DG0414 EPC862 Pearl Creek 758857 7365325 103 273

DG0415 EPC862 Pearl Creek 758946 7365380 103 253

DG0416 EPC862 Pearl Creek 759017 7365440 102 247

DG0417 EPC862 Pearl Creek 758742 7365493 99 247

DG0418 EPC862 Pearl Creek 758819 7365550 101 253

DG0419 EPC862 Pearl Creek 759229 7364974 105 247

DG0420 EPC862 Pearl Creek 760184 7364631 100 247

DG0421 EPC862 Pearl Creek 759695 7364326 95 247

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DG0422 EPC862 Pearl

Creek 760094 7364598 95 258

DG0423 EPC862 Pearl Creek 759861 7364446 100 245

DG0424 EPC862 Pearl Creek 760062 7364851 98 247

DG0425 EPC862 Pearl Creek 759984 7364777 100 247

DG0426 EPC862 Pearl Creek 759375 7364825 100 247

DG0427 EPC862 Pearl Creek 759470 7364889 100 253

DG0428 EPC862 Pearl Creek 759306 7364784 100 247

DG0429C EPC862 Pearl Creek 759730 7364838 101 198

DG0430 EPC862 Pearl Creek 759822 7364678 100 247

DG0431 EPC862 Pearl Creek 759905 7364713 100 253

DG0432C EPC862 Pearl Creek 759660 7364543 101 230

DG0433C EPC862 Pearl Creek 759068 7365722 98 199

DG0433R EPC862 Pearl Creek 759067 7365727 95 150

DG0434C EPC862 Pearl Creek 758470 7366162 94 178

DG0434CA EPC862 Pearl Creek 758472 7366162 94 126

DG0435C EPC862 Pearl Creek 758780 7365920 98 197

DG0436C EPC862 Pearl Creek 759560 7365203 101 240

DG0438C EPC862 Pearl Creek 759018 7365190 104 187

DG0440C EPC862 Pearl Creek 759559 7365208 101 84

DG0441C EPC862 Pearl Creek 758750 7365493 99 144

DG0442C EPC862 Pearl Creek 758530 7365796 94 93

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