SGS-CSTC Tianjin Branch

C1-8 to 9, 1/F, No.41, The 5th Aveune

Kaitai Business Incubation Building
TEDA, Tianjin
Red Hill Energy Inc. China 300457
Suite 203, 15A-5 Ph: +86 (0) 22 2529 3899
Ambassador Office, Peace Avenue Fax: +86 (0) 22 2529 3819
Sukhbaataar District Internet: www.cn.sgs.com
Ulaanbaatar, Mongolia

Red Hill Energy Core Quality, 2006 Drill Holes

SGS Reference: MNCOL2010/r276TJ

Client Reference: Red Hill Energy Core Quality, 2006 Drill Holes
Project: Average Coal Quality by Seam
Status: Final
Received: 14 June 2006
Analyzed: 30 June-21 July 2006; 26 June 2007
Reported: 26 March 2010

Pages: 4

Date Issued: 26 March 2010

Authorised by: For and on behalf of

SGS-CSTC Technical Services Co., Ltd.

RAY KOKE
TECHNICAL MANAGER

ISO 9001 Registered

ISO 17025 Accredited for Specific Tests: Licence No. L2774

The results in this analytical report pertain to the samples provided to this laboratory for preparation and/or analysis
as requested by the client.
This document is issued by the company subject to its General Conditions of service ( www.sgs.com/generalconditions ).
Attention is drawn to the limitations of liability, indemnification and justifications issues established therein.

C1-8 to 9, 1/F, No.41, The 5th Aveune TEDA, Tianjin

SGS-CSTC Tianjin Branch
Ph: +86 (0) 22 2529 3899 Fax: +86 (0) 22 2529 3819 www.sgs.com

Member of SGS Group

 SGS-CSTC Tianjin Branch
C1-8 to 9, 1/F, No.41, The 5th Aveune
Kaitai Business Incubation Building
TEDA, Tianjin
SGS Reference: MN2010/r276TJ China 300457
Client Reference: Red Hill Core Plies, 2006 Ph: +86 (0) 22 2529 3899
Project: Average Coal Quality by Seam Fax: +86 (0) 22 2529 3819
Status: Final Internet: www.cn.sgs.com
Reported: 26 March 2010
Page 1 of 4

ANALYTICAL REPORT
Ulaan Ovoo Average Coal Quality Specification - 2006 Drilling Programme
Proximate Analysis % ar % ad % db Mineral Ash Analysis (Ignited) %
Moisture 20.03 10.97 - Silicon Dioxide, SiO 2 52.06
Ash 12.46 13.87 15.36 Aluminum Oxide, Al 2O3 20.08
Sulfur 0.40 0.44 0.50 Titanium Dioxide, TiO 2 1.59
Volatile 28.65 31.90 35.94 Calcium Oxide, CaO 3.58
F.Carbon 38.86 43.26 48.70 Iron Oxide, Fe 2O3 15.02
kcal/kg 5,092 5,668 6,367 Magnesium Oxide, MgO 1.49
Btu/lb 9,165 10,203 11,460 Sodium Oxide, Na2O 0.68
MJ/kg 21.322 23.737 26.662 Potassium Oxide, K2O 1.64
Sulfur Trioxide, SO 3 1.86
Ultimate Analysis % ar % db Strontium Oxide, SrO 0.29
Carbon 52.46 65.77 Barium Oxide, BaO 0.22
Hydrogen 3.46 4.33 Manganese Oxide, Mn3O4 0.26
Nitrogen 1.26 1.58 Phosphorus Pentoxide, (P2O5) 1.22
Oxygen 9.93 12.46
Trace Elements ppm
Water Soluble Alkalies % ar % db Antimony <1
Sodium 0.017 0.021 Arsenic <1
Potassium <0.002 0.003 Barium 228
Beryllium 1
Sulfur Forms % ar % db Boron 16
Pyritic 0.10 0.13 Bromine <20
Sulfate <0.03 <0.04 Cadmium <0.4
Organic 0.27 0.33 Chlorine <10
Chromium 14
Ash Fusion Temperature Reducing Oxidizing Cobalt 8
IT 2161 2412 Copper 18
ST 2231 >2473 Fluorine 239
HT 2342 >2518 Lead <4
FT >2404 >2551 Lithium 4
Manganese 191
Temperature °C °F Mercury <0.03
T250 >1418 >2585 Molybdenum <4
Nickel 11
Hardgrove Grindability Index Selenium <1
HGI 58 Silver <0.4
HGI Moisture (%) 9.53 Strontium 272
Thallium <2
Miscellaneous Analyses Tin <2
3
Apparent Specific Gravity (g/cm ) 1.36 Vanadium 35
Equilibrium Moisture (%) 18.8 Zinc 31
Vitrinite Reflectance (R 0) 0.61 Zirconium 25

C1-8 to 9, 1/F, No.41, The 5th Aveune TEDA, Tianjin

SGS-CSTC Tianjin Branch Ph: +86 (0) 22 2529 3899 Fax: +86 (0) 22 2529 3819 www.sgs.com

Member of SGS Group

 SGS-CSTC Tianjin Branch
C1-8 to 9, 1/F, No.41, The 5th Aveune
Kaitai Business Incubation Building
TEDA, Tianjin
SGS Reference: MN2010/r276TJ China 300457
Client Reference: Red Hill Core Plies, 2006 Ph: +86 (0) 22 2529 3899
Project: Average Coal Quality by Seam Fax: +86 (0) 22 2529 3819
Status: Final Internet: www.cn.sgs.com
Reported: 26 March 2010
Page 2 of 4
ANALYTICAL REPORT
Average Coal Quality by Seam (as-received basis)
Total Volatile Fixed Calorific Value (ar)
Coal Seam Moisture Ash Matter Carbon Sulfur Btu/lb kcal/kg
Gol Seam 21.44 9.13 29.85 39.58 0.38 9,482 5,268
Gol-1 Seam 19.58 15.80 27.24 37.37 0.42 8,752 4,862
Gol-2 Seam 21.29 9.66 30.86 38.18 0.28 9,298 5,165
Gun Seam 17.05 14.94 29.05 38.96 0.39 9,363 5,202
Gun-1 Seam 15.00 22.48 25.55 36.97 0.55 8,654 4,808
Gun-2 Seam 16.04 15.87 28.11 39.98 0.46 9,500 5,278
Mod Seam 15.63 22.91 26.62 34.84 0.52 8,367 4,649
Tag Seam 19.41 12.39 31.34 36.86 0.63 9,126 5,070
Average Coal Quality by Seam (air-dried basis)
Inherent Volatile Fixed Calorific Value (ad)
Coal Seam Moisture Ash Matter Carbon Sulfur Btu/lb kcal/kg
Gol Seam 10.51 10.28 34.03 45.18 0.43 10,818 6,010
Gol-1 Seam 12.45 17.19 29.67 40.69 0.46 9,530 5,294
Gol-2 Seam 13.29 10.68 34.00 42.03 0.31 10,236 5,687
Gun Seam 8.33 16.38 32.14 43.16 0.43 10,370 5,761
Gun-1 Seam 10.61 23.64 26.87 38.88 0.58 9,100 5,056
Gun-2 Seam 11.98 16.64 29.47 41.91 0.48 9,959 5,533
Mod Seam 10.42 24.26 28.28 37.03 0.55 8,894 4,941
Tag Seam 13.70 13.26 33.57 39.47 0.67 9,774 5,430
Average Coal Quality by Seam (dry basis)
Volatile Fixed Calorific Value (db) Calorific Value (daf)
Coal Seam Ash Matter Carbon Sulfur Btu/lb kcal/kg Btu/lb kcal/kg
Gol Seam 11.33 38.05 50.62 0.49 12,111 6,729 13,635 7,575
Gol-1 Seam 19.45 33.94 46.61 0.52 10,913 6,063 13,511 7,506
Gol-2 Seam 12.25 39.21 48.53 0.35 11,813 6,563 13,452 7,474
Gun Seam 17.55 35.13 47.32 0.47 11,364 6,313 13,696 7,609
Gun-1 Sea 26.45 30.07 43.48 0.65 10,180 5,656 13,836 7,687
Gun-2 Seam 18.90 33.48 47.62 0.54 11,315 6,286 13,953 7,752
Mod Seam 26.96 31.62 41.42 0.61 9,948 5,526 13,544 7,524
Tag Seam 15.35 38.89 45.76 0.78 11,328 6,293 13,378 7,432
Average Coal Quality by Seam (miscellaneous analyses)
Total Total Core Specific
Coal Seam Samples (m) CSN (FSI) Gravity
Gol Seam 89 215.7 1.0 1.32
Gol-1 Seam 25 40.2 0.5 1.38
Gol-2 Seam 45 114.6 0.5 1.34
Gun Seam 9 18.8 1.0 1.37
Gun-1 Sea 2 3.3 0.5 1.46
Gun-2 Seam 1 1.3 1.0 1.36
Mod Seam 14 17.3 0.5 1.46
Tag Seam 4 6.0 0.5 1.39

C1-8 to 9, 1/F, No.41, The 5th Aveune TEDA, Tianjin

SGS-CSTC Tianjin Branch
Ph: +86 (0) 22 2529 3899 Fax: +86 (0) 22 2529 3819 www.sgs.com

Member of SGS Group

 SGS-CSTC Tianjin Branch
C1-8 to 9, 1/F, No.41, The 5th Aveune
Kaitai Business Incubation Building
TEDA, Tianjin
SGS Reference: MN2010/r276TJ China 300457
Client Reference: Red Hill Core Plies, 2006 Ph: +86 (0) 22 2529 3899
Project: Average Coal Quality by Seam Fax: +86 (0) 22 2529 3819
Status: Final Internet: www.cn.sgs.com
Reported: 26 March 2010
Page 3 of 4

ANALYTICAL REPORT
Ulaan Ovoo Average Coal Quality Specification - 2006 Drilling Programme
Volatile Fixed
Moisture Ash Matter Carbon Sulfur Calorific Value
Analytical Basis % % % % % kcal/kg Btu/lb MJ/kg
As-received (ar) 20.03 12.46 28.65 38.86 0.40 5,092 9,165 21.322
Air-dried (ad) 10.97 13.87 31.90 43.26 0.44 5,668 10,203 23.737
Dry basis (db) 15.58 35.83 48.59 0.50 6,367 11,460 26.662
Dry, ash-free (daf) 42.44 57.56 0.59 7,542 13,576 31.583
Dry, mineral matter-free (dmmf) 41.48 58.52
Moist, mineral matter-free (mmmf) 20.030 5,875 10,576 24.604
Net as-received (NAR, Nievel method) 5,063 9,114 21.203
Net as-received (NAR, Dulong method) 5,013 9,023 20.992

C1-8 to 9, 1/F, No.41, The 5th Aveune TEDA, Tianjin

SGS-CSTC Tianjin Branch
Ph: +86 (0) 22 2529 3899 Fax: +86 (0) 22 2529 3819 www.sgs.com

Member of SGS Group

 SGS-CSTC Tianjin Branch
C1-8 to 9, 1/F, No.41, The 5th Aveune
Kaitai Business Incubation Building
TEDA, Tianjin
SGS Reference: MN2010/r276TJ China 300457
Client Reference: Red Hill Core Plies, 2006 Ph: +86 (0) 22 2529 3899
Project: Average Coal Quality by Seam Fax: +86 (0) 22 2529 3819
Status: Final Internet: www.cn.sgs.com
Reported: 26 March 2010
Page 4 of 4
STANDARD METHODS
The tests contained within this report have been carried out in accordance with the following Standard Methods.
Coal Quality Parameters Standard Test Method
As Received Basis Moisture (%) ASTM D 3302:2005
EQ Moisture Basis Moisture (%) ASTM D 1412:2004
Air Dried Basis Moisture (%) ASTM D 3173:2003
Ash (%) ASTM D 5142:2004
Proximate Analysis (Dry Sulfur (%) ASTM D 5142:2004
Basis) Volatile (%) ASTM D 5142:2004
kcal/kg ASTM D 5865:2004
Hardgrove Grindability Index (HGI) ASTM D 4089:2002
Carbon (%) ASTM D 5373:2002
Ultimate Analysis Hydrogen (%) ASTM D 5373:2002
(Dry Basis) Nitrogen (%) ASTM D 5373:2002
Oxygen (%) ASTM D 5373:2002
IT (°F) ASTM D 1857:2004
Ash Fusion
ST (°F) ASTM D 1857:2004
Temperature
HT (°F) ASTM D 1857:2004
(Reducing/Oxidizing)
FT (°F) ASTM D 1857:2004
SiO2 (%) ASTM D 4236:2004
Al2O3 (%) ASTM D 4236:2004
TiO2 (%) ASTM D 4236:2004
Fe2O3 (%) ASTM D 4236:2004
CaO (%) ASTM D 4236:2004
MgO (%) ASTM D 4236:2004
Mineral Analysis of Ash
K2O (%) ASTM D 4236:2004
(% Weight Ignited Basis)
Na2O (%) ASTM D 4236:2004
SO3 (%) ASTM D 4236:2004
P2O5 (%) ASTM D 4236:2004
SrO (%) ASTM D 4236:2004
BaO (%) ASTM D 4236:2004
Mn2O3 (%) ASTM D 4236:2004
Ash Viscosity Temp. T250 (°F) B&W Steam 40th Ed.
Pyritic (%) ASTM D 2492:2002
Sulfur Forms
Organic (%) ASTM D 2492:2002
(Dry Basis)
Sulfate (%) ASTM D 2492:2002

Trace Elements Standard Test Method Trace Elements Standard Test Method
Antimony ASTM D 6357:2004 Lithium ASTM D 6357:2004
Arsenic ASTM D 6357:2004 Manganese ASTM D 6357:2004
Barium ASTM D 6357:2004 Mercury ASTM D 3684:1994 (2006)
Beryllium ASTM D 6357:2004 Molybdenum ASTM D 6357:2004
Boron ASTM D 6357:2004 Nickel ASTM D 6357:2004
Bromine ASTM D 3761:1996 (2002) Selenium ASTM D 6357:2004
Cadmium ASTM D 6357:2004 Silver ASTM D 6357:2004
Chloride ASTM D 4208:2002 Strontium ASTM D 6357:2004
Chromium ASTM D 6357:2004 Thallium ASTM D 6357:2004
Colbalt ASTM D 6357:2004 Tin ASTM D 6357:2004
Copper ASTM D 6357:2004 Vanadium ASTM D 6357:2004
Fluoride ASTM D 3761:1996 (2002) Zinc ASTM D 6357:2004
Lead ASTM D 6357:2004 Zirconium ASTM D 6357:2004
SGS-CSTC Tianjin Branch C1-8 to 9, 1/F, No.41, The 5th Aveune TEDA, Tianjin
Ph: +86 (0) 22 2529 3899 Fax: +86 (0) 22 2529 3819 www.sgs.com

Member of SGS Group