BRIE 2 ae CHN ENERGY Ling Wen Acnbnn of Boomer Clause 2.2(b) of the Deed of Settlement also provides that the NSW Government will: ‘as soon as reasonably practicuble determine the Renewal Application (as ‘amended in accordance with the Amendment of Application) and notify ‘the Company of the determination in writing. I note that the Department of Planning and Environment ~ Resources & Energy (Department) website indicates that the service delivery standard for an exploration licence renewal is 45 days. Given the Department has indicated that the pending renewal application is adequate and meets the Department's requirements, Shenhua cannot understand why the 45 business-day service delivery standard has not been met in respect of its application. Further, it cannot see how the NSW Government has complied with its obligations under cause 2.2(b) of the Deed of Seitiement to "as soon as reasonably practicable determine the Renewal Application”, Given it has been some 11 months since the Department indicated that the Watermark EL renewal application was in a form acceptable to it, Shenhua sought and had a meeting with Mr, Michael Wright (A/Deputy Secretary, Resources and Geoscience) on 17 May 2018 ‘At this meeting Mr. Wright would not provide an explanation for the delay in the processing of the Watermark EL. renewal application. but raised that one of the issues delaying the project was the Government's consideration of whether Shenhua should be required 10 provide an additional “Community Fund". In particular, Mr. Wright requested an additional $2 million contribution to the "Community Fund" if the Watermark EL is renewed. ‘The existing Watermark EL ineludes the following condition: "The licence holder shall continue to provide AS/million per annum up to « total of ASS milton under this and the previous licence during the continuation of its exploration and feasibility program, 10 the already established Regional Community Trust." Shenhua has complied with this obligation and funded some 50 significant community projects with these funds. For the reasons outlined below Shenhua considers that itis completely unacceptable to request that a new fund be created under an renewal of the Watermark EL: 1, it would be a breach of the Deed of Settlement reached with the State of NSW for the grant of the Watermark EL; ‘Acs 22 Xibahels, Dongeheng Disc, Baling a = 2p: 100011