The Directors are pleased to announce that Cockatoo Coal Limited has entered into revised shareholder and financing arrangements with JFE Shoji Trade Corporation in the partnership arrangements with JFE Shoji in the Company's Bowen Basin projects.

JFE Shoji purchased a 37.5% interest in Baralaba Coal Pty Limited and a 20% interest in Wonbindi Coal Pty Limited in October 2010. Baralaba is the holder of the Company Baralaba mine project and Wonbindi is the holder of the Company Baralaba North and Baralaba South projects all of which are located in the Bowen Basin, Queensland.

Cockatoo has secured a 3.0 million tonne per annum export capacity through the Wiggins Island Coal Export Terminal at Gladstone, scheduled for use in 2014. This coal export capacity will be met by production from the Baralaba complex expansion which is currently in the feasibility study stage.

Under the new arrangements, JFE Shoji will share in the funding of all Baralaba and Wonbindi expenditures on an equity share basis. JFE Shoji will also assist in the marketing of all coal produced from the Company's Bowen Basin projects.