Clarification of Statement in June 2012 Quarterly Report Relating to Ranges of Coal Qualities Exploration Target Ranges for EPC1373 and EPC1818 - Southern Surat Project Highlights

Modelling of historical exploration data has identified an Exploration Target of 200-400 million tonne in EPC 1818 and adjoining EPC 1373 at Southern Surat Project, Queensland;

The target is a low ash, low to medium energy thermal coal ranked as sub-bituminous

An exploration program is being planned to assess the shallow portion of the Exploration Target and

Target size indicates potential for a substantial scale development going forward.

Following compilation of all previous exploration records, Liberty Resources commissioned geological modeling of this data to assist in the design of its initial exploration program for EPC 1818 and EPC 1373. As a result of this modeling an Exploration Target has been quantified with the details of the data used in its determination contained in this release.

The estimated in situ coal reported within this statement represents an "Exploration Target" according to the JORC 2004 Code (Clause 18). The potential quality and quantity shown within is conceptual in nature and there has been insufficient work done at present to define a Mineral Resource under the JORC (2004) Code. It is uncertain if further exploration will result in the determination of a Mineral Resource.

An Exploration Target of 200 to 400 million tonne in situ coal has been identified from an assessment of available exploration data. Liberty Resources is planning to conduct further exploration in EPC1818 and EPC1373 during the current financial year to focus on the shallower and thicker areas of the Exploration Target following which assessment will be made regarding development alternatives and further resource delineation.

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