GCL

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Gloucester Coal Ltd (Gloucester Coal) is engaged in coal mining. The Company is also involved in the production and marketing of coal from the Duralie open pit coal mining operation. During the fiscal year ended June 30, 2006 (fiscal 2006), Gloucester Coal sold 1.9 million tones of coal. In fiscal 2006, the Company undertook two projects: the first project was an expansion to the product stockpile area. The second project was an upgrade of the reject pipeline. This pipeline had become a bottleneck for any throughput capacity increase. The larger diameter pipe and upgraded pumping system allows a greater volume of material to be pumped to the emplacement area. On 21 August 2006, the Company announced that drilling of the Clareval Seam on the prospective Eastern side of the Gloucester Basin had identified thick intersections of shallow coal. Gloucester Coal Ltd owns 100% of the Stratford Joint Venture.

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