Coalworks prepares to ditch Hodgson Vale coal EPC1145 ...

Coalworks Ltd - Quarterly Report

Activities Report for the Quarter ended 30 September 2009

Hodgson Vale EPC 1145

An internal review has been conducted on this project in view of its possible divestment into a separate listed company which is under consideration. Work conducted during the quarter was limited to a site reconnaissance visit to assess the suitability of areas for future exploration. Drillhole planning will commence in the next quarter.

See - Coalworks Ltd.

EPC 1145 expires on 21 September 2010 (but can be renewed).

Current spending requirement - $100,000 in year 3.