Continuous Disclosure

Solid Energy's (SOLIDE) Spring Creek operations stopped

21 February 2012

On Monday morning (20 February 2012) the Department of Labour's Mines Inspectorate issued a Prohibition Notice to Solid Energy's (SOLIDE) Spring Creek Underground Mine at Greymouth.

The effect of the Notice is that all underground operations have ceased, except for regular inspections by staff and any actions required to ensure the on-going safety of the underground environment.

Solid Energy management this morning (21 February) discussed the Notice with Inspectorate officials and is confident that the company will be able to satisfy DoL requirements for the Notice to be lifted.

The company will only recommence underground operations when it is fully satisfied that the mine meets Solid Energy senior management and Board's own safety expectations, and the timing of this is under review.

The stoppage is not expected to have any material impact on the company's 2012 Full Year results. This is because the mine is currently in development, preparing the next block of coal resources for extraction, and this phase is expected to continue for the remainder of the 2011-12 year.