CCG Meeting Angaston 5 th August 2009

1. CCG Meeting Angaston 5th August 2009

2. Mine Operation Update – Aug 2009 Eastern Area Dressing of upper levels of west face to reduce colour variation ongoing, weather permitting. Seed bombs on the upper levels beginning to germinate. Tree planting continued Mobile crusher continuing to work through reclaim material Investigating seeding via crop duster Western MPL 118 Weather conditions delaying topsoil removal Little activity occurring on MPL until topsoil area dries out and work can recommence Jaekeli Creek Management plan approved by NRM Board and work has commenced on upper area (see photo) Grandfather tree has fresh lush growth appearing through out (see photo)

3. Mine Operation Update – July 2009 Other Met with PIRSA , KRC and PIRSA consultant regarding Overburden options Supplied quarter 2 Compliance Report to PIRSA Continued to supply ABC Birkenhead until 3rd week of August Drag Out plan – letter to PIRSA 6/7/09 – regular Council inspection Front road upgrade program – presentation tonight AECOM noise modeling continued – presentation tonight Capex approved for Sound proofing of Glass Shed compressor room Shrouding around ABC stockpiles, aggregate plant and PC1 Jaeckeli Creek Plan remediation Entrance reseal back to truckwash Truckwash upgrade Dust monitoring equipment Proceeding with noise mitigation measures with neighbours Continuing with Oxigen Mine closure plans Viewing platform – approval from our insurer & needs to be put to FY 11 capital program Open day on 20/9/09 – awaiting insurer response; advertising in newsletter and local papers

4. Mine Operation Update

5. Remediation/ Vegetation Activity Eastern MPL 75 July Activity Weed control spraying Irrigation lines installed Some tubestock planting Proposed Activity Weed control and tubestock planting Trial kangaroo feed/water station (minimise plant damage) Jaeckeli Creek July Activity Removal of wire from fence lines Commence removal of silt/rocks from perimeter of grandfather tree. Future Activity Install geofabric silt fence and rock trap around perimeter of grandfather tree Finish silt /rock removal from Grandfather tree perimeter Weed control spraying Remove commercial rubbish Commence selective planting Bird nest survey to be conducted

6. Remediation/Vegetation Activity

7. Jaeckeli Creek - Grandfather Tree

8. West MPL 118 July Activity Installed silt interception swale base of north mound Proposed Activity Weed control & planting to commence Private Mine PM 120 & 86 July Activity Weed control and brush cutting Removal tree debris adjacent boundary fence Replace plant losses west rail yard buffer Planting west rail embankment, in conjunction with Angaston Lions Club Future Activity Weed control/brush cutting Plant west slope glass shed (completed) Fox baiting control total site, residents to be advised All site activities restricted due to weather conditions Remediation/Vegetation Activity

9. Rail embankment tree planting

10. Rail embankment tree planting

11. Truck Tarp Survey

12. TSP & PM10 Dust results July

13. Dust Emission Reduction Initiatives - EIP

14. Dust Emission Reduction Initiatives

15. Hydrology The hydrology of the Barossa Valley is complex and based on the various aquifers available to licenced users. Sustainability is an important issue for the Barossa long term well being where both vineyard and extractive industry activities continue. Penrice monitors its water volume usage and reports this as required to the relevant authorities. Penrice has two water licenses, one from the pit for 102 ML/annum from the fractured rock aquifer issued in June 2008 issued at Penrice's request. This volume was based on the data of the last seven years of water extracted, as there was no licence prior to this. The other licence was a direct transfer from the purchase of adjacent land at 25.6 ML/annum and comes from one of the two Barossa floor aquifers and is primarily used for irrigation of Penrice's vineyards.  The licence entitlement is at the low end of the volume required by Penrice to control its activities and product addition being subject to climatic conditions and the ability to become less dependent upon water based solutions where a move to engineering based solutions is preferred.  The current pit plan for the private mine is for the level to be at RL 252, we are mining currently at RL 267. This is just one bench lower than the  existing level. Penrice is reviewing the mine plan and pit shell configuration that may enable  continuing to mine to a potentially lower level without the need to extract additional overburden but only after the ore reserve is clearly identified and any likely impacts are understood. Penrice has not sought any increase in it water allocation and is restricted by its licence with monitoring of the volume as is required of all licenced users .  Where Penrice has excess water available within its licence requirements, this has at times been offered to several local vineyard operators to supplement their lower water allocation from the Murray River.  Penrice had a hydrology report prepared in October 2008 by Golder Associates based on concerns by one vineyard operator on its impact and this report was made available to the PCCG in 2008. More recently, modelling of the operation at mine closure had been done by Aquaterra with a review by DWLBC.

16. Resurfacing of entrance 1st stage commenced Wednesday 5th August, completion Monday 10th Contractor employed full time from July through to September 2009 to manage the entrance and exit of the Mine. Specific responsibilities to include: Ensure adherence to tarping Wash down the concrete slab between the truck wash and the cattle grid Hire an additional Streetsweeper based at our site for this period for entrance, sweeping as necessary. Two sweepers in action during resurfacing work. Manage the silt traps at exit Manage the screenings on the entrance and exit Wash down the entrance and exit Envirosweep to continue on current sweeping regime. Silt traps constructed front entrance Councils drains cleaned by Penrice Drag Out and Front Road Upgrade

17. The Truck Wash upgrade commenced 3rd August with completion estimated end August. New 7 metre centre bar with sprays New jets and spinner heads throughout the wash Improved filtration system delivering cleaner recycled water Pump upgrade to supply a greater volume of recycled water Increase the recycle water tank capacity to cope with the volume of traffic Redirect the current pump to become the reclaim pump Install a PLC control unity Improve signage Install red and green light system to instruct drivers on most efficient wash Resurfacing the road from the Truck Wash to the new weighbridge to be completed by October 2009. Drag Out and Front Road Upgrade

18. People People Resources

19. Traffic Counter May 09 June 09 May & June 09