Illawarra Region

Apex Energy NL holds Petroleum Exploration Licenses (PELs) 442 and 444 in the arrangements shown in the tables below. The PEL's which lie along the Illawarra escarpment south of Sydney from Helensburgh, North of Wollongong to Dapto, South of Wollongong. In addition the company has negotiated joint venture agreements with the holders of CCL703, Metropolitan Colliery, and CCL 700, Huntly Heritage Pty Ltd to the rights to mine gas and seam gas within these coal leases. These areas constitute the company's current (January 2010) Illawarra Gas Project which has the objective of defining and producing methane gas from both current and abandoned colliery workings and from unmined seams. It is proposed that produced gas will be used as feed for gas fired power stations in the region.

The Apex Illawarra tenures embrace some 282 square kilometers of the Southern Coalfield.

Tenement / Agreement	Description	Area	Apex interest (%) *
Illawarra Tenements	PEL442	173km2	100% (5% net profit interest to Ensign)
Illawarra Tenements	PEL444	32km2	100% (10% net profit interest to Rio Tinto)

* Apex’s interests are held 80% by Apex and 20% by Sydney Basin CBM Pty Ltd, a wholly owned subsidiary of Apex

Illawarra Joint venture partners	Asset overview	Tenement	Area	Non-Apex interest *
Metropolitan Colliery (Peabody)	Peabody Pacific owns and operates a number of coal mines in Australia and acquired the Metropolitan Colliery (which is adjacent to Apex's PELs) from Excel Coal in 2006 The Metropolitan Colliery contains gassy coal	CCL703 CCL379	58km²	20% of mine related and 5% of other gas
HTT Huntley Heritage Pty Ltd	Located within 10km of TRUenergy's 400MW Tallawarra gas power station → a significant marketing opportunity for the joint venture Known to hold coal and gas deposit	CCL700	19km²	15% Net Profit Interest