Hunter Wise Due Diligence Addendum

394 Pages·2011·29.57 MB·English

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1) EMPIRE/GSLM MANAGEMENT

1a) Malcolm Bendall - CEO
• CV – Appendix A
• Directorship Resume – Appendix B
• Tasmanian Business Reporter June 1999 Article – Bass Resources – Appendix
C
• The Broken Hill Proprietary Co. Ltd. Reference Letter – Appendix D
• Zeehan Zinc Limited AIM Placing and Admission Document – Appendix E
• Zeehan Zinc Limited Summary of Ore Reserves and Resources – Appendix F

1b) Dr. Clive Burrett - Chief Geologist
• CV – Appendix G

1c) Paul Heath – COO & Executive Geologist
• 2007 - Present – Mr Heath is the Chief Operations Officer and Executive
geologist of Great South Land Minerals Ltd. He has been responsible for the
facilitation of the granting of Exploration Licence (EL) 14/2009 and any
previous permits associated with Great South Land Minerals Ltd, Special
Exploration Licence (SEL) 13/1998. Mr Heath is responsible for ensuring the
implementation of best practice environmental management measures across
its exploration tenements, and is the primary contact between the regulatory
authorities and the company.
• 2000 2007 - Mr. Heath has been Mineral Resources Manager and Senior
Project Geologist for Oceania Tasmania and Zeehan Zinc Ltd and has been
instrumental in the development of the Comstock open-cut mine from
preliminary exploration to pre-production stage between 2000- 2007. Mr
Heath played a key role in the implementation and presentation team for the
admission of Zeehan Zinc Limited for to the AIM of the London Stock
Exchange during 2007.Other responsibilities including ensuring the
implementation of best practice environmental management measures across
all mining tenements, and is the primary contact between the regulatory
authorities and the Company and was previously assistant mine manager.
• Mr. Heath holds a Bachelor of Science with Honors from the University of
Tasmania and a Bachelor of Science with a major in geology from the La
Trobe University. He also coordinates graduate research projects with the
University of Tasmania.
1d) Nicole Chestman – Company Secretary
• In 2007, Ms Chesterman has held positions of Director and Secretary of a
Zinc Lead and Silver mining company listed on AIM of the London Stock
Exchange for 2 years. Ms Chesterman currently holds position as Company
Secretary for GSLM, and has previously been associated with and worked
within the oil and gas industry, managing & supervising operations of frontier
basin exploration within Tasmania. She possesses over 19 years combined
experience in fields of banking finance, marketing and corporate
administration, and is currently a Director of Bass Resources Limited and is
also an Executive Director of a private renewable development company,
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Bass Energy Pty Ltd whose primary interests are developing wind farm assets
in Australia.

1e) Dr. Zohreh Amini – Geologist & Data Management Officer
• CV – Appendix H

1f) Diego Gonzalez-Rodriguez – Fuel & Sedimentary Geologist
• CV – Appendix I

1g) Todd Goebel – Production Development Manager
• CV – Appendix J

1h) Gerard Murrell – Finance & Operations Officer
• CV – Appendix K

1i) David Dunsby – Drilling Supervisor
• CV – Appendix L

1j) James Johnson – Company Counsel
• CV – Appendix M

2) VERIFICATION & VALUATION OF 668 MILLION BARRELS
OF UNDISCOVERED POTENTIAL PETROLEUM
RESOURCE

2a) The Tasmanites Oil Shale
The Tasmanites Oil Shale is the World Standard for Type 1 Kerogen. It is the
richest source rock for oil and gas production in the world. These facts have been
independently verified by the following world recognized independent authorities.
Each of which has also validated the undiscovered potential petroleum bearing
structures Empire/GSLM have discovered.

• Weinman Geoscience, Texas - 2001
• Anderson Schwab, New York – 2001 – Appendix N
• RPS Energy, London – Competent Persons Report – 2008 – Appendix O
• RPS Energy, London – Economic Evaluation of GSLM Petroleum Structures –
2009 – Appendix P
• WHK Denison Accountancy Firm, Australia – Comparative Economic Evaluation
of GSLM Petroleum Structures – 2009 – Appendix Q
• Virginia Energy Consultants, Virginia – 2010 – Appendix R

2b) Stratigraphic Drilling Well Program
From 1995 to 2001, the Company completed a seven-hole stratigraphic well
program onshore in the Tasmania Basin. The results of the program confirmed a
live petroleum system, produced surface oil seeps as well as natural gas and
helium.

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Borehole Depth Hydrocarbon Formation at Age
(mKB) Indications Total Depth
Gilgal-1 51 Shallow Gas Abels Bay Late Permian
Shittim-1 1,751 Methane 31% Phyllite and Proterozoic
Ethane 2.12% Quartzite
Traces C3-C8
Helium up to 4.8%
Flowed, Flared and
Sampled.
Jericho-1 640 Methane 10% Bundella Fm Permian
Ethane 1.26%
Traces C3-C6
Helium Detected
Lonnavale-1 557 Methane 1.8% Ferntree Fm Permian
Ethane 0.35%
Traces C3-C6
Pelham-1 503 Methane 0.1% Bundella Fm Permian
Hunterston-1 Precollar Methane 30% and Dolomitic Permian
(336) Ethane Siltstone And
1,324 Traces C3-C6 Proterozoic
Helium >1%
Bridgewater-1 252 No Sampling Ferntree Fm Permian
Completed

2c) Duke Energy Pipeline
North Carolina based Duke Energy International, spent 3 years from 1998 to 2001
with 10 petroleum geologists confirming the validity of the Tasmanian Basin
petroleum project. After confirming the existence of the basin, Duke Energy spent
USD$2.6 Billion constructing a pipeline and gas fired power stations linking
Tasmania to the mainland Australia cities of Adelaide, Melbourne, Sydney and
Brisbane. It was Duke’s projection and Empire’s validated belief, that Tasmania
could eventually supply 80% of Eastern Australia’s natural gas market and 100%
of Australia’s crude oil demand. All currently producing oil and gas fields in
Eastern Australia are today 80% depleted and production rates are in steep
decline.

3) DRILLING AND EXPLORATION PROGRAM
• Proposed Exploration Program Year 1-2 – Appendix S
• Drilling Program Bellevue Site – Appendix T

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4) USE OF PROCEEDS

Total Capital Raise: $200 million
Initial Tranche: Not less than $25 million

Expense Estimated
Completion of Bellevue Site $6,231,000
Completion of Thunderbolt Site $5,019,000
Mobilization/Demobilization $1,500,000
GEFCO SpeedStar 1100 Rig & Equipment $8,000,000
Sub Total $20,250,000
10% Contingency $2,025,000
Continued Seismic Program $1,125,000
Core Office & Analytics $1,125,000
Grand Total $25,000,000

Remaining Tranches: $175 million

Expense _________
2 Years of Operations
Drilling Additional Targets
Drilling Additional Production Wells
Ongoing Seismic Program
Acceleration of Production
Refinery Construction
Establishment of Physical Distribution Chain
Strategic Acquisitions

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