The Duchess/ Paradise Coal Project occurs in the northwest of the lease package, approximately 30 kilometres south of the Great Northern Highway. Earlier drilling by Premier Mining in the 1970s reported coal in the area and Rey Resources is testing the concept that the coal is present in sufficient quantities to support an export thermal coal operation.

The 2008 drilling program was designed to deliver a resource on which a feasibility study can be performed. A total of 218 open holes and 37 cored holes were drilled at an average depth of approximately 110 meters for a total meterage of approximately 24,000m.

The coal occurs as two seams (P1 and P2) which strike east-west for approximately 10 kilometres before trending for a further 10 kilometers to the north. The seams dip at approximately seven-eight degrees. The upper seam (P1) averages a thickness of 2.5 metres while the lower banded coal horizon (P2) averages six to seven metres.

The Company is examining the potential of the Duchess/ Paradise Coal Project to support both open cut and underground operations.