OVERVIEW

The Company is focussed on coal exploration and production in Indonesia. Its Indonesian partner is PT Mega Coal Indomine (Mega Coal). Mega Coal is part of the Mega Property Group, a privately held company that has amassed a portfolio of coal permits in Indonesia over the past few years. The current relationship is based on Mega Coal securing the permits and EQX operating the mines associated with those permits. The business relationship is based on a model whereby both companies take a share in a “Life of Mine” contract that is put in place to cover the mining of the relevant permits. Currently EQX has one producing coal mine in South Kalimantan. Mining at this site was suspended on 5 February 2009 (refer to ASX announcement - Suspension of Mine Operations at Alam Duta")