Coalworks Limited : 4 January 2012 - Lapse of Unquoted Options

COALWORKS Limited 4 January 2012 LAPSE OF UNQUOTED OPTIONS

Coalworks Limited (ASX: CWK) advises that the following options were not exercised by the expiry date of 31 December 2011 and as a result have lapsed.

Description	Number of Options
Options exercisable at $1.00 on or before 31 December 2011	4,100,000

--Ends--

For further information, please contact: Nathan Bartrop

Company Secretary

Tel: [phone]

Fax: [phone]

E-mail: [e-mail]

Coalworks has a portfolio of projects in Australia including:
1. Vickery South, Gunnedah Basin (exploration target coking/thermal coal)
# JORC Resources Increase by 15% to 58.5Mt - see ASX Announcement 18.07.2011
# ITOCHU to proceed with BFS for Vickery South - see ASX Announcement 18.05.2011
# ITOCHU signs Farm In Agreement in $11m deal - see ASX announcement 04.05.2010
# Preliminary Feasibility Study - positive with semi soft coking coal forming 83% of product - see
ASX announcement 15.06.2011
# ITOCHU Farm-in Stage 1 payment of $5m and signing of JV agreement sees Itochu acquired a 29%
interest in Vickery South - see ASX announcements 22.12.2010 and 23.2.2011
2. Ferndale Coal Project
# Coalworks includes its 92.5% owned subsidiary Loyal Coal Pty Ltd
# New Exploration Target 350Mt - 530Mt of coking/thermal coal - see ASX announcement
19.11.2010)
# Boardwalk Resources signed Farm-In and Joint Venture Agreements in $25m deal - see ASX
announcement 09.12.2010
3. Oaklands Coal Project (JORC measured, indicated and inferred 822Mt thermal coal)
# see ASX announcement 5.11. 2009;
# Strategic Alliance with Synthesis Energy Systems Inc to develop Oaklands coal-to-petrol plant announced - see ASX announcement 2.12.2009

COALWORKS Limited ACN 114 702 831

Level 5, 44 Miller Street, North Sydney NSW 2060 AUSTRALIA Ph: [phone]

Fax: [phone]

Email: [e-mail]

www.coalworks.com.au