NEWSLETTER MAY 2012 Issue 6

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1 View of Darwin at night taken from the North West corner of where SOHO will be built. NEWSLETTER MAY 2012 Hi Everyone, Another interesting few weeks in Darwin since my last letter to you. One of the attachments to follow is a fantastic article from the Bloomberg Press which has appeared on the world scene and which I have had comment on from a number of overseas quarters who saw it published. Enjoy reading about Darwin becoming a recognised world growth centre. INVESTOR PARTY All SOHO owners are invited at the Mantra Pandanas on Knuckey St. on the 13th of June at 6pm. You ll hear a construction update, you ll hear a visiting Japanese economist talk about the global economy and why not to panic. Food and drinks supplied. Be on time. RSVP to Gwelo reception on There is a myriad of other news attached as well, none - the - least being published figures for the March quarter putting Darwin in the lead for house price rises and rental yields. The whole new concept of Darwin becoming a world ranked oil and gas hub, as restated recently by no less than the CEO s of the ANZ Bank and BHP Billiton, has seen the Darwin Charles Darwin University (CDU) installing simulators and training facilities to allow operators to become proficient in off-shore floating LNG Technology in the safety of a university lecture room. Amazing stuff! The NT Government is following the lead and is opening a campus for Hospitality Industry Training at the Wharf Precinct to gear up for the growth in all areas of Darwin Industry expected to come from the associated oil and gas growth. This all makes eminent business sense to gear Darwin up to becoming a multi-level training hub on a global market scale over the coming decades. Everybody agrees skilling and retaining a local workforce will be a key to success for Darwin coping with all the major projects coming this way. The $34 Billion INPEX Oil and Gas Project for Darwin Final investment Decision (FID) to proceed announced on Friday 13th January. Sales in SOHO are now down to the last 20 (but all still with excellent views). Excavation of the site and basement levels is complete, and construction is now commencing. The office is now buzzing with the excitement of building a brand new Tower in the CBD, and all the consultants and trades are gearing up for the next phase. Continued overleaf. SOHO Apartment Project excavation completed May 2012 construction to commence as soon as possible.

2 View of Darwin at night taken from the North West corner of where SOHO will be built. NEWSLETTER MAY 2012 The Coolalinga sub-division is on track for titling in August. This will lead into the exciting start to construction of the Shopping Village with National Brand Anchors, and an incredible number of hopeful lessees on the wait list. One franchise has 6 registered applicants for the one store. The shopping Village and SOHO will both be completed around the end of 2013, early Our first Investor get-together will be held in Darwin on 13th June with great guest speakers so make sure you have it pencilled in the diary. Dr Koichi Saito, a renowned economist from Japan, will speak on the global and local economy tie-up. I recently met up with him in Hong Kong and thought he has a great message for us and invited him to Darwin. Until our night of the 13th remember stay focussed! Jim Downs

3 CASE STUDY MAY 2012 Crocodile-Fighting Darwin Hits Gas-Fuelled Economic Fast Lane By Michael Heath Apr 18, :13 PM ET Near the site where the first bomb landed on Australia in World War II, Il Lido restaurant serves watermelon cubes with aged balsamic vinegar at A$3 ($3.12) each to diners overlooking a swimming lagoon and artificial wave pool. This is the new face of Darwin, a transformation from the capital of Australia s hardest-drinking region, where a crocodile is caught almost every day, into a boomtown enriched by gas and bolstered by its location between the Pacific and Indian Oceans, where Asia and Australia meet. The heart of the change is a $34 billion liquefied natural gas project by Inpex Corp. and Total SA that will help fuel Japan for four decades. Darwin is in the express lane of Australia s two-speed economy -- a division the Reserve Bank of Australia used to separate resource-rich regions in the north that are powering growth and sucking in workers, from the tourism, manufacturing and retailer industries of the southeast that are teetering under a currency that has risen 65% in 3½ years. This is Darwin s century, said Sean Kildare, Inpex General Manager in the city. The economic development that got Australia on its feet and got us going -- that happened in the southern half of this country. That was last century. Above the Tropic of Capricorn is what s going on now and Darwin has the central, iconic role to play. The Inpex-Total Ichthys project, worth double the size of the surrounding Northern Territory economy, is spawning office towers, waterside apartments, shopping malls, port facilities and an expansion of the airport. Spending by households, businesses and the government grew at a 26% annual pace in the quarter ended December 31, Bureau of Statistics data show. Gas isn t the only impetus to the region. Singapore Airlines Ltd. (SIA) s Silk Air unit began flights in March, bringing gamblers to the city s casino and Asian tourists to sample Australia s outback. U.S. marines arrived this month to a new base near the city, which overlooks the strategic shipping lane in the Timor Sea. We ve not seen anything of the sheer scale and size of this, said Delia Lawrie, Deputy Chief Minister of the Territory, which is almost twice the size of Texas. The Ichthys project really does put Darwin on the global LNG map. Asian demand for energy and metals has prompted the RBA to maintain the highest benchmark interest rate among major developed nations, at 4.25% Investment in resources will probably be equivalent to almost 10% of the nation s gross domestic product in , up from an average 1.65% between 1960 and 2004, said James McIntyre of Commonwealth Bank of Australia, the nation s biggest lender. One of the things significantly influencing the RBA is the wall of foreign investment that s hitting the economy, with Ichthys the latest incarnation, said McIntyre, a senior economist in Sydney who worked at the Treasury for seven years. While he expects the RBA to cut rates at its next meeting in May, the major resources projects could prove to be an obstacle to further rate cuts, he said. The statistics bureau reported on April 12 that national payrolls rose by 44,000 in March, almost seven times the median estimate of economists surveyed by Bloomberg. The Australian dollar traded at $ at 7 p.m. in Sydney, up 1.3% this year. The Northern Territory, of which Darwin is the capital, contributed A$17.1 billion, or 1.2% of the nation s A$1.4 trillion GDP in the fiscal year to June Chevron Corp, Royal Dutch Shell Plc, Woodside Petroleum Ltd. and ConocoPhillips are among energy companies spending $180 billion to explore and develop gas fields in Australia. Ichthys holds more than 12 trillion cubic feet of gas, enough to meet Australia s energy needs for 13 years, according to Inpex. Gas will travel to Darwin via an 889-kilometer pipeline, the longest in the Southern Hemisphere. Continued overleaf.

4 CASE STUDY MAY 2012 It marks the latest chapter for a city that has a history of mineral booms and disasters. The one-time British garrison was levelled by three cyclones and a Japanese attack that dropped more bombs on the city than on Pearl Harbor. Darwin was best known in Australia as a haven for runaway husbands, fugitives and others looking for a fresh start. The Northern Territory has drawn fortune hunters since the 1870s gold rush lured Chinese migrants, whose knowledge of tropical agriculture helped feed the growing settlement. We ve always been the Asian city in Australia, said Lawrie, who is also minister for Asia relations. Asians make up about 9% of Darwin s population. The city s newly elected Mayor Katrina Fong Lim, a fifth-generation Australian- Chinese, is following in the footsteps of her father, who ran the city from As the government begins the second phase of Darwin s ritzy A$1 billion waterfront renovation, it s also spending A$500 million on a new prison. At the same time, the region has a lower unemployment rate than any of the nation s six states. And Darwin, about the size of Waco, Texas, has a younger population than the state capitals, with an average age of 33. The speed of the city s transformation has been dramatic -- Darwin didn t have a rail connection to the rest of Australia until Now tourists sip champagne and eat grilled kangaroo fillet in the dining car of the 26-carriage luxury train, The Ghan, which takes more than two days to travel from Adelaide on the southern coast. The changes have created a clash of old and new. Il Lido s glass, climate-controlled display of 1,200 bottles of Australian and Italian wine contrasts with the beer-drinking culture that gave the Territory the highest per capita alcohol consumption in Australia. As swimmers jump in the wave pool s man-made surf, the local daily newspaper, the NT News, runs a tally of saltwater crocodiles caught in the Territory - 71 by March 27 Human numbers are also on the rise. The government forecasts a 50% surge by 2030, a jump that is fuelling a construction boom after the median house price rose 197% in 10 years, according to figures from RP Data and Rismark International. There s pressure on rents to go even higher because vacancy rates are so low, said David Loy, Director of estate agent LJ Hooker in Darwin and President of the Real Estate Institute of the Northern Territory. The residential rental vacancy rate was 0.7% in February, compared with 1.5% in Sydney and 3% in Melbourne, according to SQM Research Pty. To help meet demand, the equivalent of an entire suburb has been built in Darwin s Central Business District in the past five years. Another 3,000 units across Darwin have development approval, and a new shopping and residential district is being built at Coolalinga on the city fringe. Myer Holdings Ltd., Australia s largest department store chain, is in talks about opening a Darwin branch, said Jo Lynch, a spokeswoman for the company in Melbourne. Some long-term residents are sceptical about the latest boom after seeing previous projects peter out, such as a predicted uranium rush in the late 1970s, which dwindled in 1983 with a change of government and restrictions on mining the nuclear fuel. The Territory for the past 40 years has had a mentality of the next big project being the one, said Chips Mackinolty, a ministerial adviser to the NT government from Inpex will only really change the structure of the economy if they do the value added, like services for the energy industry. Construction starts this month on a A$104 million marine supply base, built by Macmahon Holdings Ltd., to service offshore vessels. Shell said it will use Darwin as a supply base for its Prelude Project, the world s first floating LNG plant. ConocoPhillips started production in 2006 at its Darwin LNG plant, in which Inpex has an 11% stake. Others are concerned about the arrival on April 3 of 200 U.S. marines, the first of as many as 2,500 who will be based at Robertson Barracks on the city outskirts Continued overleaf.

5 CASE STUDY MAY 2012 A planned A$60 million expansion of Darwin s airport will allow passenger numbers to rise 30% to almost 3 million by Travellers from Hong Kong can reach Darwin in 5½ hours, compared with a 9-hour flight to Sydney. Tourism NT s plans to attract Chinese travellers included a trial charter flight in January that included sites like Uluru in the outback, said Jennifer Simon, a spokeswoman for the office. They photographed everything in sight, she said. Brad Morgan, general manager in Darwin for Sky City Entertainment Group Ltd., is hoping Asian high rollers will fill a A$36 million expansion under way at his casino. The Chinese enclave of Macau had more than $33 billion in gambling revenue in We see an opportunity to get some of that Asian gaming market, he said. Silk Air now has four flights a week from Singapore to Darwin, connecting with markets in the U.K., Germany and China, Simon said. Jetstar, a unit of Qantas Airways Ltd. (QAN), operates services from Tokyo to Darwin via Manila, and Virgin Australia has begun daily flights from Sydney. As residents and tourists mingle over tapas and cocktails by the waterfront at the end of the day, Mackinolty said the city has kept its unique identity through the changes. I think it s still a place with a lot of people who just walk out and start a completely new life, he said.

6 CASE STUDY MAY 2012 Confidence in NT property market growing as economy to go from stagnant to starring By Terry Ryder Friday, 04 May 2012 The most confident property market in Australia is found in the Northern Territory. That was the finding of the Property Industry Confidence Survey published recently by the Property Council of Australia It found that, nationwide, a strong engineering construction sector is generating greater confidence in the various property sectors. The overall outlook for the June quarter 2012 was six points higher than for the March quarter. At the same time, Deloitte Access Economics says the Northern Territory economy is set to go from stagnant to starring, with the second fastest growth rate in the nation over the next five years. NT has reason to be bullish. The $34 billion Ichthys gas project by Inpex of Japan and Total of France, plus the establishment of the Marine Supply Base to service major oil and gas companies such as Shell, ConocoPhillips and Inpex, will establish Darwin as a gas hub of global significance. The upcoming projects will build on the base created by ConocoPhillips, which completed a major LNG plant at Wickham Point in Darwin six years ago. Inpex expects to start producing LNG at Ichthys by the end of By that time, the supply industry in Darwin will be a huge business, according to chief minister Paul Henderson, who says: The offshore gas industry is expected to be the biggest driver of NT s economy over the next 40 years. The Territory government is seeking companies to build and operate the marine supply base next to Darwin s East Arm Wharf. The supply industry is already worth $150 million a year to territory business and is expected to grow strongly. The giant Bayu-Undan gas field is largely serviced from Darwin and the Sunrise floating platform will use the city for food, maintenance and transport. When the Ichthys project proceeds, the supply industry will be a multi-billion-dollar business. There are other reasons to believe the territory economy is heading towards a sustained upturn. The military plays a major part in the economic life of the region and the decision announced in November by US President Barack Obama to significantly increase American military personnel in Darwin over the next five years will boost business and real estate. The first US Marines have already arrived. About 250 personnel arrived in Darwin in early April as part of a six-month training deployment. The US Marine presence will rise to 1,000 in 2014, reaching a full capacity of 2,500 troops by A number of mining ventures are emerging across the territory, with direct impact on Tennant Creek, Alice Spring and Katherine, as well as indirect benefits to Darwin. The Territory s biggest mine is to double production. The $270 million plan for McArthur River will create 295 jobs, increase production by 2.5 million tonnes of ore per year to 5.5 million tonnes, and extend the life of the lead and zinc mine by nine years to It s estimated the Territory will need an extra 6,000 workers in the next five years to meet demand from mining and gas companies.

7 NT News: Darwin property up The RP Data-Rismark, Home Value Index found Darwin properties had increased by 7.8% in the three months to April 30, making it the best performing capital city in the country. Darwin also had the nation s highest rental yields at 5.7%... Darwin has had some massive gas projects that are going ahead and that have stimulated the economy across the board, not just in property capital city property value Darwin rose by 1.6% Hotspotting.com.au: Northern Territory Market Report The most confident property market in Australia is found in the Northern Territory. That was the finding of the Property Industry Confidence Survey published in April 2012 by ANZ Bank and the Property Council of Australia. The Territory has reason to be bullish. The $34 billion Ichthys gas project by Inpex of Japan and Total of France, plus the establishment of the Marine Supply Base to service major oil and gas companies such as Shell, ConocoPhillips and Inpex, will establish Darwin as a gas hub of global significance NT News, Property: Resources boom dictates market Raine & Horne s Glenn Grantham said off-the-plan projects and city centre properties were particularly strong investor interest was proof positive that news of the opportunities associated with projects such as the $34 billion Ichthys gas development were starting to reach the southern states NT News: Darwin homes second costliest Australian Property Monitors released property figures for the March quarter yesterday and found Darwin was the second most expensive capital city in the nation (after Sydney) Prospects were good for Darwin thanks to exposure to the resources sector and the housing shortage Property Observer: This could be the year of rental growth RP Data over the last six years, capital city home values have increased by 34.5% compared with rental rates, which have increased by a total of 46.8%. The latest figures from Australian Property Monitors Year-on-year rent growth was highest in Darwin (+11.8%), Perth (+3.9%), Brisbane (+2.7%) and Sydney (+2%).

8 Property Observer: Darwin Unit Market Darwin s unit market continues to offer investors the strongest rental yields of all capital city markets Property Observer: How much stock is available to rent? The amount of stock available to rent in Darwin in March 2012, according to SQM Research, represents a vacancy rate of 0.6% DesignBuildSource: How 1 project makes an average state In the Northern Territory, a single offshore LNG project has catapulted the entire territory into being Australia s hottest market for commercial property and construction NT News: NT inspires confidence Territory Property Council president Brendan Dunn: We are already experiencing increased inquiries from national and international players seeking to enter the Territory as a flow-on from the major projects already committed Sunday Territorian: Rental costs through the roof A Darwin house has been rented out for $ 1500 a week and it s not even finished. Several properties nearby have been leased for a mere $1000 a week. The rents are dramatic proof that the Northern Territory s property market is ready to boil. Real estate agent Michael Keith said executive tenants were willing to pay for quality homes Average weekly rents in Darwin are $550 a week for a house and $460 a week for a unit the highest rent in the country Colliers International: Quarter Research & Forecast Report Darwin market on the move... The Darwin rental market showed strong growth in the first quarter of 2012, with returns anticipated to continue to rise over the next 12 months Units within close proximity of the city continue to have strong demand Rental demand for executive apartments has improved as large companies move into the Territory. Executive apartments currently fetch between $800 to $1000 per week The Darwin unit market continued to improve in sales volume over the March quarter with a 13% increase in the value of all transactions In the March quarter CBD apartments accounted for 23% of all unit sales.. In the long term, continued growth of the resource industry provides a promising future for Darwin.

9 Stock & Land: Rich vein opens in rural towns Rents on industrial property in remote and regional towns connected to the resources boom have started to dramatically outstrip those in city markets, a new report found. Strong growth in Western Australia s Pilbara, South Australia s iron triangle of port towns and Roxby Downs, and Darwin in the Northern Territory has been identified in a Colliers International white paper NT News: We re hot property, NT dominates price mover list TERRITORY towns and suburbs have topped a list of the biggest real estate price growth areas in the country, according to a new report. The figures, released by RP Data, showed the Northern Territory had four of the 10 highest median house price growth areas in the past five years more than any other state or territory NT Real Estate Institute chief executive Quentin Kilian said he was not surprised by figures indicating large degrees of growth in the Territory market. We have quite possibly the most amazing growth potential we have seen in many decades, he said Property Observer: Rents, Darwin, March quarter Only Darwin and Hobart went against the national trend of static or falling rents over the March quarter according to the latest APM rental report. Darwin had the greatest quarterly and yearly rent increase for houses. rents rose 3.6% over the quarter and 11.8% over the year to $570 a week Unit yields went up 11.2% over the year to 5.58% NT News: Cost of Living $545 average weekly rent for a three-bedroom house in Darwin and Palmerston. Real Estate Institute NT Chief Executive Quentin Kilian: 70,000 more people by 2030 was realistic because of Inpex, the marine supply base, the new prison and US marines in Darwin.

10 Darwin Life: Robert Harding, Regional Director SA/NT Housing Industry Australia: The Darwin City New Apartment Building Market Looking Strong Darwin City is transitioning into a boom period of new apartment construction activity of new apartment construction activity The proportion of Darwin s building approvals currently being undertaken in Darwin City itself is noteworthy... upward momentum in population growth has been driven by an unprecedented rate of net overseas migration and expanding employment opportunities. In HIA view, the current boom in high density apartment building in Darwin City is likely to be sustained out to the year 2015 Residential vacancy rates remain very low and housing demand will be supported by an aggregate Northern Territory housing shortage, as well as robust jobs and economic growth in the Northern Territory stemming from the resources sector expansion NT News: Territory Plans for population boom The short, medium and long-term prospects of the Territory real estate market are good after the announcement that the $34 billion Ichthys gas projects is to go ahead, a leading real estate agent says. Raine & Horne boss Glenn Grantham said experts expected Darwin s population to grow by up to 70,000 over the next 15 years He said Darwin was already enjoying a major growth burst and now was the time to buy. Sales are 20-30% stronger than this time last year and inspections by a similar number there had been an increase in demand for Darwin apartments there was also growing interest from interstate and overseas investors. He said Northern Territory investors were facing competition from massive corporates such as Inpex and ConocoPhillips, who were buying homes for their growing workforces. Now is the time to buy to beat the rush NT News, Editorial: Rural Residents Coolalinga is fast becoming a rural hub, mainly because developer Even Lynne (Gwelo Developments) is building a large retail and housing complex just off the Stuart Highway The Australian: Resources investment pipeline keeps flowing The Northern Territory accounts for 1% of the country s economic output, yet holds 9% of its definite investment projects.

11 Bloomberg: Australia Investment Spending Rises on Darwin LNG The approval of Inpex Corp. and Total SA s $34 billion LNG project will soon see the Northern Territory experiencing a mining investment boom of its own, Deloitte Access said NT News: $260m gas contract awarded The $260 million contract to construct a village on the outskirts of Darwin for LNG plant builders was officially awarded last night The work has gone to the Territory branch of Laing O Rourke. The project is expected to create hundreds of jobs Media Release, Chief Minister: Territory business to benefit from $420 million gas industry Construction has started on the $110 million Marine Supply Base to secure opportunities for Territory business to service and supply the growing offshore gas industry To put this massive project in perspective Darwin provides approximately $150 million in services and supplies per year to support the gas industry - with the help of this new Base, this figure is expected to increase to $420 million over the next 20 years. The Marine Supply Base will be constructed by the end of 2013 and will service vessels that support offshore gas projects Generation NT: Power generation for Ichthys Consortium consisting of GE and a CH2M HILL-UGL Joint Venture awarded order for Ichthys LNG Power Station valued at more than $900 million BBC News Scotland Business: Wood Group Mustang awarded Australian gas platform contract Oil and gas company Wood Group has announced its Mustang subsidiary has been awarded engineering and support contracts for the world s largest semi-submersible production facility. The 70,000 tonne processing plant will serve the Ichthys gas field The Aberdeenbased group said detailed engineering should be complete by autumn 2013 The semisubmersible platform, which will sit in 250 metres of water, will be a core component of the Ichthys liquefied natural gas (LNG) project.

12 Filtration+ Separation.com: Osmoflo wins Ichthys LNG demineralisation contract Osmoflo is to provide a membrane based demineralisation plant which will supply process water to a new power station in Darwin The power station is part of a shorebased facility that will process gas from wells associated with INPEX s Ichthys LNG Project Santos First Quarter Activities Report: Bayu-Undan/Darwin LNG Gross Bayu-Undan gas production of 52.5PJ was 3% higher than Q NT News: LNG shutdown worth $40 million to NT business A similar shutdown in 2010 involved 400,000 man hours and employment of 800 workers The Darwin LNG plant has approval to expand production to 10 million tonnes per year NASDAQ: Australia may become world s largest LNG exporter by 2018 Analysts forecast that Australia could seize from Qatar the title as world s largest LNG exporter because of an expected rapid growth in the LNG industry. The development of LNG exports would also add a third commodity to Australia s resources boom outside the traditional coal and iron ore. Besides Woodside s North West Shelf LNG project, there is another LNG venture in Darwin which would have a combined capacity of 20 million tonnes of LNG a year. By 2018, the figure is expected to go up to 80 million tonnes, the Bureau of Resources and Energy Economics (BREE) estimated with eight more large LNG projects coming on stream NT News: Woodside The Territory s chances of securing Woodside Petroleum s LNG project have mildly increased after the company again pushed back the final decision for its proposed $30 billion Browse LNG project in West Australia Energy Business Review: OM Holdings reports record production OM Holdings has reported record production of 223,169 tonnes from its Bootu Creek manganese mine in the Northern Territory of Australia in the first quarter of 2012 the targeted production for 2012 is approximately 850,000 tonnes, which is expected to be supported by continued strong demand from the Chinese market... Exploration at the Bootu Creek Mine and the neighborhood areas will begin around mid May 2012.

13 NT News: Ranger digs deep for new ore Work began yesterday on digging a $120 million exploration tunnel at the Territory s only uranium mine. The Ranger 3 Deeps decline is expected to prove-up massive new reserves of high-grade oxide /29 The Weekend Australian, Hotspotting: Money trail leads to mining BHP is investing $30 billion to expand the Olympic Dam mine at Roxby Downs in SA. BHP will be building facilities and creating jobs in Adelaide, Port Augusta, Whyalla and Darwin as it develops this project Proactive Investors: Northern Territory heating up While oil and gas activity in Australia has grown in recent years, the Northern Territory s onshore basins have seemingly sailed under the radar However, the strong interest in unconventional gas plays in the country and the entry of North American players has sparked interest in the state s resources and the promise of increased levels of exploration and development activity. This can be seen by the speed at which the acreage have being snapped up with roughly 90% of the most prospective basins now under licence or application, compared to less than 10% a few years ago ABC News: NT gold and copper finds fire up mining hopes Adelaide Resources managing director Chris Drown has told investors in Adelaide that areas south of Tennant Creek have returned good copper and gold exploration results NT News Business Review: Mine reopening to cost $750 million Vista Gold is now potentially a big operation Production is expected to start in three years Proactive Investors Australia: gold and rare earth project Outback Metals (ASX: OUM) is set to sell the Wingates Gold and Rare Earth Project in the Northern Territory to China s Hunan Non-ferrous Geology and Exploration Bureau for consideration of A$1.5 million. The agreement, with Hunan s wholly owned subsidiary China Australia Land Resources, comprises eight tenements in the Wingates Mountains, 250 kilometres south of Darwin Recent exploration studies within the project areas have identified anomalous uranium, gold, platinum, paladiun, base metals and manganese.

14 120404: Westgold Resources Limited Has formally submitted the Mine Management Plan (MMP) for the Rover 1 Decline to the Northern Territory Department of Resources for approval. The submission represents a major step in advancing the underground development of the Rover 1 Gold and Copper deposit and the approvals process is expected to be completed by the end of June Rover 1 (is) located approximately 80km southwest of Tennant Creek Mining Weekly: Jervois proves profitable for Kentor A scoping study by ASX-listed Kentor Gold has estimated a capital cost of between A$230-million and A$310-million for its Jervois copper/silver/gold project, in the Northern Territory Alice Now: Mining Tip to Boost Economy The economy of Central Australia could be underpinned by phosphate and vanadium mining, according to Northern Territory Geological Survey director Ian Scrimgeour. Commodities targeted in Central Australia are copper, rare earths, vanadium, phosphate and tungsten. Important emerging projects include TNG Ltd s Mount Peake vanadium-titanium-iron project near Barrow Creek, Rum Jungle Resources Barrow Creek-1 project, a new discovery of a large deposit of phosphate east of Barrow Creek, Arafura Resources Nolans rare earths project near Aileron, multiple gold projects in the Tanami by ABM Resources and Tanami Gold Westgold Resources Rover 1 gold-copper project 70 kilometres southwest of Tennant Creek and Emmerson Resources Gecko copper-gold project near Tennant Creek NT News: American war birds target NT The US Air Force may be based in the Northern Territory with a similar arrangement to the marines NT News Business Review: Defence spending to grow Defence is spending up to $50 million in the Territory and that is likely to grow dramatically over the next few years as the Australian and United States military presence in Darwin grows Defence Minister Stephen Smith said a deal to boost American military might in the Asia-Pacific region would see more ships in and out of Darwin, more troops in and out, and more planes in and out.

15 The Australian: Darwin International Airport looks to ride on resources boom Darwin International Airport is confident plans for a $50 million expansion can handle growth for at least seven years. With expansion at three Northern Territory mines and Inpex s $34 billion Ichthys liquefied natural gas project officially approved, Darwin airport officials are looking to start reaping the benefits of the resources boom /22 The Weekend Australian: Rural Property The world s largest producer of Indian sandalwood will increase its expansion into the Northern Territory following purchase of more than 12,000ha of land near Katherine The purchase has buoyed rural property sales market in the Top End /29 The Weekend Australian: Kimberley land The Shanghai Zhongfu group wants the right to farm (sugar).. as part of the longawaited $311 million second-stage expansion of the Ord irrigation project... Zhongfu is also in discussions... to develop an extra 15,000ha on the Territory side of the Kimberley border Media Release, Treasurer: Territory economy moves into the fast lane A report released today by Deloitte Access Economics has upgraded its forecast for the Territory s economic growth to 4.4% over the next five years, as major projects begin to flow through the economy. Treasurer, Delia Lawrie, said the Deloitte Access Economics March quarter 2012 Business Outlook reflected a strong economy on the rise Over the next five years, the Territory economy is tipped to grow at 4.4%, the second fastest in Australia, and well above the national rate of 3.2% Media Release, Treasurer: Jobs Growth Strong in the Territory Proactive Data released by the Australian Bureau of Statistics today show the Territory s unemployment dropped to 4.0% in March, the second lowest in Australia (national average of 5.2%). This strong result comes on the back of ANZ job advertisement data released by ANZ on Tuesday, showing an 8.8% rise in newspaper job ads in the Territory in March 2012, compared to March 2011, while every other state and territory recorded significant drops.

16 Media Release, Minister for Construction: Good signs for Territory construction sector Construction Minister Gerry McCarthy said.. After some tough times for the industry, today s data shows engineering construction increased a huge 64.9% in the last quarter, with year on year growth of 39.6%, this compares favourably to a national drop of 5.3% in the quarter NT Treasury Economic Brief: Building Activity December Quarter 2011 Compared to the September quarter 2011, seasonally adjusted building work done in the Territory increased by 15.0%... Nationally, building activity decreased by 4.9% over the same period Residential building work done in the Territory increased by 3.5%... Increases were recorded for new house construction (up 13.9%) and alterations and additions (up 13.4%), while new unit construction decreased (down 12.4%) NT Treasury Economic Brief: Sales of New Motor Vehicles Compared to the previous month, seasonally adjusted new motor vehicle sales in the Territory increased by 8.3%... Nationally, new motor vehicle sales increased by 4.0% Economic Brief, NT Treasury: Tourism Accommodation Compared to the September quarter 2011, the seasonally adjusted value of tourism accommodation takings increased in the Territory by 3.1% in the December quarter The seasonally adjusted room occupancy rate increased by 3.0 percentage points to 65.2% over the same period : Tourism NT Annual report Highlights Tourism is a large economic driver of the Northern Territory economy and is worth over $1.4 billion annually to the local economy in Gross Value Added and employs around one in six Territorians (17.2%). The Territory s tourism share of Gross Value Added is considerably higher than for Australia overall (9.3% compared to 5.5% nationally) Average Darwin international weekly seat capacity increased 8%... The China outbound market is one of the fastest growing in the world and the Northern Territory is attractive to the large number of Experience Seekers from this market.

17 Charles Darwin University: Ichthys deal with CDU opens door to the Territory s future The INPEX-led Ichthys LNG Project has signed a $3 million agreement that will underpin Charles Darwin University s North Australian Centre for Oil and Gas during a signing ceremony in Tokyo. INPEX Australia President Director Australia Seiya Ito This is the second centre of its kind in the nation and with Australia on its way to achieving its goal of becoming the largest exporter of LNG by 2020, there is no question that the Territory is well positioned as a burgeoning player in securing the energy future of Asia and the rest of the world NT News: We re cooking with gas Chief Minister Paul Henderson welcomed the investment that will ensure more Territorians can access apprenticeships and traineeships. The Territory has a very bright future as we move into becoming the oil and gas capital of Northern Australia and a period of significant high-skill, high-wage growth Media Release, Chief Minister: Territory to be home to Japanese Language and Cultural Centre A Japanese Language and Cultural Centre will be established in Darwin next year Media Release, Chief Minister: Territory secures Japan-Australia Business Conference Chief Minister Paul Henderson today announced the Territory has secured Japan- Australia Joint Business Conference for the first time in 2014, bringing the biggest investors from across Japan and Australia to Darwin The Territory boasts a highly skilled workforce and modern infrastructure, making it the ideal location to invest and do business and that s exactly what we will be promoting when this conference comes to Darwin.

18 Media Release, Chief Minister: Chief Minister to lead delegation Chief Minister Paul Henderson will today lead a delegation of the Chamber of Commerce and Manufacturer s Council to Japan to meet with JKC to discuss contracts flowing to Territory businesses from the $34 billion Ichthys LNG project. The Ichthys LNG project investment by INPEX and Total was the single biggest investment by a Japanese company outside of Japanese soil and secured the future of the Territory economy We will continue to work with JKC to provide new opportunities for Territory businesses to grow and capitalise on the massive business opportunities the Ichthys project brings Media Release, Minister for Education and Training: China Visit to Advance Education and Cultural Ties Education and Training Minister Chris Burns travels to Anhui province in China today to further develop education links between the Territory and China. Dr Burns is part of a delegation from Charles Darwin University who will participate in the official signing of an exchange program between Anhui University, Hefei Normal University and Charles Darwin University The establishment of the Confucius Institute at CDU in 2011 is a commitment to education outcomes for both China and the Territory and my visit will seek to build on this. Disclaimer The above information has been compiled by Gwelo Developments Pty Ltd (the Agent) from third party providers. The Agent has not verified whether the above information is accurate and does not have any belief one way or the other as to its accuracy. The Agent does no more than pass on the information. The Agent does not accept any responsibility to any person for its accuracy. All interested parties should make and rely upon their own enquiries in order to determine whether or not the information is, in fact, accurate.