Greenvale Energy : Exploration Update Alpha Project MDL330

Greenvale Energy Limited Exploration Update Alpha Project MDL/330

ASX Release

9 January 2017

Key Points

• Application for renewal of MDL 330 has been made and the board is confident of the granting of a five-year licence

• Work programs to update existing data and then establish a programme of infill drilling to upgrade the resource from an Exploration Target to a JORC 2012 Standard Reserve

• Initial work to be an updated survey of the tenement and verify the location of the historical drill holes.

• Scoping study to also be undertaken so as to review various feasible development options such as a chemical reductant, asphalt, activated carbon and oil. The review will also examine potential important applications for the Alpha oil shale in the Central Queensland region economy in the future.

  Greenvale Energy Limited (ASX: GRV) is pleased to provide the following update on its activities for Alpha tenement:

  Background

  The Alpha deposit is located approximately 62km south of Alpha, a small farming town in Central Queensland and over the last 75 years the area has been explored by numerous parties over that period. As a result, significant exploration data is available from within MDL 330 and includes:

• 68 holes with total cumulative depth of 3,251.9m;

• down-hole geophysical logging on 26% of the holes; and

• 192 oil shale sample analyses.

The exploration work within the mining lease has shown an oil shale deposit that consists of 2 seams; an upper cannel coal seam and a lower torbanite/cannel coal seam. Torbanite is the richest variety of oil shale known.

Work conducted during the year has been designed to analyse the current dataset and provide a clear strategy for the future work programme. This work has consisted of:

• data search and validation

• technical evaluation interpretation and analysis;

• construction of a model of the deposit using Gemcom software; and

• estimate of oil shale exploration targets.

The work has highlighted that due to the relative age of the drilling data available and the lack of proper survey information, at the present time there is insufficient data to estimate a Resource of oil shale within MDL 330 according to the JORC Code 2012. However, it is possible to define Exploration Targets (see below) under JORC 2012 which are useful, in particular with the deposit model for an intended scoping and utilisation studies. The work also highlighted that the quality of the Alpha shale means it's potential is not necessarily limited to oil production.

The Board of Greenvale Energy have decided to fully define and, if economically feasible develop the Alpha deposit. A new work programme has been detailed and aims to continue the work from the previous years and update existing data and then establish a programme of infill drilling to upgrade the resource.

Licence update

As previously announced, the MDL 330 is due for renewal by 31 January 2017. The Company filed in July/August 2016 an application for the renewal of this licence for a further period of five years. Based on feedback provided from the Company's licence administrator, the Board is confident that this extension will be granted in the near future. More importantly, advice received from the technical administrators is that the licence continues to be in place, even if no confirmation has been received by 31 January 2017.

Exploration Targets

Statement of Significant Mineralisation

In accordance with Mineral Resources Regulation 2003, there is insufficient data to estimate a Resource of oil shale within MDL 330 according to the JORC Code 2012 at this time. Due to the relative age of the drilling data available and the lack of proper survey information, oil shale within MDL 330 can only be classified as an Exploration Target in terms of the JORC Code 2012. In accordance with the JORC Code it must be stated that the Exploration Target area is theoretical in nature at this time as insufficient information is currently available to estimate an oil shale Resource. Additional drilling will be required to demonstrate the Exploration Target potential and there is no guarantee that this work will result in an oil shale Resource.

Oil shale Exploration Targets have been estimated using GEMCOM Surpac® mining Software during the 2016 exploration year. The seam thickness, quality and depth was derived from the existing dataset which is not complete. For this reason, Exploration Targets have been identified and not an Oil Shale Resource. Because of the condition of the historic data the Exploration Targets are still conceptual in nature and additional exploration cannot guarantee that an Oil Shale Resource will result.

Appendix 1 set outs the summary of the current estimates of oil shale Exploration Targets and the assumptions used in the formulation of those estimates.

Statement of Resources and Reserves

At this time, no statement of Resources and Reserves has been possible as the data is partially out-dated (1940-1987), poorly preserved and often incomplete. As a result, the above is considered to be an Exploration Target in terms of the JORC Code 2012.

Overview of Exploration Work Programme

Set out below is a summary of the exploration work programme to be undertaken:

1. Ground Survey

   The data review has highlighted the need for an updated survey of the tenement and the relocation of the historical drill holes. The previous survey was completed in 1985 using a theodolite and positioning was fixed to a survey benchmark for which the location is no longer known.

   Accordingly, as a first stage of the current work programme, a modern accurate ground GPS survey is currently being undertaken by the Company and will be completed by mid-late January. This will be combined with publicly available topographic data that will also be acquired by the Company. In addition, various government survey benchmarks will be used to overlay on the existing topography from the project to correct any variation in the location and elevation and the survey data will be tied into the Australian Grid.

   The key deliverables will be:

   • the details of proximal permanent survey benchmarks that could be used for future surveying programs;

   • the details of the fields survey exercise including surface features surveyed and the historical drill holes located and resurveyed;

   • possible requirements for a permanent benchmark to be constructed at the Project site (if a permanent benchmark is deemed necessary, then this will be constructed, surveyed and reported accordingly); and

   • the updated topographic map and DTM that can be used with confidence for resource modelling.

     It is considered unlikely that the survey information will be sufficient to provide a Resource statement but the accurate relocation of the historical drill-holes will allow the design of a new systematic in-fill drill program to prove up the deposit to a JORC standard.

2. Scoping and Utilisation Studies

   The unique quality of Alpha oil shale has the potential to be used in diverse applications such as:

   • a chemical reductant (replacing fuel oil) in smelting (including nickel processing)

   • a source of asphalt

   • a source of activated carbon

   • a source of oil

     Consequently, it is proposed to undertake a desktop scoping study that can examine these utilisation options. The above will also provide assistance with:

   • resource modelling with new topography

   • overall pit design, dump and drainage design options and potential mining schedule

   • analysis of mining options and costs

In particular, the study will concentrate on the direct use of the rock as an industrial material and as a source of oil from a mini retort and refinery option. The review will also examine potential important applications for the Alpha oil shale in the Central Queensland region economy in the future.

ENDS

For enquiries, please contact:

Mike Povey Vince Fayad

Director Company Secretary/Director

[e-mail]

[phone]

Competent Person Statement

The Petroleum Resource estimation is based on the discovered Petroleum Initially in Place (PIIP); estimated using polygonal blocks. The methodology used is a deterministic method where the JORC 2012 guideline levels of categorisation (Measured, Indicated and Inferred) quantify the range of uncertainty or confidence levels for the deposit. The Exploration targets have been prepared by Daniel Madre M.Sc, who worked as a geologist and project manager for the Alpha Oil Shale Project during a period from 1980 to 1988. This included field work annually, well site geological duties, managing various exploration programs and other investigations during that time. In addition, Mr Madre completed a Master of Science degree from the University of Wollongong that featured a study of torbanite deposits of the world (including Alpha) as the subject of his Master's thesis.