(http://www.pike.co.nz/files/investor_centre/Rights_Issue2010-Prospectus.pdf, Appendix 1).

We have reviewed the report against the inferences with which it was referred including it’s findings as it relates to risk and geological structure at the mine as it was then known, and for transparency draw any public attention to the Executive Summary of the document as extracted below:

Pike River Coal LimitedNew Zealand Registered Company Number 114243 – Australian Registered Body Number 119 304 148Simplified Disclosure Prospectus, May 2010.

Appendix 1: Independent Review New Geological Datawith respect to 2006 Resource StatementPike River Coal Mine

Executive Summary

Pike River Coal Limited (PRCL) commissioned Resource Development Consultants Limited (RDCL) to complete an independent review of the geological data acquired since the original 2006 resource statement was released in 2007 as part of the PRCL IPO.

The Scope of the review is to assess whether the additional geological data acquired since 2006 has resulted in any material change to the resource statement for the project. We understand that the review may be incorporated in a prospectus for a 2010 capital raising.

Various reports completed since the inception of this project indicate the potential for geological risk. PRCL has implemented procedures to acquire geological data to mitigate these potential risks. RDCL completed a data acquisition site visit in February 2010. Geological data was initially reviewed on site and additional data was provided electronically as required. Both the PRCL Feasibility Study Report and the Behre Dolbear Associates (BDA) independent technical review were provided to RDCL at the time of the site visit.

The potential impact of any new geological data on the reserve statement is outside the scope of this work review.

In our opinion there is no material change to the PRCL resource over that reflected in the 2006 resource estimate. The 2006 resource estimate is based upon the in-situ estimate of the tonnes and coal quality characteristics of the Brunner Coal Measures, and is considered an appropriate global estimate. The geological data that has been acquired since this model was prepared has broadly confirmed the characteristics of thickness and coal quality for the Brunner seam.

The high resolution geological data such as the underground mapping and inseam drilling that is now routinely being acquired on site indicates that the Brunner seam does have significant faulting in the current development area, with both partial seam and full seam offsets encountered within the mine. This is not reflected in the global resource estimate due to the density of data available for modelling and the resolution at which the model is developed.

It is not uncommon for these types of issues to be encountered in a mining environment. Access to the resource at the exploration stage and financial constraints involved in exploring a deposit mean that resource estimates are routinely developed upon a limited data set which is intended to represent the entire deposit. Mine development and grade control activities are then established to gather sufficient geological data to validate or refine the detailed mine plans and reduce the geological uncertainty to a level that can be managed within the standard operational environment.

In reviewing this project, we believe that geological risk due to localised faulting impacting upon mine development will be an on-going challenge for the project.

Good geological practice within the mining environment will mitigate the geological risk to an acceptable level. An on-going commitment to inseam drilling, mapping and grade control systems will deliver geological data of value in planning extraction in any upcoming 18 month period. This will require significant investment and on-going integration between mine development and technical services on site.

The short term focus needs to be maintained on targeted data acquisition in those areas scheduled for initial extraction;  gathering and integrating enough geological data to ensure potential development risks are minimised. Grade control will be an essential long term requirement to enhance mine planning and manage risk for the PRCL project.

RDCL has not re-estimated the PRCL resource, but has reviewed the resource and the geological data that has been acquired since the resource estimate was compiled. PRCL has advised that all permits and consents are in good standing.

This report is intended for the express use by PRCL in connection with the financing activity for the Pike River Coal Mine and should not be used or relied upon for any other purpose. Neither the whole nor any part of this report nor any reference thereto may be included in or with or attached to any document or used for any other purpose, without written consent as to the form and context in which it appears

Safety remains a key focus and priority in all that we do.  We train and supply essential equipment, but still rely very heavily on our people to look after themselves and our project sites.  Our key risks are in fatigue and travel both in New Zealand and in some of our more remote sites abroad.  We work on awareness and support and have this as a constant focus in our professional lives.

Turn-over has grown through our clients showing their trust in us, our own hard work in developing our markets, and increased activity in the resources sector with some modest improvement also in construction.  We remain heavily committed overseas on active and developing mining projects, and in New Zealand on the same.  We are currently engaged in significant geological drilling and resource work, and also in power and rail opportunities.  We see these sectors as sustainable and strong in the short to medium term, and it is likely that mining will continue to dominate our business.

CPT testing is improving with the economy and as our reputation grows, and as the market becomes more aware of our services.  In line with our general philosophy, we have invested in CPT and purchased “cordless” equipment to help better interface with “conventional” drill rigs for pushing.  This is in addition to our tri-axial testing capability which we anticipate will see increased use with the focus on shear wave and seismic testing.

Amongst all of this, we remain aware that our culture, team work and systems are the key to our innovation and success.  We work on communication and “connectivity” while we are scattered throughout our various work sites.

Finally, we look forward to our new hires joining in May/June (hurry up guys we need you now !).

• David Reynolds, Principle Geologist – 25 year experienced geologist, ex-South Africa most recently from Harmony.  Particular experience in project evaluation and economic assessment, project management. Arrives early May.
• Jonathan Gaerlick, Geotechnical Engineer – ME (Civil Eng, City of London Uni), 3 years with particular experience in windfarms and waste water. Arrives early May.
• Evangelos Georgopolous, Geotechnical and Mining Engineer- MSc(Design and Construction of Underground Works), 8 years experience in foundations, tunnels, rock reinforcement, stress and displacement analyses and modelling, soil and rock geotechnics.  Arriving June.
• Gareth Hay, Logging Engineer – BSc(Earth Sciences), 5 years experience geophysical logging in New Zealand.  Joins to support new Acoustic Televiewer services (Downhole Services).

Acoustic Televiewer services (Downhole Services) are being developed in the Philippines with our partner on the project GXD Exploration Drilling supplies (www.gxdsupply.com).

We are indebted to our clients, and I am indebted to our team who as a group of individuals display very high levels of professionalism, and initiative, and as a team function at high performance levels.  Our growth is a credit to our clients’ trust and the hard work and focus of our dedicated group of professionals.

2011 has started strong and our future looks very positive.  We have invested in team, market and capability, grown skills and are exporting NZ technology.  This is what NZ Inc is supposed to do, and we are very proud of it.

Ryan McPeek is most recently from Australia in the Bowen Basin, graduating from the US in 2008.

Our geology team is growing in power and capability as we have focused on it.

The current team includes:

• Peter Church, Principal, coal, Cu, Au, iron sand;
• Tom Grace, Senior Geologist, coal, Cu, ironsand;
• Lucy Helwett, Senior Geologist; coal, Environmental Geology;
• Sam Ritchie, Geologist, coal;
• Rachel Baggs, Senior Geologist, coal and
• Ryan McPeek, Geologist, coal.

….and Richard Tichborne, Engineering Geologist, coal and ironsand who we are moving more back into geotechnical as his first love, but who remains a capable “reserve” to the geology crew.

We think this is the most capable geological group in the New Zealand service industry.  We are this week interviewing a very experienced geologist with capital project development experience and hope to announce that appointment soon.

We have invested in our people and business to strengthen our “infrastructure” and internal systems to help in the delivery of high quality services. We now have permanent marketing, strengthened admin and appointed a business advisor to upskill our management staff.

New management appointments include:

Joy Hoverd – Office Manager, Havelock North

Lucy Hewlett – Office Manager, Wanaka, and

Richard Dee – Manager, Contractors

We are very proud of our tenacity and performance during the tough times of the “Great Recession.”  We’re still working hard and look forward to the coming year.

We have invested in our people and business to strengthen our “infrastructure” and internal systems to help in the delivery of high quality services. We now have permanent marketing, strengthened admin and appointed a business advisor to upskill our management staff.

New management appointments include:

Joy Hoverd – Office Manager, Havelock North

Lucy Hewlett – Office Manager, Wanaka, and

Richard Dee – Manager, Contractors

We are very proud of our tenacity and performance during the tough times of the “Great Recession.”  We’re still working hard and look forward to the coming year.

Hired Phillip Greville a graduate geologist to support our operations out of Hawke’s Bay,

Sent Tom up to the Philippines to kick-off geotechnical investigations for the Far Southeast Copper project where RDCL is looking after an intensive drilling campaign to test a deep Cu deposit as part of a block cave evaluation,

Momentarily had “Tich” back in the office before packing him off to provide engineering geological monitoring services for the construction of a new mine in the Philippines,

Got a lot closer to opening our new office in Wanaka – watch this space!

We are anticipating a strong year of growth and development with 4 new mine projects in the Philippines, 2 mine projects in Indonesia, continuing work on iron sands in New Zealand, coal drilling in the Waikato, a new coal project on the West Coast and continuing involvement in New Zealand hard rock gold.

We have hired to support these operations and strengthen our mining services.  We look forward to the coming year.

The mining industry in Australia results in 82,000 jobs and contributes $27 billion to the domestic economy.  The mining technology and services (MTS) sector which exports (technology and services !) values at A$30billion.  The MTS sector is about human smarts and value adding.

Derek Handley NZ’s latest high profile entrepreneur and founder of “Hyperfactory” recently talked on Radio NZ about the same opportunity to add value through the opportunity dairying presents.  He is quoted talking about his business:

“Globally, Kiwi companies are at the cutting edge of the use new technology, and by having the courage to take our ideas and capabilities offshore, we are able to become a significant powerhouse within some of the world’s leading corporations.”

The mining debate is emotive and easy to hijack.  The reality is that this is a smart, high  tech industry with the muscle to develop economies external to the mining sector.  The very many Kiwi’s on mine sites and holding high positions in the leading mining houses in the world know this already.

RDCL is a small company taking this challenge.  We supply mining, engineering and economic geology, resource evaluation and groundwater services in New Zealand and overseas.  We are developing NZ graduates and investing in technology, people and safety systems to compete on the world stage.  It’s a tough battle and we need support at home to realise our dreams.