(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).

RDCL is mobilising our  Cone Penetrometer Testing (CPT) drill rig to the city to assist in the assessment and ongoing work and expect to have that on site by Monday 13 September.

Safe work is efficient work, done right. First time.

Safety is our most important consideration in all that we do. This means consideration of safety in our designs, the way we carry ourselves in our everyday life and safety in the field, on the job site.

All remaining RDCL are attending the Gold card course to be held in Napier in early August, 2010.

RDCL company and staff are members of numerous technical societies and industry groups  representing and serve on national, branch and local committees including:

• NZ Branch committee of the AusIMM (www.ausimm.co.nz; and www.ausimm.com.au),
• ACENZ representative for Hawkes Bay (www.acenz.org.nz),
• NZ Contractors Federation Hawkes Bay regional committee (www.nzcontractors.co.nz), and
• NZ Minerals Industry Association national committee (www.minerals.co.nz)

This engagement allows us to sample widely across our markets and to understand the economic conditions in which we work.  In this way we identify opportunities, and also better understand the pressures affecting our clients.

We see some relief in the price of commodities including gold, coal and dairy (at least next year) and are hopeful that manufacturing can maintain growth.  We know that some residential development is happening, but really cannot see a substantial driver for growth in that sector.  We have seen no benefit from any “stimulus package” and don’t expect to in our region.

So, will we keep concentrating on:

• Serving you our clients,
• mining – coal and gold, mostly because we love it and can see the up-side in the industry,
• water – cause we think it’s going to be “BIG”,
• rail ‘cause we love that too, and
• power ‘cause everyone needs it !

Rock on.

Two of RDCL’s employees Joy Hoverd and Reuben George have just completed the Supervisor Gold Card course for Project Managers.  As a company, RDCL has adopted as the Supervisor Gold Card as the entry level qualification for managing complex or remote field operations.  All our staff either hold, or are working towards, Advanced Site Safe Passports and comprehensive First Aid certificates.

Reuben George has been appointed RDCL Health & Safety officer, a new role for the company.  In addition to the Gold Card training, Reuben has qualifications in outdoor education and guiding and is also responsible for RDCL’s quality systems.  He is well suited to lead and support our safety initiatives.

Site Safe is a not for profit independent organization operating since 1999 and setup to promote Health & Safety practices in the construction industry.  The organisation offers low cost, relevant training which is affordable and accessible for small business such as ours.  We highly recommend it.

RDCL places a very high priority on the safety of staff, helping to ensure efficient operations, meeting our own safety KPI’s (Zero Lost Time Incidents in 3 years operating) and those of our Clients.