2. Brief on the UCG Project The project for the generation of 100 Mega Watt of electricity through the process of Underground Coal Gasification at Block V in Tharparker, Sindh commenced on the first release of funds on 28 th April, 2010. To date $ 9.22 million have been released and the allocation for the project during PSDP 2011-2012 is $ 2.4 million. With the availability of $ 9.22 million, the first gasifier, civil works totaling 67000 sq. ft., electrical works, water supply etc have been completed. Almost all major equipment for first gasifier has arrived except low pressure compressors (which are essential part of the process). Due to earthquake and Tsunami in Japan, M/S Hitachi has delayed the supply of compressors by five months till September 2011. However, high pressure compressors ( start up) have arrived at site. The first of the gasifiers has been completed with over 36000 ft of drilling and 18000 ft of steel casing. The remaining gasifiers will be constructed and their equipment / power turbines will be ordered with further availability of funds. First test burn is expected in September 2011. Total gas produced will be connected to the power turbines to generate electricity.

3. S. No. DescriptionDateStatus 1Land Acquisition2 – 7 - 2010Acquired about 27 acres 2Residential Colony17 – 7 - 201095 % complete ( 39,312 sq. ft ) 3Technical Plant, workshop, stores, laboratory, compressor station, power station, control room and admin block. 1 – 11 - 2010 65 % complete ( 27,756 sq. ft. ) Generation of 100 M Watts through underground coal gasification Total project cost US $ = 115.6 million ( Rs. 9883.6 million) Total funds received US $ = 9.2 million ( Rs. 789.6 million) Funds allocated in PSDP 2011 – 2012 US $ = 8.1 million ( Rs. 700 million) Date of first release of fund & commencement of the project = 28 April, 2010 Project Milestone 1.CIVIL WORK

4. S. No.DescriptionDateStatus 1 Air compressor ( process) 15 – 8 – 2010 Expected delivery ( 15 – 1 – 2011 ) Not delivered order cancelled. 2 Air compressor (process) Order placed with the second lowest bidder(Hitachi) after negotiation at the lowest cost on 18 th Feb., 2011. Expected date of delivery was promised for third week of April 2011. These machines have been delayed by the manufacturers due to the earthquake and tsunami in Japan. 3. Air compressor (start-up) Ordered on 15 th Dec. 2010 Delivery was promised for 15 th April,2011. These machines were initially delayed due to modifications for our hot conditions at Thar. They have now arrived and their initial testing at Karachi has been completed. The performance is as per specifications. High pressure compressors have been handed over to the project on 10 th August. 4.Diesel Generators 15 -08 - 2010 Expected delivery ( 15 – 12 – 2010 ) Delivered 5Workshop equipment 15 -08 - 2010 Expected delivery ( 15 – 12 – 2010 ) 80 % delivered 6 Steel pipes for casing and surface piping with fittings 15 - 07 - 2010 Expected delivery ( 15 – 12 – 2010 ) Delivered. 7 Control instrumentation, gas analyzer, industrial computer etc. 25 – 11 - 2010 Expected delivery ( 1 – 4 – 2011 ) Has arrived at Karachi. 8Air conditioners15 -08 - 2010 Expected delivery ( 15 – 12 – 2010 ) delivered Main Machinery ( All purchases under Sindh PPRA rules )

5. S. No. DescriptionDateStatus 1Drilling 15 – 8 – 2010 ( Expected delivery ( 15 – 6 – 2011 ) 99 % complete Total wells Drilled 36 Nos. Total drilling with 8 inch bit 17118 ft. Total reaming with 11 inch bit 1470 ft Total reaming with 15 inch bit 17118 ft. Total coring accomplished 653 ft Total accumulative drilling 36365 ft 2Casing 15 – 8 – 2010 ( Expected delivery ( 15 – 6 – 2011 ) 99 % complete Total number of pipes lowered=18000 ft 900 Nos. 20 ft each 3Cementation and sealing 15 – 8 – 2010 ( Expected delivery ( 15 – 6 – 2011 ) 99 % complete Total number of cement bags consumed = 1272 No. Construction of First Gasifier 99% Complete (Second gasifier will commence on the availability of funds)

10. COLONY

11. Drilling Rigs

12. Drilling Rigs in Operation

13. Drilling and Casing of Gas Wells

15. Diesel Generators

16. Surface Piping

18. Well Head