4 December 2007
You will be receiving New Hope Corporation's bidder's statement. Your board is currently
evaluating the bid in detail and we will send you shortly our formal recommendation with our
target's statement. Meanwhile, we advise you to take no action.
Our present view is that the bid fails by a substantial margin to recognise Resource Pacific's
growth potential and future value. Our Newpac coal mine is a high quality asset, with a 28 year
mine life at its 2008 production rate. We have strong relationships with blue chip coal importers in
Asia which have committed to buy 100% of our 2008 saleable production at premium prices. We
also have a robust plan to double run-of-mine production to coincide with an expected increase in
port capacity, and this will result in significant revenue growth and cash generation.
Since Resource Pacific listed on the ASX three years ago, we have been investing in the
development of the mine and its infrastructure and, in line with our strategic plan, have raised
capital progressively to fund the development program. Investment in the first phase of the
strategic plan is now largely complete, and the additional equity capital raised through the recent
rights issue will enable us to deliver on the plan's next growth phase.
We are, therefore, now at the cusp of unlocking the value of the Newpac mine. New Hope's
chairman has referred to the mine as 'an excellent asset' and his company's bid is an attempt to
seize the mine's potential upside for itself, depriving Resource Pacific shareholders of the full
Your shareholding in Resource Pacific is a direct investment in the coal industry when prices and
export demand are strong and are forecast to increase further. New Hope's assets are invested in
a range of sectors with uncertain potential. No wonder New Hope wants to increase its exposure
to the export coal market through buying Resource Pacific!
If you have any questions, please contact Steve Matthews, our company secretary, on (02) 8298