Among Cockatoo's operational developments during the September quarter was the commencement of the first phase of drilling at its Baralaba North target at its Wonbindi project in the Bowen Basin, and the beginning of scout drilling at its Middle Creek target in the company's Dingo tenement.

Infrastructure advances were also made in relation to the Surat Basin 'missing link' railway line, the Wonbindi project rail connection options, and the Central Queensland Ports Authority's Wiggins Island Coal Terminal project.

As well as the 73.6 million shares issued to POSCO, Cockatoo also agreed to issue 40 million shares to Korean power utilities KEPCO and KEWPO for $A16.8m. Cockatoo also issued 11.5 million shares to existing shareholder KORES for $4.83 million

cash.

Further, Sun Moon Woo, a nominee of POSCO, was appointed as a Director of Cockatoo.

Also during the September quarter, Cockatoo exercised a call option which it had entered into in June 2007 to acquire SE QLD Coal and SE QLD Energy which own coal assets including the Kingaroy project, the Surat project as well as a 20% interest in an underground coal gasification project with Cougar Energy and a 25% interest in a coal to liquids project with Eastern Mining Corporation.