Carbon Energy Limited enterd into joint venture with JinHong Investment Co. Ltd. Of the three coal deposits previously assessed as suitable, the Kulen coal deposit located at the Mori (Mulei) County, Changji, Xinjiang, China has been selected for the continued development of a commercial demonstration project using Carbon® Energy group's keyseam technology for underground coal gasification (`Mori UCG Project'). All parties are actively working towards satisfying the regulations and requirements in order to progress site characterisation and underground gasifier design, design and construct the Process Characterisation Panel surface facilities, and the commencement of syngas production in 2018.