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Colonial Coal International Corp. Western Canadas Leading Coking - - PowerPoint PPT Presentation

TSX-V: CAD Colonial Coal International Corp. Western Canadas Leading Coking Coal Developer March 2018 Investor Presentation Legal Disclaimers This presentation may contain forward-looking statements, and forward -looking information under


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March 2018 Investor Presentation

Colonial Coal International Corp.

TSX-V: CAD

Western Canada’s Leading Coking Coal Developer

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Legal Disclaimers

This presentation may contain forward-looking statements, and forward -looking information under applicable securities laws including management’s expectations of future production, cash flow, and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks and uncertainties include, but are not limited to: the risks associated with the commodity industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Colonial Coal undertakes no duty to update any of the forward-looking information herein. The reader is cautioned not to place undue reliance on forward-looking statements. The scientific and technical information relating to the Huguenot and Flatbed properties have been derived from the Huguenot Technical Report (dated September 23, 2013) and the Flatbed Technical Report (dated January 10, 2018), respectively. These reports have been filed on sedar.com under Colonial Coal International Corp. (CCIC). Copies of the technical reports will be made available to investors upon request. The information contained in this document has not been reviewed or approved by the U.S. Securities and Exchange Commission or any provincial or state securities regulatory authority. Any representation to the contrary is unlawful. This document does not include a complete description of Colonial Coal or any offering. Any offer of securities Colonial Coal will be made only pursuant to a subscription agreement and the provisions of applicable law. Any securities to be offered for sale by Colonial Coal are not expected to be registered in the United States under the Securities Act or under any state securities laws. Cautionary Note to US Investors Concerning Resource Estimate: The resource estimates in this document were prepared in accordance with National Instrument 43-101, adopted by the Canadian Securities

  • Administrators. The requirements of National Instrument 43-101 differ significantly from the requirements of the United States Securities and

Exchange Commission (the “SEC”). In this document, we use the terms “measured,” “indicated”, and “inferred” resources. Although these terms are required and recognized in Canada, the SEC does not recognize them. The SEC permits US mining companies, in their filings with the SEC, to disclose

  • nly those mineral deposits that constitute “reserves.” Under United States standards, mineralization may not be classified as a reserve unless the

determination has been made that the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a measured or indicated resource will ever be converted into “reserves”. Further, “inferred resources” have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that “inferred resources” exist or can be legally or economically mined, or that they will ever be upgraded to a higher category.

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Company Overview: Colonial Coal Summary: Investment Highlights Market Overview: Metallurgical Coal Recent Work: Flatbed

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  • The value of coal production in BC is forecast to exceed

$5.96 billion in 2017 up from $2.63 billion in 2016

  • The region enjoys access to low-cost power, high-quality

road and rail networks and major deep water seaports

  • British Columbian ports provide the closest port of entry
  • n the west coast of North America to Asia
  • Since 2010 Western Canada has seen significant M&A

activities in the met coal market.

Walter Energy acquires Western Coal - $3.3bn

Anglo American acquires 25% of Peace River Coal held by NEMI and Hillsborough - $166mm ($400m+)

Xstrata(1) acquires First Coal and Lossan - $193mm

Winsway and Marubeni jointly acquire Grande Cache Coal -$1bn

Xstrata(1) acquires Sukunka asset from Talisman Energy - $500mm

JX Nippon acquires 25% in Xstrata(1) Coal BC JV - $435mm

Conuma Coal Resources acquires Walter Energy’s BC assets for an undisclosed amount, resumes production at Wolverine and Brule Canadian Met Coal Supply by Project

Source: AME, BC Ministry of Energy, Mines and Petroleum Resources Note: Shipping Days calculated at vessel speed of 15 knots

Western Canadian Coal Miners are Poised to Supply Asian Markets

Access to East Asian Markets Western Canadian Coal Overview

China

13.8 14.4

Dalian

15.0 16.3

Guangzhou

14.8 16.0

Hong Kong

13.2 14.2

Shanghai

14.2 14.8

Tianjin Japan British Columbia Vancouver Prince Rupert India

25.2 26.4

Mumbai

11.3 12.6

Kobe

10.6 11.9

Tokyo

22.8 24.0

Chennai

23.1 24.3

Kolkata

12.7 13.0

Pusan Korea

To Shanghai – 4,642 miles To Tokyo – 3,830 miles To Shanghai – 5,092 miles To Tokyo – 4,280 miles Closer to Japan than Newcastle: Newcastle to Tokyo – 4,284 miles

00.0 00.0

Shipping Days from Prince Rupert Shipping Days from Vancouver Note: Met coal includes all coals directed to metallurgical end markets (i.e. coking coals and PCI coals)

  • 1. Now Glencore

Market Overview: Metallurgical Coal

28.8 24.8 26 31.5 5 10 15 20 25 30 35 2014 2015 2016 2017

BC Co BC Coal Production ( (Mt)

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  • Colonial Coal International Corp. (CCIC) is a pure-play metallurgical coal

development company

  • Owns 100% interest in 2 resource-stage coal projects in the Peace River

Coalfield of northeastern British Columbia

  • Chairman and CEO David Austin co-built Western Coal Corp., which was

subsequently (2010) sold to Walter Energy for $3.3 billion

  • 277.7 Mt of Measured & Indicated plus 119.2 Mt of Inferred resources of

coking coal on the Huguenot property

  • 298 Mt of Inferred coking coal resources within the Gordon Creek area of

the Flatbed property

  • Targeting annual production of 3 – 5 Mt per annum from Huguenot and

2-3 Mt per annum from Flatbed

  • Strategically positioned to key infrastructure for Asian export market

Overview and Capitalization

Company Overview: Colonial Coal

Capitalization and Share Price Chart Company Overview

BRITISH COLUMBIA ALBERTA

Vancouver Prince Rupert Fort Nelson Neptune Terminals Westshore Terminals

Key

Huguenot Flatbed

Huguenot

Dawson Creek Tumbler Ridge Chetwynd

Flatbed

Project Coal Fields City CN Rail Roads

Capital Structure

Share Price CDN $ 0.24 Basic Shares 148,761,057 Market Cap CDN $ 36,446,000 Debt Cash CDN $ 5,035,637

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Willow Creek - Conuma

  • Producing (from Mid-2018)

Clean Coal Reserves : 16.6 Mt Target Production: 1.7 Mtpa

Peace River Coalfield

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Brule – Conuma (Producing ) Clean Coal Reserves : 16.3 Mt Resources : 28 Mt Production (2017) : 2.33 Mtpa Saxon - PRC (Anglo)

  • Historical Feasibility

Historical “Reserves” : 76 Mt Feb 1, 2018 Chetwynd Tumbler Ridge Huguenot – Colonial Coal Corp.

  • PEA

Resources : 397 Mt Target Production : 3.5-5.0 Mtpa Sukunka - Glencore

  • EA Application

Resources : 185 Mt Target Production : 3 Mtpa Murray River - HD Int’l.

  • Approved Mine Permit

Projected Resources : 688 Mt Target Production : 6 Mtpa Perry Creek (Wolverine)

  • Conuma (Producing)

Clean Coal Reserves : 8.8 Mt Resources : 28 Mt Production (2017) : 1.14 Mtpa Trefi – Anglo Pacific

  • Resource Definition

Resources : 91 Mt

  • Mt. Duke - Teck
  • Historical Feasibility

Historical Resources : 251.5 Mt Wapiti - Canadian Dehua

  • Resource Definition

Resources : 758.6 Mt Target Production : 10 Mtpa Flatbed - Colonial Coal Corp.

  • Resource Definition

Resources : 298 Mt Target Production : 2-4 Mtpa Quintette (Mt. Babcock ) - Teck

  • Approved Mine Permit

Clean Coal Reserves : 37 Mt Resources : 239 Mt Target Production : 3-4 Mtpa Trend & Roman Mines PRC (Anglo)

  • C& M

Clean Coal Reserves : 34.1 Mt Resources : 35.6 Mt Target Production : 2-2.5 Mtpa Suska – Glencore

  • Resource Definition

Resources : 103 Mt Belcourt – PRC (Anglo)

  • Feasibility Level

Clean Coal Reserves : 57 Mt Resources : 171.2 Mt Target Production : 4 Mtpa

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Experienced Management and Board

David Austin Chairman, President & CEO

  • Co-founder of Western Coal Corp. (WCC), Northern Energy and Mining Inc. (NEMI) and now Colonial Coal

International Corp. (CCIC)

  • 1 of 3 founders credited for taking WCC to production; WCC was sold to Walter Energy for C$3.3 billion in 2010
  • Also credited for the exploration/development success and sale of NEMI to Anglo America for +$400mm

Matthew J. Anderson CFO

  • Mr. Anderson has 10 years of experience acting as CFO of junior public companies including I-Minerals Inc., Callinex

Mines Inc., and others. He has a Bachelor of Commerce degree from McGill University and obtained his Chartered Professional Accountant designation in 2008 John Perry COO & Director

  • Over 40 years experience as a geologist. Has worked on many coal projects in northeastern BC, both as a consulting

geologist and in senior, corporate, exploration management. Greg Waller Director

  • Retired from Teck Resources, the world's second largest, and North America's largest, steelmaking coal producer, in

2017 as Senior Vice President Investor Relations and Strategic Analysis

  • Over his 33 years with the company, Mr. Waller gained extensive knowledge of various commodity markets, industry

participants and significant mining assets globally. As a member of the senior management team at Teck, Mr. Waller was involved with major strategic decisions and was a leading spokesperson for the company Wayne Walters Director

  • Geological consultant and former director of Running Fox Resources and NEMI

Tony Hammond Director

  • Chairman and MD of Great Orme Mines and a former director of NEMI

Ian Downie Director

  • Professional negotiator with an established mediation and dispute resolution consulting company.

Management Team and Board of Directors

Company Overview: Colonial Coal

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Company Overview: Colonial Coal Summary: Investment Highlights Recent Work: Flatbed Market Overview: Metallurgical Coal

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Recent Work – Overview of Results

Company Overview: Colonial Coal

FLATBED PROPERTY: GORDON CREEK DEPOSIT AREA

INITIAL DRILLING – SUMMER / AUTUMN 2017 Location: Proximal to supportive infrastructure such as existing Rail Line, Power, Provincial Highway, Tumbler Ridge townsite and to Currently and Recently Producing Coal Mines (with Rail Loadouts and Wash Plants) plus several other very Advanced, Permitted, Coal Projects Target Type: Underground Mineable Coal Seams: Gates Formation (the same as all past and current producers in the Tumbler Ridge area)

  • No. of Seams: 8 (in descending order, Seams B, D, E, F1, F2, G, J,

and K) NI 43-101 Compliant Resources: 298 Million Tonnes of Inferred Resources Coal Quality:

  • Premium, Hard Coking Coal – Seams B to G
  • Semi Soft Coking Coal – Seams J and K
  • Capable of producing low ash, low sulphur and low phosphorus

product coals

  • Giesler Fluidities (max. ddpm) for Seams B, D and E range from

286 to 1140

Quintette Mtn. Trend Pits Proposed Window Pit Footprint Babcock Mtn. Roman Mtn Quintette Plantsite & Loadout PRC Rail Loadout Windy Pit Murray River Footprint

FLATBED COAL PROPERTY

TUMBLER RIDGE Gordon Crk. Flatbed Crk. Bearhole Lake Park Shikano Pit

B029K B030K

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Recent Work – Overview of Results

Company Overview: Colonial Coal

Gordon Creek In-Place Inferred Coal Resource Estimate Seam ID Thickness (m) Resource (Mt) B 2.93 52.2 D 2.45 36.6 E 1.4 19.1 F1 1.48 21.0 F2 3.67 49.2 G 2.4 34.8 J 4.4 54.2 K 2.56 30.9 Total -- 298.0

Gordon Creek Clean Coal Composite Quality (adb)

Seam ID Float S.G. Froth (sec) Moist (%) Ash (%) VM (%) S (%) FSI %P in Coal Mean Max Reflectance (RoMax) Gieseler Fluidity Max DDPM Dilatation % S.D. 2.5 Base Acid Ratio B 1.5-1.55 30-60 0.51 8.85 25.04 0.92 8.5 0.081 1.19 1140 117 0.22 D 1.45 NSS 0.53 8.37 25.08 0.82 6.0 0.050 1.17 1120 78 0.10 E 1.5 NSS 0.56 8.16 22.58 1.32 8.0 0.041 1.29 286 64 0.11 F1 1.5 60 0.50 8.58 21.92 0.58 8.0 0.058 1.32 35 28 0.13 F2 1.6 60 0.43 8.27 21.27 0.39 7.0 0.046 1.32 4.4 13 0.22 G 1.5 60 0.46 7.93 20.64 0.53 8.0 0.089 1.39 56 17 0.08 J 1.40 60 0.50 5.54 18.58 0.39 5.0 0.022 1.45 1.5

  • 0.09

K 1.5 60 0.52 6.01 18.14 0.41 3.5 0.002 1.43 1.7

  • 0.10
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FLATBED– Premium Coking Coal Characteristics

  • Premium clean coal product with low ash, low sulfur, low phosphorus, and High FSI
  • Weight averaged theoretical yield of 74%

Seam Ash % VM % FC % S % FSI % P (in coal) Theoretical Yield % % RoMax

B 8.90 25.17 65.93 0.93 8.3 0.081 57.16 1.19 D 8.41 25.21 66.37 0.82 6.0 0.050 56.76 1.17 E 8.21 22.71 69.09 1.33 8.0 0.041 77.68 1.29 F1 8.62 22.03 69.35 0.58 8.0 0.058 62.78 1.32 F2 8.31 21.36 70.33 0.39 7.0 0.046 83.32 1.32 G 7.97 20.74 71.30 0.53 8.0 0.089 46.43 1.39 J 5.57 18.67 75.76 0.39 5.0 0.022 63.55 1.45 K 6.04 18.23 75.72 0.41 3.5 0.002 58.84 1.43

FLATBED Clean Coal Quality Summary (dry basis)

Company Overview: Colonial Coal

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Market Overview: Metallurgical Coal Company Overview: Colonial Coal Summary: Investment Highlights Recent Work: Flatbed

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12 Potential to Jointly Develop Shared Infrastructure

Strategic Location With Significant Partnership Opportunities

 Sharing in the development of joint infrastructure (roads / rail) with

  • ther operators and potential operators in the region would lower

initial capital costs at Huguenot and Flatbed HUGUENOT

PEA contemplates a third party built railway used by other potential producers in the region

85 km rail spur (+/- overland conveyor) to connect the project to the existing main rail line  If not built by an independent third party, the railway could be constructed on a shared basis with other coal producers together with other rail providers in the region.

Huguenot is adjacent to the Belcourt Project (Anglo American)

Other nearby properties are owned by Teck Resources and Canadian Dehua

Rail accessed by other projects would reduce costs and provide practical benefits

Development / operating costs would be distributed across all

  • perators in the region for greater scale and lower per tonne cost

While rail is the preferred mode of transportation in the region, trucking coal is viable but more expensive on a per tonne basis FLATBED  Located close to the existing rail line and coal loadouts

An independent coal loadout, if required, access existing rail with a short spur line

Situated close to any transportation route that would connect projects to the south with the main rail line

Lies within a few kilometers of an existing Provincial Highway

Flatbed

Tumbler Ridge

Huguenot

  • Mt. Duke
  • Mt. Babcock (Window)

(Anglo) Belcourt Saxon (Anglo) Trend-Roman Wolverine Group

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Huguenot Asset: One of the Largest Hard Coking Coal Deposits in the Region

Company Overview: Colonial Coal

  • Huguenot has a contained resource of 277.7 million tonnes of combined Measured and Indicated resources plus 119.2 million

tonnes of Inferred resources, making it one of the largest deposits in the region

  • Coals from both Huguenot and Flatbed rank as premium metallurgical coking coals
  • The coals are amenable to washing to a low-ash product with low sulfur and low phosphorus
  • Similar coal quality to Anglo's nearby Trend mine (premium product exported to Asia)

North Middle South Total Surface Resources Measured + Indicated (MT) 66.2 46.9 18.8 132.0 Inferred (MT) 0.0 0.5 0.0 0.5 Underground Resources Measured + Indicated (MT) 37.6 31.2 77.0 145.7 Inferred (MT) 86.8 1.6 30.2 118.7 Total Measured + Indicated (MT) 103.8 78.1 95.8 277.7 Inferred (MT) 86.8 2.1 30.2 119.2

`

Canadian Dehua

(Wapiti)

HD Int’l.

(Murray River)

CCIC (Huguenot) Conuma

(Brule)

Glencore & JX Nippon

(Sukunka)

Anglo Pacific

(Trefi)

PRC (Anglo) (Belcourt) Teck

(Mt. Duke)

PRC (Anglo)

(Trend)

Conuma

(Wolverine)

Conuma

(Willow Creek)

Glencore & JX Nippon

(Suska)

759 185 252 103 278 (M+I) 688 70 171 119 (Inf.) 91 70 51 45

CCIC

(Flatbed Gordon Crk Area)

298

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Huguenot Project Overview (100% Interest)

  • Located adjacent to the proposed

Belcourt South open pit (owned by PRC/Anglo)

Similar coal characteristics

  • Amenable to open pit and

underground mining

  • 1.5% royalty FOB port
  • Located ~120 road-km from

Quintette and PRC load-outs

  • Requires an 85 km rail (or

combination of a rail and

  • verland conveyor) to link with

existing rail line

  • Proposed production of clean coal

from combined surface and underground mining operations averages approximately 3Mtpa, and ranges from 1.4 Mtpa to 5.9 Mtpa over 31 year LOM (as per CCIC’S PEA) Project Location Project Summary

Company Overview: Colonial Coal

Colonial Coal (Huguenot) Canadian Dehua (Wapiti) PRC (Anglo) (Trend) Teck (Mt. Duke) PRC (Anglo ) (Belcourt-Saxon) Duke Pit Area Proposed Belcourt North Pit Area Proposed Belcourt South Pit Area North Block Resource Area Middle Block Resource Area South Block Resource Area

HUGUENOT

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HUGUENOT – Premium Coking Coal Characteristics

  • Premium clean coal product with low ash, low sulfur, low phosphorus, and High FSI
  • Weight averaged theoretical yield of 74%

Seam Ash % VM % FC % S % FSI % P (in coal) Theoretical Yield % % RoMax

10 8.58 27.22 64.20 0.93 8.0 0.187 67.93 1.06 9 7.49 26.82 65.69 0.83 7.6 0.106 74.85 1.05 8 7.76 26.20 66.04 0.51 6.4 0.034 66.76 1.07 6D 5.03 25.87 69.10 0.84 7.3 0.043 59.94 1.13 6B 6.82 24.78 68.40 0.50 6.7 0.084 70.37 1.12 6L 7.97 23.23 68.80 0.48 6.7 0.091 63.71 1.19 5 7.90 23.68 68.41 0.34 6.5 0.034 81.84 1.19 4U 5.11 23.70 71.19 0.73 7.4 0.093 91.93 1.19 4 5.63 22.91 71.46 0.61 7.5 0.030 86.81 1.28 3D 4.97 27.82 67.21 1.21 9.0 0.098 76.66 1.16 3B/3BL 8.74 23.07 68.19 0.51 7.7 0.029 57.01 1.24 2EF 9.15 22.43 68.42 0.41 8.0 0.158 51.34 1.24 2A 8.02 24.95 67.03 1.04 9.0 0.017 65.27 1.22 2Z 8.56 22.34 69.09 0.46 8.2 0.067 44.36 1.31 1 7.86 22.57 69.57 0.39 6.5 0.027 90.85 1.22

HUGUENOT Clean Coal Quality Summary (dry basis)

Company Overview: Colonial Coal

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Westshore Terminals Ridley Terminals PRINCE RUPERT FORT NELSON Neptune Terminals

BRITISH COLUMBIA ALBERTA SASKATCHEWAN

SASKATOON REGINA EDMONTON FORT MCMURRAY HAY RIVER VANCOUVER CALGARY PRINCE GEORGE Bituminous Sub-bituminous Lignite

Coal Rank Infrastructure

Canada AB Peace River Coalfield

Huguenot

Dawson Creek Tumbler Ridge Chetwynd

Flatbed

85 km from rail load-

  • ut facility

Flatbed Huguenot

Available Rail and Port Capacity to Access Export Markets

  • Production from Huguenot and Flatbed would be

shipped by rail to export terminals on the west coast of British Columbia

  • Rail lines out of the Peace River Coalfield are
  • perated by a Class I Canadian carrier (CN Rail,

largest railway company in Canada) and have available capacity to support future production from Huguenot and Flatbed

From the existing rail loadouts, coal is hauled by rail approximately 1,000 km to the Ridley Terminal in Prince Rupert

  • The Ridley Terminal is a deep water port with a

total coal capacity of 30 mtpa (expansion completed 2014)

One of the deepest, ice free natural harbours in the world

100% owned by the Government of Canada

Capable of supporting capesize vessels (250,000 DWT)

Port Facility / Coal Terminal CN Railway CP Railway

Company Overview: Colonial Coal

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Port Facility / Coal Terminal CN Railway CP Railway Bituminous Sub-bituminous Lignite

Western Canadian Coal Companies Coal Rank Infrastructure

World Class Infrastructure

  • CN Rail provides access to Ridley Terminals
  • Deep-water coal loading facilities at Ridley

Terminals

 Current capacity 30 Mtpa  Recent Modification Project to increase capacity

to 30 Mtpa

  • No port or rail capacity constraints

Extensive Regional Infrastructure Unencumbered Access to Export Markets

Westshore Terminals Ridley Terminals PRINCE RUPERT FORT NELSON Neptune Terminals

BRITISH COLUMBIA ALBERT A SASKATCHEW AN

SASKATOON REGINA EDMONTON FORT MCMURRAY HAY RIVER VANCOUVER CALGARY PRINCE GEORGE

Company Overview: Colonial Coal

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Investment Upside: Watson Island

  • In 2012, Colonial Coal through its subsidiary Watson Island

Development Corp. (Watco) entered into a MoU with Lax Kw’alaams Band and Metlakatla First Nations (“Coast Tsimshian Nation”) for the formation of a JV for the potential acquisition of the Watson Island.

  • The Coast Tsimshian Nation have an exclusive arrangement

(“Exclusivity Agreement”) with the City of Prince Rupert to purchase Watson Island.

  • Watco will compensate the City of Prince Rupert for actual

land expenses in accordance with the terms of the Exclusivity Agreement

  • Watco has undertaken a feasibility investigation in relation to

the development of the Watson Island.

  • Watson Island is envisioned as a multi-product bulk

commodity port and offers a potential and exciting solution to expand coal export capacity in British Columbia in light of increasing regional coal production

  • Watco is currently in litigation with the City of Prince Rupert

in connection with the acquisition of Watson Island.

Potential site for establishment of a bulk terminal on Watson Island 3 Ridley Terminal’s initial throughput capacity of 12 Mtpa 1

16 16 599

Tsimpsian Peninsula Prince Rupert Airport Digby Island Port Edward Smith Island Kinahan Islands Ridley Island Prince Rupert Grain Ridley Terminals (Coal) Kaien Island Fairview Terminal Proposed Expansion

To Prince George 724 km To Edmonton 1,461 km To Vancouver 1,502 km

3 1 2

Expansion of Ridley Terminals to 30 Mtpa now complete 2

Watson Island

Company Overview: Colonial Coal

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Next Steps: 2017/2018 Objectives

Company Overview: Colonial Coal

2017 2018

Funds (C$mm) Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Strategic Financing $7.5 Flatbed Work Program Flatbed NI 43-101 Report Flatbed - Internal U/G Mining Scoping Report Flatbed PEA / Huguenot PEA Update

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Market Overview: Metallurgical Coal Company Overview: Colonial Coal Summary: Investment Highlights Recent Work: Flatbed

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Unparalleled Investment Opportunity

  • Invest in two of the largest deposits of premium quality hard coking coal in western Canada

The only Canadian listed, publicly traded pure-play coking coal company in western Canada

Open pit and underground mineable resource of approximately 400 Mt at Huguenot Project (“Huguenot”)

Underground minable resource of approximately 300Mt at Flatbed Project (“Flatbed”) in proximity to Trend and Quintette mines

  • The only junior coal company in western Canada to have a stake in a port development project

Recent MoU regarding potential development of port facility at Watson Island

  • Gain exposure to one of the most active coal basins in a mining friendly jurisdiction with excellent infrastructure in place

Recent acquisitions by Walter Energy, Anglo American, Glencore, Conuma and SonicField amongst others

Capacity expanded at western Canadian coal ports

  • Strategically located coal properties adjacent to other major projects provide logical buyer and partnership opportunities

Huguenot located between Anglo’s Belcourt and Saxon project areas

Flatbed located adjacent to Anglo’s Trend mine (currently under care and maintenance), Teck’s proposed Window open pit (Mt. Babcock, Quintette), and close to HD Mining’s advanced underground coal mining project at Murray River

  • Highly experienced management team with a proven track record in the Peace River Coalfield

Highly capable management team with significant prior experience advancing other development projects to production in the region

  • Provides exposure to long-term Asian growth story whilst staying invested in a safe jurisdiction

Increasing demand for high quality coking coal driven by long-term Asian growth

Western Canadian coal projects have cost-advantaged access to East Asian markets

Summary: Investment Highlights