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Endocoal Limited INVESTOR UPDATE September 2012 HONG KONG AN - - PowerPoint PPT Presentation

Endocoal Limited INVESTOR UPDATE September 2012 HONG KONG AN EMERGING BOWEN BASIN COAL DEVELOPER www.endocoal.com.au DISCLAIMER This presentation has been prepared and issued by Endocoal Limited, ACN 132 183 281 (Endocoal or Competent


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SLIDE 1

Endocoal Limited

INVESTOR UPDATE

September 2012 HONG KONG

AN EMERGING BOWEN BASIN COAL DEVELOPER

www.endocoal.com.au

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SLIDE 2

This presentation has been prepared and issued by Endocoal Limited, ACN 132 183 281 (“Endocoal” or “Company”) to assist it in informing interested parties about the Company. The information in this document is in summary form and should not be relied upon as a complete and accurate representation of any matters that a potential investor should consider in evaluating Endocoal. While management has taken every effort to ensure the accuracy of the material in the presentation, neither the Company nor its advisers has verified the accuracy or completeness of the information, or any statements and opinions contained in this presentation. This presentation is provided for information purposes only, and to the maximum extent permitted by law, Endocoal, its officers and management exclude and disclaim any liability in respect of the authenticity, validity, accuracy, suitability or completeness of, or any errors in or

  • mission from, any information, statement or opinion contained in this presentation or anything done in

reliance on the presentation. The presentation may contain forward looking statements. The words ‘anticipate’, ‘believe’, ‘expect’, ‘project’, ‘forecast’, ‘estimate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘target’, ‘plan’ and other similar expressions are intended to identify forward‐looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward‐looking statements. Forward‐looking statements are subject to risk factors associated with the Company’s business, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially from those expressed or implied in such

  • statements. There can be no assurance that actual outcomes will not differ materially from these
  • statements. You should not place undue reliance on forward‐looking statements and neither Endocoal nor

any of its directors, employees, servants, advisers or agents assume any obligation to update such information This presentation should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those

  • securities. No agreement to subscribe for securities in the Company will be entered into on the basis of

this presentation. You should not act and refrain from acting in reliance on this presentation material. Nothing contained in this presentation constitutes investment, legal, tax or other advice. This overview of Endocoal does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. Before making an investment decision, you should conduct, with the assistance of your broker or other financial or professional adviser, your own investigation in light of your particular investment needs, objectives and financial circumstances and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation and making any investment decision. References to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated.

2

DISCLAIMER

Competent Person’s Statement: In accordance with the Australian Securities Exchange requirements, the technical information contained in this presentation has been reviewed by Darren Walker, B.Sc. (Hons) in Geology employed by Endocoal Limited. Mr Walker is a member of the Australian Institute

  • f Geoscientists and the Australasian Institute of Mining and

Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for reporting of Exploration Results, Minerals Resources and Ore reserves”. Mr Walker consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. Competent Person’s Statement: In accordance with the Australian Securities Exchange requirements, the technical information relating to the Rockwood, Meteor Downs South and Inderi JORC Resources contained in this presentation has been reviewed by Phill Sides, B.App.Sc. (Geology), employed by JB Mining Services. Mr Sides is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for reporting of Exploration Results, Minerals Resources and Ore reserves”. Mr Sides consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. Statement of Compliance: The information in this report that relates to Marketable Reserves at Endocoal’s South Meteor Downs Project is based on a mine plan, a mine schedule and costs prepared by The Minserve Group Pty Ltd. Mr Jeff Jamieson was responsible for the report’s preparation and the reserve statement therein. He is both a Fellow of the Australasian Institute of Mining and Metallurgy, and a Chartered Professional (Mining) and is a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jamieson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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  • 1. EXECUTIVE SUMMARY

4

  • 2. CORPORATE OVERVIEW

5

  • 3. ORION DOWNS PROJECT

8

  • 4. ROCKWOOD PROJECT

12

  • 5. STOCKYARD CREEK PROJECT

16

  • 6. TALWOOD/PRETORIA HILL

17

  • 7. PROJECT PIPELINE

18

  • 8. FY2012/13 OBJECTIVES

19

  • 9. REASONS TO INVEST

20 APPENDICES 21

CONTENTS

3

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SLIDE 4
  • 1. EXECUTIVE SUMMARY
  • An ASX listed Australian coal exploration and development company;
  • Major anthracite/PCI coal discovery, combined with near‐term thermal coal production;
  • Exploration activities solely in the Bowen Basin, Central Queensland;
  • Focused on delivering outcomes for shareholders as forecast; with
  • 498.5Mt of JORC Resources identified, plus mine development activities underway.

ORION DOWNS TALWOOD / PRETORIA HILL ROCKWOOD

4

  • 51.4Mt JORC Resource of export‐quality, direct‐ship thermal coal;
  • Meteor Downs South (MDS) Project Evaluation completed for open cut mine; and
  • First production targeted for 2H 2013, based on 13.0Mt of Marketable Reserves.
  • 447.1Mt JORC Resource of high rank, high energy, low volatile, anthracite/PCI coal;
  • Continuity of geological structures and coal seams has been confirmed; and
  • Future drilling to focus on proving‐up potential mine development areas.
  • Exploration commencing at Talwood, prospective for Rugby‐style coking coal measures;
  • Strategic joint acquisition of Pretoria Hill with Carabella Resources (CLR); and
  • EOC/CLR Joint Venture Agreement being finalised.

1. 2. 4. 3.

STOCKYARD CREEK

  • Initial success with six‐hole scout drilling program completed in early‐2012;
  • Seam structure and coal quality results now being further assessed; and
  • Discovery of new coal, with exploration potential in expected larger resource area.
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SLIDE 5

5

COMPANY STRATEGY

To become a long‐term, sustainable supplier of diversified coal products to global markets

Project Pipeline Company Growth

Orion Downs Development Target production 2H 2013 Rockwood Advanced Exploration Current JORC Resource 447.1Mt Additional 3,948km2 of ‘greenfields’ exploration in the Bowen Basin

Major Shareholders as at 30/08/2012 %

Hidili Asset Management 12.6% Republic Investment Management 10.8% Cookshill Investments Pty Limited 8.6% AMCI Capital 6.1% Indus Capital Partners 5.4% Macquarie Capital Group 5.3% Top 6 Shareholders 48.8% Top 20 Shareholders 64.5%

Share Price (31 Aug 2012): A$0.22 Ordinary Shares on issue: 186.9m Basic Market Cap: A$41.1m Options(A) and Rights(B) on issue: 21.6m Fully Diluted Market Cap: A$45.9m Cash @ 30 June 2012: A$5.8m Debt: $0.0m Enterprise Value: A$40.1m

Other securities currently on issue:

  • A. Options :

‐ 10.0 million @ A$0.50 (expiring 16/07/2013) ‐ 3.9 million @ A$0.72 (expiring 4/02/2015) ‐ 3.0 million @ A$0.50 (expiring 2/12/2013) ‐ 1.5 million @ A$0.468 (expiring 10/08/2014) ‐ 1.0 million @ A$0.46 (expiring 23/08/2013) ‐ 350,000 @ A$0.60 (expiring 16/03/2014) ‐ 250,000 @ A$0.40 (expiring 23/08/2013) ‐ 250,000 @ A$0.40 (expiring 16/03/2014) ‐ 200,000 @ A$0.60 (expiring 30/03/2014)

  • B. 350,000 rights to acquire options @ A$0.60 (expiring 28/05/2013) and 800,000 rights to acquire
  • ptions @ A$0.445 (expiring 07/04/2014) both with various vesting criteria.

CAPITAL STRUCTURE

  • 2. CORPORATE OVERVIEW
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SLIDE 6

Sullivan Creek (100%) – 1,020km2 – Targeting:

  • Coking/Thermal Coal

Expedition Peak (100%) – 129km2 – Targeting:

  • Coking/Thermal Coal

Orion Downs (100%) – 1,020km2 – 51.4Mt JORC Resource

  • Export Thermal Coal

Rockwood (100%) – 99km2 – 337.3Mt JORC Resource – Targeting PCI Coal Essex (100%) – 204km2 – Targeting:

  • PCI Coal

Springton Duaringa (100%) – 761km2 – Targeting:

  • PCI Coal

Barfield (100%) – 564km2 – Targeting:

  • Thermal/Coking Coal

Stockyard Creek / Cedars (100%) – 1,020km2 – Targeting:

  • Thermal /Coking Coal

Nebo (100%) – 78km2 – Targeting:

  • PCI Coal

Pretoria Hill (50%) – 410km2 – Targeting:

  • Coking/Thermal Coal

Talwood (100%) – 177km2 – Targeting:

  • Coking/Thermal Coal

6

BOWEN BASIN TENEMENTS

Locations

ST STOCKYAR ARD CREEK CREEK

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SLIDE 7

ENDOCOAL EXPLORATION

Resource Discovery & Evaluation

7

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Minerva 33Mt resource (Sojitz Resources) West Rolleston 369Mt resource (Macarthur Coal Ltd) Athena 560Mt resource (Sojitz Resources) Springsure Creek 375Mt resource (Bandanna Energy Ltd) Arcturus 206Mt resource (Bandanna Energy Ltd) Orion Downs Inderi project 34.58Mt resource Meteor Downs South project 16.82Mt resource Rolleston Leases Rail to Port Rolleston Mine 600Mt resource Xstrata PLC

METEOR DOWNS SOUTH (MDS) PROJECT EVALUATION OUTCOMES MDS PROJECT STATUS Project Area Measured Indicated Inferred Total JORC Meteor Downs South 13.32Mt 3.5Mt 0.0Mt 16.82Mt Inderi 18.48Mt 8.1Mt 8.0Mt 34.58Mt Total 31.8Mt 11.6Mt 8.0Mt 51.4Mt

  • Environment Management Plan (EMP) nearing completion

to support grant of Mining Lease in late‐2012/early‐2013.

  • No strategic cropping land near the mine operations area.

JORC RESOURCES SUMMARY

  • MDS Project Evaluation completed in Q1 2012:

‐ Delivering 1.5‐1.9 Mtpa from MDS open cut mine; ‐ Low actual mining cash cost of $29.17/t; ‐ Free On Truck (FOT) opex cost of $37.11/t; ‐ Low capex set‐up cost ($42M for FOT case) based on ‘mining contractor’ model; to deliver ‐ Workforce productivity level > 20,000 t/person/year

8

  • 3. ORION DOWNS PROJECT

Overview

MARKETABLE RESERVES

  • 13.0Mt Marketable Reserves confirmed at MDS:

‐ Based on a costed mine plan and mining schedule. ‐ Mine plan peer‐reviewed by an independent expert.

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  • Seam analysis indicates export‐quality

thermal coal;

  • Direct‐ship thermal coal, with no coal

preparation plant/beneficiation required;

  • Similar coal quality to Xstrata’s nearby

Rolleston mine; and

  • Low Ash / Sulphur content suitable for the

thermal coal Asian market. Property C SEAM D SEAM CV (Kcal/kg) 6,233 6,025 Ash (A) 9.5% 8.0% Inherent Moisture (A) 9.9% 11.2% Sulphur (A) 0.42% 0.43%

(A) Air‐dried basis)

MDS PROJECT OVERVIEW

  • One‐pit operation with single excavator/

truck fleet for overburden removal and coal extraction;

  • Coal seams between 11m and 70m depth;
  • Average thickness of coal seams 7.2m,

with maximum thickness of 9.7m;

  • Average stripping ratio of 5.5:1;
  • Top‐of‐ramp ROM coal dump and sizing

plant, for road‐haul to despatch facility.

PRODUCT COAL PROPERTIES 9

  • 3. ORION DOWNS PROJECT

Meteor Downs South (MDS) Project

COAL QUALITY OPPORTUNITY

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PORT CAPACITY & ALLOCATION

  • Acquired 2Mtpa FFFA (‘Feasibility Funding Facility

Agreement’) status in WICET Stage 2: ‐ Registration for total 4Mtpa in WICET Stage 2 due for completion in 2015.

  • Investigating access to ‘under‐utilised’ port allocations

prior to WICET Stage 2 start‐up: ‐ Seeking pre‐2015 tonnage to allow production 2H 2013.

TIMELINE TO PRODUCTION

  • Targeting near‐term open cut mine development;
  • Mining Lease Application for MDS lodged 29 April 2011;
  • MDS mine start‐up is targeted for 2H 2013 (Stage 1); with
  • Inderi underground mine development later (Stage 2).

INFRASTRUCTURE & TRANSPORT LOGISTICS

  • Rail load‐out facility to deliver coal onto Bauhinia rail

line;

  • Documentation lodged with QR National to advance rail

access negotiations;

  • Link to Blackwater rail system for delivery to Gladstone;

and

  • MDS and Inderi able to share key mine site

infrastructure as Stage 1 and Stage 2 projects at Orion Downs.

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  • 3. ORION DOWNS PROJECT

Near‐Term Production From MDS Open Cut

(Conceptual rail‐loop layout only, with other options under review.)

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MLA

Maiden JORC Resource MLA Lodged April 2011 Acquired 2Mtpa allocation of FFFA status at WICET Stage 2 Drilling completed to deliver Measured JORC Resource

     

Approvals / Mining Lease MDS Project Evaluation Export

Environmental Management Plan process underway

11

Milestones Completed

  • 3. ORION DOWNS PROJECT

Meteor Downs South Project Milestones

2Q 2011 3Q 2011 4Q 2011 1H 2012 2H 2012 1H 2013 2H 2013 Meteor Downs South Project Evaluation completed

Upcoming Milestones Mine Construction

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12

  • 447.1Mt JORC Resource in the initial exploration area of

Rockwood (EPC1514); ‐ Exploration drilling along and across anticline structures running north‐west to south‐east through the tenement; ‐ Multi‐seam deposit, with >21 separate coal intersections.

  • Seismic, aeromagnetic and close‐spaced ground surveys:

‐ Confirmed continuity of geological structures; and ‐ Identified similar and likely repeating structures elsewhere

  • n the tenement.
  • Potential to substantially upgrade Rockwood JORC Resources.
  • Next stage in‐fill drilling will target specific locations within

current resources prospective for future mine development.

2011/12 EXPLORATION ACTIONS & OUTCOMES CURRENT JORC RESOURCES

  • 4. ROCKWOOD PROJECT

Project Area Measured Indicated Inferred Total JORC Rockwood Total 0.0Mt 47.1Mt 400.0Mt 447.1Mt ROCKWOOD SITUATION

  • Central Bowen Basin, accessed via Fitzroy Development Road;
  • Adjacent to Peabody’s (Macarthur Coal) Codrilla & Willunga

deposits.

Rockwood

Willunga 318Mt resource (Macarthur Coal – Peabody) Codrilla 80Mt resource (Macarthur Coal – Peabody) Saraji 1.0Bt resource (BMA) Norwich Park 517Mt resource (BMA)

312.5Mt Resource

Overview

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13 COAL QUALITY ASSESSMENT PROCESS COAL VALUE‐ IN‐USE STUDY

  • Next stage is to determine best likely end‐user destinations

for Rockwood coal.

  • Evaluate Rockwood PCI product export market opportunities:

‐ Best fit with operating plants and coal requirements; and ‐ Value of Rockwood PCI coal in the international market.

  • Gallagher Consulting, Brisbane‐based coal technology experts

have evaluated coal laboratory results, to assess: ‐ Coal physical properties, ash chemistry, plus likely washing characteristics; ‐ Consistency within & between coal seams; ‐ Comparison ranking of Rockwood coal properties with

  • ther PCI coals currently traded internationally.
  • 4. ROCKWOOD PROJECT

Coal Quality & Value‐In‐Use Studies

ROCKWOOD COAL QUALITY

  • Confirmed Rockwood anthracite coal fits within the range of
  • ther PCI coals successfully traded in the international market.
  • High rank, high carbon coal with a low volatile content.

‐ Expected to deliver product coal with competitive ash level and acceptable washing yield.

Ash Volatile Matter Carbon Specific Energy (ad) (% daf) (% daf) (ad MJ/kg) 11.3 6.5 91.8 30.1

(Average washed quality of samples tested to date for PCI properties.)

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DRILLING TARGET AREAS IN 2012

  • Several prospective exploration targets:

‐ Identified following ground gravity and aerial magnetic surveys, with confirmation by later seismic survey;

  • In 1H 2012, drilling has been focussed on:

‐ Expanding the Rockwood exploration footprint to the south‐east along already identified coal‐bearing anticline structures; and ‐ Understanding geological structures so as to locate potential mine sites within the initial discovery area.

  • 4. ROCKWOOD PROJECT

Drilling Targets Planned

14 FUTURE DRILLING PRIORITY

  • Focus will now shift to tighter in‐fill drilling in locations

identified as prospective for the siting of mining pits: ‐ Within the currently identified JORC Resource area.

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CONCEPTUAL MINE PLANNING STUDY

  • To commence during Q3 2012.
  • Based on 3D geology structure model

and coal quality model developed from 2011/12 drilling programs to: ‐ Evaluate potential for open cut mining and consider alternative mining methods ‐ Identify infrastructure opportunities, including access to water supplies to support Rockwood development.

PORT INFRA‐ STRUCTURE & TRANSPORT LOGISTICS

  • Northern Bowen Basin coal export ports:

‐ For Abbot Point, currently providing potential user input to the port development industry consultation process set up by the new Queensland Government; and ‐ Continuing involvement with the Adani port development project at Dudgeon Point, confirming interest in acquiring Northern Bowen Basin port allocation.

Extracted from report IN‐SITU RAW COAL RESOURCES WITHIN EPC1514 – “ROCKWOOD” prepared by JB Mining Services.

  • 4. ROCKWOOD PROJECT

Planning for Mine Development

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A A A A

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  • 5. STOCKYARD CREEK PROJECT

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Scout Drilling Program

  • Location for scout exploration was identified through:

‐ Research noting content of a Utah Development Company drilling outcomes report, dated 1961; ‐ Utilising first‐principles geological investigation; and ‐ Targeting contact zone between freshwater sequence and underlying volcanic basement.

  • Early success achieved to deliver a ‘new coal’ discovery:

‐ Two coal seams intersected, each approx. 3m thick (with ~0.3m separation); ‐ Five holes, identifying the seams at shallower depth; and ‐ First laboratory testing results indicates some coal plies with coking properties (including CSN in range 7‐9).

SCOUT DRILLING IN 2012

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17

  • 100% Endocoal‐owned tenement (EPC 1590);
  • Prospective for the Rugby coking coal measures;
  • Located close to the ‘Northern Missing Link’ rail

line (now completed) linking to Abbot Point coal loaders;

  • Geophysical seismic survey lines identified;
  • Scout drilling in southern area disrupted by heavy

unseasonal rainfall;

  • Laboratory testing of initial cores underway; and
  • Preliminary exploration commenced in 1H 2012.

PRETORIA HILL JV

  • 50:50 JV between Endocoal and Carabella Resources (CLR);
  • Pretoria Hill adjoins Carabella’s Mabbin Creek tenement;
  • Endocoal to be the Exploration Manager for JV; and
  • Joint Venture Agreement currently being finalised.

TALWOOD

  • 6. TALWOOD/PRETORIA HILL

Overview

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Project Evaluation Studies Early Exploration

Pretoria Hill JV Cedars EPC 1516 Barfield EPC 1620 Springton Duaringa EPC 1803 Essex EPC 1515 Nebo EPC 1513 Expedition Peak EPC 1512 Sullivan Creek EPC 1518

Export Thermal Coal PCI Coal Coking Coal

Prospective Coal Type Target

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Granted Tenements

  • 7. PROJECT PIPELINE

Three Coal Products Strategy Developing

Talwood

Advanced Exploration

Inderi 34.6Mt JORC Resource

Development

Rockwood 447.1Mt JORC Resource Meteor Downs South 16.8Mt JORC Resource Stockyard Creek EPC 2339

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SLIDE 19

19

INFRASTRUCTURE

 Continue participation in Wiggins Island Coal Terminal expansion process.  Negotiate access to under‐utilised allocations at Gladstone Port for early shipping of Meteor Downs South coal.  Negotiate with QR for rail access to the Bauhinia spur line from Orion Downs to the Blackwater system and Gladstone port.  Continue involvements with Northern Bowen Basin rail and port developments to access rail and port allocations.  Identify water sources for future development at Rockwood.

ROCKWOOD

 Commence in‐fill drilling on specific target areas identified as being prospective for the location of mining pits.  Undertake in‐fill drilling within the initial discovery area to shift ‘Indicated’ and ‘Inferred’ resources to ‘Measured’ and ‘Indicated’ status respectively.  Begin conceptual mine‐planning activities, including consideration of future infrastructure needs.

OTHER TENEMENTS

 Extend exploration at Stockyard Creek where a scout drilling program has identified two coal seams.  Undertake further drilling program targeting Rugby coking coal measures at Talwood.  Finalise JV agreement with Carabella Resources and commence exploration at Pretoria Hill.  Further exploration on the Essex, Springton, and Nebo tenements.  Negotiate land access agreements and commence scout drilling at prospective target areas identified.

METEOR DOWNS SOUTH

 Complete EMP process to support the granting of a mining lease in late‐2012/early‐2013.  Continue planning activities and achieve key milestones for delivery of the Meteor Downs South Project during 2013.  Identify and secure alternatives for Gladstone port access in 2013 and 2014 prior to WICET Stage 2.

  • 8. FY2012/13 OBJECTIVES

Key Tasks Identified

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SLIDE 20

20  NEAR‐TERM PRODUCTION FROM ADVANCED EXPORT‐QUALITY THERMAL COAL PROJECTS AT ORION DOWNS:

  • Defined timeline to production for the Meteor Downs South open cut mine now exploration completed, environmental

approval process confirmed and a project evaluation study now completed.  ATTRACTIVE PIPELINE OF COAL DEVELOPMENT PROJECTS IN THE BOWEN BASIN:

  • Major PCI coal discovery at Rockwood with significant further exploration upside;
  • Scout drilling at Stockyard Creek discovered two ‘new coal’ seams, with some coking properties identified;
  • Talwood and Pretoria Hill offer a number of potential coking coal targets;
  • Diversified coal prospects on other tenements to be explored (for Coking, PCI and Thermal coal); and
  • Successful Exploration Team in place with proven techniques and robust operating arrangements.

 INFRASTRUCTURE DEVELOPMENTS CONTINUING TO IMPROVE:

  • Secured 2Mtpa FFFA Status in WICET Stage 2;
  • Investigations continuing to access pre‐2015 port capacity at Gladstone; and
  • Interest lodged to acquire shipping capacity at Northern Bowen Basin ports being developed.

 STRONG BOARD & MANAGEMENT, WITH SUBSTANTIAL COAL MINE DEVELOPMENT AND OPERATIONAL EXPERIENCE.

  • 9. REASONS TO INVEST
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Appendices

21

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SLIDE 22

22

Rod Austin, Interim Non‐Executive Chairman

  • Over 20 years management experience in finance and resource industries.
  • Founding Managing Director of Endocoal Limited.
  • Ex‐Chief Executive of Oceanic Coal:

Operator of 6 coal mines in Hunter Valley and Queensland.

Exported thermal and semi soft coking coal to Korea, Japan, Taiwan and China (1991‐1995).

  • Ex‐NSW Coal Association and Mining Council Executive committee board member.
  • Chairman, NSW Mining Council Planning & Environment Committee.
  • Ex‐Deputy Managing Director of James Capel Australia (HSBC).

Timothy Hedley, Chief Executive Officer

  • Mining engineer by background with over 30 years experience in coal mining.
  • Mine Manager and General Manager of various BHP mines in NSW and Queensland including the Gregory ,

Crinum, Blackwater, Moura and South Walker Creek mines in the Bowen Basin; and as a Mine Operations Adviser to Tarong Energy on its coal mining operations.

  • In the later role Mr Hedley co‐ordinated Tarong Energy’s team for exploration, coal quality and structure

modelling, assessment of coal properties, pit design, infrastructure, mine scheduling, and capital and

  • perating cost modelling.

BOARD & MANAGEMENT

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SLIDE 23

23

Phil McCarthy, Non‐Executive Director

  • Powercoal Pty Ltd ‐ CEO and Managing Director 1990 to 2000 (prior to acquisition by Centennial Coal).
  • Chairman of Mine Site Technologies Pty Limited.
  • Newcom Collieries Pty Ltd 1981 to 1990

General Manager 1986 to 1990.

Assistant Superintendent Operations and Planning 1982 to 1985.

  • Former Director Jellinbah Resources Pty Ltd (1.8Mtpa to 4Mtpa open‐cut coal mine in Bowen Basin).
  • Former Chairman Strata Engineering Pty Ltd (private geotechnical engineering 2002 to 2006).
  • Former Director of WDS Ltd (formerly Walter Mining Ltd).

Mining contractor and oil and gas service contractor.

BOARD & MANAGEMENT

Lex Hansen, Non‐Executive Director

  • Coal geologist with 30 years experience, ex‐Director HSBC Corporate Finance (Mining).
  • Director of Heemskirk Consolidated Limited, Core Resources Limited and Platinum Australia Limited.
  • Geologist for Utah Coal for exploration of Bowen Basin in 1970’s.
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SLIDE 24

24

Fred Yu, Non‐Executive Director

  • Mr Yu graduated with a business degree from the Chinese University of Hong Kong.
  • Worked for a number of investment banks in Hong Kong over a 15 year period.
  • Prior to establishing Hidili Asset Management Limited in 2009, Mr Yu was Investment

Director for Microsoft in the Greater China region.

Gavin Solomon, Non‐Executive Director

  • Managing Director of Helmsec Global Capital Limited.
  • Corporate advisory and legal background.
  • Notary Public and member of the Australian Institute of Company Directors.

BOARD & MANAGEMENT

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SLIDE 25

Board of Directors

Rod Austin (Interim Chairman) Lex Hansen, Phil McCarthy, Gavin Solomon, Fred Yu

Board of Directors

Rod Austin (Interim Chairman) Lex Hansen, Phil McCarthy, Gavin Solomon, Fred Yu Chief Executive Officer ‐ Tim Hedley Chief Executive Officer ‐ Tim Hedley Company Secretary ‐ Peter Edwards Company Secretary ‐ Peter Edwards Exploration Manager ‐ Darren Walker Exploration Manager ‐ Darren Walker Chief Financial Officer ‐ Peter Edwards Chief Financial Officer ‐ Peter Edwards Geologists Geologists Drilling Contractors Drilling Contractors Tenement Management ‐ Stephen Moore Tenement Management ‐ Stephen Moore Consulting Geologists ‐ GeoDiscovery Group Pty Ltd Consulting Geologists ‐ GeoDiscovery Group Pty Ltd PricewaterhouseCoopers (Auditors) ‐ Craig Thomason PricewaterhouseCoopers (Auditors) ‐ Craig Thomason Senior Geologists ‐Kaylie Hyland ‐ David Richardson Senior Geologists ‐Kaylie Hyland ‐ David Richardson Share Registry ‐ BoardRoom Pty Ltd Share Registry ‐ BoardRoom Pty Ltd Lawyers ‐ Gilbert & Tobin Lawyers ‐ Gilbert & Tobin ASX ASX

25

ORGANISATION CHART

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SLIDE 26

SAFETY ENVIRONMENT PERFORMANCE IN OPERATION

  • Safety Management Plan
  • Environment Management Plan
  • Exploration Management System

Key Priorities

BUILDING CAPABILITY

26

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SLIDE 27

BOWEN BASIN EXPLORATION

27

Questions ??

Contact: Tim Hedley, CEO

thedley@endocoal.com.au +61 417 771 198

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SLIDE 28

NOTES: