INVESTOR PRESENTATION: NOVEMBER 2017 ASX: UNV DISCLAIMER Not an - - PowerPoint PPT Presentation

INVESTOR PRESENTATION:

NOVEMBER 2017

ASX: UNV

Not an Offer for Securities This document has been created by Universal Coal Plc (the Company) solely for use at investor presentations to be made by the Company and does not constitute nor does it contain an offer or invitation to buy or subscribe for securities in the Company or an inducement to make an

• ffer or invitation with respect to those securities. By

attending the meeting

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conference where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. Relevant Law & Relevant Persons The distribution of this document in jurisdictions outside of Australia may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, all such restrictions. Information is a synopsis only This document only contains a synopsis of information on the Company and accordingly no reliance may be placed for any purpose whatsoever

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the sufficiency

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completeness of such information and to do so could potentially expose you to a significant risk of losing all of the property invested by you or incurred by you of additional

• liability. The information presented in this document is

subject to change without notice. Currency references Financial amounts in this document are expressed in Australian dollars (A$), South African Rand, (R,) or US$ and shall mean the lawful currency of Australia, South Africa or the United States ofAmerica. Forward looking Statements This document contains ‘forward looking statements’ including with regard to production and financial projections (which involve subjective judgment and analysis). Forward looking statements are subject to significant uncertainties, risks, and contingencies, many of which are outside the control of, and are unknown to the Company. In particular, these forward looking statements are made only as of the date of this document, they assume the success of the Company’s business strategies, and are subject to business, competitive and economic uncertainties and

• risks. No representation, warranty or assurance (express or

implied) is given or made in relation to any forward looking statement by any person (including the Company). In particular, no representation, warranty

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assurance (express or implied) is given in relation to any underlying assumption or that any forward looking statement will be

• achieved. Actual future events may vary materially from the

forward looking statements and the assumptions on which the forward looking statements are based. Given these uncertainties, recipients are cautioned to not place undue reliance on such forward looking statements. Subject to any continuing obligations under applicable law or any relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates

• r revisions to any forward looking statements in this

document to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any such statement is based. Nothing in this document shall under any circumstances create an implication that there has been no change in the affairs of the Company since the date of this Presentation. Disclaimer Although reasonable care has been taken to ensure that the facts stated in this document are accurate and that the

• pinions

expressed are fair and reasonable, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information and opinions contained in this document and no reliance should be placed on such information or

• pinions. None of the Company or any of their respective

members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss, however arising, from any use of such information or

• pinions (save in respect of fraud). No reliance should be

placed on the information and no representation or warranty (express or implied) is made by the Company, or any of their respective directors or employees or any other person, and save in respect of fraud, no liability whatsoever is accepted by such person in relation thereto. Competent Person Statement The information in this presentation that relates to Exploration Results, Minerals Resources or Ore Reserves relating to the Kangala, NCC, Roodekop, Brakfontein, Arnot South, Eloff and Berenice Projects is based on information summarised by Mr Jaco Malan, who is a registered natural scientist and a member of the South African Council for Natural Scientific Professions. Mr Malan is employed by Universal Coal plc and has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Coal Resources and Ore Reserves. Mr Malan consents to the inclusion in this presentation of this information in the form and context in which it appears.

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DISCLAIMER

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Share Price 19c Market Cap ~A$100m Group Cash (Q1) ~A$19.6m

UNIVERSAL SNAPSHOT

Net Debt (Q1) A$10.2m ASX Code: UNV ASX Status Producer Shares on Issue: 522m

Multi-mine thermal coal producer – diversified revenue stream Forecasted Sales of 4.5Mt in FY2018, with EBITDA of A$45million In-house development pipeline capable of near doubling production in 36months Maiden dividend of 1c/share declared for FY2017, with defined dividend policy

Shareholding

4% 30% 38% 28% Ichor Coal AMED Other Universal Coal Management

Established Track record of profitable project execution

CURRENT OPERATIONS AND PROJECTS

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INVESTMENT RATIONALE

Defined growth strategy to increasing Sales to near double current levels in the short term by;

• Strong internal development pipeline
• Acquisition meeting the companies

investment criteria Balanced Shareholder returns by;

• Dividend Distributor with a sustainable dividend

policy

• Limited capex required for expansion, funded

from current cash flows Positive attributable net cash position, generating sustainable cash flows from a diversified coal portfolio with by volume;

• 80% sales into solid domestic markets
• 20% sales into high Value thermal end market

GROWTH RETURNS CASH POSITIVE

APP BROKER NOTE - VALUATION OF A$.30/share

VALUATION (NPV at 14% Disc. Rate) 2017 2018 2019 2020 Kangala Operations 77.4 71.6 63.7 55.1 Less Debt

• 13.7
• 8.2
• 2.8

Net Value 63.7 63.3 60.9 55.1 Net Kangala Value to UNV 44.9 44.6 43 38.8 New Clydesdale Total 110.3 101.6 96.9 91.4 Less Debt

• 16
• 15.4
• 11.7
• 7.5

Net NCC Value 94.3 86.2 85.2 83.9 Net NCC Value to UNV 46.2 42.2 41.7 41.1 Brakfontein 14.9 16.9 30 33.1 Less Debt Net Brakfontein Value to UNV 7.3 8.3 14.7 16.2 Total Operations 98.4 95.2 99.4 96.1 Management Fees 30.5 29.4 27.9 26.2 Administration

• 35.8
• 36.1
• 36.3
• 36.5

Net working capital

• 4.3

10.9 8.9 0.3 Total 88.8 99.3 99.8 86.1 Exploration Assets 15.5 15.5 15.5 15.5 Tax Losses 16.8 1.7 1.7 1.7 Cash (includes minority cash) 15.2 32.2 56.7 98.8 Ndalamo Loan 22 14.5 5.9

• 7.2

Convertible Notes

• 1.5

NPV A$m 157 163 180 195 NPV A$/sh 0.30 0.31 0.34 0.37

Source: APP securities broker note Oct 2017

RESOURCE AND RESERVE STATEMENT

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Project Resources (Mt) Reserves (Mt) Measured Indicated Inferred Total Proven/ Probable Thermal Coal (Witbank) Kangala (domestic/export) 61.2 15.1 32.2 108.5 35.9 Eloff (domestic) 9.4 213.5 201.1 424.0

• NCC (domestic/export)

96.0 41.8 6.0 143.9 57.3 Brakfontein (domestic) 31.7 39.4 4.7 75.8 9.1 Arnot South (domestic/export) 2.3 65.3 139.0 206.6

• Subtotal

200.6 375.1 383.0 958.8 102.3 Coking Coal (Limpopo) Berenice-Cygnus (soft) 424.9 800.9 124.3 1,350.1

• Subtotal

424.9 800.9 124.3 1,350.1

• Total

625.5 1176.0 507.3 2,308.9 102.3

Notes: 1. The Resource/Reserveestimateswere prepared and disclosedunder theJORCCode 2012 2. Mineralresourcesare statedinclusiveof mineralreservesand on a grossin situbasis 3. Universalhas an attributableinterestof 70.5 per cent. of theKangala Project 4. Universalhas an attributableinterestof 39.2 per cent of the EloffProject 5. Universalhas an attributableinterestof 49 per cent.inthe NCCProject 6. Universal has an attributable interest of 50.29 per cent. in the Brakfontein Project and the right tonegotiate toacquireup toa 74 per cent. interest 7. Universalhas an attributableinterestof 50 per cent.intheArnot South project 8. Universal has an attributable interest of 50 per cent. in the Berenice & Cygnus Projects with an

• ption toacquire up toa 74 percent. interest

OPERATIONAL PERFORMANCE

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Forecast based on assumptions stated in announcements titled “Annual Statement of Mineral Resources and Ore Reserves” released to the market

• n 26 September 2016 and “NCC Ore Reserve Doubled to 58.24Mt” released to the market on 27 April 2017

Unit FY2017 Q1 2018 FC FY2018 Change from FY 2017 to 2018FC Group Group Group Run of Mine Tonnes Mt 4.4 1.7 7.0 59%



Domestic Thermal Sales Tonnes Mt 2.6 1.1 3.7 42%



Export Thermal Sales Tonnes Mt 0.4 0.2 0.7 75%



A: Actual F: Forecast

• F2018: NCC at full production
• F2019: Brakfontein start up
• F2020: Kangala double up

2.6 3.7 4.9 7.3

0.4 0.7 0.7 0.8

1 2 3 4 5 6 7 8 9 FY2017 FC FY2018 FC FY2019 FC FY2020

Total Sales Tonnes

Export Sales Domestic Sales A: Actual F: Forecast

• F2018: NCC at full production
• F2019: Brakfontein start up
• F2020: Kangala double up

Million tonnes per annum

KANGALA COLLIERY

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• Open pit, truck and shovel operation (~1.8:1 strip ratio)
• Thermal coal: ~3.7Mt annual ROM production
• Off-take agreements:

– Domestic Coal: 2.4Mtpa off-take contract with Eskom to 2023 – Export Coal: ~60Ktpa sales, spot market

• Eloff project aligned for Kangala double up in production

0.00 0.50 1.00 1.50 2.00 2.50 3.00 A2014 A2015 A2016 A2017 F2018 F2019

Million Tonnes

Kangala Sales Tonnes

Domestic - Kangala Export - Kangala A: Actual F: Forecast

Forecast based on assumptions stated in announcements titled “Annual Statement of Mineral Resources and Ore Reserves” released to the market on 26 September 2016

PROJECT PIPELINE – KANGALA EXPANSION

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• Contiguous to the current Kangala
• peration, allowing for optionality in

terms of the low cost expansion and long term sustainability

• Thermal coal project covering;

– An area of 8,168Ha – Surface rights of 6,146.7Ha included

• Total of 424Mt JORC 2012 Resource

(open pit areas only)

• Mining Right in application
• UNV currently holds 80% through its

49/51 joint venture with Ndalamo Resources, awaiting S11 approval.

Kangala expansion - Eloff

The Eloff project in relation to Kangala, illustrating both the continuity of the assets but also the size of the project area.

0km 5km 10km

NEW CLYDESDALE COLLIERY

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• Underground and Open Pit operation

– At steady state production rates from 1Q2018 – Underground: Room & Pillar, 3 sections – Open pit :~3:1 strip ratio, truck and shovel

• Thermal coal

– 3.3Mt annual ROM production, 2.0Mtpa sales – 35% API4-linked export coal, 65% domestic coal

• Off-take agreements:

– 5 year ~650Ktpa 6000Kcal export spot market contract – 7 year ~1.2Mtpa domestic contract

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 A2017 F2018 F2019

Million Tonnes

NCC Sales Tonnes

Domestic - NCC Export - NCC A: Actual F: Forecast

Forecast based on assumptions stated in announcements titled “NCC Ore Reserve Doubled to 58.24Mt” released to the market on 27 April 2017

PROJECT PIPELINE – CONTINUED

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• Thermal coal project, 9.1Mt JORC reserve
• Proposed 1.2Mtpa ROM operation
• 25km east of Kangala mine, close to existing

infrastructure.

• All regulatory authorisations granted
• Awaiting offtake agreement before construction

commences

Brakfontein Berenice Cygnus

• Blend coking & thermal coal project, JORC

resource of 1.35 Bt (billion tonnes)

• DRA scoping study confirms viability for

sustainable 10Mtpa open cut operation

• 20km form existing railway infrastructure
• Mining right and environmental authorisations

in application

UNV - SOCIO ECONOMIC IMPACT

Human Resource Development

• Community Operators Training – Thus far, Universal Coal Operators training

programme has resulted in two hundred (200) local residents being successfully trained to become competent operators on Articulated Dump Trucks (ADT) and

• Excavators. Hundrend (100) operators have been appointed as Articulate Dump

Trucks operators for NCC and Kangala Colliery. The skills training programme continues.

• Study Assistance - A total of eight (8) comprehensive bursaries have been awarded

to community students to further their studies in Engineering, Artisans and Accounting at a higher education institution. Six (6) employees have been offered financial assistance to study management courses and further their studies.

• Educational support - Universal Coal participated in a Study Camp hosted by the

Department of Education. Study guide materials were provided to Grade 12 students/matriculants. Forty six (46) learners participated in the study camp during the school holidays, and more than thirty five (35) passed. We also reached out and provided school desks to an underprivileged school that did not have basic resources such as desks for learners, making it difficult and uncomfortable for them to concentrate and participate in class.

• Internship & Learnerships – 39 University Graduates in Geology, Metallurgy,

Mechanical Engineering and Environmental have been given an opportunity offered a to year internship programme.

• Adult Basic Education Training (for the employees and community) is ongoing. It is

a conceptual foundation toward lifelong learning and skills development. It gives access to further qualifications and training for the illiterate and unskilled.

Local Economic Development Project

• We are delighted to announce the hand over of a Technical Vocational

Education and Training College (TVET) building to the beneficiary, National Department of Education. The College will open for registration in 2018.

• We have extended two local schools through building additional

classes, a boardroom and offices. A pre-primary class (Grade R) which plays an important role in early childhood educational development was introduced in one of the schools as a result of Universal Coal intervention.

Recruitment and Employment

• 88% and 80% of Kangala Colliery and NCC workforce (including

contractors), respectively, come from the local municipality areas – Municipalities/communities with severe unemployment.

Enterprise Development & Localisation

• In FY 2017, we invested eighty millions rand (R80m) on local district

municipality historical disadvantaged South Africans ’s suppliers, service providers, small-medium enterprise projects and programmes.

• Our

Kangala Colliery host community was hit by a severe thunderstorms that destroyed houses, left people injured and

• homeless. As a good corporate citizenship, Universal Coal provided

food parcels and blankets to the affected citizens.

THERMAL COAL MARKET

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• Richards Bay API4 (6000kcal/kg) coal price increased from US$49 to US$93 since Jan 2016
• Signs of sustainable global thermal coal price recovery
• Demand for high-energy thermal coal to remain strong in developing nations

– Demand for power in north-east Asia to increase – High efficiency, low emissions (HELE) plants (reduce carbon emissions by >20%) the new norm

20 40 60 80 100 120 140 160 180 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20

US$/tonne

API4 (Richards Bay) Thermal Coal Price

RB1 Price $ API4 Futures (ARGUS-McCloskey)

SOUTH AFRICAN COAL MARKET

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• Fourth largest coal producer in the world
• produces ~280Mt of coal per annum (2013e)
• 77% of domestic energy needs provided by

coal

• 72Mtpa of high energy thermal coal exported
• Eskom is the local public electricity utility
• a top 20 producer in the world by generation

capacity (41,194MW increasing by ~17,000MW by 2020)

• generates ~95% of domestic and ~45% of

Africa’s electricity

• construction of two new coal-fired power

stations (Medupi and Kusile) nearing completion

• Large consumer of coal, requires extra

tonnage by 2020

PROVEN MANAGEMENT TEAM

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Prior to joining Universal Coal, T

• ny Weber was an Executive

Director at Nkwe Platinum Limited, as well as Operations Manager at the Potgietersrus Platinum Mine and at the Gamsberg Project. He is a Mining Engineer with 20 years’ experience in mining, spanning project assessment, finance, development and operations. Tony’s coal experience includes working at the New Clydesdale Colliery and Greenside Colliery for Gold Fields Limited, as well as a brief period at the Prosper Hanniel Colliery in Germany. He has significant skills and experience in coordinating project feasibility studies and hands-

• n operational experience in the coal extraction industry.

Investment banker and qualified Geologist. Shammy Luvhengo started his career with Exxaro Resources Limited before moving into the investment world. Previous work experience includes positions at Investec Bank and Nedbank Capital, where Shammy was involved in structuring and implementing project finance and BEE deals within the resources industry. Prior to joining Universal Coal, he worked at Nkwe Platinum Limited as Head of Business Development and Investor Relations. Celeste van Tonder is a Chartered accountant with over 10 years of professional experience in mining finance and business development. Prior to joining Universal Coal, she was Group Business development and Investor Relations manager at Coal of Africa, an Australian coal exploration and development company listed on the ASX, JSE and AIM. Celeste is responsible for all financial and commercial facets of the business, and is an integral part of the management team responsible for returning shareholder value. A qualified Environmental Scientist and member of the South African Council for Natural Scientific professions (SACNASP), Minah Moabi has 10 years’ experience in environmental management, water management and sustainable development. Prior to joining Universal, Minah worked for BHP Billiton (BECSA) as a Project Manager, managing environment-related projects. She is responsible for developing and managing social and environmental management systems, strategies and action plans that ensure corporate sustainable development.

Kevin Donaldson

BSc Mining Eng

Chief Development Engineer

A Mining Engineer with over 20 years experience in coal mining. Kevin Donaldson started his career in operations at the then Rand Mines Limited (“Rand Mines”), where he reached the level

• f Mine Overseer. He later joined Anglo American Plc, where he

moved into the mine planning and technical side of mining and project development. Kevin will be involved in the study phases of Universal Coal’s projects, and will be responsible for the implementation of the Kangala Mine project.

Tony Weber

MSc Mining Eng

Chief Executive Officer

Shammy Luvhengo

BSc Geology

Director Business Development

Celeste van Tonder

CA/CPA

Chief Financial Officer

Minah Moabi

MSc Environmental Science

Director Corporate Affairs

Geologist with more than 19 years experience in coal exploration, resource modelling and mine geology and registered member of the South African Council of Natural Scientific Professions. Prior to joining Universal Coal, Simon held positions within Anglo Coal, Xstrata and BHP Billiton. Simon provides specialised geological support to Universal Coal and ensures that projects are executed in adherence to set geological standards, procedures and policies. He also provides critical input to feasibility studies and ensure that resources are mined optimally on all operating mines.

Simon Mokitimi

BSc Geology (Hon), MBA

Chief Geologist

Hendrik Bonsma Non Executive Director Andries Engelbrecht Non Executive Director David Twist BSc Hons, PhD Non Executive Director A businessman with interests throughout South Africa, Hendrik Bothma has been actively investing in the South African mining industry for over a decade. Henry, as he is more commonly known, has been involved in various successful chrome, platinum, and iron ore transactions, and has promoted several listings on the JSE Limited, AIM, the London Stock Exchange and ASX. Andries Engelbrecht has more than 20 years of experience in the coal mining industry and, most recently was the Chief Operating Officer of Riversdale Mining Limited, where he was responsible for all Africa-based projects and operations. Prior to that Andries held the role of General Manager at Riversdale Mining’s Zululand Anthracite Colliery. He has also held various management positions within BHP Billiton’s Ingwe Coal Corporation. David Twist is a founding member of Platmin and was CEO until 2006., after which he focused on new mineral exploration

• pportunities

at Sephaku Holdings. Previously with Impala Platinum and involved in the Bushveld Complex research at the University of Pretoria, he is a member of the South African Council of Natural Scientific Professions, the Geological Society

• f London, the Society of Economic Geologists (US).

AN EXPERIENCED BOARD

John Hopkins Non Executive Chairman (Independent) Nonkululeko Nyembezi-Heita MSc, MBA Non Executive Director Carlo Baravalle Non Executive Director

John Hopkins is a qualified and experienced lawyer and professional company director. He has been on the board or chairman of more than 20 public listed companies since 1985 (both in Australia and Canada) and as such has been involved in the financing and development (and subsequent M & A activities) of many gold, base metal, energy (coal and oil and gas), mineral sands and other resource projects all over the world. He currently chairs Wolf Minerals Ltd (WLF) and as such has in the past 5 years overseen the transition from explorer to producer and taking its market capitalization to over $300m. John is also a Fellow

• f the Australian Institute of Company Directors. Mr Hopkins was

awarded the Medal of the Order of Australia (OAM) in January 2015 for services to the minerals and resources sector. Nonkululeko Nyembezi-Heita is the Chief Executive Officer of Ichor Coal N.V., an international mineral resources company focusing on coal mining in South Africa. IchorCoal holds significant minority positions in a number

• f

South African-based coal mining companies. Previously Chief Executive Officer of ArcelorMittal South Africa, the largest steel producer on the African continent and a subsidiary of the ArcelorMittal Group which, in turn, is the largest steel producer in the world. Prior to that, she served as the Chief Officer of Mergers & Acquisitions for the Vodacom Group and, before that, Chief Executive Officer of Alliance Capital, then local subsidiary of a New York-based global investment management company. Ms Nyembezi- Heita has served as an independent non-executive director on numerous boards. She currently serves as non-executive Chairperson

• f

the Johannesburg Stock Exchange and non- executive member of the Board of Old Mutual plc. After four years of experience in finance with an Italian fashion group, GFT, Carlo Baravalle completed an MBA at INSEAD. He then spent several years in strategic consulting, working on assignment for many large French conglomerates in both France and the USA. He later moved into the telecoms industry, working firstly with BT to start new ventures outside the UK, then as a Director of the Corporate Finance Telecoms team at Warburg, and later in a senior global position at Lucent Technologies. Carlo subsequently moved into the private equity sector, firstly as MD International and Main Board Member at The Exchange FS, and later as Senior Vice-President for EMEA, Asia and LatAm for LCC, a telecoms engineering company initially invested by the Carlyle Group.

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CONTACTS

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Universal Coal Plc

Tony Weber Ashley Rambukwella Financial & Corporate Relations +61 2 8264 1004 a.rambukwella@fcr.com.au Chief Executive Officer Office: +27 12 460 0805 Mobile: +27 82 900 4579 Email: t.weber@universalcoal.com Nick Dacres-Mannings Director, Corporate Finance APP Securities Pty Limited Main: +61 2 9226 0036 Email: nick.dm@appsecurities.com.au