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

INVESTOR PRESENTATION: NOVEMBER 2017 ASX: UNV

DISCLAIMER Not an Offer for Securities Forward looking Statements Disclaimer ‘forward statements’ This document has been created by Universal Coal Plc This document contains looking Although reasonable care has been taken to ensure that (the Company ) solely for use at investor presentations to including with regard to production and financial projections the facts stated in this document are accurate and that the be made by the Company and does not constitute nor (which involve subjective judgment and analysis). Forward opinions expressed are fair and reasonable, no does it contain an offer or invitation to buy or subscribe for looking statements are subject to significant uncertainties, representation or warranty, express or implied, is made as securities in the Company or an inducement to make an risks, and contingencies, many of which are outside the to the fairness, accuracy, completeness or correctness of offer or invitation with respect to those securities. By control of, and are unknown to the Company. In particular, the information and opinions contained in this document attending the meeting or conference where this these forward looking statements are made only as of the and no reliance should be placed on such information or presentation is made, or by reading the presentation slides, date of this document, they assume the success of the opinions. None of the Company or any of their respective Company’s you agree to be bound by the following limitations. business strategies, and are subject to members, directors, officers or employees nor any other business, competitive and economic uncertainties and person accepts any liability whatsoever for any loss, risks. No representation, warranty or assurance (express or however arising, from any use of such information or Relevant Law & Relevant Persons implied) is given or made in relation to any forward looking opinions (save in respect of fraud). No reliance should be The distribution of this document in jurisdictions outside of statement by any person (including the Company). In placed on the information and no representation or Australia may be restricted by law, and persons into whose particular, no representation, warranty or assurance warranty (express or implied) is made by the Company, or possession this document comes should inform (express or implied) is given in relation to any underlying any of their respective directors or employees or any other themselves about, and observe, all such restrictions. assumption or that any forward looking statement will be person, and save in respect of fraud, no liability whatsoever achieved. Actual future events may vary materially from the is accepted by such person in relation thereto. Information is a synopsis only forward looking statements and the assumptions on which the forward looking statements are based. Given these This document only contains a synopsis of information on Competent Person Statement uncertainties, recipients are cautioned to not place undue the Company and accordingly no reliance may be placed The information in this presentation that relates to reliance on such forward looking statements. Subject to for any purpose whatsoever on the sufficiency or Exploration Results, Minerals Resources or Ore Reserves any continuing obligations under applicable law or any completeness of such information and to do so could relating to the Kangala, NCC, Roodekop, Brakfontein, relevant listing rules of the ASX, the Company disclaims potentially expose you to a significant risk of losing all of the Arnot South, Eloff and Berenice Projects is based on any obligation or undertaking to disseminate any updates property invested by you or incurred by you of additional information summarised by Mr Jaco Malan, who is a or revisions to any forward looking statements in this liability. The information presented in this document is registered natural scientist and a member of the South document to reflect any change in expectations in relation subject to change without notice. African Council for Natural Scientific Professions. Mr Malan to any forward looking statements or any change in events, is employed by Universal Coal plc and has sufficient conditions or circumstances on which any such statement Currency references experience which is relevant to the style of mineralisation is based. Nothing in this document shall under any and the type of deposit under consideration and to the Financial amounts in this document are expressed in circumstances create an implication that there has been no activity which he is undertaking to qualify as a Competent Australian dollars (A$), South African Rand, (R,) or US$ and change in the affairs of the Company since the date of this Person as defined in the 2012 edition of the Australasian shall mean the lawful currency of Australia, South Africa or the Presentation. Code for Reporting of Exploration Results, Coal Resources United States ofAmerica. and Ore Reserves. Mr Malan consents to the inclusion in this presentation of this information in the form and context in which it appears. 2

UNIVERSAL SNAPSHOT ASX Code: UNV Multi-mine thermal coal producer – diversified revenue stream ASX Status Producer Shares on Issue: 522m Shareholding Established Track record of profitable project execution 4% In-house development pipeline capable of near doubling 30% production in 36months 38% Forecasted Sales of 4.5Mt in FY2018, with EBITDA of A$45million 28% Ichor Coal Maiden dividend of 1c/share declared for FY2017, with defined dividend policy AMED Group Cash Net Debt Other Share Price Market Cap (Q1) (Q1) Universal Coal Management 19c ~A$100m ~A$19.6m A$10.2m 3

CURRENT OPERATIONS AND PROJECTS 4

INVESTMENT RATIONALE APP BROKER NOTE - VALUATION OF A$.30/share VALUATION (NPV at 14% Disc. Rate) 2017 2018 2019 2020 Defined growth strategy to increasing Sales to Kangala Operations 77.4 71.6 63.7 55.1 near double current levels in the short term by; Less Debt -13.7 -8.2 -2.8 0 GROWTH Net Value 63.7 63.3 60.9 55.1 • Strong internal development pipeline Net Kangala Value to UNV 44.9 44.6 43 38.8 • Acquisition meeting the companies New Clydesdale Total 110.3 101.6 96.9 91.4 investment criteria Less Debt -16 -15.4 -11.7 -7.5 Net NCC Value 94.3 86.2 85.2 83.9 Net NCC Value to UNV 46.2 42.2 41.7 41.1 Balanced Shareholder returns by; Brakfontein 14.9 16.9 30 33.1 Less Debt 0 0 0 0 • Dividend Distributor with a sustainable dividend RETURNS Net Brakfontein Value to UNV 7.3 8.3 14.7 16.2 policy Total Operations 98.4 95.2 99.4 96.1 • Limited capex required for expansion, funded Management Fees 30.5 29.4 27.9 26.2 from current cash flows Administration -35.8 -36.1 -36.3 -36.5 Net working capital -4.3 10.9 8.9 0.3 Total 88.8 99.3 99.8 86.1 Exploration Assets 15.5 15.5 15.5 15.5 Positive attributable net cash position, generating Tax Losses 16.8 1.7 1.7 1.7 sustainable cash flows from a diversified coal CASH Cash (includes minority cash) 15.2 32.2 56.7 98.8 portfolio with by volume; Ndalamo Loan 22 14.5 5.9 -7.2 POSITIVE • 80% sales into solid domestic markets Convertible Notes -1.5 0 0 0 • 20% sales into high Value thermal end market NPV A$m 157 163 180 195 NPV A$/sh 0.30 0.31 0.34 0.37 Source: APP securities broker note Oct 2017 5

RESOURCE AND RESERVE STATEMENT Resources (Mt) Reserves (Mt) Project Proven/ Measured Indicated Inferred Total 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 - 625.5 1176.0 507.3 2,308.9 102.3 Total Notes: 1. The Resource/Reserveestimateswere prepared and disclosedunder theJORCCode 2012 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 2. Mineralresourcesare statedinclusiveof mineralreservesand on a grossin situbasis 7. Universalhas an attributableinterestof 50 per cent.intheArnot South project 3. Universalhas an attributableinterestof 70.5 per cent. of theKangala Project 8. Universal has an attributable interest of 50 per cent. in the Berenice & Cygnus Projects with an 4. Universalhas an attributableinterestof 39.2 per cent of the EloffProject option toacquire up toa 74 percent. interest 5. Universalhas an attributableinterestof 49 per cent.inthe NCCProject 6