PROJECT UPDATE 2013 October COLONIAL COAL INTERNATIONAL - PowerPoint PPT Presentation

HUGUENOT PROJECT UPDATE 2013 October COLONIAL COAL INTERNATIONAL CORPORATION

LOCATION HUGUENOT = 85 km (approx.) FLATBED = 30 km (approx.) from TR

COAL MINE PROPERTIES

HUGUENOT COAL LICENSE AND APPLICATIONS COAL LICENSES = 6,467 has. COAL LICENSE APPLICATIONS = 17,550 has.

HUGUENOT PROPERTY GEOLOGY

HUGUENOT DRILL HOLES DIAMOND = 28 • 1976,78,79 = 9 (DENISON MINES) • 2011 = 13 • 2012 = 6 LARGE DIAMETER = 33 • 2008 = 10 • 2011 = 4 • 2012 = 19 ROTARY = 44 • 2008 = 17 • 2011 = 16 • 2012 = 11

HUGUENOT COAL SEAMS & MINING SECTIONS AVERAGE THICKNESSESS ( MINING SECTION ) Seam North Block Middle Block South Block 9 0.67 0.77 0.62 8 3.02 1.72 0.96 6B 2.19 0.89 0.89 6L 1.87 3.27 3 5 5.93 6.55 4.37 4/4U 0.71 1.1 1.93 3B 1.37 0.82 - 2 Zone - - 3.64 2A 0.72 1.07 - 1 3.41 7.88 2.99

HUGUENOT PROPERTY GEOLOGY

NORTH BLOCK : CROSS SECTION AA'

NORTH BLOCK : CROSS SECTION BB'

NORTH BLOCK : CROSS SECTION CC'

NORTH BLOCK : CROSS SECTION DD'

MIDDLE - SOUTH BLOCK : CROSS SECTION KK'

MIDDLE - SOUTH BLOCK : CROSS SECTION JJ'

MIDDLE - SOUTH BLOCK : CROSS SECTION HH'

MIDDLE - SOUTH BLOCK : CROSS SECTION GG'

MIDDLE - SOUTH BLOCK : CROSS SECTION EE'

SUMMARY OF COAL RESOURCES Surface Resources Underground Resources Measured & Measured & Measured Indicated Inferred Measured Indicated Inferred Indicated Indicated Mt Mt Mt Mt Mt Mt Mt Mt 58.32 7.91 66.23 7.18 30.41 37.59 86.84 North Block 37.88 9.02 46.9 0.53 11.67 19.5 31.17 1.58 Middle Block 18.82 18.82 76.97 76.97 30.24 South Block 96.2 35.75 131.95 0.53 18.85 126.88 145.73 118.66 Total DEPOSIT TYPE MEASURED (Mt) INDICATED (Mt) INFERRED (Mt) 96.2 35.75 0.53 SURFACE 18.85 126.88 118.66 UNDERGROUND 115.05 162.63 119.19 TOTAL

QUALITY COMPARISON: Huguenot HCC vs. Canadian Export Coking Coals 1 Huguenot Canadian Canadian Coking Coal* NEBC HCC** SEBC HCC** Total Moisture % as received 9 8 - 9 8 Volatile Matter % dry 22.5 - 23.5 23 - 24.5 21.0 - 27.0 Ash Content % dry 8.5 - 9 8.25 - 8.60 8.5 - 9.6 Sulphur Content % dry 0.4 0.45 - 0.55 0.35 - 0.75 Free Swelling Index (FSI) 6.5 - 7 7 - 8 6 - 8 Mean Max Reflectance of Vitrinite % 1.15 - 1.20 1.15 - 1.25 1.08 - 1.35 Gieseler Maximum Fluidity (ddpm) 100 150 - 300 40 - 300 Phosphorus in Coal % dry 0.044 0.008 - 0.040 0.010 - 0.065 Base/Acid Ratio of Ash 0.08 - 0.010 0.12 - 0.18 0.07 - 0.10 Coke Strength after Reaction (CSR) 60 - 65 58 - 60 68 - 72 *Results based on laboratory scale washing and testing of exploration samples **Results based on full washing plant under operating conditions 1 Reproduced from the report Marketing Study for the Huguenot Property , Kobie Koornhof Associates Inc., August,2013

SUMMARY OF OPEN PIT AND UNDERGROUND RESOURCES LIFE OF MINE PRODUCTION PRODUCT TONNES PIT TYPE YEARS ROM (+) PLANT YIELD (+) SURFACE 15 86 MM 70% 39 MM UNDERGROUND 31 66 MM 76% 50 MM TOTAL 122 MM 89 MM

ECONOMIC ANALYSES RESULTS ($ MILLIONS) NPV (US$M) at Varying Discount Rates with IRR Coal Price w/ Capital Cost Contingency Only w/ Capital and Operating Cost Contingency 5% 7.50% 10% IRR (%) 5% 7.50% 10% IRR (%) US$192.50/t $ 1,579.00 $ 1,100.00 $ 780.00 32 $ 1,181.00 $ 790.00 $ 530.00 24 US$165/t $ 680.00 $ 407.00 $ 230.00 16 $ 272.00 $ 85.00 -$ 32.00 9 US$225/t $ 2,634.00 $ 1,910.00 $ 1,420.00 49 $ 2,238.00 $ 1,602.00 $ 1,173.00 42

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FLATBED PROJECT UPDATE 2013 OCTOBER COLONIAL COAL INTERNATIONAL CORPORATION

FLATBED PROJECT LOCATION MAP

FLATBED PROJECT PROPOSED WORK & COAL LICENSE APPLICATIONS

FLATBED PROJECT SCHEMATIC CROSS-SECTION