Disclaimer Forward looking statements Certain statements in this - PowerPoint PPT Presentation

New World Resources November 2010 Institutional Presentation New World Resources N.V.

Disclaimer Forward looking statements Certain statements in this document are not historical facts and are or are deemed to be “forward-looking”. The Company’s prospects, plans, financial position and business strategy, and statements pertaining to the capital resources, future expenditure for development projects and results of operations, may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology including, but not limited to; “may”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “will”, “could”, “may”, “might”, “believe” or “continue” or the negatives of these terms or variations of them or similar terminology. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These forward- looking statements involve a number of risks, uncertainties and other facts that may cause actual results to be materially different from those expressed or implied in these forward-looking statements because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond NWR’s ability to control or predict. Forward-looking statements are not guarantees of future performances. No offer of securities This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities. Reliance on third party information The information contained and/or views expressed herein may contain and/or be based on information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by NWR. 2

CEE‘s leading hard coal producer  Operating in a region with 215 Bnt of  NWR produces quality coking coal, thermal coal and coke from assets total coal resources. 1 in the Czech Republic for the steel  Four active coal mines. and energy sectors in Central and  Three ongoing development projects Eastern Europe (CEE). and other viable opportunities.  Principal subsidiary OKD is the  407Mt of coal reserves. Czech Republic’s largest hard coal mining company.  11Mt of coal produced in 2009, 5.2Mt sold as coking coal, and 4.9Mt  OKK subsidiary is the Europe’s as thermal coal. largest producer of foundry coke.  0.7 Mt of blast furnace and foundry  Strategically located within CEE coke sold in 2009. supplying a blue chip customer base in the region. 1 Czech Republic (19 Bnt), Poland (91 Bnt), Ukraine (105 Bnt); Company estimates 3

Corporate history  Coal mining holding acquired from the Czech Government and from management in 2004.  Massive restructuring aimed at focusing the Company on its core coal and coke businesses.  Capital structure aided by an EUR 1.1 billion senior bank facility and a EUR 300 million bond. 1  International management team joined to implement best practice engineering and management standards.  In May 2008 NWR listed on the London, Prague and Warsaw Stock Exchanges.  Aiming to become a catalyst in regional consolidation. Asset Rothschild Nationalisation Privatisation Global Offerings Consolidation 1782-1946 1946-1994 1994-2004 2007-2008 2004-2007  Coal and steel  Nationalisation  Privatisation and  Acquisition  Bond issuance conglomerate restructuring by and  Prague, owned by the Karbon Invest restructuring London and Rothschild family by RPG Group Warsaw  Creation of listings NWR 4 1 of which EUR 32 million have been purchased and cancelled in 2009. The senior bank facility was fully refinanced in April 2010 with a new EUR 500 million secured bond.

Management team Mike Salamon Marek Jelinek Klaus-Dieter Ralf Beck Jan Fabian Executive Chairman of NWR Chief Financial Officer & CEO of OKD & Executive Chief Operating Officer of Executive Director of NWR Director of NWR NWR & Vice-Chairman of OKD Board of Directors  Co-President of AMCI  Responsible for the  Significant management  Has overall responsibility Capital and Non- restructuring activities experience from his for the operations of OKK Executive Director of within the NWR Group, previous jobs in and the Polish business Central Rand Gold, Gem finance and treasury prominent managerial operations of NWR Diamonds, and Non- functions posts in international coal Karbonia Executive Director of companies in both  In 2007-2008, he led the  Previously managed large Ferrexpo Europe and the U.S. Group’s bond issue and privatisation projects in  Career spans more than the successful IPO in  Expertise helped NWR the Czech Republic as 30 years, the latter part of London, Prague and achieve strong growth well as Romanian steel which was spent with Warsaw and opened the way to industries BHP Billiton further expansion  Over 15 years experience in iron ore mining, focusing on operational efficiencies 5

Blue chip customers  Long-standing customer relationships governed by long-term framework agreements.  In some cases customers have relied on NWR coal and its specific characteristics for decades.  Ability to serve customer base efficiently given close proximity supported by good logistic links to all customers.  Some customer production facilities configured for the Company’s coal specifications. Sales volumes by customer (2009) Coking Coal Thermal Coal Coke Arcelor Mittal voestalpine 13% Dalkia 21% 22% 26% US Steel 7% Moravia Steel CEZ 39% voestalpine 9% Verbund ICS Trading 51% 20% 15% Moravia Steel Arcelor Mittal Arcelor Mittal DBK 25% 19% Others 10% 14% Others Others 5% 4% 6

Landlocked position: a competitive advantage Geographical position limits competition NWR’s proximity to its customers Russia 5,160 km Canada 6,300 km Belarus Poland Gdansk USA 631 km Germany 8,500 km Rotterdam Ukraine Czech 1,177 km Rep. Slovakia Ostrava Austria Hungary Switz. Trieste Romania 841 km Constanza Italy 1,000 km Australia Bulgaria 14,220 km NWR Coke customers Coking coal customers Thermal coal customers 7

Ambitious strategy Improve efficiency and profitability of our mining operations by  Investing in equipment and technology,   Cost control and cash management,  Maintaining high level of responsiveness to customer specifications,  Strengthening procurement and operational efficiencies,  Timely deliveries.  Build the reserve base from existing mines.  Selectively pursue regional growth opportunities in the region.  Maintain a strong health and safety record.  Implement international best practices in our corporate governance. 8

Investment programmes POP 2010: Increased productivity COP 2010: Cost optimisation  EUR 63 million programme to be concluded 1,800 30 27 by the end of 2010. 24 25 20 1,600  New battery No. 10 completed, with trial 20 17 operations having started in October 2010 1,400 15 and running at full capacity by early 2011. 10  Following completion of COP 2010, coke 1,200 5 production capacity is going to be 850kt per 1,000 0 year, concentrated in one place, with lower conversion costs compared to current levels. H1 07 H1 08 H1 09 H1 10 Number of LWs Average daily production per LW in tonnes (LHS)  EUR 350 milllion capital investment completed by the end of 2009. .  Since then, number of operating LWs further decreased as direct result of POP 2010 investment.  Daily overall longwall productivity at 1,700 tonnes in H1 10, a 13% increase compared to H1 09.  Improved safety in mining operations due to new equipment. 9

Reserve base Active Mines Total Development Total Darkov Karvina 2 CSM Paskov Active Debiensko Active + Dev. Reserves 1 (Mt) 44 97 50 26 217 190 407 Calorific value (MJ/kg) 26.10 27.56 3 27.40 27.55 27.23 4 Sulfur content 0.43% 0.44% 3 0.50% 0.61% 0.48% 4 Swelling index 6.5 4.3 3 7.0 8.0 5.8 4 % with thickness over 2.5m 63% 65% 66% 0% 57% 4  82% of the reserves is coking coal, 18% is thermal coal.  Long-term production of 11Mtpa – 12Mtpa of coal; and 850ktpa of coke.  NWR yearly maintenance CAPEX of EUR 80 – 100 million. ¹ As of 1 January. 2010. 2 CSA and Lazy mines have been merged into Karvina mine. 3 Average of Karvina – CSA and Lazy. 10 4 Reserve-weighted average of all active mines.

Development projects in Poland D ę bie ń sko Morcinek  50-year mining concession granted in June  Exploration concession for the dormant 2008 to NWR Karbonia (NWR’s wholly- Morcinek mine. owned Polish subsidiary).  New long-wall equipment opens up potential  190Mt of coking coal reserves. to access deeper and more geologically challenging seams.  Identified potential for capturing additional mineable coal reserves M&A  EUR350-400 million of estimated CAPEX to  Proposed acquisition of Bogdanka. be invested over the next 5 years.  Privatisation of Polish mining/coking  Currently conducting a detailed execution companies. study to eliminate much of the uncertainty and execution risk.  Other opportunities in the region. 11