Eastern Corporation Limited Coal Assets April 2010 Richard May - - PowerPoint PPT Presentation

Company Update April 09 Eastern Corporation Limited Coal Assets April 2010 Richard May - Chairman

Coal Assets - Australia Broughton Coal JV  Located in Queensland’s Bowen Basin  Joint Venture with Mitsui (10%)  Feasibility study concluded ‘stand alone’ project not viable under current commodity pricing  Option exercised for divestment of 90% interest  $8.5 mill sale expected to complete May 2010 – Subject to Mitsui 60 day pre-emptive right

Coal Assets – New Zealand  Two operating coal mines producing ~200ktpa  Potential export coking coal tenement  Positive turnaround - profit in 2009  Self-funding through positive cashflow and project loan facility  Sale contracts in place to underwrite current production and planned mine expansion and resource upgrades Production ( to 31 Dec 09) Sales (tonnes) Sales (NZ$) 121,468 8,905,824

Takitimu Coal Limited  Open Cut mine – Current production ~200,000 tonnes per annum  Fonterra major customer – Clandeboye Milk Processing Plant • Currently 130,000 tonnes per annum – New 10 year supply agreement signed • 170,000 tonnes – 190,000 tonnes per annum – Coal trials underway at Fonterra’s Stirling plant • Up to 20,000 tonnes per annum – Pursuing other South Island industrial customers  Expansion potential – Ohai Prospecting Permit surrounds current Takitimu mining licence • Upgrading tenement to Exploration Permit – Royalty agreement with adjoining land owner – Resource consents obtained to mine adjacent property – 10 – 15+ year life of mine

Cascade Coal Limited  Open Cut mine – Current production ~45,000 tonnes per annum – High quality Bituminous coal – 3 - 4 year life of mine  Holcim major customer – Cape Foulwind Cement Works – Take or pay contract • ~40,000 tonnes per annum

Whareatea West  Exploration Permit 40- 591 – Adjacent to operating Cascade Mine – 40% explored to date – Potential 1 million tonne per annum coking coal resource – Secondary thermal product  Development Plans – JV negotiations for next stages of exploration • NZD$2 million spend – Natural progression from Cascade • Development to coincide with Cascade wind down

Albury Tenement  Prospecting Permit application lodged – Crown coal – Potential 20+ million tonnes sub bituminous coal – Open cut operations – Possible additional Fonterra supply – Proximity to major thermal customers

Eastern Coal Supplies  Coal handling & Distribution Centre – Contingency stockpile for Fonterra’s Clandeboye plant – Distribution point for local customers – Coal blending/bagging facilities  Administration Centre – Head office, sales and accounting functions

Financial Summary - end February 2010 Australia Cash from Broughton Sale $8,500,000 Nil debt* (*Becamal debt $2.6m to be converted to ECU equity) New Zealand Cash at bank & trade receivables $6,378,630 Inventories $2,539,900 Real Estate $1,162,450 Plant & Equipment $7,405,300 New Zealand Assets $17,486,280 Trade Creditors & Accruals ($2,297,200) Employee Entitlements ($185,270) Other Creditors ($534,600) Bank & External Finance Debt ($5,235,120) New Zealand Liabilities ($8,242,190) NET TANGIBLE ASSETS NEW ZEALAND* $NZD 9,234,090 (*Excludes loans from ECU Australia) Conversion to $A @ .78c $AUD 7,202,590 TOTAL ECU NET TANGIBLE ASSETS (EXCL GEL, BUSINESS $AUD 15,702,590 GOODWILL AND MINING LICENCES - Net profit prior to ECU Australia charges for interest and management fees for 8 months to end of February 2010 - $NZD2,448,100 (All figures are book values)

Disclaimer This presentation may contain forward looking statements that are subject to risk factors associated with oil and gas businesses. 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, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. Investors should undertake their own analysis and obtain independent advice before investing in ECU shares. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated.