Endocoal Limited INVESTOR UPDATE September 2012 HONG KONG AN - PowerPoint PPT Presentation

Endocoal Limited INVESTOR UPDATE September 2012 HONG KONG AN EMERGING BOWEN BASIN COAL DEVELOPER www.endocoal.com.au

DISCLAIMER This presentation has been prepared and issued by Endocoal Limited, ACN 132 183 281 (“Endocoal” or Competent Person’s Statement: In accordance with the Australian Securities Exchange requirements, “Company”) to assist it in informing interested parties about the Company. The information in this the technical information contained in this presentation has been document is in summary form and should not be relied upon as a complete and accurate representation of reviewed by Darren Walker, B.Sc. (Hons) in Geology employed by any matters that a potential investor should consider in evaluating Endocoal. While management has taken Endocoal Limited. Mr Walker is a member of the Australian Institute every effort to ensure the accuracy of the material in the presentation, neither the Company nor its of Geoscientists and the Australasian Institute of Mining and advisers has verified the accuracy or completeness of the information, or any statements and opinions Metallurgy and has sufficient experience which is relevant to the contained in this presentation. This presentation is provided for information purposes only, and to the style of mineralisation and type of deposit under consideration and maximum extent permitted by law, Endocoal, its officers and management exclude and disclaim any to the activity which he is liability in respect of the authenticity, validity, accuracy, suitability or completeness of, or any errors in or undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for reporting of Exploration Results, omission from, any information, statement or opinion contained in this presentation or anything done in Minerals Resources and Ore reserves”. Mr Walker consents to the reliance on the presentation. inclusion in the report of the matters based on this information in the form and context in which it appears. The presentation may contain forward looking statements. The words ‘anticipate’, ‘believe’, ‘expect’, ‘project’, ‘forecast’, ‘estimate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘target’, ‘plan’ and other similar Competent Person’s Statement: expressions are intended to identify forward ‐ looking statements. Indications of, and guidance on, future In accordance with the Australian Securities Exchange requirements, earnings and financial position and performance are also forward ‐ looking statements. Forward ‐ looking the technical information relating to the Rockwood, Meteor Downs statements are subject to risk factors associated with the Company’s business, many of which are beyond South and Inderi JORC Resources contained in this presentation has the control of the Company. It is believed that the expectations reflected in these statements are been reviewed by Phill Sides, B.App.Sc. (Geology), employed by JB Mining Services. Mr Sides is a member of the Australian Institute of reasonable but they may be affected by a variety of variables and changes in underlying assumptions Geoscientists and has sufficient experience which is relevant to the which could cause actual results or trends to differ materially from those expressed or implied in such style of mineralisation and type of deposit under consideration and statements. There can be no assurance that actual outcomes will not differ materially from these to the activity which he is undertaking to qualify as a Competent statements. You should not place undue reliance on forward ‐ looking statements and neither Endocoal nor Person as defined in the 2004 Edition of the “Australasian Code for any of its directors, employees, servants, advisers or agents assume any obligation to update such reporting of Exploration Results, Minerals Resources and Ore information reserves”. Mr Sides consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. This presentation should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those Statement of Compliance: securities. No agreement to subscribe for securities in the Company will be entered into on the basis of The information in this report that relates to Marketable Reserves at this presentation. You should not act and refrain from acting in reliance on this presentation material. Endocoal’s South Meteor Downs Project is based on a mine plan, a Nothing contained in this presentation constitutes investment, legal, tax or other advice. This overview of mine schedule and costs prepared by The Minserve Group Pty Ltd. Endocoal does not purport to be all inclusive or to contain all information which its recipients may require Mr Jeff Jamieson was responsible for the report’s preparation and the in order to make an informed assessment of the Company’s prospects. Before making an investment reserve statement therein. He is both a Fellow of the Australasian decision, you should conduct, with the assistance of your broker or other financial or professional adviser, Institute of Mining and Metallurgy, and a Chartered Professional your own investigation in light of your particular investment needs, objectives and financial circumstances (Mining) and is a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the Resources and Ore Reserves’. Mr Jamieson consents to the inclusion information, statements and opinions contained in this presentation and making any investment decision. in the report of the matters based on his information in the form and context in which it appears. References to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. 2

CONTENTS 1. EXECUTIVE SUMMARY 4 2. CORPORATE OVERVIEW 5 3. ORION DOWNS PROJECT 8 4. ROCKWOOD PROJECT 12 5. STOCKYARD CREEK PROJECT 16 6. TALWOOD/PRETORIA HILL 17 7. PROJECT PIPELINE 18 8. FY2012/13 OBJECTIVES 19 9. REASONS TO INVEST 20 APPENDICES 21 3

1. EXECUTIVE SUMMARY  An ASX listed Australian coal exploration and development company;  Major anthracite/PCI coal discovery, combined with near ‐ term thermal coal production;  Exploration activities solely in the Bowen Basin, Central Queensland;  Focused on delivering outcomes for shareholders as forecast; with  498.5Mt of JORC Resources identified, plus mine development activities underway.  ORION DOWNS 51.4Mt JORC Resource of export ‐ quality, direct ‐ ship thermal coal; 1.  Meteor Downs South (MDS) Project Evaluation completed for open cut mine; and  First production targeted for 2H 2013, based on 13.0Mt of Marketable Reserves.  447.1Mt JORC Resource of high rank, high energy, low volatile, anthracite/PCI coal; ROCKWOOD 2.  Continuity of geological structures and coal seams has been confirmed; and  Future drilling to focus on proving ‐ up potential mine development areas.  Initial success with six ‐ hole scout drilling program completed in early ‐ 2012; STOCKYARD 3.  Seam structure and coal quality results now being further assessed; and CREEK  Discovery of new coal, with exploration potential in expected larger resource area.  Exploration commencing at Talwood, prospective for Rugby ‐ style coking coal measures; TALWOOD / 4.  Strategic joint acquisition of Pretoria Hill with Carabella Resources (CLR); and PRETORIA HILL  EOC/CLR Joint Venture Agreement being finalised . 4

2. CORPORATE OVERVIEW COMPANY STRATEGY CAPITAL STRUCTURE To become a long ‐ term, sustainable supplier of diversified coal products to global markets Share Price (31 Aug 2012): A$0.22 Ordinary Shares on issue: 186.9m Company Growth Basic Market Cap: A$41.1m Options (A) and Rights (B) on issue: 21.6m Additional 3,948km 2 of Rockwood ‘greenfields’ Fully Diluted Market Cap: A$45.9m Advanced exploration Orion Downs Exploration in the Development Current JORC Bowen Target production 2H 2013 Resource 447.1Mt Basin Cash @ 30 June 2012: A$5.8m Project Pipeline Debt: $0.0m Enterprise Value: A$40.1m Major Shareholders as at 30/08/2012 % Other securities currently on issue: A. Options : Hidili Asset Management 12.6% ‐ 10.0 million @ A$0.50 (expiring 16/07/2013) ‐ 3.9 million @ A$0.72 (expiring 4/02/2015) Republic Investment Management 10.8% ‐ 3.0 million @ A$0.50 (expiring 2/12/2013) Cookshill Investments Pty Limited 8.6% ‐ 1.5 million @ A$0.468 (expiring 10/08/2014) ‐ 1.0 million @ A$0.46 (expiring 23/08/2013) AMCI Capital 6.1% ‐ 350,000 @ A$0.60 (expiring 16/03/2014) Indus Capital Partners 5.4% ‐ 250,000 @ A$0.40 (expiring 23/08/2013) ‐ 250,000 @ A$0.40 (expiring 16/03/2014) Macquarie Capital Group 5.3% ‐ 200,000 @ A$0.60 (expiring 30/03/2014) Top 6 Shareholders 48.8% B. 350,000 rights to acquire options @ A$0.60 (expiring 28/05/2013) and 800,000 rights to acquire options @ A$0.445 (expiring 07/04/2014) both with various vesting criteria. Top 20 Shareholders 64.5% 5