white energy company limited ABN 62 071 527 083 Company - PowerPoint PPT Presentation

white energy company limited ABN 62 071 527 083 Company Presentation June 2015 A Diversified Coal Company – Coal Technology and Coal Mining

Disclaimer Summary information. The information in this presentation does not purport to be complete. It should be read in conjunction with the company’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. No liability. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in the course of this presentation. To the maximum extent permitted by law, the company, all of its related bodies corporate and their directors, officers, employees, agents and advisers do not accept any responsibility or liability (including, without limitation, any liability arising from negligence on the part of any person) for any loss or damage incurred by any person in connection with this presentation or any action taken on the basis of such information, opinions or conclusions. You must make your own independent assessment of the information, opinions and conclusions and in taking any action seek your own independent professional advice as appropriate. Forward Looking Statements. Statements in this presentation, particularly those regarding possible, targeted, expected or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, growth, earnings or trend projections are or may be forward looking statements. The words ‘anticipated’, ‘expected’, ‘intended’, ‘projection’, ‘forecast’, ‘estimate’, ‘guidance’, ‘plan’, ‘could’, ‘should’, ‘may’, ‘target’, ‘consider’, ‘believe’, ‘will’ and other similar expressions are intended to identify forward looking statements. Such forward looking statements relate to future matters and may involve known and unknown risks, uncertainties, or other factors, many of which are outside the control of the company, which could cause actual results to differ materially from past results or results expressed or implied by such statements. To the maximum extent permitted by law, the company, its related bodies corporate and their directors, officers, employees, agents and advisers disclaim any obligation to update any forward looking statements to reflect subsequent events or circumstances. For more information visit www.whiteenergyco.com or contact: Brian Flannery Ivan Maras Managing Director and CEO Chief Financial Officer White Energy Company Limited White Energy Company Limited +61 2 9959 0000 +61 2 9959 0000 1 Page 2

White Energy A diversified coal company listed on the ASX with significant global growth prospects  White Energy is the exclusive worldwide licensee of a patented technology which upgrades high moisture low value sub- bituminous and lignite coals through a low cost process of dehydration and compaction. This technology is known as the Binderless Coal Briquetting (“BCB”) technology, and was developed by a consortia led by the Commonwealth Scientific and Industrial Research Organisation (“CSIRO”).  White Energy has more recently applied the BCB technology to the beneficiation of thermal and metallurgical coal fines.  White Energy acquired Mountainside Coal Company Inc. (“MCC”) in 2013, following the earlier acquisition of South Australian Coal Limited in 2010. These assets form the coal mining division of the Company. Key Statistics 31 May 2015 Major Shareholders (4) Shareholding % Share Price - ASX: WEC A$0.39 M&G Investment Management 17.93% US ADR Price - OTCQX: WECFY (1) US$1.52 Gaffwick Pty Ltd 9.73% Ordinary Shares On Issue 328.4 million Ganra Pty Ltd 9.24% Equity Market Capitalisation (2) A$128 million Remaining top twenty shareholders 35.30% Cash Reserves (approx) (3) A$34 million Notes: (1) 1 ADR = 5 Ordinary Shares (2) Fully diluted excludes unissued options (3) Includes $2 million WA Supreme Court Security Bond relating to the freeze order obtained in respect of Bayan Resources’ shareholding i n Kangaroo Resources Limited and $2.8m in coal mining reclamation bonds at MCC (4) As at 25 March 2015 – Top 40 extract of the White Energy Company Limited share registry 2 Page 3

Solid Platform for Growth White Energy is organised around two distinct – but related – business divisions which provide an exciting pipeline of projects currently under development. Coal Technology Coal Mining 51% Briquette Upgrade Bituminous Mountainside South Other Sub-bituminous Coal Fines Coal Company Australian Opportunities coals (thermal, coking) Inc. Coal Limited 51% 51% 51% South North Other Australia/NZ Indonesia North America China Other Markets Africa America markets To be * 100% owned unless otherwise stated Current focus developed 3 Page 4

Target Milestones for the Year Ahead The Company has identified a number of key areas of focus for Financial Year 2014/2015 Australia United States Africa Indonesia China • Mountainside Coal • Black River • TBA • Lake Phillipson EL4534 • In commercial Key • Buckskin Mining • Cessnock Production Plant discussions Partners / Projects • Commence mining • Construct and • Purchase a • Ongoing development of BCB • Establish FY2014/15 operations at the commission a coal suitable sub- technology through continued commercial Target proposed Flat Creek fines beneficiation bituminous coal investment in R&D activities. partnership with Milestones coal mine. plant at Woestalleen mining asset. Chinese miner/ • Conduct a number of extended (Phase One). power utility. • Construct and Demonstration Plant campaigns • Commence • Identify financial commission a new and using both bituminous coal fines improved coal wash construction BCB and sub-bituminous coals. partner for sub- plant at MCC. Plant at Woestalleen licensing • Continue to evaluate EL4534 for (Phase Two) opportunity. • Commence construction coal applications including coal • Reach agreement to of a BCB plant at MCC. gasification. construct BCB plant • Continue to evaluate with another major market conditions, South African coal specifically progress with producer. coal export facilities. 4 Page 5

Board and Management A highly regarded board and management team with an industry wide reputation for delivery and execution of major coal projects Travers Duncan Brian Flannery Graham Cubbin Chairman Managing Director and CEO Non-executive Director Vincent O’Rourke Hans Mende Terence Crawford Non-executive Director Non-executive Director Non-executive Director 5 Page 6

White Energy’s Coal Upgrading Technology The BCB technology has been developed over 20 years, by a consortia led by the CSIRO Five Production Stages 1. Coal preparation 2. Crushed coal drying 3. Solids separation 4. Briquetting 5. Cooling / conditioning Binderless Briquetting Circuit (BCB) 6 Page 7

Coal Fines - A Major Environmental Liability Coal fines represent a major environmental liability for coal producers and also carry a significant ongoing maintenance cost  Billions of tonnes of coal fines are stored in slurry ponds around the world.  Coal fines derived from a combination of thermal coal and coking coal.  New arising fines continue to be generated at coal mines around the world, due to inefficiencies in coal processing methods.  There is a significant ongoing cost for coal producers associated with the management of coal fines.  Dried briquettes produced from wet coal fines can be blended with a coal producer’s saleable coal, for export or domestic markets. The excavation of coal fines from a typical slurry pond at a South African mine site 7 Page 8

Application of the BCB Technology to Coal Fines White Energy is able to leverage its patented and scalable technologies to beneficiate ultra fine coals in order to create saleable product by converting a waste product into a high value product that can enhance a mine’s revenues Collect the waste & Dewater and clean Briquette and improve Blend briquetted fines discarded fines the fines fines calorific value with ROM output Export Fine Coal Beneficiation Binderless Briquetting Ultra Fines Conveyor Circuit (FBC) Circuit (BCB) Wash Plant Coal Mine Spiral Fines Domestic Thermal Market Slurry pond Reclaimed Fines Power Station Environmental Liability White Energy Value Add High Value Product 8 Page 9

The Coal Fines Beneficiation and Upgrading Process 2 - Reclaiming the coal fines from ponds 1 - A coal fines slurry pond 5 - Upgraded coal fines briquettes 3 - Beneficiation/screening phase 4 - BCB Briquetting phase 9 Page 10