Creating a Mid-Tier Public Mining Company From Scratch – Lessons Learnt

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Glen Lewis, Managing Director, from NuCoal Resources delivered this presentation at 2012 Longwall conference in the Hunter Valley Australia. Building on eleven years of excellence its rare that such a large gathering of underground coal operators come together under the one roof, providing a great opportunity to catch up with friends, industry leaders, former colleagues and longwall mining specialists. For more information, please visit: http://www.longwallconference.com.au

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  • 1. An Emerging Coal Company Longwall Conference Creating a Mid-Tier Public Mining Company from Scratch Lessons Learnt October 2012

2. Cautionary Statement The information contained in this document (Presentation) has been prepared by NuCoal Resources Ltd and Doyles Creek Mining Pty Limited (Company). This Presentation does not constitute an offer or invitation to any person to subscribe for or apply for any securities in the Company. While the information contained in this Presentation has been prepared in good faith, neither the Company or any of its shareholders, directors, officers, agents, employees or advisers give any representations or warranties (express or limited) as to the accuracy, reliability or completeness of the information in this Presentation, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as Information) and liability therefore is expressly disclaimed. Accordingly, to the full extent permitted by law, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or limited, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained in this Presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any inaccuracies in, or omissions from, this Presentation which may become apparent. The right is reserved to terminate any discussions or negotiations with any person. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any errors. This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained in this Presentation necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relations to such matters. This Presentation may include certain statements that may be deemed forward-looking statements. All statements in this discussion, other than statements of historical facts, that address further activities and events of developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. The Company, its shareholders, directors, officers, agents, employees or advisers, do not represent, warrant or guarantee, expressly or impliedly, that the information in this Presentation is complete or accurate. To the maximum extent permitted by law, the Company disclaims any responsibility to inform any recipient of this Presentation or any matter that subsequently comes to its notice which may affect any of the information contained in this Presentation. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements. ASX Code: NCR Slide 2 3. What do we have? 4. Snapshot Prior to Plashett Acquisition ASX Code: NCR Slide 4 Market cap: A$138.3 million Projects: Doyles Creek Underground Mine and Training School (100%) Hunter Valley NSW Dellworth Pty Ltd EL 6594 and EL 6812 (100%)Hunter Valley NSW Port Access (Doyles Creek): PWCS 1Mt initial allocation commencing 2015 Savoy Hill (EL 6812) Exploration: Initial exploration commenced September 2011 - 24 cored holes completed to date Coal Products: Semi-soft coking, thermal Doyles Creek (EL 7270) Exploration: 51 holes completed including a 200mm hole Greenfields Industry Training Facility: Australias 1st industry backed with strong strategic partners Dellworth (EL 6594) Exploration: 11 open holes completed to date Initial Concept study completed Coal Resource Reserve (Doyles Creek): Measured 23.1Mt Probable Reserve 51Mt Indicated 119.3 Mt Inferred 369.5 Mt Total 511.9Mt Cash: A$29.9 m (at 30/9/12) Management: Significant operational experience 5. o 35 coal mines o 14 producers o 27 loading points o 80 different brands of coal o 34 end buyers o 12 countries ASX Code: NCR Slide 5 Strategic Portfolio Location Hunter Valley NSW Savoy Hill Dellworth Doyles Creek Project Plashett Coal Project Project Status Doyles Creek BFS commencing Dellworth Initial Concept Study completed Plashett Conceptual Mining Study Savoy Hill Exploration Drilling * Plashett purchase subject to Shareholder approval and completion of conditions precedent. 6. Detailed Portfolio Locations ASX Code: NCR Slide 6 Savoy Hill Dellworth Plashett Doyles Creek 7. Executed Joint Venture documents with Mitsui Matsushima for them to earn up to 10% of the Doyles Creek Project Joint Venture by spending $40m. Project Overview document submitted to NSW Department of Planning and Infrastructure for the Doyles Creek Project. Director Generals Requirements were received in May 2012 and EIS is currently underway. Successfully raised $29m on 1 March 2012 via placement and a further $6.3m via SPP during April 2012. Plashett acquisition Share Sale & Purchase Agreement executed 2 May 2012. Doyles Creek Project Pre-feasibility Study completed on time and within budget. Renewal lodged for Dellworth (EL 6594) and Initial Concept Study completed. Conceptual Mining Study underway for Plashett and drilling to commence Q4 to add to historical 70 hole database. Latest Achievements ASX Code: NCR Slide 7 8. Doyles Creek EL 7270 9. Pre-feasibility Study Outcomes ASX Code: NCR Slide 9 Detailed Underground mine plans laid out in the first 2 of 5 target seams achieving an initial 21 year mine life. Substantial NPV of $523m at 10.0% discount rate - IRR 20.8%. Project start up capital of $727m. Run of Mine (ROM) production of 101Mt for initial 21 years. Average pit top ROM costs of $31.44 / tonne. Average Project Outputs Units Pit Top ROM Cash Costs A$/t ROM 31.44 CHPP Costs (when required) A$/t ROM 6.99 FOR Cash Costs A$/t Product 45.70 Ex Mine Costs (excl Royalties) A$/t Product 20.07 C1 Cash Costs A$/t Product 65.77 Start Up Capital A$M 727 ROM Tonnes Mt 101.9 Saleable Tonnes Mt 85.7 Average Revenue / Tonne A$/t Product 149.01 Discount Rate % 10.0% NPV A$M 523 10. Whynot Seam Mine Plan ASX Code: NCR Slide 10 11. Whybrow Seam Mine Plan ASX Code: NCR Slide 11 Igneous Silling 12. Training School Project ASX Code: NCR Slide 12 A project to establish a Centre of Excellence in: o Mining o Training o Education o Research Doyles Creek Mining Pty Ltd Finance, mine management and operation and coordination of research, training and education Hunter Valley Training Company Vocational education and training resources and employment The University of Newcastle Research & Development, Undergraduate and Post Graduate education and placement of students Westpac Rescue Helicopter Service Paramedic training, OHS training and rescue simulations 13. Doyles Creek Mining Scholarships/Trainees/Apprentices ASX Code: NCR Slide 13 NuCoal supports the Institute of Frontier Geosciences at The University of Newcastle through funding for student scholarships, academic positions and research funds. Internal and external training programs support apprentices and trainees including office staff, drillers, electricians and fitters to support the mining industry. Training programs in first aid and safety related issues support the local community. Students in local schools access funding for mentoring, career planning, health, trade training and industry related programs. 14. Plashett EL 6705 15. Plashett adds to the NuCoal portfolio and offers significant synergy between the existing tenements, particularly Doyles Creek. Open cut proposition with the ability to link to the Doyles Creek Project via an underground corridor. Approximately 70 historical boreholes of data available with an exploration target based on past drilling of 89-300Mt of semi soft coking and thermal coal. Located near major infrastructure and provides substantial opportunity to develop a concentrated coal handling hub for a number of related projects. Conceptual Mining Study commenced and will be modified as required with the newest drilling data as its obtained. Plashett Acquisition Benefits ASX Code: NCR Slide 15 16. Plashett Initial Exploration and Synergy ASX Code: NCR Slide 16 17. Potential Resource Area ASX Code: NCR Slide 17 18. EL 6705 Seam Cross Sections ASX Code: NCR Slide 18 19. Dellworth Pty Ltd ELs 6594 & 6812 20. Dellworth Initial Drilling ASX Code: NCR Slide 20 Draft mining plan laid out over the most prospective area. +10 year mine life anticipated for domestic coal sales scenarios. Base case as a contract mining opencut providing 500kt 1Mt to local domestic consumer. Existing infrastructure provides access to local consumer within 7kms of project site. Capital requirements estimated at $24m - $34m to establish an operation with contract mining rates utilised for the Concept Study. 21. Draft Mine Plan ASX Code: NCR Slide 21 22. Savoy Hill Initial Drilling ASX Code: NCR Slide 22 23. Corporate Company fully funded until end 2013. Experienced and competent management team. All Projects located near major infrastructure. Doyles Creek Project Good quality resource 0.511 billion tonnes. Pre-feasibility Study completed and EIS underway. Potential >30 year mine life via underground longwall mining. Australian First Greenfields Underground Coal Training School. Sufficient land owned for all necessary infrastructure and access requirements. Savoy Hill Project Drilling well advanced and Environmental Studies underway. Dellworth Project Stage 1 drilling and Initial Concept Study completed. Plashett Project Acquisition underway and Conceptual Mining Study commenced to identify significant synergies with the Doyles Creek and Savoy Hill Projects. Summary ASX Code: NCR Slide 23 24. How did we get there? 25. Value Accretion Profile Source - Gresham Group 15 Oct 12 Slide 25 26. Journey to Date Slide 26ASX Code: NCR $4.6m spent prior to listing 27. Secure seed capital. Identify and attain an asset with prospect for development. Employ good people every step of the way. Commence developing the project. List the private Company on market to increase shareholder base raising further funds through the listing process. Continue adding value to the project and identify additional projects to acquire - if the strategy is to increase in size as well as diversify risk. Raise further funds as needed to build / grow the Company. Be passionate about what your doing. Steps ASX Code: NCR Slide 27 28. Strong Board and Management Team ASX Code: NCR Slide 28 Chairman Mr. Gordon Galt G.Eng (Mining, Hons), B.Com, GDip AppFin (Finsia), MAusIMM, MAICD Non Executive Director Mr. James Beecher B.Com, MBA, FCPA, FAICD Non Executive Director Mr. Michael Davies BA Hons, MBA Non Executive Director Mr. Mike Chester B. Com, ACA Managing Director Mr. Glen Lewis MAICD Commercial Manager and Company Secretary Mrs. Megan Etcell B.Com, CA General Manager Operations Mr. Gary Cambourn B.Eng Mining (Hons) Director Doyles Creek Mine Training School Mrs. Maree Roberts Dip T, B Ed St, M Ed Admin, GAICD 29. Managing Director GLEN LEWIS Commercial Manager & Company Secretary MEGAN ETCELL General Manager Operations GARY CAMBOURN Director of Training School MAREE ROBERTS Personal Assistant(s) KELLY WILLIAMS & HOLLY STEPHENSON Project Manager LEIGH NICHOLLS Engineering Manager GREG NICHOLLS Trainee Administration Assistant RACHEL GIBBS Commercial Accountant CASS PHILLPOTT Environment & Community Manager JEMMA SARGENT Organisational Structure - proven track record ASX Code: NCR Slide 29 30. Corporate Overview ASX Code: NCR Slide 30 Shares on issue 768.6 million Market cap. A$138.3 million Cash (30/9/2012) A$29.9 million Enterprise Value A$100.6 million Options on issue nil Share price (as at 9/10/12) A$0.18 Capital Structure Significant Shareholders Major shareholders Equity % Taurus Funds Management 19.7% HSBC Custody Nominees 6.6% Sparta Group 6.2% National Nominees Limited 5.5% Citicorp Nominees Limited 5.2% Big Ben Holdings (Bloomfield Group) 3.9% 31. What did we learn 32. Have faith in your ability and back yourself. Do what you say! Combine with like minded people to raise initial funds they need to understand the sector you wish to work in both risks and rewards. Identify a quality asset at the start. Do what you say! Be prepared for criticism along the journey. Understand the market doesnt always follow fundamentals. Keep shareholders informed. Do what you say! Learnings ASX Code: NCR Slide 32 33. Questions? 34. Competent Person Statement The information in this report that relates to exploration results and mineral resources is based on information compiled by Dr Ian Stone, who is a Member of the Australasian Institute of Mining and Metallurgy (102087). Dr Stone is Manager, Geology of Palaris Mining Pty Ltd. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person, as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Stone has over 30 years experience in exploration and mining of coal deposits. Dr Stone consents to the inclusion in this report disclosed by the Company, of the matters based on his information, in the form and context in which it appears. The Underground Reserves estimate is based on information...

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