fmc corporate presentation april 2012

A Forbes & Manhattan Group Company

CORPORATE PRESENTATION

April 2012TSX/JSE : FMC

GROWING COAL PRODUCER IN SOUTHERN AFRICA

2

TSX/JSE : FMCDisclaimer

This presentation contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statementswith respect to the development potential and timetable of the Magdelena and Aviemore projects; the Company’s ability to raise additional funds as necessary;the future price of coal; the estimation of mineral resources; conclusions of economic evaluations (including scoping studies); the realization of mineral resourceestimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures;success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks.Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”,“budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases orstatements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements arebased on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of

mining at the Company’s projects are based on assumptions underlying mineral resource estimates and the realization of such estimates; results of previous miningactivities at the projects, and detailed research and analysis completed by independent consultants and management of the Company; research and estimatesregarding the timing of delivery for long-lead items; and knowledge regarding certain factors described in the technical report filed under the profile of theCompany on SEDAR. Capital and operating cost estimates are based on results of previous mining activities, research of the Company and independentconsultants. Production estimates are based on mine plans and production schedules, which have been developed by the Company’s personnel andindependent consultants. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results,level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements,including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction,expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of exploration and miningactivities; changes in project parameters as plans continue to be refined; future prices of coal; failure of plant, equipment or processes to operate as anticipated;accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that couldcause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated,estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially fromthose anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake toupdate any forward-looking statements except in accordance with applicable securities laws.

Investors are advised that National Instrument NI 43-101 of the Canadian Securities Administrators (“NI 43-101”) requires that each category of mineral reserves andmineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Johan Odendaal,B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), a director of Minxcon and an independent Qualified Person, as defined in National Instrument 43-101 hasreviewed and approved the scientific and technical information contained in this presentation.

Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred ResourcesThe information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are

recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineralresources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of aninferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis offeasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will everbe converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or iseconomically or legally mineable.

3

TSX/JSE : FMCCompany Overview

Forbes & Manhattan Coal Corp.’s (“Forbes Coal” or the “Company”) vision is to build a high quality bituminous and anthracite coal company with production

capacity in excess of 10 million tonnes per year

C omp a n y Su mma r y

Headquarters: Toronto, Ontario Total coal resource

(NI 43-101):

51.7 million tonnes Bituminous

35.7 million tonnes Anthracite1

(15.1 million tonnes anthracite inferred)

Number of

mines:

2 (Magdalena

and Aviemore)

Historical annual saleable

production:

923,700 saleable tonnes in

fiscal 2012

Mine location: Kwa-zulu, Natal,

South Africa

1 year target production2: 1,000,000 saleable tonnes

Bituminous - Magdalena

420,000 saleable tonnes

Anthracite - Aviemore

Production capacity: 1.5 million saleable tonnes

1. As set out in the Technical Report of the Company entitled “An Independent National Instrument 43-101 Technical Report on Slater Coal and Subsidiaries, KwaZulu-Natal Province, South Africa”, dated March 1, 2011, prepared for the Company by Minxcon (the “Technical Report”). A copy of the Technical Report is available under the profile of the Company on SEDAR at www.sedar.com.

2. As per management’s guidance

http://www.sedar.com/

4

TSX/JSE : FMC Investment Highlights

Strategic assets in one of the best developed coal markets in the world

Resource base of high quality bituminous and anthracite coal

Ability to TRIPLE production within three years from 2010 historic levels using existing

infrastructure and capacity

In-place infrastructure to reach export corridors and growing domestic market

Substantial upside through organic production growth and strategic acquisitions

Experienced coal-focused management team

As per management’s guidance

5

TSX/JSE : FMC Experienced Management Team

Stephan Theron, B.Comm, CGA │President and Chief Executive Officer Extensive management, project finance and equity analysis experience in the mining, energy and infrastructure sectors

Previous capital and project experience includes Weir PLC and AMEC PLCFormer sector head materials and energy with a specific focus on South African coal market

Malcolm Campbell, Pr. Cert. Eng. (Mining) │Chief Operating Officer Fourth generation coal miner with 25 years industry experienceSkilled in operational management, turnaround strategies and business development Spent 20 years with Anglo Coal; held a variety of positions including Regional Manager for New Business Development and Strategy

Kuda Muchenje, │VP Exploration & Development Seasoned exploration geologist with over 15 years experience in the generation of exploration targets and management of exploration and evaluation programsFormer Country Manager(Mozambique)for Rio Tinto

Deb Battiston, CGA │Chief Financial OfficerFinancial specialist with over 20 years experience in the mining sector

Sarah Williams, CA │Vice President FinanceChartered Accountant (SA) with nine years experience in the corporate finance industryExpertise is in the resource sector where she played key roles in company listings and IPOs, mergers and acquisitions, restructurings and debt and equity capital raisings.

Kevern Mattison, NHD (Mining), B. Tech.│General ManagerMore than 20 years operational coal mining experienceSpent over 20 years with Anglo Coal, most recently Manager Mining

6

TSX/JSE : FMC Directors

Stan Bharti, P.Eng. │ Executive Chairman

Business consultant and a professional mining engineer with more than 25 years experience

Founder and Chairman of Forbes & Manhattan, Inc., a private merchant focused on the resource

sector, since July 2001

Stephan Theron, B.Comm, CGA , │ President and CEO

David Stein, MSc., CFA │ Director

Over nine years of asset evaluation, research and corporate finance experience

President and Director of Aberdeen International (seed investor in Forbes Coal)

Grant Davey, P. Eng. │ Director

Mining Engineer with close to 20 years experience in coal, platinum and gold mining industry

Previously held senior operational management roles for Anglo American in South Africa & Australia

David Gower, P. Geo. │ Director

Professional Geologist and the former Global Head of Nickel Exploration for Falconbridge

Ryan Bennett, M.Mining Eng. │ Director

Masters degree in Mining Engineering from the Colorado School of Mines

Extensive technical mining project analyses experience

Senior Partner of Resource Capital Fund;(significant shareholder in Forbes Coal)

7

TSX/JSE : FMCProgress to Date

September 2010

Completed RTO within 60

days, began trading on the

Toronto Stock Exchange under

the symbol “FMC”

March 2011

Closed CDN$42 million capital

raise at $4.55/share; Forbes

Coal increased ownership in

Slater Coal to 76.75%;

Completed second NI 43-101

Technical Report

Corporate Milestones…dual listed with experienced management team

December 2010

Increased export capacity at

Navitrade Terminal at Richards

Bay; Magdalena upgraded

mining operations; increased

saleable production capacity

by 330,000 tonnes per annum

Signed three year offtake

agreement with leading energy

trading company for 1.75 million

tonnes of thermal coal;

January and February 2011

production increases 28%

April 2011

Operational Highlights…production up 33% since acquiring the Slater Coal properties

November 2011

Secured ZAR230 million

(approximately $C30 million)

loan facility from Investec to

fund Company’s expansion

January 2012

Forbes Coal reports revenue

of $31.2 million in fiscal third

quarter 2012, an increase of

245% year-over-year

February 2012

Forbes Coal earns 100%

interest in Slater Coal

Properties

March 2012

Year-over-Year

production and sales

significantly improve

• ROM production

increases 38%

• Saleable production

increases 43 %

• Total sales increased

104%

8

TSX/JSE : FMC Ramping Production and Sales1

Run of Mine Production Saleable Production

1. All figures are tonnes

934,023

1,290,799

FY2011

(Mar 10 - Feb 11)

FY2012

(Mar 11 - Feb 12)

648,048

923,697

FY2011

(Mar 10 - Feb 11)

FY2012

(Mar 11 - Feb 12)

529,256

1,081,814

FY2011

(Mar 10 - Feb 11)

FY2012

(Mar 11 - Feb 12)

Total Sales

+38% +43%

+104%

9

TSX/JSE : FMC Strong Financial Results Reflecting Growth

Q1 2012(Mar – May 2011)

Q2 2012(Jun – Aug 2011)

Q3 2012(Sept- Nov 2011)

% Change(YTD)

Revenue $19.6 million $35.2 million $31.2 million + 59 %

Gross Profit $4.2 million $5.6 million $6.8 million + 62 %

Consolidated EBIDTA

$5.6 million $6.9 million $8.2 million + 46 %

Cash and Cash Equivalents

$19.8 million $24.2 million $16.8 million - 15 %

10

TSX/JSE : FMC

• For Fiscal 2012 Forbes Coal reported record export sales of 578,000 tonnes an increase of 179% from Fiscal 2011, reflecting strong demand from export markets

• Global thermal trade flows show India and China as major global importers of thermal coal

― South Africa exported an estimated 23 million tonnes of thermal coal to India in 2010

• Asia dominates demand for anthracite coal

― 83% of global imports; 95% of expected export demand growth1

Access to Lucrative Export Markets

Global Thermal Coal

Trade Flows

1. Source : Company Reports

11

TSX/JSE : FMCCoal Markets Overview

• Thermal (bituminous) coal sold directly to independent industrial companies in South Africa

• Thermal coal sold at circa US$80 per tonne vs low quality coal sold to Eskom priced at US$20 - 30 per tonne

• Demand increasing from emerging Asian markets, especially India and China

• Indian government expecting domestic coal shortfall of approx. 112 million tonnes for year ended March 2012; 35% increase from previous forecasts

• South African coal exports to India increased 161% 2008 – 2009

• China imported165 million tonnes of coal in 2010, up 31% from prior year

Domestic

Export

• Aviemore one of four listed metallurgical (anthracite) coal producers in South Africa

• Cost-effective replacement for coking coal/coke

• Applications include iron ore pelletizing, PCI for blast furnaces, calcining for electrode manufacturing, ferroalloys and power generation

Thermal Metallurgical

Source: Company reports1. McCloskey Coal Report, March 22, 2 011

• Demand driven by the metal refining industry

• Pricing highly correlated with PCl coal prices

• Australian coal producers starting to settle PCl contracts at a record US$275 per tonne FOB for April –June quarter 1

12

TSX/JSE : FMC Established Mining Region

Source: Company reports

13

TSX/JSE : FMC

Company Outlook

14

TSX/JSE : FMC 2010 – 2013 Mine Plan

Saleable Production1

• Increasing production: saleable production is expected to grow at a CAGR of 41% from 2010 to 2013

– Driven by expansion of production from the Magdalena and Aviemore underground mines

(000 t)

1. Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.

505

648

924

1,423

2010FY 2011FY 2012FY 2013FY

Bituminous Anthracite

15

TSX/JSE : FMCPositioned for Multi-Year Export Growth

Milestone agreement inked on December 7, 2010 increases

export capacity incrementally by 960,000 tonnes per annum for a total export capacity of 1,157,000 tonnes in 2013.

SECURED ADDITIONAL EXPORT CAPACITY AT RICHARD’S BAY

SIGNIFICANT OFFTAKE AGREEMENT PROVIDES STEADY

CASH FLOW

Three year offtake agreement reached with global energy trading company for 1.75 million tonnes (total) of thermal coal

Cash flow from offtake agreement will fund continued ramp up of production at the two operating mines

16

TSX/JSE : FMC Mining Resource

NI 43 – 101 Global Resource1

Measured Indicated MI Inferred YearlyROM2

LOM

Magdalena

Bituminous

51.7 m - 51.7 m - 1.0 m + 20 years

Aviemore Anthracite

1.6 m 34.1 m 35.7 m 15.1 m 0.25 m + 20 years

1. Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.2. As per management’s guidance


17

TSX/JSE : FMCU/G LOM Production Profile1

1. Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.2. As per management’s guidance.

Magdalena2

• Section 1: ABM30 High Seam, 40,000 tonnes/month

• Section 2: Conventional Low Seam, 10,000 tonnes/month

• Section 3: Dyke, 12,000 tonnes/month

• Section 4: ABM30 High Seam, 40,000 tonnes/month

• Section 5: CM Low Seam, 25,000 tonnes/month



Aviemore2

• Section 1: Conventional, 22,000 tonnes/month

• Section 2: Conventional, 22,000 tonnes/month

• Investigate low seam CM’s for future

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Ton

ne

s

Magdalena O/C Magdalena U/G Aviemore U/G


18

TSX/JSE : FMCMagdalena Bituminous Coal Operations

19

TSX/JSE : FMC Magdalena Bituminous Coal Operations

Location: • Dundee, Kwa-Zulu, Natal

Coal Type: • Bituminous

Resource: • 51.7 million tonnes

Acres: • 4,557

Average BTU: • 12,250 BTU/lb

• 6,800 kcal/kg

Ash: • 15.0%

Volatility: • 16.7%

Saleable

Production:

• 2011FY2: 555,000 tonnes

• 2012FY2: 748,000 tonnes

Mine Life: • Approximately +20 years

Infrastructure: • Wash plant, processing plant

and siding

Asset Summary1

1. Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.2. Fiscal year-end February 28

Magdalena Operations and Site Layout

20

TSX/JSE : FMCMagdalena Bituminous Coal Production Profile

• Ramp-up on schedule

• New ABM30 continuous miner arrived in December 2010 (further increased saleable production capacity by close to 30,000 tonnes per month)1

• Second ABM30 continuous miner scheduled for delivery end September 2011

Magdalena Saleable Bituminous Coal Production2

(000 t)/February 28 year-end

299347 326

449485

556

748

1,003

2006 2007 2008 2009 2010 2011 2012 2013E

Magdalena - open pit Magdalena - underground

1. As per management’s guidance2. Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.


21

TSX/JSE : FMCMagdalena Project Area & Mining Rights1



22

TSX/JSE : FMCAviemore Anthracite Coal Operations

23

TSX/JSE : FMC Aviemore Anthracite Coal Operations

Location: • Dundee, Kwa-Zulu, Natal

Coal Type: • Anthracite

Resource: • 35.7 million tonnes(15.1 million tonnes inferred)

Acres: • 13,818

Average BTU: • 12,800 BTU/lb

• 7,100 kcal/kg

Ash: • 13.7%

Volatility: • 7.9%

Saleable

Production:

• 2011FY2: 92,000 tonnes

• 2012FY2: 176,000 tonnes

Mine Life: • Approximately +20 years

Infrastructure: • Wash plant, processing plant

and siding

Asset Summary1

1. Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.2. Fiscal year-end February 28

Aviemore Operations

24

TSX/JSE : FMC Aviemore Anthracite Coal Production Profile

• Annual production capacity expected to hit 500,000 tonnes of saleable coal

per annum in fiscal 20141

Aviemore Anthracite Coal Saleable Production2

(000 t)/February 28 year-end

59 62 61102

20

92

176

420

2006 2007 2008 2009 2010 2011 2012 2013E

1. As per management’s guidance2. Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.


25

TSX/JSE : FMCAviemore Project Area & Mining Rights1



26

TSX/JSE : FMC Corporate Structure

Source: FM Coal Corp

Forbes Coal Ownership Structure

Slater Coal (Proprietary) Limited (South Africa)

Zinoju Coal (Proprietary) Limited(South Africa)

AviemoreAnthracite Coal

Magdalena Bituminous Coal

100%

70%

100% 100%

Forbes and Manhattan Coal Inc.(Ontario)

30%

Forbes and Manhattan Coal Corp.(Ontario, TSX/JSE Listed)

BEE (Nulane)

100%

27

TSX/JSE : FMC

• Good working relationship with its two unions: National Union of Mineworkers (NUM) and Amalgamated Mining & Construction Union (AMCO)

• Labour contracts are negotiated on an

annual basis

• Implementing internationally recognized safety, health, environmental and quality management systems

• Adheres to the tenets of the Mining

Charter and promotes local procurement and procurement from BEE companies

• Committed to developing local communities

Responsible Development

28

TSX/JSE : FMCCapitalization and Share Performance

Company Ticker TSX: FMC

Closing Price (April 10, 2012) C$1.71

Trading Range

(52 week)

C$1.22 – $3.87

Market Capitalization (Basic) C$59 million

Market Capitalization (FD) C$67 million

Canadian Share Performance South African Share Performance

Company Ticker JSE: FMC

Closing Price (April 10, 2012) ZAR 1,600

Trading Range

(since July 28, 2011)

ZAR 1,430 –2,750

Market Capitalization (Basic) ZAR 557 million

Market Capitalization (FD) ZAR 632 million

1 Includes 2,700,000 performance warrants that convert into common shares upon the company reaching certain operating targets. Also includes 3,445,300 options with a weighted average exercise price of C$5.35 per share, 763,887 broker warrants convertible into common shares at an exercise price of C$2.80 per share and expiring on January 23, 2012 and 480,000 broker warrants convertible into common shares at an exercise price of C$4.55 per share and expiring on February 22, 2013.

Basic Shares Outstanding 34.8 million

FD Shares Outstanding1 39.5 million

Share Structure

29

TSX/JSE : FMCPeer Group Trading Analysis

ExxaroOptimum Coal

Coal of Africa

Keaton Energy

Forbes Coal

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

-5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0

Sale

s G

row

th (

FY

12 t

o F

Y13)

FY12 P/E

26.4x

12.4x10.7x

6.8x

2.8 x

8.2x9.4x

10.4x

6.5x

1.5 x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

Coal of Africa Keaton Energy Optimum Coal Exxaro Forbes Coal Corp.

FY 12 P/E FY 13 P/ESource: Bloomberg

Source: Bloomberg, 7 March 2012

(1) Excluding Forbes Coal

Sales growth (FY12 to FY13) versus FY12 P/E: South African listed peers

Relative valuation: South African listed peers

0

50

100

150

200

Forbes Exxaro Optimum Coal Keaton

Wescoal Hwange Firestone Resgen

Share price performance: South African listed peers

30

TSX/JSE : FMCComparable Trading Analysis

Comparable Trading AnalysisMarket Cap EV

Company (US$M) (US$M) 2011E 2012E 2011E 2012E

U.S. Coal Producers

Alliance Resource Partners LP $2,720 $3,115 5.5x 5.0x 4.8x 4.7x

Alpha Natural Resources Inc. $4,947 $7,151 4.9x 4.8x 4.0x 3.6x

Arch Coal $3,232 $6,749 6.6x 4.9x 3.6x 3.1x

Cline Mining Corp. $448 $349 NA 2.5x NA 4.5x

Cloud Peak Energy Inc. $1,191 $1,315 3.8x 3.7x 4.0x 4.4x

Consol Energy, Inc. $8,229 $10,869 6.0x 6.5x 5.4x 6.1x

Corsa Coal Corp. $123 $126 NA NA 6.1x 2.4x

James River Coal Co. $246 $573 3.1x 4.9x 1.8x 2.5x

Lipari Energy, Inc. $29 $30 1.8x 1.6x 2.6x 1.7x

Natural Resource Partners LP $2,775 $3,494 10.6x 10.4x 9.8x 10.0x

Oxford Resource Partners, LP $357 $494 8.2x 5.8x NA NA

Patriot Coal Corporation $812 $997 5.6x 6.7x 6.5x 11.1x

Peabody Energy Corp.1

$9,949 $13,957 5.5x 5.8x 5.5x 6.3x

Rhino Resource Partners LP $554 $650 8.2x 6.1x 6.5x 5.9x

Xinergy Ltd. $160 $301 7.4x 4.0x 7.9x 4.1x

Walter Energy, Inc. $4,592 $6,762 6.9x 7.0x 6.6x 6.5x

U.S. Coal Producers Average (excluding high and low) 6.0x 5.2x 5.3x 4.9x

African Coal Producers

Coal of Africa Limited $715 $665 22.3x 4.0x 14.1x 4.9x

Continental Coal Limited $95 $74 14.2x 1.1x 5.7x 1.7x

Exxaro Resources Limited $9,758 $7,705 8.8x 5.4x 10.4x 6.6x

Keaton Energy Holdings Limited $70 $75 NA 5.1x NA NA

Optimum Coal Holdings Limited $1,214 $1,054 6.0x 3.3x 8.2x NA

Petmin Limited $236 $119 2.7x 2.0x 5.3x 4.9x

African Coal Producers Average (excluding high and low) 9.7x 3.6x 8.1x 4.9x

Other Coal Producers

Gloucester Coal Ltd.2

$1,415 $1,599 11.5x 9.6x 10.1x 10.2x

Grande Cache Coal Corporation3

$580 $634 4.7x 3.6x 5.5x 3.0x

Whitehaven Coal Limited4

$5,720 $5,564 23.7x 16.1x 18.5x 11.8x

Other Coal Producers Average 13.3x 9.8x 11.4x 8.3x

Overall Average (excluding high and low) 7.6x 5.1x 6.6x 5.3x

Forbes Coal (C$)5

$71 $83 2.6x 2.0x 3.9x 2.4x

Forbes Coal - Discount to Comparables (65%) (60%) (42%) (55%)

EV / EBITDA P/CFPS• Forbes Coal trades at a significant discount to comparable coal producers on an EV/EBITDA and P/CF basis

Note: As of February 8, 20121. Peabody Energy Corp. is shown pro forma the acquisition of Macarthur Coal Ltd.2. Gloucester Coal Ltd. is shown pre-announcement of the pending acquisition by Yanzhou Coal Mining Co. Ltd. that was announced on December 22, 20113. Grande Cache Coal Corporation is shown pre-announcement of the pending acquisition by Winsway Coking Coal Holdings Limited and Marubeni Corporation that was announced on October

31, 20114. Whitehaven Coal Limited is shown pro-forma the pending acquisition of Aston Resources Limited and Boardwalk Resources5. Forbes Coal’s operating forecast is based on Canaccord Genuity Research estimates. Market cap and EV includes 2.7 million performance warrantsSource: Consensus estimates and company reports

31

TSX/JSE : FMC Analyst Coverage

Analyst Target Price (C$)

Gary Lampard

Canaccord Genuity$3.60

David Charles

GMP Securities$4.70

Wojtek Novak

Fraser Mackenzie $3.50

Tania Maciver

Northland Capital Partners$5.30

Santo Ranieri

Paradigm$5.00

Mark Ingham

Ingham Analytics$7.28

Shihepo Kavambi

Imara$2.78

32

TSX/JSE : FMC Summary

Currently producing high quality bituminous and anthracite coal

Plans to organically TRIPLE production from 2010 historic levels to 1.5 million

saleable tonnes per annum in three years

Export capacity at Richards Bay Coal Terminal and Grindrod Terminals Richards

Bay to increase incrementally to 1,157,000 tonnes per annum by 2013

Offtake agreement with global energy trading company provides cash to fund

ramp up at two operating mines

Growing demand for coal from emerging markets

Looking at strategic acquisition opportunities in the region

Strong balance sheet and coal-focused management team

33

TSX/JSE : FMC

Appendix

34

TSX/JSE : FMCSouth Africa – Overview

• South Africa is the most attractive country in

Africa in which to do business according to

Ernst & Young 2011 Africa Attractiveness

Survey

• Modern infrastructure system supporting

distribution of commodities for both domestic

and export markets

– Extensive rail network (10th longest in

the world)

– Majority of electricity generated via

coal fired power stations

– Richard’s Bay port in South Africa is the

world’s largest bulk coal terminal

• 91 million tonne capacity

• Coal railed from approximately

49 mines

• Long history in resource development

– World’s largest PGM & ferrochrome

producer

– Significant coal, iron ore and

manganese resources

Richard’s Bay Port

World’s Largest Coal Terminal

35

TSX/JSE : FMCHistorical Coal Prices

• South African thermal coal (Richard’s Bay terminal) and coking coal prices have increased significantly

over the last several months

• The recovery to 2008 levels have been driven by increased demand, particularly from China and India,

and higher cost supply from key producing nations such as Russia and the U.S.

Historical South African Thermal Coal and PCI Coal Prices

$0

$50

$100

$150

$200

$250

$300

Jan

-07

Ma

r-0

7

Ma

y-0

7

Jul-0

7

Se

p-0

7

No

v-0

7

Jan

-08

Ma

r-0

8

Ma

y-0

8

Jul-0

8

Se

p-0

8

No

v-0

8

Jan

-09

Ma

r-0

9

Ma

y-0

9

Jul-0

9

Se

p-0

9

No

v-0

9

Jan

-10

Ma

r-1

0

Ma

y-1

0

Jul-1

0

Se

p-1

0

No

v-1

0

Jan

-11

(US

$/

ton

ne

)

Richards Bay Thermal Coal Spot Price McCloskey/Xinhua Infolink's Coking Coal Price

Source: Bloomberg

36

TSX/JSE : FMCThermal Coal Global Overview

• Significant upside potential to export prices

• A tightening of the global seaborne market in late 2010 provided the initial base for thermal coal to rise

• Robust import demand from India

• Growing imports into China due to increasing demand and production curtailments

• Slowing export supply growth from Indonesia as more coal is diverted for domestic use

• Short-term supply constraints caused by flooding in Australia

• Australia is the second-largest exporter of bituminous coal

• Wood Mackenzie stated that prices could exceed 2008 highs

Global Thermal Demand and Supply Forecast

Source GTIS, Macquarie Research, February 2011

37


• India will be relying heavily on coal fired power plants in the near future

38


• As a result of reliance on thermal power generation, Indian thermal

imports are expected to rise significantly


39


• Chinese thermal coal imports have been huge; this trend is expected to

continue into near future

40

TSX/JSE : FMC

Global Thermal Demand and Supply Forecast

Metallurgical Coal Global Overview

• The coking coal market was fundamentally tight prior to the Queensland floods, which have further constrained the market

• Current situation highlights the lack of geographical diversity to supply side portfolio, leaving it prone to shocks

• Market deficit likely to prevail, keeping price at decent premium to cost support

• Requirement for projects in high geopolitical and infrastructure risk regions will keep long-term prices elevated


41

TSX/JSE : FMCMetallurgical Coal Global Overview


• Many metallurgical coal basins exist, however there is a challenge in

bringing new projects online

42

TSX/JSE : FMCMetallurgical Coal Global Overview

• Supply growth in 2011 is set to be much lower than in 2010, while key

regions increase demand

43

TSX/JSE : FMC

• Global anthracite coal demand driven by the metal refining industry

– Cost-effective replacement for coking coal/coke

• Emerging markets consuming the most steel

• China is the world largest steel producer

– Accounts for 44% of global steel production

– Expected to sustain steel consumption growth of 6%-8% annually

• China accounts for 52% of the world’s coking coal consumption

– Imports more than half of coking coal consumed from export markets

Global steel consumption: Macquarie Commodities Research February 2011

Increasing steel

production and

consumption

drives demand

for anthracite

coal

Metallurgical Coal Global Overview

44

Stephan TheronPresident & CEO

Forbes & Manhattan Coal Corp.

Tel: + 1 416 861 5912

[email protected]

www.forbescoal.com

April 2012

CONTACT INFORMATION

65 Queen Street West, Suite 815 P.O. Box 71, Toronto, Ontario, Canada, M5H 2M5

Sabina SrubiskiInvestor Relations Manager

Forbes & Manhattan Coal Corp.

Tel: + 1 416 309 2957

[email protected]

www.forbescoal.com

TSX/JSE : FMC

fmc corporate presentation april 2012

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