Uniquely positioned to be Australia’s

next coal producer

March 2013

2

Key investment highlights

• Asian demand for coal forecast to continue growing

- limited new supply from key global markets

• Attractive coal assets located in prolific Queensland coal regions

- large resource base in Bowen and Galilee Basins (refer to slide 25)

• Access to secure infrastructure

- fully contracted port and rail capacity

- close to existing infrastructure in Bowen basin

• Strong and experienced Board and management team

• On track to deliver first coal production late 2014

Well placed to transition from explorer to producer with $90m cash in bank

3

• Long term forecasts show significant increase in demand for thermal coal in North, South-East and South Asia from 2015 to 2030

• Uncertainty about growth and cost of new supply means forecast prices to increase from 2015 and beyond

The demand opportunity for Bandanna

Significant increase in demand for thermal coal in Asian region represents unique opportunity for Bandanna

4

• Bowen Basin has 47 operational coal mines extracting more than 180Mtpa – represents 87% of Queensland’s coal production (source: http://mines.industry.qld.gov.au/mining/central-qld-info-maps.htm)

• Galilee Basin is Australia’s newest mining province

• Well recognised coal quality that has established position in North Asian markets

• Geographic location well placed for high demand markets

• Close to existing infrastructure

• Forecast competitive position on cost curve compared with existing production and global Greenfield developments

Prime asset locations

Bandanna’s assets are located in Queensland’s premier thermal coal basins

5

Located in prolific coal producing region Substantial resources situated within two of Australia’s most prolific and prospective coal

bearing regions

6

South Galilee Project Galilee Basin

o 50/50 JV with AMCI (Alpha) Pty Ltd

o Development project

Attractive projects

Focused on commencing near term production in Bowen Basin and continuing exploration program in Galilee Basin

Springsure Creek Project Bowen Basin

o Key focus project o Underground thermal coal o Clear pathway to production

in 2015

Dingo West Project Bowen Basin

o Subject to approvals processes, first production may occur late 2014

o Excellent infrastructure - high capacity rail link and Capricorn Highway traversing permit

7

Springsure Creek – on track for production in early CY15

Substantial resource

• High quality, low ash, low sulphur thermal coal

• Well understood coal measures within long established mining area and well known coal qualities in market

Secure rail-port supply chain

• Port Capacity – 4 Mtpa, 10yr rolling contract at WICET Stage 1

• Contracted Below Rail Access – QR National, 4 Mtpa

• Contracted Above Rail Haulage – Pacific National 10yr +5

Advanced development plans

• Mine plan completed

• EIS released for comment February 2013

• Definitive Feasibility Study completed September 2012

Funding plans

well progressed

• Bandanna has substantial cash reserves to complete EIS, approvals and initial development

• Discussions with JV partners and project finance partners to fund development

The opportunity • Only major thermal project with contracted port and rail capacity

• Clear pathway to production and exports

Australia’s next major thermal coal project

8

Springsure Creek – geology

• Resource area focused on Bandanna Formation’s Aries 2 Seam

• Average thickness of Aries 2 Seam is 3.2m at depths of 250–350m

• High quality raw coal (<11% ash)

• Low Sulphur, low gas content

9

Springsure Creek – development plan

Key Construction and Development Items:

• Two 1:8 drifts to pit bottom. Ventilation shafts plus equipment

• Underground development works

• Surface infrastructure

- Maintenance facilities and workshops - Office, bathhouse, employee facilities - Substation, power and water services

• Coal handling facilities – crushers, screen, stockpiles

• Haul road to rail load lot – 35km

• Rail loadout and loop at Triumph Creek (on Bauhinia rail line)

• Offsite works – road upgrades, power supply

• Accommodation village

Execution Plan being finalised – tenders on key packages to be issued late in the first half of 2013

10

Springsure Creek – mine access

11

Springsure Creek – access to rail infrastructure

Rail capacity

• Bandanna and other WICET Stage 1 producers have an agreement with QR National for capacity upgrade works in Blackwater Rail system

• Provides fully contracted 4Mtpa of below -rail capacity to support Bandanna’s Wiggins Island capacity for 19.5 years

Coal haulage

• In late 2011, Bandanna sought tenders for coal haulage

• In February 2012, awarded contract to Pacific National for a 10+5 yr haulage contract for 4Mtpa

• Contract provides flexibility for increase with expansion of port capacity

Photos courtesy of Pacific National

12

Springsure Creek – access to port infrastructure

4Mtpa of Stage 1 Capacity at Wiggins Island Coal Export Terminal

• Wiggins Island Coal Export Terminal (WICET) is the only coal export terminal under construction in Australia

• Bandanna is a 14% shareholder in 27Mt WICET Stage 1, located at Port of Gladstone

• Construction commenced December 2011

• Scheduled completion March 2015

• $2.5bn development funded by equity contribution from shareholders ($550m) plus project finance

• Bandanna has 10 year rolling contract for 4Mtpa of export capacity

• Can continue to extend contract based on project Reserve life WICET Stage1 Overview

Diagram courtesy of WICET

13

Springsure Creek – WICET progress

Photos courtesy of WICET

14

Springsure Creek – feasibility study

• Definitive Feasibility Study completed September 2012

• FOB cash costs (excl. Queensland Government royalties) $65.50/tonne

• Project NPV range $700m to $1.1bn

Capex Production

Stage 1 (one Longwall) $743M 5.5Mtpa

Stage 2 (second longwall) $437M 11.0Mtpa

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Stage 1 (Longwall #1) Stage 2 (Longwall #2)

15

Springsure Creek – EIS

• Environmental Impact Statement released for public comment February 2013

• Key findings:

- little or no remnant flora or fauna in project area due to extensive history of clearing and cropping

- limited potential for impact on groundwater due to basalt substrata

- potential for subsidence of agricultural land of 1-2 metres

- subsidence able to be managed and rehabilitated due to extensive modification of landscape by cropping

- 350 jobs during construction

- 585 jobs during full production + 500 flow-on jobs in Emerald district

- More than $3bn in royalty payments to the Queensland Government over life of project

16

Springsure Creek – agriculture

• Bandanna has developed Agricultural Plan to ensure ongoing co-existence of cropping and mining throughout life of project

• Bandanna has commissioned independent research program to ensure subsidence management is best practice

• Project has specific provision for transitional assessment under new Strategic Cropping Land process

• Bandanna committed to demonstrating that mining and farming can co-exist and Bandanna has purchased first property (first 8 years of production) to demonstrate co-existence

17

Springsure Creek – key milestones

Q1 2014 2020 Q4 2013 Q3 2013

Mining Lease

Approval EIS

Approval

Construction Start First Coal Exports

(Development Coal)

First Longwall

Coal

Q1 2015

Second Longwall

Coal

H2 2016

Oct 2011 Jul 2012 Feb 2013 Feb 2012 Dec 2011

Wiggins Island Port Contract

Purchase of Den-Lo

Park

Pacific National

Rail Contract

Triumph Creek Rail Loadout Agreement Executed

Mining Lease

Application Lodged

Sep 2012

EIS Released

for Comment

Oct 2012

DFS Completed

Milestones secured

Future milestones and timeline

18

Dingo West

• Small metallurgical coal project located in Bowen Basin – attractive low-vol PCI product similar to other current Queensland production

• Production is anticipated to be within the 500,000 tpa to 1 Mtpa range

• High capacity Blackwater rail link and Capricorn Highway traverse permit

• Mine plan comprising small pits, producing up to 1.4Mtpa ROM coal using contractor truck/shovel operation

• Further pit definition drilling underway

• Significant interest from Asian steel mills for JV investment

Subject to approvals processes, first production at Dingo West may occur late 2014

19

Dingo West – indicative timing

• Mining Lease Application lodged November 2011

• EIS underway - Draft EIS nearly complete and awaiting final mine design

• Rail loop design and infrastructure study commenced

• Landowner negotiations commenced

Jun 2013 Apr 2014 Dec 2014 Mar 2014 Jan 2014

Mine Plan Finalised

Mining Lease

Approval EIS Approval

On-site Construction Commences

Mining Commences

First Coal Exports

Jun 2014

20

South Galilee – significant resources in play

• 50/50 JV with AMCI

• Pre-Feasibility Study indicates 15 Mtpa open cut and underground project with mine life in excess of 30 years

• Draft EIS released for public comment October 2012

• South Galilee well-positioned to obtain 3rd party access on Government’s preferred Galilee Basin rail options

• JV in discussion with other proponents in relation to 3rd party rail and port capacity

Proposed South Galilee Coal Project will produce up to 19 Mtpa of high volatile, low sulphur thermal coal for export to international markets

21

In summary…

• Asian demand for coal forecast to continue growing – lack of new supply

• Resources in existing production areas

- substantial located in prolific Queensland coal regions

• Access to secure infrastructure

• Strong and experienced Board and management team

• On track to deliver first coal production late 2014

• Well placed to transition from explorer to producer with $90m cash in bank

Bandanna is uniquely positioned to become Australia’s next coal producer

Appendix

23

Corporate snapshot

Capital structure

ASX Ticker BND

Shares on Issue 528,481,199

Options on issue 32,192,157

Share Price* $0.28

Market Cap* $145.3 million

Share register

DJ Mining Pty Ltd 16.62%

Resolve Geo Pty Ltd 14.41%

Samtan Aures Pty Ltd 10.67%

L1 Capital Pty Ltd 9.75%

J P Morgan Nominees 6.28%

* Share price and Market cap quoted as at 14 February 2013

Relative share price performance

24

Strong Board and management

Experienced board and management team in place to lead transition from explorer to producer

Chairman - John Pegler

• More than 40yrs experience at Rio Tinto and CEO/MD at Ensham Resources 2001-09

• Current Chair Australian Coal Association, Life Member – Qld Resources Council)

Managing Director - Michael Gray

• More than 20yrs experience

• Most recently CEO Middlemount, the most recent greenfield development project in Queensland

Non-Executive Director - Robert Karlo Johansen

• Previously held various operational and management positions in the Australian and South African coal industries over a 10 year period

Non-Executive Director - Gordon Saul

• More than 20yrs experience in the evolution of a variety of open cut and underground coal mining projects in Asia, North America and Europe

Non-Executive Director - Park Soon IL

• Qualified mining engineer with more than 30 years’ experience in South Korean and Indonesian coal mining operations

Chief Development Officer - Stuart Clarke

• More than 20yrs O/C and UG development and operations experience at BHP, Peabody, Downer

Non-Executive Director - Terry O'Reilly

• Managing Director of Pacific Coal, Coal and Allied Industries and as a non-executive director of Macarthur Coal Limited from 2008 to 2011

Chief Financial Officer - Matthew Scott

• More than 20yrs experience including CFO Foxleigh overseeing all commercial activities from greenfield through to full production

25

Page 34 of 2012 Annual Report

Resources and reserves summary

26

Statement of compliance

Page 35 of 2012 Annual Report

27

Important notice

This presentation (Presentation) has been prepared by Bandanna Energy Limited (ABN 34 009 356 665) (Bandanna).

Summary information This Presentation contains summary information about Bandanna and its activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete. It should be read in conjunction with Bandanna’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

Not financial product advice This Presentation is for information purposes only and is not a prospectus under Australian Law financial product or investment advice or a recommendation to acquire Bandanna shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Bandanna is not licensed to provide financial product advice in respect of Bandanna shares. Cooling off rights do not apply to the acquisition of Bandanna shares.

Financial data All dollar values are in Australian dollars (A$) unless other stated.

Future performance This presentation may contain certain statements and projections provided by or on behalf of Bandanna with respect to anticipated future undertakings. Forward looking words such as, “expect”, “should”, “could ”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. These forward-looking statements reflect various assumptions by or on behalf of Bandanna. Accordingly, these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control of Bandanna which could cause actual results or trends to differ materially, including but not limited to price fluctuations, exploration results, ore reserve and mineral resource estimation, environmental risks, general operating risks, commodity, legislative and regulatory changes, project delay, ability to meet additional funding requirements, factors relating to title to properties, native title and aboriginal heritage issues, dependence on key personnel, share price volatility, approvals and cost estimates. Consequently, there can be no assurance that such statements and projections will be realised. Neither Bandanna, or any of its affiliates, advisers, consultants, agents or any of their respective officers or employees make any representations as to the accuracy or completeness of any such statement of projections or that any forecasts will be achieved. Such forward-looking statements only speak as to the date of this Presentation and Bandanna assumes no obligation to update such information.

Uniquely positioned to be Australia’s

next coal producer

March 2013