For personal use only

Transcription

1 Allan Fidock Managing Director Company Roadshow Presentation June 2012

2 Disclaimer & Competent Person This document has been prepared as a summary only and does not contain all information about OGL Resources Limited (the Company) assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attached to the Company s securities. The document should be read with any public announcements and reports released by OGL Resources Limited. The information is based on publicly available information, internally developed data and other sources. Where any opinion is expressed no warranties or representations can be made as to the origin, accuracy, completeness, or reliability of the information. Some of the statements contained in the presentation are forward looking statements. Forward looking statement information may include, but is not limited to, information with respect to the future financial and operating performance of the company or its affiliated companies statements relating to the continued advancement of the Company s project and other statements which are not historical facts. When used in this document and other published information of the Company, the words such as aim, could"," estimate, expect, may, potential, should and similar expression are forward looking statements. Although, the Company believes that its expectation reflected in the forward looking statement area reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward looking statements. Various factors could cause actual results to differ from these forward looking statements including the potential that the Company s projects may experience technical, geological, metallurgical and mechanical problems, changes in commodity prices, changes in government regulation, policies or legislation, unforeseen expenses, fluctuation in the exchange rate of the Australian dollar and the United States dollar and other risks not anticipated by the Company or disclosed in the Company s published material. The Company does not purport to give financial advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstance, including their financial and taxation position. Coal Production Target: For Phase 1a and 1b - Coal Production estimate and forecast is based on the current estimated 13.7Mt of JORC Reserves in the Mining Lease (ML 4712) and approved Plan of Operation mine operation for production of 1Mtpa of coal. For Phase 2 - Coal Production estimate and forecast is based on the current estimated JORC Resources and OGL Resources Limited s conceptual future development target of the Bremer View Project (MDL 172). The production estimate is conceptual in nature and there has been insufficient work done at present by way of a feasibility study to support this forecast. Competent Persons Statement Runge Limited Greg Maiden: The estimate of coal reserves for ML 4712, as presented in this presentation has been prepared in accordance with the guidelines of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves, prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australasian Institute of Geoscientists and Mineral Council of Australia, December The information in this presentation to which statement is attached that relates to the reserves of ML 4712, is based on the information reviewed by Gregory Maiden, who is a member of the Australasian Institute of Mining and Metallurgy. He is full time employee of Runge Limited. Gregory Maiden has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Runge Limited Shaun Ayshford: The information relates to the estimates of Coal Resources and Exploration Target statement for the Bremer View Project as in this Presentation has been prepared in accordance with the guidelines of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves, prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australasian Institute of Geoscientists and Mineral Council of Australia, December The information in this presentation to which statement is attached that relates to the Bremer View Coal Resources, is based on the information reviewed by Shaun Ayshford, who is a full time employee of Runge Limited and is a member of the Australasian Institute of Mining and Metallurgy. Shaun Ayshford has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Shaun Ayshford consents to the inclusion in this Presentation of matters based on this information in the form and context in which it appears. Exploration Target: The Exploration Target has been determined between holes with a separation distance of greater than 3200m between boreholes where coal quality cannot be determined with any certainty, The potential quality and quantity shown within is conceptual in nature and there has been insufficient work done at present to define a Mineral Resource in this area under the JORC (2004) Code. The nature of an Exploration Target is such that is uncertain if further exploration will result in the determination of a Mineral Resource in this area. 2

3 Company Overview Ebenezer is a high quality export thermal coal asset approximately 90km from Brisbane it is the closest mine to the Port of Brisbane Current JORC reserves of 13.7Mt and JORC Resources of 308.2Mt high grade thermal coal (6,700kCal/kg) with an additional 366.6Mt exploration target OGL to recommence mining (Phase 1) at a rate of 600ktpa within 12 months from the Ebenezer Mine expansion to 1.5Mtpa within 2-3 years, 3+Mtpa from year 4-5 from the Bremer View MDL Mining Lease (ML) is granted and Environmental Approvals in place no impediments to immediate mining Available infrastructure immediate access via road (82km) & Pinkenba precinct (Port of Brisbane) up to 1.5Mtpa Site infrastructure in place (including power, water, offices, tailings dam and ROM pad) OGL Resources is seeking to raise $60m-$100m to complete the acquisition of the coal assets of Zedemar Holdings, and recommission the Ebenezer coal mine in SE Queensland 3

4 Project Acquisition OGL signed a Heads Of Agreement with Zedemar Holdings Pty Ltd (Zedemar) in May 2011 to acquire 100% of the Ebenezer and Bremer View tenements for a total consideration of A$50m: $40m cash; and 50m OGL shares at the public offer price ($10m) when acquisition financing occurs Voluntary 24 month escrow will apply to Zedemar s shareholding and Zedemar will retain between 5.7%-7.6% (50m shares) post-listing To complete the Acquisition of the tenements: OGL will need to raise between A$60m-$100m; and 1:2 share consolidation at 10c - concurrently with the capital raising occurring at $0.20/share (pre-money value $17.6m) The sale is conditional on, amongst other things: OGL completing a placement to raise not less than A$60m; Re-compliance with Chapters 1 and 2 of the ASX Listing Rules; and Obtaining shareholder approval for the transaction along with ASX approval to re-list Significant Value accretion since acquisition by OGL Resources OGL Tenements, Mine Site & Infrastructure OGL commissioned Runge and Salva Resources to complete geological model due diligence Result: Maiden JORC Reserve and Resources and Bremer View Project Resource upgrade OGL commissioned transport and mine costs studies Secured key long term processing equipment includes a CHPP and crusher units Infrastructure Solution Engaged key infrastructure partners in discussions to progress work and determine access viability Result: Short Term IAP rail 600ktpa (QRN), rail COP and road option to Port solution through executed MoU Long Term Rail COP for proposed expansion of QBH/Fisherman Islands and EOI for Fisherman Island via Port of Brisbane General Assisted in the renewal of Mining Lease - ML 4712 (application was made in April 2008 but approved under the guidance of OGL) Appointment of well respected coal industry Directors to oversee future development of the assets

5 Board of Directors Mr Jack Tan Non-Executive Chairman Jack has more than 20 years experience in finance roles in finance and investment banking. He was the former Non-Executive Chairman of e-pay Asia Ltd, a leading prepaid mobile phone company based in Malaysia which is listed on the ASX, Non-Executive Director of Orocobre Ltd, an emerging, Lithium & Potash Producer in Argentina and Executive Chairman of Timah Resources Ltd, a NSX listed Australian Iron Ore company. He was the founder and former Director of Rocklands Richfield Ltd (RCI) and Norton Gold Fields Limited both listed on the ASX. Mr Allan Fidock Managing Director & CEO Allan is a coal executive with more than 30 years experience in open cut and underground coal mining operations. Prior to joining OGL Resources, Allan was a member of Macarthur Coal Executive Leadership Group and responsible for mine operations of the company and was the former CEO of Middlemount Coal. Allan s previous coal experience includes Technical Services Manager at the Drayton Mine, roles with Thiess Pty Ltd - Project Development Manager, Mining Manager at the Mt Owen Complex and Senior Project Engineer within the Mine Engineering Group. Other mine management and Engineering positions included Project Manager/Mine Manager at Liddell and Westside Open Cut Mines, Mine Manager at Brickworks Open Cut Gunnedah Colliery and Senior Mining Engineer at New Hope Corporation. Mr Roger Marshall OBE Non-Executive Director Roger has over 40-years experience in the Mining Industry, covering management, marketing, finance and operational roles. He has been responsible for the development and production of a number of mines. Roger was previously the Deputy Chairman of Macarthur Coal Limited (since July 2001). He previously served on the Boards of MIM Holdings Limited ( ), CITIC Australia Trading Limited ( ), Energy Brix Corporation ( ), AGD Mining Limited ( ), Macarthur Diamonds Limited ( ), Copper Resources Corp Limited ( ) and Queensland Ores Limited (Chairman from May June 2009 and director from June 2009 to September 2009). In 1989, he was made an Officer of the Order of the British Empire for his services to the Mining Industry and is an Honorary Life Fellow of the Australasian Institute of Management Mr Neil Stuart Non-Executive Director Neil is a qualified senior geologist who began his career in the mining industry in Neil has worked all over the globe and developed extensive experience in a wide range of mineral commodities including coal, uranium and base metals. Neil was a founding Director of Oroplata Ltd and Rimfire Pacific Mining N.L. He is presently a Non-Exec Chairman of Bowen Energy Ltd and Non-Executive Director of Orocobre Ltd and Axiom Mining Ltd. Mr Henry Khoo Non Executive Director Henry has extensive sales, marketing and management experience in consumer and durable products in Asia Pacific. He has also been involved in project acquisitions, evaluation, company mergers and Initial Public Offerings. 5

6 OGL Tenements Location OGL s mining/exploration tenements are the closest to the Port of Brisbane Yancoal 380km Peabody 293km New Hope 227km Tenements Mining & Exploration Tenements are located <85km to the Port of Brisbane 6

7 ASX Listed Project Comparables Ebenezer is one of the closest emerging coal mines to an established Port in Australia Ebenezer (OGL) Jeebropilly (New Hope) New Oakleigh (New Hope) Doyles Creek (Nucoal) New Acland (New Hope) Dingo West (Bandanna Energy) Wilkie Creek (Peabody) Vickery South (Coalworks) Range (Stanmore) Maules Creek (Aston) Columboola (Metrocoal) Cameby Downs (Yancoal) Meteor Downs (Endocoal) 90km (West Moreton) Thermal 90km (West Moreton) Thermal 100km (West Moreton) Thermal 100km (Hunter Valley) Thermal 227km (West Moreton) Thermal 260km (Bowen) PCI/Thermal 293km (West Moreton) Thermal 350km (Gunnedah) SSCC/Thm 360km (Surat) Thermal 380km (Gunnedah) SSCC/Thm 380km (Surat) Thermal 380km (West Moreton) Thermal 420km (Surat) Thermal Rail Distance To Nearest Port (km) Key: Projects located in same basin as Ebenezer (OGL) Source: OGL Review and Company Review 7

8 Key Project Details Location The tenements (ML4712 & MDL172) are both located in South East Queensland, near Ipswich Ebenezer covers 675ha with freehold titles Tenements are in close proximity to New Hope Corporation Limited s ( New Hope ) existing Jeebropilly and New Oakleigh coal mines Coal transport solutions identified road and rail haulage and MoU for Port access Existing JORC Resources & Reserves Total JORC probable reserves of 13.7Mt and JORC resources of 308.2Mt Ebenezer (ML4712) 13.7Mt JORC Reserve, 31.3Mt JORC Resource Bremer View (MDL172) 276.9Mt JORC Resource Additional 366Mt Exploration Target (as identified by Runge) Product Ebenezer Historical Production Geology Coal is high quality export thermal coal (6,659kCal/kg adb, LOM Average) Ebenezer was mined from 1988 until closing in 2003 Historic production of 33.6Mt ROM coal (max. annual production 3.0Mt ROM) Idemitsu owned closed due to low prevailing coal prices A$37/t (mid US$20/t) Geology well understood previously mined and extensively explored Located in the Walloon Coal Measures and exhibit the same geology as nearby New Hope operating coal mines Jeebropilly and New Oakleigh 8

9 Key Project Details Ebenezer Initial Mine Plan Near term coal production (within 12 months) Phase 1a 1Mtpa ROM to produce approximately 600ktpa of export quality coal product Phase 1b Expansion to produce ~ Mtpa of export quality coal Strip Ratio Ebenezer: LOM average 5.2 bcm per ROM tonne (1 st 4 years at average 4.5:1) Onsite Infrastructure Road Access Rail Access Port Access Power 110KV power lines, sub-station supply in place onsite Water supply secured via a dedicated pump & pipeline from the Bremer River Tailings dam, raw water dam, ROM pad, site office 82km to Pinkenba precinct (Port of Brisbane), State owned highways/tollways no expected restrictions to truck movements, 3 trucks per hour for 600Ktpa production Adjacent existing rail line loop and rail to the Port of Brisbane approximately 90km away Existing West Moreton railway line owned by QR and operated by QR National East of Toowoomba Range bottleneck major advantage for latent train capacity Phase 1a-1b Pinkenba precinct (Port of Brisbane) under-utilised (currently at ~20%) Phase 2 Pinkenba precinct (Port of Brisbane) plus additional capacity through Port of Brisbane (Fisherman Island) expansion plans. Existing coal terminal operated by Queensland Bulk Handling ( QBH ) current capacity of 10Mtpa Port of Brisbane Authority is targeting a doubling of coal export capacity to 20Mtpa by 2020 initial expansion to 14Mtpa OGL is a logical cornerstone customer due to proximity to Port 9

10 Ebenezer Mine (ML4712) Overview Resources and Reserves Summary for Ebenezer Ebenezer Coal Specifications Category Resources (Salva Estimate) Reserves (Runge estimate) Coal Quality Low Ash Product High Ash Product 15 Years LOM Average Newcastle Export Benchmark Probable Reserves 13.7 Indicated Resources 24.1 Inferred Resources 7.2 Total Moisture % Ash % Calorific Value kcal/kg 6,700 5,800-6,300 6,659 6,760 Sulphur % Proposed Production Profile '000 tonnes 3,500 3,000 2,500 Export Coal Product Represents <2% discount to Newcastle benchmark on average CV basis 2,000 1,500 1,000 Phase 1 Phase Production year 10

11 Coal Quality Ebenezer Mine Comparables The Ebenezer project has export quality thermal coal. The coal qualities include high calorific value, low sulfur and low nitrogen % adb Moisture Content % adb Ash Content Newcastle Benchmark Newcastle Benchmark ,900 6,700 6,500 Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ kcal/kg CV Calorific Value Newcastle Benchmark Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ % adb Sulphur Content Newcastle Benchmark 6, , , , ,500 Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ 0 Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ Source: OGL 11

12 Ebenezer Mine For personal use onlyhistorical Ebenezer Lanes Pit Operation and Current Site Layout 12

13 Ebenezer Geology Thin Seam Mining The mining process utilises smaller, readily available equipment with lower capital and consumable costs (eg. tyres) Mine Measure Coal Sequence Geological Characteristics Ebenezer Walloon Ebenezer Bremer View Project Walloon Ebenezer & Mt Mort Jeebropilly Walloon Jeebropilly 0-100m depth; 6 seam groups (A-F), 52 plies 0.2m ave.coal thickness = >10m coal 0-120m depth; 6 seam groups (Ebenezer), 5 seam group (Mt Mort), 132 plies 0.26m ave. coal thickness => 34m coal 0-120m depth; 7 seam groups, 43 plies ave. coal thickness between m New Acland Walloon Acland-Sabine 6 seam groups, 47 plies 0.23m ave coal thickness Working coal seam section Historical Ebenezer Mine Photo Historical Ebenezer Mine Photo 13

14 CHPP & Coal Loading Infrastructure OGL has an option to purchase a Modular Coal Handling & Preparation Plant (CHPP) and Raw Crusher unit Modular CHPP Unit t/hr The CHPP and Raw Crusher units are key operating items required to bring the project into production The CHPP is a second hand unit and will require refurbishment and commissioning by an independent industry contractor The Raw Crusher unit is brand new Both units are suitable for the planned Phase 1a production level Raw Crusher Unit - 500t/hr Modular CHPP Unit t/hr 14

15 Production Profile & Infrastructure Phase 1: Mtpa Coal (Ebenezer Mine) Phase 1a 600ktpa Coal Transport: Road Port: Pinkenba precinct (Port of Brisbane) dedicated coal stockpile area (seek exclusive OGL use) Advantages: Near term start, immediate access to port, low capex, no resident impact by road Phase 1b 1.5Mtpa Coal Transport: Road Port: Pinkenba precinct (Port of Brisbane) dedicated coal stockpile area (seek exclusive OGL use) Advantages: quick ramp up to higher coal output volume from mine site, target to expand via simple change to Plan of Operations, minimal capex for expansion at mine site Phase 2: 3Mtpa Coal (Bremer View Project) Transport: Road and Rail for increased output from 1.5Mtpa to 3.0Mtpa Port: Pinkenba precinct (Port of Brisbane) and Fisherman Island (Port of Brisbane) Fisherman Island (Port of Brisbane) coal terminal expansion plan to 14Mtpa by 2014 and targeting 20Mtpa by 2020 Advantages: OGL operation strategically located nearest coal operation to Fisherman Island site, east of the Toowoomba Range avoiding rail bottleneck, potential significant coal producer to support/cornerstone Fisherman Island expansion plans 15

16 Infrastructure Options For personal use onlycoal Haulage and Port Access Options 16

17 Infrastructure Options Road Transport Pinkenba Precinct Port of Brisbane Port Access Capacity available for 600ktpa + Approvals Low Risk, state road Capital Costs Low Transport Costs Moderate, 81km Timeframe Immediate access Operational Usage Short/Long term option Operational Capacity 600ktpa to 1.5Mtpa+ Rail Transport Fisherman Island Terminal Port of Brisbane Port Access QBH fully contracted, PBPL planned expansion option only Approvals Low Risk, QR/QRN IAP obtained Capital Costs High Transport Costs Low-Moderate, 90km Timeframe minimum 2 years Operational Usage Long term Operational Capacity up to 3Mtpa* * OGL estimates, subject to PBPL s planned expansion 17

18 Road Access Road to the Export Market Travel distance by road to the Pinkenba precinct is approximately 82km Path via major state highway, motorway (toll way) and into industrial port zone (no residential impact) Low traffic impact, heavy duty highway/motorway was recently upgraded Permits and Approval process are known and will require standard engagement of key stakeholders Roadways to Export Port: 1.Mine Site 2.Champions Way 3.Cunningham Highway 4.Ipswich Motorway (M2) 5.Logan Motorway (M2) 6.Gateway Motorway (M1) 7.Kingsford Smith Drive 8.Pinkenba precinct M1 Port Site 18

19 Port Access - Phase 1a & 1b Pinkenba Precinct - Port of Brisbane Facility Existing under-utilised port facility OGL is progressing road haulage approvals low capital costs and immediate access MoU executed for feasibility study which forms the basis for port access agreement, CAPEX and regulatory approvals This Port solution enables OGL to operate as an independent producer 19

20 Rail Access Tenements are 90km by rail to the Port of Brisbane ML4712 Site Layout and Rail Loop Location OGL received an initial Indicative Access Proposal ( IAP ) from QR National to rail up to 600,000 ton of coal p.a. for 15 years from the Ebenezer Mine The existing rail spur and loop is a QR-owned multi user facility historically shared with the Jeebropilly mine OGL has submitted formal request to QR for rail capacity to Fisherman Island (Port of Brisbane) for Phase 2 production output 20

21 Port Access Phase 2 Fisherman Island Existing Port capacity at the Fisherman Island (Port of Brisbane) is currently 10Mtpa and fully contracted Fisherman Island Terminal, Port of Brisbane The coal terminal is operated by Queensland Bulk Handling (QBH) a 100% subsidiary of New Hope Corporation Limited Formal request has been made to QBH to access existing capacity and future expanded capacity The Port of Brisbane Authority has publicly stated that it is seeking to expand the volume of export capacity to 20Mtpa by 2020 Short term expansion to 14Mtpa by 2014 Due to OGL s strategic mine location and close proximity to the Port of Brisbane, there is an ability to support/cornerstone future expansion plans at Fisherman Island 21

22 Bremer View (MDL172) Tenement Highlights Location Map of Bremer View Project Bremer View is located adjacent to the Ebenezer Mine Tenement covers 9,202ha of private land with extensive exploration drilling by Ebenezer Mining Company Current JORC resources of 276.9Mt Coal resources occur between 0-120m depth. JORC Resource estimate based on 435 historical drill holes Additional Exploration Target of 366Mt has been estimated by Runge and future exploration will seek to upgrade this to a JORC compliant Resource Coal quality is consistent with that of the Ebenezer and Jeebropilly Mines Bremer View tenement (MDL 172) granted to 31 October, 2015 Tenement contains coal seams from the Walloon Coal Measure in 2 coal sequences: Ebenezer (6-8 seam groups) Mt Mort (5 seam groups) Resources Summary for Bremer View Category Bremer View (Mt) Indicated - Inferred Total

23 Bremer View (MDL172) Priority Resource Locations at MDL Mt 23.8Mt 22.3Mt 50.2Mt Priority - Initial Phase 2 development target area 8.8Mt 29.4Mt Beyond Phase 2 development target area Source: Runge Limited 23

24 Costs & Funding Ebenezer Mine - Operating Costs Use of Funds A$60m A$100m Expected to be a Low-Cost West Moreton coal producer Close to existing rail and port infrastructure <90km Strong operating margin and solid cashflow Close proximity to workforce (no FI/FO) Project Acquisition $40.2m $40.2m Equipment and Capital Costs $5.0m $25.1m Site Preparation and Start-up $2.5m $8.2m Bremer View Exploration & Development $2.0m $10.4m Estimate of Operating Costs*: Mining and processing costs A$32/t ROM A$53/t Product Transport costs A$11-$14/t Product Port costs - $5-7/t Product Total Operating Cost: A$69-$74/t Product Expenses of the offer $6.8m $10.5m Stamp Duty on acquisition $2.6m $2.6m Working Capital $1.4m $3.5m Total* $60.5m $100.5m OGL Capital Requirement A$60m to A$100m Funds to commence operations; Exploration and development expenditure planned for MDL 172 to increase resource; and Initial reserve classification for mining feasibility studies * OGL Resources conceptual operating costs estimates

25 Proposed Project Timeline Key next steps: Complete project acquisition Finalise infrastructure solution Engage operations personnel and contractors Calendar Year Project Acquisition Resources/Reserves JORC update Infrastructure Access Agreements Site Infrastructure Works Waste Removal Construction to commissioning of crusher/chpp/train load-out Commencement of Operations/Coal Mining (Ebenezer) First Coal Sales (Ebenezer) MDL172 Exploration Preparation Plan of Operation lodgement and Approvals (Phase 1b expansion) Infrastructure Development & Construction (Phase 1b expansion) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Initial Coal Production (Phase 1b expansion) 25

26 ASX Listed EV/Resource Comparables 4.5 EV/Resources Average = 0.94 $/t 0.5 OGL CLR EER RES MTE BND CCC CKA OGL REY EOC CWK GUF NHO CPL TIG AKM AQC SMR COK CZA ZYL GCL NCR KRL GNM AQA NAE NHC WHC BTU Source: Patersons Research OGL presented on a fully funded for production basis Phase 1 and $100m capital raise. Key: Exploration and development projects Producers 26

27 Transaction Multiples Thermal exploration and development stage assets that have been transacted during the past year Date Asset Acquirer Vendor Location Mine Type Coal Type Consideration Reserves May-11 Ebenezer and Bremer View OGL Resources Limited Zedemar Holdings Pty Ltd Total Resources Queensland OC Thermal $50m (100%) 13.7Mt 308.2Mt Target Production 0.6Mtpa (2013) 3Mtpa ( ) $/Resource 0.16 May-11 Maules Creek Itochu Aston Resources Gunnedah OC & UG Met/Thermal $345m (15%) 356Mt 610Mt 10Mtpa (2016) 3.80 Jul-11 Woori Mitsui Cockatoo Coal Surat OC Thermal $37.25m (49%) 40.6Mt 84.3Mt 5.4Mtpa (2018) 0.90 Aug-11 Cameby Downs Yanzhou Coal Goldman Sach - Syntech Holdings Bowen OC & UG Thermal $202.5 (100%) - 250Mt 15Mtpa (operating) 0.80 Oct-11 Alpha & Kevin's Corner GVK Hancock Prospecting Galilee OC Thermal $1,260 (86%) - 7,900Mt 30Mtpa (N/A) 0.20 Nov-11 Bundi & Coolumboola DADI Engineering MetroCoal Ltd Surat UG Thermal $24m (15.3%) - 1,607Mt 10Mtpa (2017) 0.10 Nov-11 Maules Creek J-Power May-11 Monash Gloucester Aston Resources Ellemby Holdings Pty Ltd Gunnedah OC & UG Met/Thermal $370m (10%) 362Mt 678Mt 10Mtpa (2015) 5.46 Hunter UG Thermal $30m (100%) - 287Mt 9Mtpa (2017) 0.10 Aug-10 Galilee EPC 1690 Adani Enterprises Linc Energy Galilee OC Thermal $500m (100%) + $2/t royalty - 7,800Bt Up to 60Mtpa (N/A) 0.06 Jul-10 Taroom & Collingwood Cockatoo Coal Anglo Coal Surat OC Thermal $105.5m (51%) - 435Mt 10Mtpa 0.24 Average

28 ASX Listed Coal Comparables Company Market Cap ($m) EV ($m) Key Asset/s Location First Production Target Production (Mtpa) Forecast Capex ($m) Total Resource (Mt) OGL Resources $120 $65 Ebenezer Queensland $ Stanmore Coal $79 $56 The Range Bandanna Energy $214 $93 Cockatoo Coal $213 $331 Various Golden Triangle Projects, South Galilee Project Surat Basin, Queensland Bowen Basin and Galilee Basin, Queensland Bowen Basin, Queensland $ $3,150 1,356 Producing 12.0 N/A 1,481 Coalspur $711 $689 Vista Alberta, Canada $1,234 3,735 Coalworks $178 $158 Vickery South NSW $243 1,157 Endocoal $58 $47 Orion Downs NuCoal Resources $206 $170 Doyles Creek Metrocoal $60 $40 Bundi & Columboola JV Whitehaven Coal $4,144 $4,323 Various Bowen Basin, Queensland Hunter Valley, NSW Surat Basin, Queensland Gunnedah Basin, NSW $ $ N/A 3,121 Producing 14.7 N/A 2,199 New Hope $3,504 $3,502 New Acland Queensland Producing 6 N/A 1,529 N/A: Not available Source: Iress, Patersons Research. As at 30 May 2012 OGL presented on a post $100m capital raising basis 28

29 Offer Details Post-Consolidation Shares & Options $60m Equity Raise & $50m Debt Facility $100m Equity Raise Shares on Issue 88,172, % 88,172, % Vendor Shares (Zedemar Holdings) 50,000, % 50,000, % Placement Investors 300,000, % 500,000, % Loyalty Option (Placement ONLY) - 3 months post-listing (OGLO.AU) 75,000, % 125,000, % Options on Issue Existing (OGLO.AU) 16,250, % 16,250, % Debt-related options (unlisted) 66,000, % N/A Performance Shares & Options Performance Shares 10,000,000* 1.53% 10,000,000* 1.15% Performance Options - Board, Management & Broker 50,000, % 83,333, % Total 438,172, ,250, % 648,172, ,583, % Market Capitalisation A$87.63m A$129.63m On completion of listing, OGL will have cash at bank of ~A$8-46m after costs are paid Milestone Payments required for Performance Shares and Options to Vest (in equal 25% increments) 1. OGL receiving written confirmation from infrastructure providers to deliver and export coal from ML JORC compliant Reserves increase by 50Mt above existing reserves to a minimum of 63.7Mt total JORC Reserves 3. OGL completing cumulative coal sales totaling 500,000 tonnes at pricing deemed commercially acceptable by the Board of Directors 4. Acceptance of a plan of operation for expansion to 1.2Mtpa of saleable product 29

30 Investment Highlights Near term production export quality thermal coal projects Current Mining Lease - Renewed Sept 2011 Environmental Approval to mine JORC Reserves 13.7Mt (economic to mine) Total JORC Resources (308Mt) Close Proximity to infrastructure multiple available options Low CAPEX start-up High Quality Thermal Product Close proximity to workforce Site ready for recommencement of operation 30

31 Appendix

32 Proposed Ebenezer Mine Ebenezer Mine Today and Proposed Coal Pit Areas ML4712 Ebenezer Jeebropilly Rail Loop MDL172 Bremer View 32

33 Ebenezer Geology Thin Seam Mining Stratigraphic Column Ebenezer Mine Examples of typical coal working sections for mining Historical Ebenezer Mine Photo 33

34 Proposed Ebenezer Exploration Ebenezer Mine Proposed Exploration Plan Proposed 33 cored drillholes with full coal quality analyses Increase Measured resources category and potential to increase coal reserve target 18-20Mt 34

35 Ebenezer Mine (ML4712) Overview For personal use onlyebenezer Mine Resources Cross Sections Source: Salva Resources 35

36 Ebenezer Coal Quality The Ebenezer project has export quality thermal coal. The coal qualities include high volatile matter, low sulfur and low nitrogen Average coal seam thickness = 20cm Coal depth = 0-100m OGL expects all production to be exported with 75% high export quality and 25% higher ash content coal Typical Analysis Export Coal Quality OGL Newcastle Export Thermal Total Moisture (AR. %) Ash Fusion Temperature (Reducing, o C) Calorific Value (ADB, kcal/kg) 6,700 6,760 IDT HGI HT FT Proximate analysis (ADB, %) Ash Analysis (%) Inherent Moisture Ash Volatile Matter Fixed Carbon Ultimate Analysis (DAF, %) Carbon Hydrogen Nitgrogen Oxygen Sulphur (ad) 30.6 (ad) 0.6 Si 2 O Al 2 O 3 TiO 2 Fe 2 O 3 CaO MgO Na 2 O K 2 O P 2 O 5 Mn 2 O 4 SO 3 OGL 1,570 >1,600 >1, Newcastle Export Thermal

37 Key Risks Exploration & Development Risks Coal Price and Exchange Rate Risk Exploration is a high risk activity that requires large amounts of expenditure over extended periods of time. There can be no guarantee that the planned exploration programs will lead to positive exploration results and the discovery of a commercial deposit or further, a commercial mining operation. There is no assurance that exploration and development of the mineral interests owned by the Company, or any other projects that may be acquired by the Company in the future can be profitably exploited Commodity prices fluctuate and are affected by numerous factors beyond the control of the Company. These factors include world demand for bulk, base and other metals, forward selling by producers, and production cost levels in major metal-producing regions Moreover, commodity prices are also affected by macroeconomic factors such as expectations regarding inflation, interest rates and global and regional demand for, and supply of, the commodity as well as general global economic conditions. These factors may have an adverse effect on the Company s exploration, development and production activities, as well as on its ability to fund those activities Key Personnel Risk The Company s success depends to a significant extent upon its key management personnel, as well as other management and technical personnel including those employed on a contractual basis. The loss of the services of such personnel could have an adverse effect on the Company Operational Risks Resources and Reserves Estimates Capital Requirements Mineral Resources Rent Tax The operations of the Company may be disrupted by a variety of risks and hazards which are beyond the control of the Company, including geological conditions, environmental hazards, technical and equipment failures, flooding and extended interruptions due to inclement or hazardous weather or other physical conditions, unavailability of drilling equipment, unexpected shortages of consumables or parts and equipment, fire, explosions and ther incidents beyond control of the Company. Resource and reserve estimates are quoted in accordance with the JORC Code. These are expressions of opinion based knowledge, experience and industry practice. It is the nature of these estimates that they may change over time as new information is obtained about projects, or as underlying assumptions change. They may also require adjustment where interpretation of data proves inaccurate. There is therefore a risk that resource and reserve estimates quoted in this document may change over time which may have an adverse effect on the Company s proposed operations and mining plans. The Company requires capital to enable its projects to be brought into production. The Company s current capital estimates are estimates based on labour, material, construction and procurement costs at the date of those estimates. These costs may vary in future due to external economic influences, requirements placed upon the projects by approval conditions, availability of labour and detailed design changes that could render the projects uneconomic. The Federal Government has announced that it intends to introduce a Mineral Resource Rent Tax regime (MRRT) which will apply to entities involved in the mining of iron ore and coal in Australia. The MRRT is proposed to apply to the assessable profit based on the value of the resource extracted in all iron ore and coal projects. The final form of the MRRT may change and the extent to which the Company will be affected will depend upon the final legislative form of the MRRT and its application to any of the Company s projects that may be developed. Government Regulation - Strategic Cropping Land In 2010, the Queensland Government released the Protecting Queensland s strategic cropping land policy framework. Under the policy, it is proposed that mineral resources in defined agricultural areas will not be developed where they permanently alienate the land. Precise definition of strategic cropping land and definitive maps identifying strategic cropping land have not yet been settled, although indicative maps have been published which do identify areas where strategic cropping land may exist. Based on the indicative maps, it would appear that the Company s Bremer View Project (and potentially other projects) may, at least partially fall within the strategic cropping land zones. Where a development is proposed in an area that is mapped as strategic cropping land, it will not be permitted to proceed if it permanently prevents the land being used for cropping in the future. Litigation Risk The Mining Lease the Company wishes to acquire has been the subject of litigation attempting to invalidate the 2011 renewal of that mining lease on numerous grounds. That challenge was recently rejected by the Queensland Supreme Court, but the applicants have filed an appeal to that decision. While the Company believes that the challenge to the renewal of the mining lease is made on invalid grounds, the outcome of the appeal cannot be predicted with certainty and if the appeal succeeds, the Company will not acquire the Mining Lease or the associated Mineral Development Licence. 37

38 Queensland Coal

39 South-East Queensland Coal

40 Contacts OGL Office Addresses SYDNEY Level Market Street Sydney NSW 2000 Phone: Fax: info@oglltd.com BRISBANE Level Coronation Drive Milton QLD 4064 Phone: Fax: Fortbridge Consulting Media & Investor Relations Bill Kemmery Phone: bill.kemmery@fortbridge.com Patersons Securities Corporate Advisors Matthew Storey mstorey@psl.com.au Jonathan Pearce jpearce@psl.com.au 40