REGISTERED & PRINCIPAL OFFICE SYDNEY OFFICE Level 12 Suite 2, Level 1 410 Queen Street 80 Mount Street BRISBANE, QLD 4000 NORTH SYDNEY, NSW 2060 T: 61 7 3041 4400 T: 61 2 9923 1520 F: 61 7 3041 4444 F: 61 2 9923 1528

www.bandannaenergy.com.au

ABN 34 009 356 665

12 October 2010 ASX RELEASE/ MEDIA RELEASE General Manager, The Company Announcements Office Australian Stock Exchange Limited Electronic Lodgement System Dear Sir,

Conference Presentation Please find attached the presentation delivered by Dr Ray Shaw at the Coal Exploration and Development Hotspots Conference in Brisbane today. Yours faithfully, BANDANNA ENERGY LIMITED

Matthew Scott Company Secretary

Company PresentationAugust, 2010

Bandanna Energy Limited’s

Update on coal exploration

in Queensland

This presentation may contain certain statements and projections provided by or on behalf of Bandanna Energy Limited(BND) with respect to anticipated future undertakings. These forward-looking statements reflect various assumptions byor on behalf of BND. Accordingly, these statements are subject to significant business, economic and competitiveuncertainties and contingencies associated with exploration and/or mining which may be beyond the control of BNDwhich could cause actual results or trends to differ materially, including but not limited to price fluctuations, explorationresults, ore reserve and mineral resource estimation, environmental risks, physical risks, legislative and regulatorychanges, political risks, project delay or advancement, ability to meet additional funding requirements, factors relating totitle 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 berealised. Neither BND, or any of its affiliates, advisers, consultants, agents or any of their respective officers oremployees (Relevant Parties) make any representations as to the accuracy or completeness of any such statement ofprojections or that any forecasts will be achieved.

Additionally, BND makes no representation or warranty, express or implied, in relation to, and to the fullest extentpermitted by law, no responsibility or liability (whether for negligence, under statute or otherwise) is or will be accepted byBND as to or in relation to the accuracy or completeness of the information, statements, opinions or matters (express orimplied) arising out of, contained in or derived from this Presentation or any omission from this Presentation or of anyother written or oral information or opinions provided now or in the future to any Recipient or its advisers. In furnishingthis presentation, BND undertakes no obligation to provide any additional or updated information whether as a result ofnew information, future events or results or otherwise. Nothing in this material should be construed as either an offer tosell or a solicitation of an offer to buy or sell securities.

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Disclaimer

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Summary

Total JORC compliant resources* are approximately 1,400 million tonnes of thermal coal located in the highly prospective Galilee and Bowen basins of Queensland, Australia.

Inclusion in WICET Stage 1 gives Bandanna access to 4 Mtpa export capacity from 2014**

BND’s South Galilee Project, located immediately adjacent to the Waratah/Resourcehouse’s “China First” Project, declared Project of “State Significance”.

Recent Linc – Adani transaction implies significant upside in value of BND’s South Galilee Project.

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Recent Highlights….

Sept 30, 2010 announced inclusion in WICET Stage 1 gives Bandanna access to 4 Mtpa export capacity from 2014**

Oct 7, 2010 announced 33% increase in resources of Arcturus to 206 Mt , including 102 Mt of Inferred Resource.

Oct 12, 2010 announced the appointment of Mr Peter Binnie as Manager – Infrastructure.

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Bandanna’s Position

Source – BGF Equities Coal Sector Analysis 1 Feb 2010

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Bandanna’s Position

Source – BGF Equities Coal Sector Analysis 1 Feb 2010

Vital Statistics ASX : BND

77

Total shares issued (including escrow) 369.7 mil

Market Capitalisation (@90 cps $333 mil

Shares quotes on ASX 369.7 mil

Cash (@ 30/6/2010) $20.3 mil

Debt -

52 week high and low 99c – 41c

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Bandanna’s Position

Market cap places BND in top 25% of Australian ASX coal companies.

BND has no debt and controls approximately $37 mil in funds# via ~$20 mil in cash and ~$17 mil farminee expenditure commitments.

Strong Board and Management Team.

Jeremy Barlow, Chairman

Raymond Shaw, Managing Director

David Graham, Non-Exec Director

Robert Johansen, Non-Exec Director

Park Soon IL, Non-Exec Director

# Assumes AMCI farmin to 50% P.I.

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Bandanna’s Assets

Production timetable revolves around development of infra-structure:

Galilee Basin – rail to Abbott Point

Bowen Basin – new Gladstone Port expansion

1010

Overview of Bandanna’s Coal Assets

1111

Likely Galilee Basin Developments Hancock and Waratah/Resourcehouse have

aggressive time tables for first coal production.

Hancock & BHP preferred tenders for X60 expansion of Abbott Point port, May 2010.

Bandanna South Galilee Project (SGP) declared Project of State Significance in July 2010.

BND Concept Study indicates - 43 year mine life, 15-20 Mtpa thermal coal.

Pre Feasibility Study underway at SGP .

Linc-Adani deal has been estimated to imply values of up to $560 mil for South Galilee Project+

+ Bell Potter Review August 2010

South Galilee Project

Conceptual Mine Plan South Galilee Project

South Galilee Project

Pre Feasibility Study underway. Current drilling of ~140 additional bore holes with objective to increase confidence levels of inventory.

Proposed 43 year Mine Life, based on Concept Study.

Phase 1 Development – open cut exclusively for first ~20 years.

Phase 2 Underground Development – in deeper western portion of the area for approximately 23 years.

Thermal coal product for export via common access rail corridor to Abbott Point.

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1515

Overview of Bandanna’s Coal Assets

1616

Overview of Bandanna’s Coal Assets

Asset Description

Arcturus(Bowen Basin)

• Bandanna holds 100% interest• JORC inferred resource of 103.7Mt;

+ Indicated resource of 102.6 Mt.• Pre-feas study underway

Springsure Creek(Bowen Basin)

• Bandanna holds 100% interest• JORC indicated resource of 35 Mt

and inferred resource of 270 Mt• Exploration target 400-617Mt• Concept Study underway

Dingo West(Bowen Basin)

• Bandanna holds 100%• JORC inferred resource of 91.1Mt• Concept Study Completed

Arcadia(Bowen Basin)

• Bandanna holds 100% interest• JORC inferred resource of 273Mt

South Galilee(Galilee Basin)

• Maiden JV resource, June 2009 : 982Mt Resource comprising 922 Mt Inferred, 60Mt Indicated

• Exploration Target of 831 Mt (572-960Mt) also identified.

• AMCI Australia earning up to a50% interest

• Pre-feasibility Study underway

Bandanna Energy’s Key Coal Interests

Slide 17

―Bandanna Project Location

Bandanna’s ProjectsSpringsure Creek

The Springsure Creek Project (EPC 891) is located in the Southern Bowen Basin, approximately 35km south eastof Emerald township.

Underground, raw thermal coal opportunity -located within 20km of existing rail infra-structure.

Potential to share above-ground infrastructure with adjoining Arcturus Project

―Slide 18

Simple geologySpringsure Creek

East – west cross-section through bore holes reveals coals draped onbroad gentle anticline. Sub-surface geology appears very benign.

Slide 19

Bandanna’s ProjectsArcturus Project

Arcturus Project (EPC 1221) is located in the Southern Bowen Basin, approximately 30 km south eastof Emerald township.

Following 20 cored hole program resource upgrade to 206 Mt thermal coal resource, including 102.6 Mt Indicated.

Potential to develop in conjunction with adjacent Springsure Creek.

―Need a LOCation Map in here

Conceptual Regional Development Plan“Golden Triangle” – One possible vision

“Golden Triangle” Projects

Comprise:

Arcadia (100% owned)

Springsure Creek (100% owned)

Arcturus (100% owned)

All tenements are located within 50km of each other.

Potential for fully integrated regional development > 20Mtpa, involving potential open cut and underground operations.

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BND’s “Golden Triangle” and Dingo West Projects lie in close proximity to existing Blackwater – Gladstone rail infra-structure network.

Over 750 Mt of JORC compliant resource in four projects with potential for multiple mine development.

Access to 4 Mtpa* port capacity gives Bandanna opportunity to develop from explorer to producer by February 2014.

Bandanna also has potential to fast track Dingo West production within 2-3 yrs.

Gold Triangle Projects

Bandanna’s ProjectsDingo West Project

The Dingo West Project (EPC 881) is located on the Blackwater rail line, approximately 150km west of Rockhampton, in the Southern Bowen Basin, Queensland, Australia.

Concept study completed – multiple satellite pit development most likely scenario.

Seismic during H1 has identified priority pit location with 60 holes planned during H2 2010.

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Bandanna’s ProjectsIndicative Coal Quality

Dingo West Arcturus Springsure Ck

Arcadia

As Received

Air Dried

As Received

Air Dried

As Received

Air Dried

As Received

Air Dried

Moisture % Total 10.0 15.0 15.0 9.0

Proximate Analysis

I.M. 1.5 8.5 8.0 4.5

Ash 7.8 8.5 14.4 15.5 7.9 8.5 13.3 14.0

Volatile Matter

13.6 14.9 25.6 27.6 27.0 29.2 28.6 30.0

F.C. 68.7 75.2 45.0 48.4 50.1 54.3 49.1 51.5

Total Sulphur(%)

0.55 0.60 0.34 0.37 0.23 0.25 0.33 0.35

Phos (%) 0.073 0.080

Chlorine (%) 0.05 0.06 0.01 0.01 0.03 0.03 0.04 0.04

Cal Value Gross (Kcal/kg)

6990 7650 5430 5840 6000 6490 6140 6439

Net (Kcal/kg)

6770 5150 5544 5720 5880

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Summary

Emerging coal explorer/developer positioned for significant growth potential.

Near term emphasis on development of Golden Triangle and Dingo West opportunities supported by WICET Stage 1** allocation of 4Mtpa.

JV with AMCI provides for strategic exploitation of the South Galilee Basin Project.

Strong fundamentals and attractive valuation metrics relative to other ASX coal explorers and developers.

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Corporate Strategy

Bandanna’s strategy is to transition from an energy explorationfocused company to a producer through ‘layered’ developmentof its coal projects - as the indicative scenario illustrates.

South

Galilee

GeminiDenison

Carnarvon

WanellaFernlee

Arcturus

Dingo West

SpringsureCreek

Arcadia

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*JORC – Statement of Compliance

The information compiled in this document relating to resources is based on information compiled by Mr Gordon Saul, who isa member of the Australian Institute of Geoscientists and who is employed by Resolve Geo Pty Ltd, and is a director andshareholder of that company. Resolve Geo Pty Ltd is a shareholder in BND. Mr Saul has sufficient experience which isrelevant to the style of mineralization and types of deposit under consideration and to the activity he is undertaking to qualifyas a Competent Person as defined in the 2004 edition of the JORC Code. Mr Saul consents to the inclusion in this documentof the matters based on his information in the form and context in which they appear.

With respect to exploration target tonnages, these are conceptual in nature. There is insufficient exploration to define a MineralResource across the target area (excluding any existing inferred or indicated resources) and it remains uncertain if furtherexploration will result in the determination of a Mineral Resource across the whole area.

In the case of Springsure Creek the range of exploration target was determined from bore hole and seismic information withinthe exploration lease which points to a continuous A2 seam, averaging 3.09m in thickness, mineable with undergroundmethods, underlying an area of at least 97.8 km2 to 140.8 km2.

In the case of South Galilee (formerly Alpha) Project the range of exploration target was determined by projecting D1 and D2seam intersections from the eastern indicated and inferred resource area to the western boundary of EPC 1049. Supported bypetroleum holes to the west, a 9966 Ha area has been estimated to contain an average of 5.6m of coal, providing a targettonnage of between 570 and 960 Mt.

** Subject to completion of Financial Due Diligence and signing of a Take or Pay Contract.

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Thank You

Bandanna Energy Limited

www:bandannaenergy.com.au