INVESTOR PRESENTATION 31 May 2013 F

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Overview

Management Changes

Market Conditions

Project Updates

Mamahak (4 Mining Licenses , Kutai Barat, East Kalimantan)

Graha Panca Karsa (1 Mining License, Kutai Barat, East Kalimantan)

Pakar (9 Mining Licenses, Kutai Kartanegara, East Kalimantan)

Mt Ruby (1 Exploration Tenement, Queensland)

New Legislation (Foreign Ownership)

Financial Position

Conclusion

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MANAGEMENT CHANGES

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Management Changes

In May 2013, KRL moved its corporate and registered office address to new premises. KRL also appointed GDA Corporate to manage the Australian office

Mr. Ian Ogilvie appointed as Managing Director – Mr. Ogilvie has over 30 years mining experience including 17 years in Indonesia working with Petrosea (Clough), Darma Henwa (Henry Walker Eltin), Kaltim Prima Coal and also Noble Group

Mr. Graham Anderson and Mr. Leonard Math appointed as independent non executive directors with over 30 years combined experience in corporate compliance and business management

The new management structure reflects a reduction in Australian overheads and a more concentrated focus on KRL’s asset base, it’s Indonesian operations F

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MARKET CONDITIONS

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Newcastle vs. KRL Share price

Jan 2011-May 2013

A deteriorating coal price is one of the drivers behind the reduction in KRL share price

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Newcastle vs. Singapore Gasoil

The previous high correlation between coal prices and diesel fuel has been disjointed since September 2011 resulting in higher costs in the coal sector

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PROJECT UPDATES

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MAMAHAK

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Overview FY2012

Nov 2011, KRL appointed PT. Putra Perkasa Abadi (PPA) as Open Cut Mining Services contractor

PPA commenced coal mining in February 2012 and reached a peak of approximately 50k tonnes/month in Sept 2012

177k tonnes produced in 2012 due to slower than expected mobilization of contractor fleet, and ongoing disruptions to contractors operations

Approx 72k tonnes barged due to seasonal variations on the river level restricting barge access to the jetty

Revenues for coal sold were impacted due to quality issues, falling market prices and intermittent delivery

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Overview FY2012 (Continued)

From 8th November 2012, all mining activities were effectively suspended due to PPA industrial relations issues

The above events culminated in a decision to re-evaluate of the entire project. This was carried out in Q4 2012

In Feb 2013, KRL and PPA mutually agreed to terminate the mining services agreement. PPA have since demobilized from site.

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Current Plan 2013

On 5th March 2013, PT. Hero Krida Utama (HKU) was appointed as replacement mining contractor

HKU have agreed to a 3 month lead time for Mobilization, and are currently on standby

awaiting instruction to proceed

If PT. Mamahak Coal Mining (“MCM “) do not instruct HKU to proceed before End Dec 2013 then the agreement lapses

Focus on current drilling program on MCM for remainder of 2013 General survey of PT. Mahakam Energi Lestari (“MEL”) and PT. Mahakam Bara Energi

(“MBE”) with a view to commencing a drilling program on these concessions by year end Continue to barge the remaining coal on site, water levels permitting ≈ Stock remaining

is 85,420 tonnes as at 29th May Monitor coal prices with a view to recommencing mining operations when economic

conditions are attractive

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Site Infrastructure to date

Barge loading jetty upgraded Contractor camp largely completed

Explosives magazine completed and permitted

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Barging Operations

Approximately 71,700 tonnes barged from site in 2012

In January 2013, barging was halted due to low water levels and a requirement for rented barges to be returned

In April 2013, Bayan mobilized a floating crane for KRL’s use to transship from 180’ to 300’ barges on the Mahakam River

Barging operations were recommenced in April 2013 with a fleet of 4 sets of tug and 180’ barges

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Barging Operations (continued)

Approximately 12,000 tonnes barged in April 2013 and 36,570 tonnes in month-to-date May 2013 (to 29th May inclusive)

Late onset to dry season has allowed barging operations to continue into May 2013 => KRL will continue to barge subject to water levels (8.7m at 29th May)

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Exploration Drilling

Drilling commenced in December 2011 with 1 rig and has increased to 4 rigs by May 2013, all deployed on the MCM concession

Total drilling was approximately 12,900 metres in 2012 with a further 6,000 metres from January to April 2013

A further 19,000 metres is planned from May to December 2013

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Exploration Drilling

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Quality Results

Coal seam quality at MCM is reasonably consistent, but lower than previously indicated

Two main products: high ash and low ash

Thin seams, generally high sulfur

Certain seams exhibit coking swell properties

Possibility to sell low ash product as semi-soft coking coal once critical mass and logistics issues are addressed

Semi-soft coal price currently approximately USD100-110/tonne FOB vessel

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Outlook

Remotely located deposit of coal exhibiting coking properties

Due to logistical difficulties the project is dependent on coal price strength

KRL is positive on the long term prospects for Mamahak and plan to continue the drilling program

Plan is to identify sufficient commercial reserves to support a haul road development from Mamahak to a point on the Mahakam that will allow year-round barging (GPK barge loading) F

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GRAHA PANCA KARSA

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Legal Update

KRL has an 85% economic interest in GPK through a nominee arrangement

Plan to perfect this arrangement so that KRL directly holds equity in GPK

Transfer of GPK to a foreign entity requires (a) Bupati approval; and (b) Foreign Investment Coordinating Board approval

KRL is currently working through process to obtain (a) which will be followed by (b)

Once KRL obtains equity in GPK, 8% equity interest must be provided to KAL Energy (agreement entered into in April 2010) F

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Site Activities

Activities in 2012

Topography mapping completed for 4.07 Ha barge loading jetty

Bathymetric measurement of Mahakam River in Tukul village about 3.87

km long

Verification of HPH road together with borehole geological mapping

GPK geological modeling

Activities in 2013

The measurement of land compensation for the barge loading jetty plan

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Permitting

KRL received the “Izin Prinsip” for the forestry permit in June 2011 – this is the first step in the process to obtain Pinjam Pakai

We need to obtain full “Pinjam Pakai” before commencing any exploration, construction or mining activities on site

We are actively pursuing this permit

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Outlook

The outlook for GPK:

Further check drilling required to confirm quantities and qualities

Large deposit of low calorific value , low sulfur coal at low stripping ratios

Short haul from mine to river (+/- 30km)

Near to the Mahakam River which will allow year-round barging operations

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PAKAR

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Legal Update

In December 2010, KRL signed an agreement with Bayan to purchase 9 concessions collectively called ‘Pakar’ in East Kalimantan

Bayan has delivered 5 of these concessions to KRL and has outstanding obligations for the remaining 4

Bayan has reaffirmed its intention to deliver the remaining 4 concessions to KRL

Delays primarily due to finalization of an outstanding overlap dispute, lengthy legal processes and the involvement of a number of third parties

KRL directors will continue to monitor this situation and advise the shareholders accordingly

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Development Plan

Pinjam Pakai required for each concession in order to commence activities => applications in process

Pakar project to be jointly developed with Bayan’s adjacent Tabang project

Investment in common haul road and barge loading facilities by Bayan

Shared usage and other commercial agreements to be formulated and agreed to enable both Bayan and KRL coal products to go through the new infrastructure

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Outlook

The outlook for Pakar:

Project to be jointly developed with Bayan’s adjacent Tabang project

Northern concessions contain higher quality and likely to be developed

ahead of the southern concessions

Significant deposit of low calorific value, low sulfur coal at low stripping

ratios suitable for Asian markets

Haul from mine to river varies 37 - 70km over the 9 concessions

Barging point on the Kedang Kepala River which leads into Mahakam River

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MT RUBY

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Update

Mt Ruby (EPM14880) is an exploration concession located approximately 90km SW of Cairns, Queensland

The concession covers an area of 20 sub-blocks with a number of Mining Leases and Mining Development Leases overlying the concession area

Existing studies identify that Mt Ruby concession has a possibility of deposits of magnetite/hematite

The permit is being extended

It is KRL’s intention to identify a suitable venture partner to jointly develop this concession F

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NEW LEGISLATION

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New Legislation - Foreign Ownership

Gov’t Regulation (PP24/2012) as enacted under the new Mining Law (UU4/2009) requires foreign owners of mining concessions to reduce their equity to a maximum 49% within a prescribed timeframe.

Foreign owned mining concessions are required to commence equity reduction to domestic parties 5 years after the start of production and complete the process by the 10th year after start of production to ensure domestic ownership of:-

minimum of 20% by the end of the 6th year;

minimum of 30% by the end of the 7th year;

minimum of 37% by the end of the 8th year;

minimum of 44% by the end of the 9th year;

minimum of 51% by the end of the 10th year.

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New Legislation - Foreign Ownership

(continued)

Two potential options:

Wait until the 5 years is triggered then reduce equity in stages. Must first offer to domestic parties in the following order: (i) Government; (ii) Provincial regional government; (iii) State-owned companies; and then (iv) Private national entities

Sell down/dilute before the 5 years commences. We control the process but must sell down to 49% in one transaction

Definition of “start of production” has not been made clear by the Government => there are a number of potential interpretations

This will apply to the Mamahak, GPK and the Pakar concessions

KRL is seeking clarification on the definitions and approximate timings

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FINANCIALS

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Income Statement 31 Dec 2012

KRL incurred a net loss for the year ended 31 December 2012 of $14.8m AUD. This loss was primarily due to operating loss at MCM and to a lesser extent, the corporate overhead expenditure at KRL.

MCM’s loss was predominately due to

Lower sales revenue due to lower volumes and lower average price per tonne

Higher overhead and fixed costs due to low production volume of 177kt

Legacy payments for equipment rental costs which had to be terminated prior to PPA’s mobilization

Initial start-up costs such as land compensation and social development

Additional costs associated with terminating the PPA contract

KRL’s corporate overhead expenditure was mainly due to director fees, professional & consultancy fees (auditing, legal, accounting, company secretarial & others) and office and administration costs

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Cash-Flow Statement 31 Dec 2012

KRL’s net cash and cash equivalents decreased by $630k AUD in 2012, this was mainly due to:

Net cash outflows from operations of $13.2m AUD mainly at MCM and KRL corporate

CAPEX and exploration & evaluation expenditure of $5.1m mainly at MCM

The above cash outflows were offset by net funding from Bayan Resources of $17.6m AUD.

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Financial Position 31 Dec 2012

Major movements in the consolidated statement of financial position were as follows:

Inventory increased from $2.6m AUD to $8.1m AUD as MCM’s inventory increased 105kt

$11.2m AUD assets classified as held for sale have been reclassified from Property, Plant & Equipment and were associated with assets belonging to PT SAU on the Pakar project

Property, Plant & Equipment decreased from $12.6m AUD to $5.7m AUD as $11.2m AUD was reclassified per above point plus $4.3m AUD of CAPEX purchases during the year mainly at MCM

Trade payables and Provisions increased from $6.6m AUD to $12.4m AUD mainly due to an increase in payables and accruals at MCM including PPA’s termination payment

Borrowings increased from $2.4m AUD to $20.9m AUD reflecting loans from Bayan funding MCM, Pakar and KRL corporate expenditure

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CONCLUSION

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Conclusion

KRL holds a substantial and varied coal asset portfolio in Indonesia

Converting assets into revenue streams in Indonesia is complex, time consuming and involves working with a wide range of third parties

Need to establish realistic goals, prudent strategies and then develop flexible plans to achieve these

With the full support of Bayan, the KRL management will develop new strategies to improve financial performance and communication with the market

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Key elements of the strategy

Developing & prioritizing work-plans to reflect the current and future situation

Deploying personnel to monitor & manage the multitude of local issues that impede development and operational progress

Continuing exploration & development activity on priority projects

Resolving outstanding issues with Pakar Transaction

Factoring in the impact of new foreign ownership regulations

Formalizing & securing funding pending bringing an additional mine into steady-state production

Utilizing existing third party infrastructure to reduce overall Capex requirements on our projects

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THANK YOU F

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