ASX Code: KRA

1st of May 2014

Investor Presentation

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Executive Summary Inaugural sale of coal to Glencore

International AG in April 2014, moving Killara

from explorer to producer.

Operating in low cost environment offering attractive

operating margins.

Operating in close proximity to key Asian markets.

Committed and experienced Directors, inclusive of

strategic Indonesian partner.

Tight share register with Directors holding 42% of

issued capital.

Global demand for thermal coal expected to continue its

growth trajectory, with Indonesia being a major

contributor to world supply. 2 Overburden removal and extraction at BEH site

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‘is an Indonesian focused exploration and mining company

specialising in Coal, with an emphasis on sustainable mining practices and community engagement’

Our Values :-

• High performance. • Integrity. • Win - Win relationships. • Mutual respect. • Safety and the Environment.

Our Vision :- ‘is to be globally recognised as a leader in

the delivery of sought energy solutions whilst employing profitable and sustainable mining practices in partnership with local communities and Government’.

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Photo’s above are of Killara’s geological team on site at PT Borneo Emas Hitam.

Killara Resources F

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Matthew Driscoll Chairman Matthew previously worked in the Australian capital markets, having raised over $1 billion towards new company floats. Specialist skills include: IPO’s, placements, new issues, capital markets, debt structuring, asset and equity valuation, due diligence and business valuations

Robert Kipp

Managing Director

Robert has formal qualifications in accounting/finance and has over 28 years commercial experience. He was previously Managing Director of Premium Investors Ltd, an ASX listed company with $300 million investable funds. He has also held senior positions with various boutique funds management companies managing over $16b

Wim Zulkarnaen Executive Director Wim has more than 30 years of extensive hands-on management experience in investment finance, banking, agribusiness and coal. He is the founder and C.E.O of BBIP Palm Group and Proteksindo Group. Wim is also President Commissioner for PT Borneo Emas Hitam, a company in which Killara has an interest

Reza Zulkarnaen

Executive Director Reza is experienced in building strong local teams, and is a hands-on operator. He is also President Director of PT Killara Resources, Killara's wholly-owned subsidiary based in Jakarta and PT Borneo Emas Hitam, a company in which Killara has an equity interest.

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Board of Directors F

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Number

Quoted Securities

Fully Paid Shares (ASX: KRA) 124.9 mil

Unquoted Securities

Deferred Consideration Shares ($0.25 hurdle) 14.0 mil

Deferred Consideration Shares ($0.35 hurdle) 10.0 mil

Deferred Consideration Shares ($0.45 hurdle) 7,5 mil

Total Deferred Consideration Shares(expire 1/12/15) 31.5 mil

Total Unlisted Options (various expiry dates) Strike prices vary from 15 – 60 cents.

(see Killara website for specific details)

28.5 mil

Performance shares rights based on production milestones

3.0 mil

Market Capitalisation $3.87 mil (Based on closing share price 3.2 cents 30 Apr 2014)

Directors holding of Issued capital 42 %

KRA - Share Price relative to Metals & Mining Index

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Sources: www.asx.com.au

Killara Capital Structure F

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Killara’s 5 Year Strategy (2014 – 2019) Develop a Coal Portfolio consisting of:

Green field Coal IUP’s

• Two greenfield concessions in the Killara Portfolio of assets with works progressing the IUP’s to production

Production IUP’s

• Two IUP’s in the production stage with exploration work progressing through to the exploitation stage

Exploitation IUP’s

• Two IUP concessions in production generating positive cash flow for Killara

• Mine life of 2 – 10 years.

Timeline (2014 – 2019)

The portfolio composition will allow for continued cash flow operations and future capital growth.

KRA Strategy is to build a portfolio of coal assets.

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Why Indonesia?

• Indonesia is resource rich, hosting some of

the largest mining projects in the world. • Indonesia remains a low cost producer of coal. Now surpassing Australia as the world’s largest supplier of thermal coal, whilst offering attractive operating margins. • Indonesia is a booming economy delivering above average growth. • Indonesia’s location in South East Asia makes transport of coal cheaper to its key markets, inclusive of China, India, Korea, Japan etc.

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1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

In 2013, Indonesia’s coal production volume surpassed expectations, reaching over 450 m/tons. Thermal coal is principally used for the generation of electricity from power plants. Due to global demand, Indonesia will continue to make a major contribution to supply.

• The International Energy Agency (IEA) estimates that global electricity demand could double between 2009 and 2035 as more people get access to electricity.

• Coal remains the cheapest form of electrical power generation, with China power being generated 70% from coal.

• Coal remains a key source of energy for power generation throughout the world including Australia and the U.S.

• Operating margins from thermal coal are amongst the best of major commodities.

Source: The US Energy Information Administration 2013

Indonesian Coal Production (mil tonnes) F

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• Total Concession size is 1,002 ha, located in the Tenggarong

district, East Kalimantan Regency. • Current production license in place, with extension to December 2017 now secured. • Infrastructure including roads, buildings and workshop in place. • Jetty access to Mahakam river on North and South boundary to concession less than 5km from production and target areas. • Mahakam river is conducive to all year round barging. • Coal quality from 32 outcrops submitted for analysis ranged from 5,459 cal/kg to 7,546 cal/kg with an average of 6,948 cal/kg. (See ASX release dated 23 May 2013 for further coal quality data). • Current drilling program COMPLETED and Mining is underway. • Maiden Coal barge sold to Glencore International AG in April 2014.

Coal Seam Below overburden at BEH

Above image of BEH concession and barge access points to Mahakam river.

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PT Borneo Emas Hitam (KRA 80% interest) F

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PT Borneo Emas Hitam

Map of Indonesia and project locations Map courtesy of Nationmaster.com

Killara Project Location F

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Australian Head Office:

Killara Resources Ltd

Level 3, North Building

333 Collins Street

Melbourne

Victoria Australia

Phone: +61 3 9629 3898

Fax: +61 3 9629 4898

Robert Kipp

Managing Director

Matthew Driscoll

Chairman

Website : www.killararesources.com

Indonesian Office:

PT Killara Resources

Ratu Plaza

Level 12

Jl Jendral Sudirman

Kav 9, South Jakarta

Phone: +62 21 7872 1933

Fax: +62 21 7872 1967

Reza Zulkarnaen

President Director

Ansar Bayanta

Director Operations

Contact Details

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