Uniquely positioned to be Australia’s

next coal producer

Investor Update

September 2013

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Key investment highlights

• Attractive long term fundamentals

- Asian demand for coal forecast to continue growing

- limited new supply from key global markets

• Attractive coal assets located in both Bowen and Galilee Basins

• Strong and experienced Board and management team

• Springsure Creek – Australia’s next major thermal coal project

Close proximity to existing coal infrastructure

Secure contracted port and rail capacity including direct port ownership

All mine site approvals expected by end of Q1 2014

Attractive capex and competitive opex provides significant robust economic returns across a range of coal price and forex forecasts

• Springsure Creek on track to deliver first coal production mid-2015 subject to final timing of approvals, port construction and funding

Moving from explorer to producer with strong cash position available for project approvals advancement

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Attractive LT fundamentals – coal price outlook economics Focused on MT to LT coal price outlook given project timings

• 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 when Bandanna expects to move into production

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Attractive LT fundamentals – coal-fired plants

China Proposed number of plants: 363 Proposed installed capacity of 557,938 megawatts

India Proposed number of plants: 455 Proposed installed capacity of 519,396 megawatts

A recent report by The World Resources Institute (WRI) identified 1,200 coal-fired plants in planning across 59 countries, with ¾ in China and India

Source: World Resources Institute

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Attractive LT fundamentals – imports fcst to rise

Low cost and reliability of coal-fired electricity will continue to appeal to emerging economies looking to meet growing energy demands – driving growth in world thermal coal imports

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Attractive LT fundamentals – Asian growth

Emerging Asian economies thirst for coal

Source: World Resources Institute, IEA

• China’s demand peaks around 2020 and is then steady to 2035

• Growth in Korea’s coal fired electricity generation capacity projected to support growth in thermal coal imports at an average rate of 4%pa

• Japan and Taiwan – new coal fired generation being approved and fast-tracked to seek to reduce energy costs

• Substantial growth forecasts in SE Asia – Thailand, Malaysia, Vietnam

• India’s coal fired electricity generation capacity projected to increase substantially to meet energy demands of India’s growing middle class and manufacturing industries

- coal use in India continues to rise and, by 2025, is expected to overtake the United States as the world’s second-largest user of coal

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Attractive LT fundamentals – China growth

Coal expected to remain main energy source for China for foreseeable future

Source: Rio Tinto, IEA

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Attractive LT fundamentals – Korean growth

Korean Electricity Generation under substantial demand pressure • Korea is 8th biggest power consumer, BUT • Has only the 14th largest generating capacity

Government has committed to double coal fired generation capacity between 2012 and 2021

– Additional 23.3GW of coal fired generation – Additional 56Mtpa thermal coal imports required – Generators seeking equity investment to fix offtake for more than 50% of

new demand

Source: Korea South-East Power Co Ltd. August 2013

Fuel Source

Installed Generating

Capacity

Delivered Power

Generation Effective

Utilisation Coal 31% 39% 126%

LNG 25% 25% 100% Nuclear 30% 30% 100%

Oil 6% 4% 67% Pumped Storage 3% 1% 33%

Renewables 5% 1% 20%

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Springsure Creek – Aust’s next producing coal mine

• Aim to commence coal production and first shipments mid CY2015

- substantial high quality coal resource (>40yr mine life at 11Mtpa) in region with well understood geology and coal quality

- Low ash coal does not require processing – provides for reduced capital cost and operating cost saving

- Competitive operational costs ($65.50/tonne FOB ex royalties) compared with existing global cost curve

- No legacies of past practices to overcome – currently reviewing costs and productivities, aiming to further increase competitiveness and outpace improvements at brownfield operations

- Close to existing coal rail network

- Approvals process well advanced

• Secure contracted access to port and rail infrastructure - construction is well advanced

• Recently confirmed 35% increase in measured resources under 2012 JORC Code

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Springsure Creek approvals process on track

• Approvals progressing as planned

- Final EIS submitted to Qld Government in June 2013

- No outstanding issues identified. EIS Approval expected in Oct 2013

- Progress of Environmental Authority and Mining Lease to proceed following EIS approval

- All mine site approvals expected by end of Q1 2014

• Attractive project features favour Government approval

• Little remnant flora/fauna due to extensive agriculture

• Bandanna strongly committed to coexistence of cropping and mining

Q3 2014 2020 Q1 2014 Q4 2013

Mining Lease Approval EIS Approval

Construction Start

First coal exports (Development Coal)

First Longwall

Coal

Mid-2015

Second Longwall

Coal

H2 2016

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Springsure Creek JV discussions progressing

• JV partner discussions progressing

- a number of interested parties currently undertaking due diligence

- Progress of project approvals a key discussion point with potential JV partners

• Interested parties include:

- Asian based electricity generation companies

- international investment houses

- overseas mining companies

• Possible structure could see one or a small number of electricity generators take a minority stake in return for an off take agreement for a percentage of coal produced F

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Springsure Creek secure access to infrastructure

• Bandanna is 14% shareholder in WICET Stage 1 and has 4 Mtpa, 10yr rolling contract

• Bandanna’s expected production profile will see company meet commencement of its take or pay obligations

• Take-or-pay obligation commences once Stage 1 of port commissioned - WICET advises probable commencement of shipping in Apr 2015 subject to Mechanical Completion of facilities

- life of mine average take or pay obligation for port and rail is approx. $23.00 per tonne

- obligations in first year are approximately halved to allow for ramp up of port capacity

• Any obligation that may arise (if at all) is not likely to be material to overall capital cost of project

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Page 13

Wiggins Island Update Golding Point

Gladstone

Berths

Rail Loop (Aurizon)

Rec Area C

Main North Coast Rail

Rail Receival

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Page 14

Wiggins Island Update

Golding Point Stockpile Area

Gladstone

Overland Conveyor

Rail Receival (6km from Jetty)

2km Jetty Construction

Barge Wharf

Rec Area B

Site Offices

Wharf

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Attractive Coal quality

Springsure Creek coal product is well recognised in North Asian markets. – Low Ash – Ultra-low Sulphur – Other Characteristics typical of Australian export thermal

Cockatoo coal example

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Bandanna is well funded

• BND continues to carefully manage current expenditure commitments and is well funded to meet operating expenses and proceed through project assessment and approvals phase

• Bandanna cash balance >50% of total cash held by junior coal sector

* As at 30 June 2013 Source: IRESS; individual companies

Bandanna has substantial cash reserves to progress Springsure Creek towards development

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In summary…

• Attractive long term fundamentals underpin Springsure Creek project

• Springsure Creek is a very attractive coal asset

- substantial resource within existing Bowen Basin production area

- close to existing infrastructure, with contracted access in place

- high quality coal… low ash / low sulphur

- approvals well advanced

- low capex compared with other Greenfield projects and low cost of production

• Strong and experienced Board and management team

• Strong balance sheet with $120m cash in bank, $97m of which is directly available to advance project approvals and initial development

• Subject to final timing of approvals, port construction and funding, Bandanna is on track to deliver first coal production mid-2015

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Appendix

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

bearing regions

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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 Priority project o Underground thermal coal o Clear pathway to production

in 2015

Dingo West Project Bowen Basin

o Subject to approvals processes and further exploration

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

o Production commencement following Springsure Creek

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Bandanna’s other projects

Dingo West

• Mining Lease Application lodged Nov 2011

• EIS underway, further exploration ongoing to define optimal pit location

• Landowner negotiations commenced

• Rail loop design and infrastructure study commenced

• Production scheduled to commence following completion of WICET Stage 1

South Galilee

• Longer term thermal coal prospect given location and size

• Draft EIS released for public comment Oct 2012

• Timing of development subject to confirmation of planned Galilee Basin coal rail options and commitment to future Abbot Point expansion terminals.

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Strong Board & management

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

Chairman - John Pegler

• More than 40yrs experience at BP, Rio Tinto, then CEO/MD at Ensham Resources 2002-08

• Former Chair Australian Coal Association

• Life Member – Qld Resources Council

Managing Director – Michael Gray

• More than 20yrs diverse experience in industry and government

• 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

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

CFO - Matthew Scott

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

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Corporate snapshot

Capital structure

ASX Ticker BND

Shares on Issue 528,481,199

Options on issue 22,685,397

Share Price* $0.205

Market Cap* $108 million

Resource tonnes 1,600

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 8 Aug 2013

Relative share price performance

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