peter brisbane, bandana energy

Bandanna Energy Limited

Springsure Creek

Australia’s Next Major

Thermal Coal Project

Longwall 2013 Conference

Hunter Valley NSW October 2013

Important Notice

This presentation (Presentation) has been prepared by Bandanna Energy Limited (ABN 34 009 356 665) (Bandanna).

Summary information

This Presentation contains summary information about Bandanna and its activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete. It should be read in conjunction with Bandanna’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

Not financial product advice

This Presentation is for information purposes only and is not a prospectus under Australian Law financial product or investment advice or a recommendation to acquire Bandanna shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Bandanna is not licensed to provide financial product advice in respect of Bandanna shares. Cooling off rights do not apply to the acquisition of Bandanna shares.

Financial data

All dollar values are in Australian dollars (A$) unless other stated.

Future performance

This presentation may contain certain statements and projections provided by or on behalf of Bandanna with respect to anticipated future undertakings. Forward looking words such as, “expect”, “should”, “could ”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. These forward-looking statements reflect various assumptions by or on behalf of Bandanna. Accordingly, these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control of Bandanna which could cause actual results or trends to differ materially, including but not limited to price fluctuations, exploration results, ore reserve and mineral resource estimation, environmental risks, general operating risks, commodity, legislative and regulatory changes, project delay, ability to meet additional funding requirements, factors relating to title 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 be realised. Neither Bandanna, or any of its affiliates, advisers, consultants, agents or any of their respective officers or employees make any representations as to the accuracy or completeness of any such statement of projections or that any forecasts will be achieved. Such forward-looking statements only speak as to the date of this Presentation and Bandanna assumes no obligation to update such information.

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Springsure Creek – Pathway to Production

Mine Set-up and Productivity

Approvals and Agriculture Co-existence

6 Bandanna – Australia’s Next Coal Producer

Project Execution

1 Bandanna Snapshot

Introduction to Bandanna Energy

Attractive Assets

• >1.1 Bt coal resources in Bowen Basin – all held 100% by Bandanna

• >590 Mt coal resource in Galilee Basin – 50/50 JV with AMCI

• Port ownership – 14% shareholder in Wiggins Island Stage 1

Secure Rail – Port Supply Chain

• Port Capacity – 4 Mtpa, 10yr rolling contract at Wiggins Stage 1

• Above and Below Rail Access Agreements

Mineable Reserves • Over 307 Mt of mineable reserves identified

Advanced Development Plans

• EIS and Mining Lease Applications for Springsure Creek, Dingo West and South Galilee projects well advanced

• Springsure Creek EIS nearing approval

• DFS Completed for Springsure Creek

Strong Cash Position

• $120 million cash in bank (at 31 August 2013)

Experienced Management Team

• Bandanna has established board and management team with considerable experience in Greenfield project development

Bandanna’s significant tenement portfolio is situated within two of Australia’s most prospective coal bearing regions

Wiggins Island

Coal Terminal

Bandanna Energy - Asset Map

Resources and Reserves

Over 1.7 billion tonnes of JORC-code compliant resources situated within two of Australia’s most prospective coal bearing regions

Summary of Bandanna’s net JORC resources and reserves (rounded to nearest Mt)1,3,4

1 As at August 2013 2 Net to Bandanna (50% interest) 3 Figures may not sum due to rounding 4 Refer to Statement of Compliance in the Bandanna Energy Limited 2013 Annual Report

Project

Project Bandanna Ownership

Resources (Mt) Reserves

(Mt)

Measured Indicated Inferred Total

Bowen Basin 74 311 720 1,104 198

Springsure Creek 100% 74 208 252 534 154

Arcturus 100% - 103 104 206 44

Arcadia 100% - - 273 273

Dingo West 100% - - 91 91 -

Galilee Basin 83 103 403 589 109

South Galilee 1,2 50% 83 103 403 589 109

TOTAL 157 414 1,123 1,693 307

John Pegler (Chairman)

• >40 years development and operations experience in open-cut and underground coal projects in Australia and Indonesia

• Previously CEO and MD of Ensham Resources 2002 to 2009 • Current: director of listed companies Energy Resources of Australia Limited and WDS Limited, director of CS Energy

Limited; Previous: Immediate past Chairman of Australian Coal Association; President of Queensland Resources Council

Michael Gray (Managing Director)

• Previously CEO of Middlemount Coal – responsible for development of Middlemount Mine (completed Nov 2011) • Previously EGM Projects at Macarthur Coal Limited • > 20 years experience in project development, construction, project finance and infrastructure

Matthew Scott (Chief Financial Officer)

• CFO since Bandanna listed in 2008 • Responsible for securing Bandanna’s infrastructure position • >20 years experience, 15 years in mining industry; Previously at Whitehaven Coal • GM – Finance at Foxleigh Coal - overseeing all commercial development from greenfield to successful trade sale

Stuart Clarke (Chief Development Officer)

• >20 years experience in development and operation of open-cut and underground projects • Previously at Peabody Energy as Manager - Projects overseeing greenfield development • Previously at BMA Coal and Downer EDI Mining

Tess Lye (Company Secretary & General Counsel)

• Previously Corporate Counsel and then General Manager – Governance and Legal with Macarthur Coal Limited between 2007 and 2012

• >15 years experience in corporate advisory, mining operations, mining project development, coal exploration and joint venture management gained in legal and compliance roles in the mining sector, banking, and government

Peter Brisbane (GM – Technical Services)

• Previously Chief Engineer, Peabody Australia • A wealth of greenfield underground project development knowledge including Project Management roles at Crinum

and Broadmeadow underground mines during the project development stage • >30 years underground mining experience in both production and statutory roles for BHP and BMA

Matthew Palmer (GM - Surface Infrastructure)

• 35 years experience covering a wide range of engineering projects in Australia, New Zealand, Malaysia and Papua New Guinea

• >18 years experience consulting to the Australian coal industry in a wide range of projects dealing specifically with infrastructure matters including haulroads, water supplies, creek diversions, dams, villages, industrial and other infrastructure

Experienced Management Team

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Bandanna Snapshot





Project Execution

Australia’s Next Coal Producer

Springsure Creek Coal Mine – on track for production H1 2015

Resource and Reserve Upgraded

˃ Total Resources increased to 534Mt as at May 2013

˃ Marketable Reserves increased 50% to 154Mt in Apr 2012

˃ Infill drilling continuing (approx. 60 holes planned for 2013)

˃ Seismic program completed in Jan 2013

Port and Rail Access

Secured

˃ Port Capacity – 4 Mtpa, 10yr rolling contract at Wiggins Stage 1

˃ Below Rail Access Agreement – QRN, 4 Mtpa

˃ Above Rail Haulage Agreement – Pacific National

˃ Rail Loadout agreement with Acacia Coal

Definitive Feasibility Study Completed

˃ Revised Mine Plan and design completed

˃ All long lead procurement identified

˃ Independent Technical Review completed

˃ Capital and Operating cost estimates finalised Dec 2012

EIS & Approvals Well Advanced

˃ Draft EIS released 14th Feb 2013

˃ Mining Lease Application submitted Oct 2012

Development Funding Strategy Underway

˃ Continuing discussions with end-user JV parties for sell down of minority interest(s)

Springsure Creek - Location

The Springsure Creek Project is located in the southern Bowen Basin

˃ approximately 50km south east of Emerald

˃ Approximately 360km by rail to WICET

Project is surrounded by existing mines

˃ Rolleston ˃ Minerva ˃ Ensham ˃ Blackwater

Emerald Airport is 45km from the proposed minesite so well located for operational workforce logistics

Bauhinia Rail line is approx. 35km from minesite

Resource and Reserves

Resources Mt

Measured 74

Indicated 208

Inferred 252

TOTAL 534

Springsure Creek

Marketable Reserves

Mt

Proven –

Probable 154

TOTAL 154

SPRINGSURE CREEK As received Air dried Dry Dry Ash Free

Moisture (%): Total 15.0

Proximate Analysis (%) : Inherent Moisture 9.5

Ash 9.9 10.5 11.6 Volatile matter 26.4 28.1 31.0 35.1 Fixed Carbon 48.8 51.9 57.4

Total Sulphur (%) 0.23 0.25 0.28 0.31

Phosphorus (%) 0.05 0.05 0.06 0.06

Chlorine (%) 0.03 0.03 0.03 0.04

Calorific Value: Gross (kcal/kg) 5,840 6,220 6,870 7,780

Net (kcal/kg) 5,560 7,400

Ash analysis SIO2 47.7 K2O 0.29

(% in dry ash) AI2O3 20.0 TIO2 0.95

FE2O3 11.5 Mn3O2 0.23

CaO 11.2 P2O5 1.10

MgO 1.24 SO3 3.80

Na2O 0.95 Total 99

HGI: ~55 Ash Fusion Temperatures (C) Reducing

Deformation 1,200

Sphere (softening) 1,240

Hemisphere 1,265

Flow 1,310

Topsize (mm) nominal: 50

˃ Low ash raw coal means that the coal could be sold as a ROM thermal product, with no requirement for beneficiation except to remove mining dilution

˃ Sale of unprocessed coal provides substantial capital and operating cost advantage

High Quality Coal Quality

Strategic Location

Springsure Creek is within existing

production area surrounded by well

established mines with coal products accepted

in global markets

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Bandanna Snapshot






• Underground longwall mine design with capacity up to 5.5 Mtpa of ROM thermal coal with a single longwall

• Resource size and topography would support second longwall to give total capacity of 11.0 Mtpa of ROM coal

• Geological and geotechnical conditions enable high production

• Low gas content - not anticipated that pre-drainage will be required prior to mining

• Very low raw ash content ensures no requirement for coal processing

Mine Plan

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Springsure Creek Coal Project Proposed Production

Stage 1 (Longwall #1) Stage 2 (Longwall #2)

Production Profile

Item Target

Definitive Feasibility Study

Sep 2012

EIS Approval Nov 2013

Mining Lease Approval Q1 2014

Construction Start Late 2014

First coal exports (Development Coal)

Oct 2015

First Longwall Coal H2 2016

Second Longwall Coal 2020

Productivity Optimisation Strategy • Current work focused on key drivers for a high production single

longwall achieving 7.5+ Mtpa ROM

• Have undertaken both Australian and International benchmarking studies including inspections of several US operations.

• US operations have similar m/op hr rates but obtain higher operating hours per week

• 3 pronged strategy to maximize operating hours involving:

• Layout optimisation

• Process mapping looking to remove bottlenecks

• Evaluation of technology available and working with the OEM’s

• Maintaining an extensive exploration program to improve knowledge

• Structure, geotechnical and coal dilution mitigation

• Gas domain

• Groundwater

Infrastructure Security

˃ All key project infrastructure requirements have been secured via contract arrangements or detailed plans well advanced

Infrastructure Status

Port Capacity Contracted and construction >67% complete

Below rail capacity Contracted and construction >30% complete and on track for timing of port commissioning

Above rail capacity Contracted and lead times for rollingstock delivery well within development schedule

Rail load-out facility

Design work completed. Access agreement with Acacia coal executed. Mining Lease Application submitted

Haul road Design work completed. Mining Lease Application submitted. Landowner engagement ongoing

Power supply Plans finalised and approvals underway

Water Supply Water allocation contracted and pipeline design commenced

Accommodation Local Government approval granted 15 June 2013

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Bandanna Snapshot





Project Execution

Proposed Execution and Construction Strategy

Springsure Creek Joint Venture

Integrated Project Owner’s Team • Project Director • Operational Management • Design Engineers • Elect and Mech Engineers • Structural Engineers

Package #3 • Underground Development

Package #2 • Drift drivage – TBM

Package #1 • Cut and Cover excavation

Package #4 • Mine Site Infrastructure

Package #6 • Infrastructure Corridor

Package #10 • Longwall Equipment Supply

• Bandanna is not necessarily proposing to establish EPCM contractor. Recent experience of EPCM in Australia has shown significant risk of cost overruns and delays

• Best opportunity to develop project within cost target and on time is through use of dedicated and experienced Owner’s team with necessary Project Management and technical support

Package #7 • Rail loop

Package #5 • Coal Handling

Package #8 • Power/water

Package #9 • Accommodation Village

Drift Development • Drift development remains major schedule and

cost issue for construction project

• Bandanna sought contractor proposals in early 2013

• Proposals received include:

> Tunnel Boring Machines (TBM) > Drill and Blast tunnel development > Continuous miner tunnel development > Road-header tunnel development

• Following review of proposals, TBM was determined to be the most advantageous due to shorter development timeframe and increased schedule certainty. No substantial cost disadvantage

• Procurement timeframe for TBM – 9 months means need to consider early commitment for construction 6 months ahead of commencement of site works

Springsure Creek – Project Dev Packages

Key Construction And Development Items:

• Two 1:8 drifts to pit bottom. Ventilation shafts plus equipment

• Underground development works

• Surface infrastructure

˃ Maintenance facilities and workshops

˃ Office, bathhouse, employee facilities

˃ Substation, power and water services

• Coal handling facilities – crushers, screen, stockpiles

• Haul road to rail load lot – 40km

• Rail loadout and loop at Triumph Creek (on Bauhinia rail line)

• Offsite works –road upgrades, power supply (132 KV), water pipeline (50km)

• Accommodation village

Execution Plan being finalised – tenders on key packages to be issued early in the first half of 2014

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Bandanna Snapshot





Project Execution

• Mining Lease Application 70486 was lodged October 2012. MLA area reduced in June 2012 following landowner consultation

• Environmental Authority: Draft EA developed with EIS. Agricultural Productivity Condition being developed with Bandanna ACRC and Government

• Landowner Compensation: Bandanna in active negotiation with all MLA landowners

> Additional or upgraded capital to assist with increasing efficiency and productivity in a sustainable manner

> Put or call options during the life of the mine > Make good provisions > Land swaps or grants > Financial payments

• Overlapping Tenure > Consent from QGC obtained August 2013 > Ongoing negotiation with Origin regarding

consent and Co-Development Agreement. Expected by end 2013

Mine MLA Process

Mine Environmental Impact Statement

• Draft EIS released for public submissions in February 2013

• Submission period ended 27 March 2013

• 49 submissions received

> 19 Government agencies > 9 Non-Government and Community

organisations > 21 landowners and other individuals

• No major issues raised in submissions

• Final EIS lodged 21 June 2013

• Further information request (EHP & DAFF) in July. Submission of all additional requested information on 16 August 2013

• EHP issued s.56A Decision to allow EIS to proceed on the 25 September 2013

• DEHP Assessment report due 7 November 2013

EIS Commitments

• Coexistence of cropping and mining

• Bandanna is seeking approval condition that ensures continued cropping and maintenance of agricultural productivity throughout life of project

• Groundwater monitoring network (up to 10km from project area) established pre-approval to ensure comprehensive baseline monitoring for up to three years prior to any longwall subsidence

• Commitment to deepen or replace any bores impacted by subsidence or drawdown

• Local road upgrades. Timing of over-dimension vehicle movements to avoid disruption

• Location and orientation of longwall panels to avoid impacts on creek and drainage flows

Springsure Creek Agricultural Project

• The Project is located in high production cropping land. Bandanna proposes to ensure continued agricultural productivity throughout life of project

• Bandanna’s Agricultural Plan includes:

1. A Coexistence Strategy

2. Support for the Agricultural Coexistence Research Committee (ACRC)

3. A Research Program - $3M program with first research projects to commence late 2013

4. Land Management

5. Landowner Engagement - Bandanna owned land plus other landowners

Bandanna’s Coexistence Policy includes … Vision The complementary conduct of mining and agricultural activities in a mutually beneficial and sustainable framework.

Objectives To mine natural resources in a way that provides an economic return for shareholders while maintaining and improving agricultural productivity on operating farming properties that are directly impacted by our mining projects.

How we define coexistence Coexistence is defined as:

Working together with the agricultural community to ensure agriculture and mining can occur concurrently in an economically sustainable manner.

Commitments include • Establishing and funding mine projects including specific agricultural plans • Involving landholders and other land use stakeholders in the development

and implementation of the project specific agricultural plans • Complying with the regulatory operating conditions as they relate to

productivity.

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Bandanna Snapshot





Project Execution

Financial Structure

Capital Cost A$

Stage 1 – Single Longwall (5.5Mtpa) 752M

Stage 2 – Second Longwall (5.5Mtpa + 5.5Mtpa) 437M

Total capital (11Mtpa) 1,189M

Project Capital Cost (A$)

Capital Intensity ($/tonne of annual production)

Springsure Creek $1,189M 108

Surat $6,000M 273

Galilee $10,000M 313

• Due to proximity of project to existing infrastructure and low capex profile, Springsure Creek has significantly lower capital intensity than other major proposed thermal coal projects in Australia

• Note: These capital costs are from the Dec 12 DFS and substantial work ongoing to refine these costs

Operating Cost

Operating Cost (LOM average) A$/tonne

Mining cost (to top of pit) 28.24

Coal handling & crushing 0.99

Road haulage (to rail loop) 4.57

Total Free on Rail 33.80

Rail cost 16.84

Port cost 11.80

Other costs 3.17

Free on Board (FOB) excluding Royalty, taxes 65.61

Note: FOB cash cost excludes carbon tax. No MRRT payable at sale price assumptions.

• Operating costs very competitive with existing production costs and significantly more competitive compared with many proposed Greenfield projects in Australia and in other supplier countries

• Note: These capital costs are from the Dec 12 DFS and substantial work ongoing to refine these costs

• Springsure Creek currently 100% owned by Bandanna Energy

• Bandanna has engaged with key electricity generators and other strategic partners in Korea, Japan, Taiwan, China, Thailand to establish MoUs for project offtake and/or project equity

• Bandanna strategy is to develop project through establishment of an Unincorporated Joint Venture with selected project partners

• Bandanna currently engaged with a number of customers and strategic investors with target of establishment of Joint Venture in early 2014 in line with project approvals

Bandanna Funding Strategy

Thank You

Bandanna Energy Limited Level 4, 260 Queen Street Brisbane, Queensland.

Tel : 61 7 3041 4400

Web Site www.bandannaenergy.com.au

Statement of Compliance

Page 33 of 2013 Annual Report

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