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September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

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Page 1: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

September 2015 Investor Presentation

Colonial Coal International Corporation

TSX-V: CAD

Western Canada’s Leading Coking Coal Developer

Page 2: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 2

Legal Disclaimers

This presentation may contain forward-looking statements, and forward looking information under applicable securities laws including management’s expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks and uncertainties include, but are not limited to: the risks associated with the commodity industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Colonial Coal undertakes no duty to update any of the forward-looking information herein. The reader is cautioned not to place undue reliance on forward-looking statements.

The scientific and technical information relating to the Huguenot property has been derived from the Huguenot Technical Report dated September 4, 2012, a copy of which will be filed on sedar.com under Colonial Coal International Corp., copies of the technical report will be made available to investors on request.

The information contained in this document has not been reviewed or approved by the U.S. Securities and Exchange Commission or any provincial or state securities regulatory authority. Any representation to the contrary is unlawful. This document does not include a complete description of Colonial Coal or any offering. Any offer of securities Colonial Coal will be made only pursuant to a subscription agreement and the provisions of applicable law. Any securities to be offered for sale by Colonial Coal are not expected to be registered in the United States under the Securities Act or under any state securities laws.

Cautionary Note to US Investors Concerning Resource Estimate:

The resource estimates in this document were prepared in accordance with National Instrument 43-101, adopted by the Canadian Securities Administrators. The requirements of National Instrument 43-101 differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”). In this document, we use the terms “measured,” “indicated”, and “inferred” resources. Although these terms are required and recognized in Canada, the SEC does not recognize them. The SEC permits US mining companies, in their filings with the SEC, to disclose only those mineral deposits that constitute “reserves.” Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a measured or indicated resource will ever be converted into “reserves”. Further, “inferred resources” have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that “inferred resources” exist or can be legally or economically mined, or that they will ever be upgraded to a higher category.

Page 3: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 3

Company Snapshot

Strategic Location

High Quality Coking Coal

Experienced Management Team

David Austin Chief Executive Officer and Chairman

John Perry Chief Operating Officer and Director

William Filtness, CA Chief Financial Officer

Source: Company disclosure, FactSet

Huguenot:

Measured and Indicated (Mt) 277.7

Inferred (Mt) 119.2

Flatbed:

Est. Flatbed Resources (Mt) ~100

Huguenot North Block – Simulated Clean Coal Quality

Ash (%) 8.1

Volatile Matter (%) 23.4

Sulphur (%) 0.4

Phosphorus (%) 0.047

Fixed Carbon (%) 68.5

Dmmf VM (%) 24.9

FSI 6.5

Significant Upside Potential

Huguenot and Flatbed – great exploration upside

Watson Island MOU – port investment opportunities

Located in a prolific coal belt – significant M&A activities

Proximity to Asian market – secured export market

BRITISHCOLUMBIA

ALBERTA

Vancouver

Prince Rupert

Fort Nelson

Neptune Terminals

Westshore Terminals

Key

Huguenot

Flatbed

ProjectCoal FieldsCity CN RailRoads

Huguenot

DawsonCreek

TumblerRidge

Chetwynd

Flatbed

Page 4: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca

7

8

Peace River Coalfield

Hudson’s Hope

RidleyTerminals

Fort St John

ChetwyndA

LB

ER

TA

BC

13

2

10

15

14

17

4

16

11

3

9

12

Tumbler Ridge

5

6

4

4

Carbon Creek (Cardero)

Resources: 334 MtTarget Production: 2.9 MtpaProduction Start: 2014

13Trefi (Anglo Pacific)

Resources: 90 Mt

7

Gething (CKDI)

Est. Resources: 786 MtTarget Production: 2.0 Mtpa

Wapiti River (Canadian Dehua)

Est. Resource: 7,000 Mt Est. Prod’n: 6.0 Mtpa

15

Willow Creek (Walter)

Reserves: 30 MtResources: 51 MtTarget Production: 1.7 MtpaProduction Restart: 2010

16

3

Brule (Walter)

Reserves: 20 MtResources: 34 MtTarget Production: 2.0 Mtpa

Wolverine (Walter)

Reserves: 49 MtResources: 70 MtTarget Production: 3.0 MtpaProduction Start: 2007

17

10

Quintette (Teck)

Target Production: 3.0 MtpaProduction Start: 2013

1Atrum Coal PRC Project

Exploration Target: 25 Mt

Murray River (HD Intl. Mining)

Resources: 3,180 Mt (inferred)Est. Prod’n: 6 Mtpa (Phase 1)

9

Trend (Anglo Coal)

Reserves: 23 MtResources: 45 MtTarget Production: 2 MtpaProduction Start: 2005

14

2

Belcourt Saxon JV(Walter (50%) / Anglo (50%))

Reserves: 86 MtResources: 171 MtTarget Production: 4 Mtpa 12

Suska (8) & Sukunka (9)(Xstrata / JX Nippon)

Reserves: 61 Mt (Sukunka only)Resources: 319 & 236 MtTarget Production: 9.5 Mtpa Production Start: 2015

11

8Mt. Duke (Teck)

Resources: 281 Mt

Note: Peace River Basin map is for illustrative purpose onlySource: BC Ministry of Energy, Company filings, Industry Publications and News Sources, Mines and Petroleum Resources

25 km

1

Flatbed / Huguenot (Colonial Coal)

Huguenot Resources: 384 Mt Target Flatbed Resources: 100 Mt

5

6

Anglo Coal

Anglo Pacific

Atrum Coal

Belcourt Saxon JV

Canadian Dehua

Cardero

Centerpoint Resources

Colonial Coal

HD Mining International

Jameson Resources

Kailuan Dehua (CKDI)

Teck

Walter Energy

Xstrata

Other Coal Tenures & Apps

Railroad

4

Page 5: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 5

Unparalleled Investment Opportunity

● Invest in one of the largest deposits of premium quality hard coking coal in western Canada Targeted open pit mineable resource of 397 Mt at Huguenot Project (“Huguenot”) Potential for large tonnage deposit at Flatbed Project (“Flatbed”) in proximity to Trend and Quintette mines Extensive historical work completed by Denison

● The only publicly traded pure-play coking coal company in western Canada to have a stake in a port development project Recent MoU regarding potential development of port facility at Watson Island

● Gain exposure to one of the most active coal basins in a mining friendly jurisdiction with excellent infrastructure in place Recent acquisitions by Walter Energy (“Walter”), Anglo American (“Anglo”), Xstrata, and Winsway/Marubeni amongst others Capacity expansion underway at western Canadian ports and new coal terminals being built in north-west United States

● Strategically located leases adjacent to major projects provide logical buyers and partnership opportunities Huguenot located between Anglo’s and Walter’s Belcourt Saxon JV Flatbed located adjacent to Anglo’s producing Trend mine and Teck’s soon to be started Quintette mine

● Highly experienced management team with a proven track record in the Peace River Coalfield Directly responsible for developing two producing mines in the region

● Provides exposure to long-term Asian growth story whilst staying invested in a safe jurisdiction Increasing demand for high quality coking coal driven by long term Asian growth Western Canadian coal projects have cost advantaged access to East Asian markets

Page 6: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca

TM Ash VM Sulfur x10

Phos x100

CSN Ro max x10

Fluidity(log)

0%

10%

20%

30%

40%

50%

60%

Metallurgical Coal Quality BenchmarkSelect Benchmarks

Canad

ian D

ehua

HD Inter

natio

nal

CKDI

Colonia

l Coa

l

Carde

ro

Xstrata

& JX

Nipp

onTec

k

Xstrata

& JX

Nipp

on

Walt

er &

Ang

lo

Anglo

Pacific

Walt

er

Walt

er

Anglo

Coal

Walt

er

0

200

400

600

800

1000

1200

1400

7,000

3,180

786

397334 319 281 236

17190 70 51 45 34

% /

dd

pm

Mill

ion

s To

nn

es M

et C

oal

Global Range Canadian Range HCC BenchmarkColonial Coal

(Wapiti River)

(Murray River) (Gething) (Huguenot)

(Carbon Creek) (Suska) (Mt. Duke) (Sukunka)

(Belcourt Saxon JV) (Trefi) (Wolverine)

(Willow Creek) (Trend) (Brule)

Source: WoodMac

Metallurgical Coal Resource Size BenchmarkSelect Peace River Coalfield Based Peers

Very low sulfur and phosphorous content compared to global producers

Source: CCIC, company reports

SurfaceUndergroun

d Total

Measured 96.2 18.9 115.1

Indicated 35.8 126.9 162.6

Inferred 0.5 118.7 119.2

Total 132.5 264.4 396.9

Huguenot Resource Estimate (mm tonnes)

One of the Largest Premium Hard Coking Coal Deposits in the Region

● Huguenot has a contained resource of 397 million tonnes, making it one of the largest deposits in the region■ Deposit at the resource stage

with significant room for expansion

● Huguenot's metallurgical coal quality ranks as a premium coal product■ Contains low sulfur and

deleterious elements■ Similar composition to Anglo's

nearby Trend mine (premium product exported to Asia)

● Price forecast for Huguenot of $200/tonne (Analyst consensus)■ Benchmark based on Anglo’s

Trend mine, reflecting HCC benchmark adjusted for Trend’s quality levels

■ Huguenot's CSR levels are higher than anything else in the region, including Trend

■ Potential for Huguenot to receive a premium to the benchmark price

6

Page 7: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca

Potential to Jointly Develop Shared Infrastructure

7Hudson’s Hope

RidleyTerminals

Fort St John

Chetwynd

4

16

Tumbler Ridge

RidleyTerminal

Quintette Load-OutFacility

(Quintette)

(Wolverine)

(Huguenot)

(Belcourt Saxon)

(Flatbed)

Proposed rail spur(85 km from Quintette load-out facility)

(Wapiti River)

(Trend)

Strategic Location With Significant Partnership Opportunities

● Sharing in the development of joint infrastructure (roads / rail) with operators in the region would lower initial capital costs at Huguenot■ PEA contemplates a standalone railway used solely by

CCIC (overly conservative assumption)■ 85 km rail spur to connect the project to the nearest load-

out facility at Quintette (owned by Teck)

● In reality, the railway would be constructed on a shared basis with other coal producers in the region that would use Quintette loadout■ Huguenot is adjacent to the Belcourt Saxon JV (Anglo

American / Walter Energy)■ Other nearby properties are owned by Teck Resources

and Canadian Dehua (joint venture including major Chinese state-owned steel producers)

● Shared rail would reduce costs and provide practical benefits■ Shared rail line would pass through the various properties,

resulting in shorter length (65 km) ■ Development / operating costs would be distributed across

all operators in the region for greater scale and lower per tonne cost

■ While rail is the preferred mode of transportation in the region, trucking coal is viable but more expensive on a per tonne basis (Walter currently transports 2 million tonnes of coal annually from its Perry Creek mine to Quintette )

7

Page 8: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca

0

1,500

3,000

4,500

6,000

-Y1 Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Surface Underground

Mine Life (years) 31

Capital Cost ($m) $606

Production (mtpa) 3.0

Coal Price ($/t) $192.50

Direct Mine Costs ($/t) $77.84

Off-Site Costs ($/t) $44.67

Cash Cost ($/t) [FOB] $122.51

Power & Building Costs $285

Road & Rail Load-Out Costs $25

Surface Capital Requirements $310

Shafts & Hoists $128

Longwall System $93

Other Underground Costs $75

Underground Capital Requirements $296

Total Capital Costs (Surface & Underground) $606

Discount Rate & IRR

5% 7.5% 10% IRR

$165.00 $680 $407 $230 16%

$192.50 $1,579 $1,100 $780 32%

$225.00 $2,634 $1,910 $1,420 49%

Huguenot Project NPV and IRR(1)

Co

al

Pri

ce(2

)

Operating Cost Details ($/tonne, FOB Port)(1)

Mining Costs $42.87

Labour Costs $21.49

Plant Costs $10.00

Leases & Other $3.48

Direct Mine Costs $77.84

Rail & Load-Out Costs $32.67

Port Costs $12.00

Indirect Mine Costs $44.67

Total Cash Operating Cost $122.51

Clean Coal Production, 9% Ash (kt) [First 10 Years](1)

Summary PEA Statistics(1) Capital Expenditure Details ($ m)(1)

Attractive Project Economics

● Colonial released a Preliminary Economic Assessment ("PEA") for Huguenot in September 2013

● The PEA outlined Huguenot as a standalone project (conservative approach), without shared infrastructure■ PEA contemplates an 85

km rail spur connecting Huguenot to existing rail at Tumbler Ridge

■ A shared rail spur would be shorter in length while the cost to develop and operate would be shared across regional miners

1. As per September 1, 2013; prepared by Norwest Corporation, Total Capital Costs excludes 15% contingency

2. FOB port basis

8

Page 9: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca

Westshore Terminals

Ridley Terminals

PRINCE RUPERT

FORT NELSON

Neptune Terminals

BRITISH COLUMBIA

ALBERTA

SASKATCHEWAN

SASKATOON

REGINA

EDMONTON

FORT MCMURRAY

HAY RIVER

VANCOUVER

CALGARY

PRINCE GEORGE

Bituminous

Sub-bituminous

Lignite

Coal RankInfrastructure

Canada

AB

Peace RiverCoalfield

Huguenot

DawsonCreek

TumblerRidge

Chetwynd

Flatbed65 km from rail load-out facility

FlatbedHuguenot

Available Rail and Port Capacity to Access Export Markets

● Production from Huguenot would be shipped via rail to export terminals on the west coast of British Columbia

● Rail lines out of the Peace River Coalfields are operated by a Class I Canadian carrier (CN Rail, largest railway company in Canada) and have available capacity to support future production from Huguenot■ Coal is transported vial rail approximately

1,000 km to the Ridley Terminal in Prince Rupert

● The Ridley Terminal is a deep water port with 2014 targeted capacity of 24 mtpa (expansion to be completed 2014, current capacity is 12 mtpa)■ One of the deepest, ice free natural

harbours in the world■ 100% owned by the Government of

Canada■ Capable of supporting capesize vessels

(250,000 DWT)■ An ~14 mtpa of capacity will be available in

2014 (post expansion)■ Potential to expand up to 40 mtpa (option is

currently under review)Port Facility / Coal TerminalCN RailwayCP Railway

9

Page 10: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 10

Experienced Management and Board

David AustinChairman, President & CEO

● Founder of Western Coal, NEMI and now CCIC

William FiltnessCFO

● Over 20 years experience as a director or officer for mining companies● CFO of High Desert Gold, South American Silver, and i-minerals and former

CFO of NEMI

John PerryCOO & Director

● Over 35 years experience as a geologist (over 30 years as a consultant): worked on many coal projects in northeastern BC

Wayne WaltersDirector

● Geological consultant and former director of Running Fox Resources and NEMI

Tony HammondDirector

● Chairman and MD of Great Orme Mines and a former director for NEMI

Ian DownieDirector

● Professional negotiator with an established mediation and dispute resolution consulting company

Management Team and Board of Directors

Page 11: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 11

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Supply (m

illion ton

nes)

Num

ber

of O

per

atin

g M

ines

No. of Operating Mines Met Coal Supply ● Western Canada has vast coal resources including some of the world’s highest quality coking coals■ ~23 Mt of met coal exports in 2011■ ~27 Mt of met coal exports expected by 2015

● The region enjoys access to low-cost power, high-quality road and rail networks and major deep water seaports

● British Columbian ports provide the closest port of entry on the west coast of North America to Asia

● Western Canada has seen significant M&A activities■ Walter Energy acquires Western Coal - $3.3bn■ Anglo American acquires 25% of Peace River Coal

held by NEMI and Hillsborough - $166mm ■ Xstrata acquires First Coal and Lossan - $193mm■ Winsway and Marubeni jointly acquire Grande Cache

Coal -$1bn■ Xstrata acquires Sukunka asset from Talisman Energy

- $500mm■ JX Nippon acquires 25% in Xstrata Coal BC JV -

$435mm

Canadian Met Coal Supply by Project

Source: AME, BC Ministry of Energy, Mines and Petroleum ResourcesNote: Shipping Days calculated at vessel speed of 15 knots

Western Canadian Coal Poised for Growth

Access to East Asian Markets

Western Canadian Coal Overview

China

13.8 14.4

Dalian

15.0 16.3

Guangzhou

14.8 16.0

Hong Kong

13.2 14.2

Shanghai

14.2 14.8

Tianjin

Japan

BritishColumbia

Vancouver

Prince Rupert

India

25.2 26.4

Mumbai

11.3 12.6

Kobe

10.6 11.9

Tokyo

22.8 24.0

Chennai

23.1 24.3

Kolkata

12.7 13.0

Pusan

Korea

To Shanghai – 4,642 milesTo Tokyo – 3,830 miles

To Shanghai – 5,092 milesTo Tokyo – 4,280 miles

Closer to Japan than Newcastle:Newcastle to Tokyo – 4,284 miles

00.0

00.0

Shipping Days from Prince Rupert

Shipping Days from Vancouver

Note: Met coal includes all coals directed to metallurgical end markets (i.e. coking coals and PCI coals)

Page 12: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 12

Port Facility / Coal Terminal

CN Railway

CP Railway

Bituminous

Sub-bituminous

Lignite

Western Canadian Coal Companies

Coal RankInfrastructure

World Class Infrastructure

● 3 rail load-out facilities in the Peace River Coalfield

● CN Rail provides access to Ridley Terminals

● Deep-water coal loading facilities at Ridley Terminals Current capacity 12 Mtpa Terminal Modification Project underway to

increase capacity to 24 Mtpa– $200mm project started in August 2011– Development in four phases – P1 complete– P4 completion by early 2015– Further expansion to 30 Mtpa upon

government approval

● No port or rail capacity constraints

Extensive Regional Infrastructure Unencumbered Access to Export Markets

Westshore Terminals

Ridley Terminals

PRINCE RUPERT

FORT NELSON

Neptune Terminals

BRITISH COLUMBI

A

ALBERTA

SASKATCHEWAN

SASKATOON

REGINA

EDMONTON

FORT MCMURRAY

HAY RIVER

VANCOUVER

CALGARY

PRINCE GEORGE

Page 13: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 13

16.3

24.3

29.332.8

40.444.5

54.2

63.0

0

10

20

30

40

50

60

70

2008 2009 2010 2011E 2012E 2013E 2014E 2015E

Pro

du

ctio

n (M

M t

)

Xstrata Colonial Coal Vitol Cardero CoalspurAnglo Walter Energy Grande Cache Sherritt Teck Coal

21.0 21.0 25.0 27.0 27.033.0 33.0 33.0

8.0 8.08.0 8.0 10.0

12.5 12.5 12.5

4.4 4.56.9

9.512.5

12.5 15.024.0

33.4 33.539.9

44.549.5

58.0 60.5

69.5

0

10

20

30

40

50

60

70

2008 2009 2010 2011E 2012E 2013E 2014E 2015E

Ca

pac

ity (

MM

t)

Ridley Neptune Westshore

Expanding BC Port Capacity

● Port capacity available at Prince Rupert (Ridley), Vancouver (Westshore and Neptune) or other alternatives

● Approximately 15 Mtpa will be available for new producers, assuming current expansion plans of BC Ports (including a doubling of Ridley capacity)

● Ridley (and adjacent wharfs) have further expansion potential

● New coal export facilities being developed in NW United States which will further increase available capacity

2008-15E Port Capacity (Mt)

2008-15E Production (Mt) (1)

Source: Company filings, select street research1. Production forecasts included for companies already in production and for those with publicly available mine plans and announced timelines

Available Port Capacity

Page 14: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca

Watson Island Investment Upside

14

● Colonial Coal and an industry partner have entered into an MoU with Lax Kw’alaams Band and Metlakatla First Nations (“Coast Tsimshian Nation”) for the formation of a JV for the potential acquisition of the Watson Island site (“Watson Island Land”)

● The Coast Tsimshian Nation have an exclusive arrangement (“Exclusivity Agreement”) with the City of Prince Rupert to purchase the Watson Island Land

● Colonial Coal and it’s industry partner will compensate the City of Prince Rupert for actual land expenses in accordance with the terms of the Exclusivity Agreement

● The JV will undertake a feasibility investigation in relation to the development of the Watson Island Land

● Watson Island Land offers a potential and exciting solution to expand coal export capacity in British Columbia in light of increasing regional coal production

● The MoU is non-binding and sets out general terms and parameters regarding the potential financing, development and use of the Watson Island Land and certain terms and conditions that are proposed to be included in a definitive agreement

Potential site for establishment of a bulk terminal on Watson Island3

Ridley terminals is reaching its current throughput capacity of 12 Mtpa1

16

16

599

TsimpsianPeninsula

Prince RupertAirport

DigbyIsland

Tuck

Inle

t

Port Edward

Smith Island

KinahanIslands

RidleyIsland

Prince Rupert Grain

Ridley Terminals (Coal)

CN

Rail

Prince

Rup

ert

KaienIsland

Fairview Terminal

Proposed Expansion

To Prince George 724 kmTo Edmonton 1,461 kmTo Vancouver 1,502 km

3

12

Planned site for expansion of Ridley Terminals to 24 Mtpa2

Watson Island

Page 15: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 15

Attractive Market Outlook

Source: AME1. CAGR based on 2011 and 2020E met coal demand

Top 5 Countries by Met Coal Demand (Mt)

-

50

100

150

200

250

300

350

400

2005 2006 2007 2008 2009 2010 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E

Glo

bal S

uppl

y (m

illio

n to

nne

s)

Australia United States Mongolia Russia Canada

Exposure to High Growth Asian Markets

● Favourable global demand dynamics High growth in demand driven by developing countries

such as China and India

● Adverse supply conditions Emerging coal basins facing severe infrastructure

challenges Established coal producing regions suffering from

transportation capacity constraints Natural disasters and chronic weather related disruptions

frequently exacerbate the situation

● Robust pricing environment Industry consolidation will provide coal producers with

increased pricing power Increasing demand, limited supply and constrained

infrastructure will support higher prices in the future

Top 5 Countries by Met Coal Supply (Mt)

20

20

EP

rese

nt

20

05 56.5

18.8 16.5 14.4 10.0

Japan South Korea India Brazil Italy

59.249.1 40.7

24.1 17.2

Japan China India South Korea Brazil

84.2 78.1 77.0

31.9 27.1

China Japan India South Korea Brazil

Top 5 Countries Met Coal Demand CAGR(1) (%)

7.3%

6.2%

5.2%

3.2% 3.1%

India China Brazil South Korea Japan

Page 16: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca

Huguenot Coking Coal Project – 100% Interest

16

Project Location

1. Ratio calculated in-situ volume of waste (BCM) divided by the mass of coal (tonnes)Source: Company disclosure

Project Summary

Belcourt NorthPit Area

ProposedBelcourtPlant Site

Belcourt SouthPit Area

North BlockResource Area

South BlockResource Area

Middle Block Resource Area

Coal Licenses: 6,467 ha.License Applications: 17,550 ha.

N

Colonial Coal Huguenot Project

● Located adjacent to the proposed Belcourt South open pit (owned by Belcourt Saxon Coal Ltd. – Anglo/Walter JV) Similar coal characteristics

● 27 holes and 55 trenches completed in 2008 Focused on the North Block Historical work by Denison - 8 drill holes, 138 trenches

● North Block NI 43-101 report completed in July 2010 Overall theoretical strip ratio of 12.9:1(1) (using an

incremental strip ratio of 20:1(1))

● Middle and South Blocks Drilling in 2011: 33 holes for 6,739 m; additional drilling

in 2012

● Amenable to open pit mining

● 1.5% royalty FOB port

● Located ~140 road-km from Quintette load-out

● 65 km rail as per Belcourt Saxon feasibility study

Huguenot Coal Licences

Huguenot Coal License Applications

Belcourt Saxon Coal Ltd.

Resource Area

Page 17: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 17

Huguenot – Exploration Upside

● Theoretical pit (using an incremental strip ratio limit of 20:1) yields 45.9(1) million tonnes at 12.9:1

● 4 coal seams out of 9 represent 78% of the resources

● Area operators are now considering using an incremental strip ratio of 25:1 to define resources (and overall strip ratios to 15:1) given current market prices

1. Using a 1.0 m thickness cut-off

Huguenot North Block Resource Cross Section

Page 18: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 18

Huguenot – Premium Coking Coal Characteristics

● Premium product clean coal product with low ash, low sulfur, low phosphorus, and High FSI

● Theoretical yield of 72.9%(1)

SeamAsh%

VM%

FC%

S%

FSI% P

(in coal)DmmfVM %

Theoretical Yield %

% Core Rec.

8A(2) 7.85 26.23 65.92 0.44 6.5 0.036 27.85 66.92 94.6

6BCD(2) 6.85 26.05 67.11 0.57 6.5 0.045 27.39 66.62 94.0

6La 9.11 22.92 67.97 0.39 6.0 0.070 24.50 62.94 91.1

5 8.04 23.74 68.22 0.36 6.0 0.036 25.19 85.47 97.3

3B 8.01 23.98 67.06 0.49 8.0 0.026 25.68 62.30 84.3

1 7.70 23.76 68.54 0.40 6.5 0.035 25.13 92.85 90.3

1. Assumes equal contributions from each seam, does not include coal losses or external dilution on mining

2. Includes internal rock bands omitted from resource estimates but expected to be included as part of run-of-mine material

North Block Clean Coal Quality Summary

Page 19: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca

Flatbed Coking Coal Project – 100% Interest

● Property adjacent to Trend and Quintette mines

● Licenses pending

● Potential for large tonnage deposit 100 Mt coking coal resource target

● Property located 15 Km from Quintette loadout

● Potential for a 3rd pipeline crossing of Rocky Mountains to bring in further infrastructure

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Project Location

Colonial Coal Belcourt Saxon JV

Anglo Canadian Dehua

Walter Energy Xstrata

Teck Coal Railway

Coal Mine Pits / Deposits

Project Summary

Perry Creek Mine

Mesa Pit

Hermann Deposit

Shikano Pit

Windy Pit

Window Deposit

Trend Mine

Extension Deposit

Roman Deposit

Honeymoon Deposit

Duke Deposit

PRC Loadout

Quintette Loadout License Applications:

11,500 ha.

Colonial Coal Flatbed Project

Page 20: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 20

Development Timeline

Key Milestones Achieved

Initial 43-101 Resource Estimate – Huguenot (North Block) Q3 – 2010

Commenced Environmental Baseline Studies – Huguenot Q2 – 2011

Applied For Additional Coal Licenses (16,425 ha) – Huguenot Q2 – 2011

Commenced Drilling Program – Huguenot (Middle & South Blocks) Q3 – 2011

Secured MoU With First Nations In Relation To Watson Island Q4 – 2011

Released Updated NI 43-101 Compliant Resource Estimate – Huguenot Q2 – 2012

Initiated Preliminary Economic Assessment – Huguenot Q4 – 2012

Complete Preliminary Economic Assessment – Huguenot Q3 – 2013

Page 21: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 21

Financial Snapshot

Source: Company disclosure, FactSet

Price - Volume ChartCapital Structure

0.0

0.5

1.0

1.5

2.0

$0.00

$0.50

$1.00

$1.50

$2.00

Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14

Vo

lume (m

illions)Sh

are

Pri

ce (C

$)

Share Price (January 20, 2014) (C$) $0.28

Basic Shares Outstanding (mm) 65.1

FD ITM Shares Outstanding (mm) 65.1

Gross Equity Value (C$ mm) $18

52-Week High (C$) $0.78

52-Week Low (C$) $0.25

20-Day VWAP (C$) $0.28

Avg. Daily Vol (3 mo.) (000) 71.9

Current Cash Balance (C$ mm) $3.7

Number of Options (mm) 5.0

Weighted Average Strike Price (C$) $0.77

Management Ownership (%) 21.8%

Institutional Ownership (%) 5.9%

43-101 Compliant Resource (M+I) (mm tonnes) 278

43-101 Compliant Resource (Inferred) (mm tonnes) 119

43-101 Total Resources (mm tonnes) 397

Share Capital

Cash Balance

Options Outstanding

Ownership

Reserves and Resources

Page 22: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca 22

Unparalleled Investment Opportunity

● Invest in one of the largest deposits of premium quality hard coking coal in western Canada Targeted open pit mineable resource of 397 Mt at Huguenot Project (“Huguenot”) Potential for large tonnage deposit at Flatbed Project (“Flatbed”) in proximity to Trend and Quintette mines Extensive historical work completed by Denison

● The only publicly traded pure-play coking coal company in western Canada to have a stake in a port development project Recent MoU regarding potential development of port facility at Watson Island

● Gain exposure to one of the most active coal basins in a mining friendly jurisdiction with excellent infrastructure in place Recent acquisitions by Walter Energy (“Walter”), Anglo American (“Anglo”), Xstrata, and Winsway/Marubeni amongst others Capacity expansion underway at western Canadian ports and new coal terminals being built in north-west United States

● Strategically located leases adjacent to major projects provide logical buyers and partnership opportunities Huguenot located between Anglo’s and Walter’s Belcourt Saxon JV Flatbed located adjacent to Anglo’s producing Trend mine and Teck’s soon to be started Quintette mine

● Highly experienced management team with a proven track record in the Peace River Coalfield Directly responsible for developing two producing mines in the region

● Provides exposure to long-term Asian growth story whilst staying invested in a safe jurisdiction Increasing demand for high quality coking coal driven by long term Asian growth Western Canadian coal projects have cost advantaged access to East Asian markets

Page 23: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca

Rights of Action for Purchasers

Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, Price Edward Island, Manitoba and Saskatchewan:

Securities legislation in Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island, Manitoba and Saskatchewan provides investors in securities of the Company with certain rights of action where an offering memorandum and any amendment to it contains a misrepresentation. These remedies, or notice with respect thereto, must be exercised or delivered, as the case may be, by the investor within the time limits prescribed by the applicable securities legislation.

The following are summaries of these rights. Such summaries are subject to the express provisions of applicable securities legislation, and the rules, regulations and other instruments thereunder, and reference is made to the complete text of such provisions contained therein. Such provisions may contain certain limitations and statutory defences on which the Company and others may rely. These rights are in addition to, and without derogation from, any other right the investor may have at law. Investors should refer to the applicable provisions of the securities legislation of their province for the particulars of these rights or consult with a legal adviser.

For purposes of the following summaries, “Misrepresentation” means an untrue statement of a material fact or an omission to state a material fact that is necessary in order to make a statement not misleading in light of the circumstances in which it was made.

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TSX-V: CAD www.ccoal.ca

Rights of Action for Purchasers, continued

Ontario. If this presentation, together with any amendment to this presentation, contains a Misrepresentation, an investor in the Province of Ontario will have, without regard to whether the Misrepresentation was relied upon by the investor, a statutory right of action against the Company for damages or, at the election of the investor, against the Company, for rescission (in which case the investor will cease to have a right of action for damages), provided that:

1. no action may be commenced to enforce a right of action

a) for rescission, more than 180 days after the date of the transaction that gave rise to the cause of action; or

b) for damages, more than the earlier of (i) 180 days after the investor first had knowledge of the facts giving rise to the cause of action, and (ii) three years after the date of the transaction that gave rise to the cause of action;

2. the Company will not be liable if it proves that the investor purchased the securities of the Company with knowledge of the Misrepresentation;

3. in an action for damages, the Company will not be liable for all or any portion of the damages that it proves do not represent the depreciation in value of the securities of the Company as a result of the Misrepresentation relied upon; and

4. in no case shall the amount recoverable exceed the price at which the securities of the Company were offered to the investor.

The foregoing rights do not apply if the investor purchasing in reliance upon the "accredited investor" prospectus exemption in Section 2.3 of National Instrument 45-106 Prospectus and Registration Exemptions ("NI 45-106") is:

a) a Canadian financial institution (as defined in NI 45-106) or a Schedule III bank, meaning an authorized foreign bank named in Schedule III of the Bank Act (Canada);

b) the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada); or

c) a subsidiary of any person referred to in paragraphs (a) and (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary.

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Page 25: September 2015 Investor Presentation Colonial Coal International Corporation TSX-V: CAD Western Canada’s Leading Coking Coal Developer

TSX-V: CAD www.ccoal.ca

Rights of Action for Purchasers, continued

Nova Scotia. If this presentation, together with any amendment to this presentation or any advertising or sales literature (as defined in the Securities Act (Nova Scotia) (the “Nova Scotia Act”)), contains a Misrepresentation and it was a Misrepresentation at the time of purchase, the investor resident in Nova Scotia will be deemed to have relied upon the Misrepresentation and will have a right of action against the Company and, subject to certain additional defences, every director of the Company at the date of this presentation for damages or, alternatively, while still the owner of the purchased securities, for rescission against the Company (in which case the investor shall have no right of action for damages against the Company or its directors), provided that:

1. no action may be commenced to enforce a right of action more than 120 days:

a) after the date on which payment was made for the securities of the Company; or

b) after the date on which the initial payment was made where payments subsequent to the initial payment are made pursuant to a contractual commitment assumed prior to, or concurrently with, the initial payment;

2. no person or company is liable if the person or company proves that the investor purchased the securities of the Company with knowledge of the Misrepresentation;

3. no person or company (other than the Company) is liable if the person or company proves that (i) the presentation was sent or delivered to the investor without the person’s or company’s knowledge or consent and that, on becoming aware of its delivery, the person or company gave reasonable general notice that it was delivered without the person’s or company’s knowledge or consent, (ii) after delivery of the presentation and before the purchase of the securities of the Company by the investor, on becoming aware of any Misrepresentation in the presentation, the person or company withdrew the person’s or company’s consent to the presentation and gave reasonable general notice of the withdrawal and the reason for it, or (iii) with respect to any part of the presentation purporting to be made on the authority of an expert or to be a copy of, or an extract from, a report, an opinion or a statement of an expert, the person or company had no reasonable grounds to believe and did not believe that (A) there had been a Misrepresentation, or (B) the relevant part of the presentation did not fairly represent the report, opinion or statement of the expert, or was not a fair copy of, or an extract from, the report, opinion or statement of the expert;

4. no person or company (other than the Company) is liable with respect to any part of the presentation not purporting to be made on the authority of an expert, or to be a copy, or an extract from, a report, opinion or statement of an expert unless the person or company (i) failed to conduct a reasonable investigation to provide reasonable grounds for a belief that there had been no Misrepresentation, or (ii) believed that there had been a Misrepresentation;

5. in an action for damages, no person or company is liable for all or any portion of the damages that it proves do not represent the depreciation in value of the securities of the Company as a result of the Misrepresentation;

6. in no case will the amount recoverable in any action exceed the price at which the securities of the Company were offered to the investor; and

7. if a Misrepresentation is contained in a record incorporated by reference into, or deemed incorporated by reference into, this presentation, the Misrepresentation is deemed to be contained in this presentation.

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TSX-V: CAD www.ccoal.ca

Rights of Action for Purchasers, continued

New Brunswick. If this presentation, together with any amendment to this presentation, delivered to an investor resident in New Brunswick contains a Misrepresentation that was a Misrepresentation at the time of purchase, the investor will be deemed to have relied on the Misrepresentation and will have a right of action against the Company for damages or, alternatively, while still the owner of the purchased securities, for rescission, provided that:

1. no action may be commenced to enforce a right of action:

a) for rescission more than 180 days after the date of the transaction that gave rise to the cause of action; or

b) for damages more than the earlier of (i) one year after the investor first had knowledge of the facts giving rise to the cause of action, and (ii) six years after the date of the transaction that gave rise to the cause of action;

2. the Company is not liable if it proves that the investor purchased the securities of the Company with knowledge of the Misrepresentation;

3. in an action for damages, the Company will not be liable for all or any portion of the damages that it proves do not represent the depreciation in value of the securities of the Company as a result of the Misrepresentation relied upon; and

4. in no case shall the amount recoverable exceed the price at which the securities of the Company were offered to the investor.

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TSX-V: CAD www.ccoal.ca

``

Rights of Action for Purchasers, continued

Newfoundland and Labrador. If this presentation, together with any amendment to this presentation or any record incorporated by reference in, or considered to be incorporated into this presentation contains a Misrepresentation and it was a Misrepresentation at the time of purchase, an investor in the Province of Newfoundland and Labrador has, in addition to any other right that the investor may have under law and without regard to whether the investor relied on the Misrepresentation, a right of action for damages against the Company and, subject to certain additional defences, every director of the Company at the date of this presentation for damages or, alternatively, while still the owner of the purchased securities, for rescission against the Company (in which case the investor will cease to have a right of action for damages against any other person), provided that:

1. no action shall be commenced to enforce the foregoing rights:

a) in the case of an action for rescission, more than 180 days after the date of the transaction that gave rise to the cause of action; or

b) in the case of any action, other than an action for rescission, the earlier of: (i) 180 days after the investor first had knowledge of the facts giving rise to the cause of the action; or (ii) three years after the date of the transaction that gave rise to the cause of the action;

2. no person or company is liable if the person or company proves that the investor purchased the securities of the Company with knowledge of the Misrepresentation;

3. no person or company (other than the Company) will be liable if it proves that:

c) this presentation was sent to the investor without the person’s or company’s knowledge or consent and that, on becoming aware of its being sent, the person or company promptly gave reasonable notice to the Company that it was sent without the knowledge and consent of the person or company;

d) the person or company, on becoming aware of any Misrepresentation in this presentation, withdrew the person’s or company’s consent to this presentation and gave reasonable notice of the withdrawal to the Company and the reason for it;

e) with respect to any part of this presentation purporting to be made on the authority of an expert or to be a copy of, or an extract from, a report, statement or opinion of an expert, the person or company had no reasonable grounds to believe and did not believe that: (i) there had been a Misrepresentation; or (ii) the relevant part of this presentation did not fairly represent the report, statement or opinion of the expert, or was not a fair copy of, or an extract from, the report, statement or opinion of the expert; or

f) with respect to any part of this presentation not purporting to be made on the authority of an expert and not purporting to be a copy of, or an extract from, a report, statement or opinion of an expert, unless the person or company (i) failed to conduct a reasonable investigation to provide reasonable grounds for a belief that there had been no Misrepresentation; or (ii) believed that there had been a Misrepresentation;

4. in an action for damages, the defendant is not liable for any damages that it proves do not represent the depreciation in value of the securities of the Company as a result of the Misrepresentation; and

5. in no case shall the amount recoverable exceed the price at which the securities of the Company were offered to the investor under this presentation.

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TSX-V: CAD www.ccoal.ca

Rights of Action for Purchasers, continued

Prince Edward Island. A “Misrepresentation” for purposes of the Securities Act (Prince Edward Island) also includes an omission to state a material fact that is required to be stated by the Securities Act (Prince Edward Island). If this presentation, together with any amendment to this presentation, delivered to an investor resident in Prince Edward Island contains a Misrepresentation and it was a Misrepresentation at the time of purchase, the investor will, without regard to whether the investor relied on the Misrepresentation, have a right of action against the Company and, subject to certain additional defences, every director of the Company at the date of this presentation for damages or, alternatively, while still the owner of the purchased securities, for rescission against the Company (in which case the investor shall have no right of action for damages against the persons described above), provided that:

1. no action shall be commenced to enforce the foregoing rights:

a) in the case of an action for rescission, more than 180 days after the date of the transaction that gave rise to the cause of action; or

b) in the case of any action, other than an action for rescission, more than the earlier of (i) 180 days after the date the investor first had knowledge of the facts giving rise to the cause of the action, or (ii) three years after the date of the transaction that gave rise to the cause of the action;

2. no person or company is liable if the person or company proves that the investor purchased the securities of the Company with knowledge of the Misrepresentation;

3. no person or company (other than the Company) is liable if it proves that (i) the presentation was sent to the investor without the person’s or company’s knowledge or consent and that, on becoming aware of its being sent, the person or company had promptly given reasonable notice to the Company that it was sent without the person’s or company’s knowledge and consent (ii) on becoming aware of any Misrepresentation in the presentation, the person or company withdrew the person’s or company’s consent to the presentation and gave reasonable notice to the Company of the withdrawal and the reason for it, or (iii) with respect to any part of the presentation purporting to be made on the authority of an expert or purporting to be a copy of, or an extract from, a report, an opinion or a statement of an expert, the person or company had no reasonable grounds to believe and did not believe that there had been a Misrepresentation, or the relevant part of the presentation did not fairly represent the report, opinion or statement of the expert, or was not a fair copy of, or an extract from, the report, opinion or statement of the expert;

4. no person or company (other than the Company) will be liable with respect to any part of the presentation not purporting to be made on the authority of an expert or to be a copy of, or an extract from, report an opinion or a statement of an expert unless the person or company (i) failed to conduct a reasonable investigation to provide reasonable grounds for a belief that there had been no Misrepresentation or (ii) believed that there had been a Misrepresentation

5. no person or company is liable with respect to a Misrepresentation in forward looking information if (i) the presentation containing the forward looking information also contains, proximate to the forward looking information, reasonable cautionary language identifying the forward looking information as such and identifying material factors that could cause actual results to differ materially from a conclusion, forecast or projection in the forward looking information, and a statement of the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection set out in the forward looking information; and (ii) the person or company had a reasonable basis for drawing the conclusions or making the forecast or projections set out in the forward looking information. This paragraph does not relieve a person of liability respecting forward looking information in a financial statement required to be filed under Prince Edward Island securities laws.

6. in an action for damages, the defendant is not liable for any damages that is proves do not represent the depreciation in value of the securities of the Company resulting from the Misrepresentation; and

7. in no case shall the amount recoverable exceed the price at which the securities of the Company purchased by the investor were offered.

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TSX-V: CAD www.ccoal.ca

Rights of Action for Purchasers, continued

Manitoba. If this presentation or any amendment hereto contains a Misrepresentation, an investor is deemed to have relied on the Misrepresentation and has a right of action for damages against the Company and, subject to certain additional defences, every director of the Company at the date of the presentation, or alternatively, while still the owner of the purchased securities, a right of rescission against the Company (in which case, the investor shall have no right of action for damages against the persons described above), provided that:

1. no action may be commenced to enforce a right of action:

a) for rescission, more than 180 days after the date of the transaction that gave rise to the cause of action; or

b) for damages, more than the earlier of (i) 180 days after the day that the investor first had knowledge of the facts giving rise to the cause of action, or (ii) two years after the date of the transaction that gave rise to the cause of action;

2. no person or company is liable if the person or company proves that the investor purchased the securities of the Company with knowledge of the Misrepresentation;

3. no person or company (other than the Company) will be liable if the person or company proves that (i) the presentation was sent to the investor without the person’s or company’s knowledge or consent, and that, after becoming aware of its delivery, the person or company promptly gave reasonable notice to the Company that it was sent without the person’s or company’s knowledge and consent, (ii) on becoming aware of the Misrepresentation, the person or company withdrew their respective consent to the presentation and gave reasonable notice to the Company of the withdrawal and the reason for it, or (iii) with respect to any part of the presentation purporting to be made on the authority of an expert or to be a copy of, or an extract from, an expert’s report, opinion or statement, the person or company did not have any reasonable grounds to believe and did not believe that there had been a Misrepresentation, or the relevant part of the presentation did not fairly represent the expert’s report, opinion or statement, or was not a fair copy of, or an extract from, the expert’s report or statement;

4. no person or company (other than the Company) will be liable with respect to any part of the presentation not purporting to be made on the authority of an expert and not purporting to be a copy of, or an extract from, an expert’s report, opinion or statement, unless the person or company (i) did not conduct an investigation sufficient to provide reasonable grounds for a belief that there had been no Misrepresentation or (ii) believed that there had been a Misrepresentation;

5. in the case of an action for damages, the defendant is not liable for all or any part of the damages that the defendant proves do not represent the depreciation in value of the securities of the Company as a result of the Misrepresentation; and

6. in no case shall the amount recoverable exceed the price at which the securities of the Company were offered to the Investor under this presentation.

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TSX-V: CAD www.ccoal.ca

Rights of Action for Purchasers, continued

Saskatchewan. If this presentation, together with any amendment to this presentation, is sent or delivered to an investor resident in Saskatchewan and contains a Misrepresentation at the time of purchase, the investor is deemed to have relied upon that Misrepresentation and will have a right for damages against the Company, every promoter and director of the Company, every person or Company whose consent has been filed respecting the offering, but only with respect to reports, opinions or statements that have been made by them, and every person or company who sells securities on behalf of the Company under the presentation, or alternatively, while still the owner of the purchased securities, for rescission against the Company (in which case the investor shall have no right of action for damages against the persons described above), provided that:

1. no person or company will be liable if the person or company proves that the investor purchased the securities of the Company with knowledge of the Misrepresentation;

2. no person or company (other than the Company) will be liable if the person or company proves that (i) the presentation or amendment was sent or delivered without the person’s or company’s knowledge or consent and that, on becoming aware of it being sent or delivered, the person or company gave reasonable general notice that it was sent or delivered without the person’s or company’s knowledge, or (ii) with respect to any part of the presentation purporting to be made on the authority of an expert or purporting to be a copy of, or an extract from, a report, an opinion or a statement of an expert, the person or company had no reasonable grounds to believe and did not believe that there had been a Misrepresentation, or the relevant part of the presentation did not fairly represent the report, opinion or statement of the expert, or was not a fair copy or extract from the report, opinion or statement of the expert;

3. no person or company (other than the Company) will be liable with respect to any part of the presentation not purporting to be made on authority of an expert, or to be a copy of or an extract from a report, opinion or statement of an expert, unless the person or company (i) failed to conduct a reasonable investigation sufficient to provide reasonable grounds for a belief that there had been no Misrepresentation or (ii) believed there had been a Misrepresentation;

4. in the case of an action for damages, no person or company will be liable for all or any portion of the damages that it proves do not represent the depreciation in value of the securities of the Company as a result of the Misrepresentation; and

5. no case shall the amount recoverable exceed the price at which the securities of the Company were offered to the investor.

Not all defences upon which the Company or others may rely are described herein. Please refer to the full text of the Securities Act (Saskatchewan) for a complete listing.

Similar rights of action for damages and rescission are provided to residents in Saskatchewan in respect of a Misrepresentation in advertising and sales literature disseminated in connection with an offering of securities of the Company.

Where an individual makes a verbal statement to a prospective purchaser resident in Saskatchewan that contains a Misrepresentation relating to the securities of the Company purchased and the verbal statement is made either before or contemporaneously with the purchase of such securities of the Company, the purchaser has a right of action for damages against the individual who made the verbal statement if it was a Misrepresentation at the time of purchase, regardless of whether the purchaser relied on the Misrepresentation.

An investor resident in Saskatchewan to whom this presentation or any amendment hereto was not sent or delivered prior to or at the same time as the purchaser enters into an agreement to purchase the securities of the Company has a right of action for rescission or damages.

No action shall be commenced to enforce the foregoing rights:

a) the case of action for rescission, more than 180 days after the date of the transaction that gave rise to the cause of action; or

b) in the case of any action, other than action for rescission, more than the earlier of (i) one year after the investor first had knowledge of the facts giving rise to the cause of action, or (ii) six years after the date of the transaction that gave rise to the cause of the action;

An investor resident in Saskatchewan who has entered into an agreement for the purchase of securities, which has not yet been completed, and who receives an amendment to the presentation that discloses (i) a material change in the affairs of the Company, (ii) a change in the terms or conditions of the offering as described in this presentation or (iii) securities to be distributed that are in addition to the securities of the Company described in this presentation, that occurred or arose before the investor entered into the agreement for the purchase of the securities of the Company, may within two business days of receiving the amendment deliver a notice to the Company or the agent from whom the securities of the Company are being purchased indicating the investor’s intention not to be bound by the purchase agreement.

If the securities of the Company are sold in Saskatchewan in contravention of Saskatchewan securities legislation or a decision of Saskatchewan Financial Services Commission, a purchaser resident in Saskatchewan may elect to void the purchase agreement, and if the purchaser so elects, the purchaser is entitled to recover all money and other consideration paid by such purchaser for the securities of the Company.

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TSX-V: CAD www.ccoal.ca

Rights of Action for Purchasers, continued

Rights for Purchasers in Alberta, British Columbia and Quebec

By purchasing the securities of the Company hereunder, purchasers in the provinces of Alberta, British Columbia and Quebec who are not entitled to the statutory rights described above, in consideration of their purchase of securities of the Company and upon accepting a purchase confirmation in respect thereof, are hereby granted a contractual right of action from damages or rescission that is substantially the same as the statutory right of action, if any, provided to residents of Ontario who purchase securities of the Company.

General

The foregoing summaries are subject to the express provisions of the applicable securities law of each jurisdiction, and the regulations, rules and policy statements thereunder and reference is made thereto for the complete text of such provisions.

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