July 2013

Virtual Gas Pipeline Solutions

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Sub161 introduction

Provides cost-effective, environmentally-friendly Natural Gas solutions to users of diesel and other crude-based fuels for power generation

Business model centres around delivering Natural Gas to areas not supported by gas pipeline infrastructure

Significantly cheaper than standard diesel and 25% less carbon emissions

Using conventional Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) technologies

Plants designed for flexible mobile solutions without jeopardising plant efficiency

Principals are Nathan Mitchell (Chairman) and Angus Karoll (CEO) who have 20 year track records of success in energy and related businesses

Very experienced team with deep financial, commercial, technical and operational skills

Sub 161 is developing projects in Australia, Tanzania, doing due diligence in Nigeria, and Ghana

Looking for opportunities in Mozambique

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Industry experience: 20 years

• Executive Chairman and Founder of Westside Corporation Ltd (ASX: WCL)

• Initiated the development of a world-scale downstream processing project for ammonia urea in Asia

• President Director and controlling shareholder of PT Westside Agritama, a major provider of logistics and transport services in Indonesia

• Director- Westside Corp. Ltd (ASX: WCL)

I

Industry experience: 25 years

•Owner/CEO – Mitchell Group of companies (Drilling, Ports, Energy, Equipment)

•1989-2008 Mitchell Drilling Contractors (MDC) CEO (2005-2008)

•2003-2008 doubled size of MDC and directed international expansion 2003-2008 doubled size of MDC int and directed international expansion into India, China, USA, Zambia

•Directorships- Tlou Energy Pty Ltd (ASX:TOU), Westside Corp. Ltd (ASX: WCL), VMW Engineering Pty Ltd, Tom Browne International Pty Ltd.

Developing small scale natural gas projects

First mover advantage in relation to partnerships and service providers to enable quick commercialisation of opportunities

Focused on smaller quantities, typically overlooked by industry giants, supplying gas to remote areas for power generation

Highly flexible solution for mobilisation / demobilisation

Small scale distribution – fills niche market of remote diesel replacement and suited to small to medium sized gas resources insufficient to warrant pipelines or as an interim step while pipelines are being developed

Short plant lead time: Sub161 pre-commitments for critical components allows an accelerated construction period

Strong team with deep financial / negotiation / technical and operational skill sets

Competitive advantage Introducing Sub161’s principals

Nathan Mitchell

Chairman

Angus Karoll

Chief Executive Officer

Entrepreneurs with strong operational backgrounds in energy businesses. Proven track records of success in gas businesses

Significant focus on small scale CNG and LNG in order to identify flexible, mobile and fast solutions to get gas to market

Significant financial commitments to Sub161

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Operating through vertically integrated entities, Mitchell Group assimilates knowledge and leverages off existing specialised capabilities in the coal and energy industry to add value to projects.

Mitchell Group Holdings (MGH) is an Australian company that provides corporate services to the Mitchell Group of companies. The Group operates at a global level through entities that specialise in the development and operation of port infrastructure, the delivery of unconventional energy outcomes, and the hire of drilling-related equipment.

Mitchell Ports specialises in the identification, development and operation of flexible marine solutions to provide export capacity for the resource sector.

ME targets coal resources that are stranded by geological, geographic or commercial conditions. Through innovative clean gas extraction or coal conversion technologies, Mitchell Energy turns stranded coal into economically recoverable energy.

MDI is a specialist production and exploration drilling contractor. With over 40 years experience in the resource industry, MDI is an internally recognised expert in CBM, CMM and UCG.

MEH is a niche operator specialising in hiring Triplex Mud Pumps, Drilling Rigs, Compressors and Lighting Towers in Australia and abroad.

With Mitchell Group as a major shareholder, Sub161 is able to leverage off the Mitchell Group experience and capabilities in setting up and managing large international projects

Subsidiary of Mitchell Group

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Delivering greener, smarter & faster energy solutions around the world

Mitchell Group has been working in foreign countries for over 10 years and has set up and developed a number of international projects.

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WestSide Overview

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Commercial in Confidence

LEADING AUSTRALIAN CSG PRODUCER AND EXPLORER

• WestSide (WCL) is a leading Australian ASX listed gas explorer and producer

Owns 2P reserves of 221 PJ1

Operates fully developed 2P reserves of 443 PJ1

Potential to operate 1000 PJ 2P reserves (subject to funding)

• WestSide is currently considering a broad range of alternatives to maximise shareholder

value

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INTRODUCTIONStrategic Alternatives

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)

As at 30 June 2011

Development capability

Angus Karoll established WestSide Corporation Limited (ASX:WCL) and has developed it into one of the largest Australian producing coal seam gas (CSG) juniors.

Mitchell Drilling drilled exploration and production wells in early 2000

Angus assembled a highly skilled management and operations team at WestSide, undertaking integrated operations covering drilling, work overs, completions, pipelines and compression

WestSide gathers low pressure gas and compresses the gas for distribution through high pressure pipelines

WestSide owns and operates significant infrastructure, including:

– 5 compressor stations with 22,000hp installed capacity

– 110 production wells currently in operation

– Two pipelines with a total length of 160km and 60 TJ/of capacity

– Over 25 generators on site

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Virtual pipeline solution

GAS SUPPLY GAS PROCESSING

TRANSPORTATION

POWER SITES POWER GENERATION

Natural gas sourced from gas supplier Natural gas compressed into CNG or liquefied LNG at the gas processing facility

Land transportation via truck using specialised trailers, supplied by Sub 161

LNG regasified or CNG decompressed at the customer site ready for use

Natural gas is used for power generation and supplied to the customer under take-or-pay agreements

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Sub161 – opportunities for customers

2013 – Convert Power Generation (CNG or LNG)

Bi-fuel conversion of diesel generators or end of life replacement with

gas sets at mine site

Delivery of CNG or LNG infrastructure to the mine sites

Capex will depend on generation equipment and estimates to install bi-

fuel kits on the generator

Lower maintenance costs

CO2 reduction – green/clean/reduction in footprint

100% of mine locomotives converted to run on up to 95% gas

Maximising emissions reduction, fuel efficiencies and delivering further fuel and carbon cost savings

2014 – Convert Locomotives (LNG)

Mine haul truck fleets are able to be converted to run on gas (conversion at 95% not available until 2017), 60% conversion is currently available

Maximising emissions reduction, fuel efficiencies and delivering further fuel and carbon cost savings

Regardless of pipelines getting to the mines, there will always be a need for LNG at site for mine haul trucks in the future

2017 – Convert Mine Haul Trucks (LNG)

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Virtual pipeline solution

Video

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Tanzanian project

Phase I of project source gas from an onshore gas well

Initially bring 6mmscf/d of stranded gas on stream

Enough for 25MW of power generation

Gas delivered to customers in Dar es Salaam

Initial CNG to test flow rates and commercial viability of the gas well

Phase 2 will see a small scale LNG facility built

gas to be delivered to areas in the interior of Tanzania, including Mwanza, Dodoma and Songea

Customers will include remote power generation sites and mining companies

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Western Australian project

Sub 161 is currently developing its WA Project

Gas for the plant will be sourced from one of the largest gas supplier in WA

Up to 15TJ/d of gas as will be compressed and delivered to customers within 250km of the facility

Gas transported to end customer using quad road trains

Gas is used as a diesel substitute for up to 50MW of power generation allowing the customers a 30% cost saving and reduces the CO2 emissions by up to 27%

Storage System

From Mother Station

CNG Trailer

Decant Panel

Compressor

Customer facilities

Gas Supply

Inlet Gas Dryer

Compressor(s)

Buffer Storage

Trailer Fill

Panels CNG

Trailers

To the Daughter

Station

Customer Site

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Eastern Australia project

Sub161 together with the Mitchell Group is providing a full gas pre-drainage and distribution solution

- Mitchell Group providing field development plan and drilling management and services

- Sub161 providing all equipment required to compress and transport gas to market

Sub161 will have a gas sale and purchase agreement to take gas on an “as available” basis with the coal mining company

Sub161 has sized the plant within a range to minimise any flaring of gas while maintaining the ability to take peak gas flow from wells

Coal mine provides the gas gathering system to the Sub161 facility

Sub161 plant and equipment located at the mine site and includes a truck loading area and road access for semi trailers

Gas is transported by truck to Sub161 customers

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Sub161 – opportunities in Mozambique

Connect onshore stranded natural gas to market

Replicate model from projects being developed in Tanzania and

Australia

Connect gas fields with the market through Sub 161 virtual

pipeline model

Capture CBM from coal fields

Build a small scale liquefaction facility

LNG to power mine haul vehicles

LNG to fuel locomotives

Transport LNG for remote power generation

Connect Coal Bed Methane to market

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Contact details

Michael Fichardt

Business Development Manager Africa

Cell (SA): +27 761880519

Cell (TZ): +255 756 373 305

Email: m.fichardt@sub161.com