UBS Coal & Iron Ore Conference17 November 2010

Graham Yerbury, CFO

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Legal Disclaimer

This presentation may contain certain unaudited financial information in relation to the Macarthur Coal group for the current financial year. As such, it has not been subject to an audit or an audit review process or otherwise independently verified and may change as a result of the audit process currently being undertaken.

This presentation may contain certain forward looking statements. Such statements are only predictions, are based on certain assumptions and involve known and unknown risks, uncertainties and other factors, many of which are beyond Macarthur Coal’s control.

Actual events or results may differ materially from the events or results expected or implied in any forward looking statement.

The inclusion of such statements should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions or that any forward looking statements will be or are likely to be fulfilled.

Macarthur Coal undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation (subject to securities exchange disclosure requirements).

The information in this presentation does not take into account the objectives, financial situation or particular needs of any person. Nothing contained in this presentation constitutes investment, legal, tax or other advice.

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• FY2010 in review

• FY2011 YTD and Performance outlook

• Sustainable Growth

• Conclusions

Agenda

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FY2010 in Review - Highlights

• Safety Performance better than industry average

• Net Profit After Tax (NPAT) of $125.1 million – top end of market guidance despite lower demand and coal prices (vs 2009 FY)

• Record level of coal sales at 5.3 million tonnes (target of 4.6 million tonnes) following the early decision to return both Coppabella and Moorvale mines to full production

• Strong financial position with robust operating cashflows due to recovery in export markets and equity raising

• Fully franked dividend for 2010 FY of 25 cents per share – representing 50% dividend payout ratio

Macarthur captured higher value LV PCI sales as the market recovered

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FY2010 in Review – How we performed

FY2010 Strategic Priority

Achievements , Initiatives & Challenges

Safety Company Total Recordable Injury Frequency Rate (TRIFR) 17.9

People Employee turnover reduced significantly

Operational Excellence

Record annual sales record of 5.3Mt for FY2010Shovel and excavator production records at CoppabellaOverburden removal and CHPP feed records achieved at Moorvale Milestones in Carbon Action Plan met and 58 hectares rehabilitated

Cost Focus ERP System implemented 2010 FOB mining costs per tonne reduced from FY2009 Tier 1 tyre contract signed with Bridgestone for radials

Sustainable Growth

$11.1m spent on exploration and evaluationJORC Resources1 increased by 22% to 122.6Mt at Middlemount1

Middlemount Mining Lease granted & MLA 70417 lodgedBelow and above rail contracts executed to match Abbot Point and DBCT port capacity

Commitment to strong performance and finding new customers

¹ Refer to slide 25 and 26 for Competent Person Statements

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FY2010 in Review – Safety

A key component of our Operational Excellence goal

Source (Queensland Industry Standard vs Coppabella and Moorvale)

• Commitment to improving workforce safety at all sites

• Overall TRIFR of 17.9 – under Qld. Industry Standard

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FY2010 in Review – NPAT

• NPAT of $125.1 million achieved despite reduced demand and lower sales price

• Coal sales up 14% to 5.3Mt, with higher proportion PCI sales

• Reduction in costs/tonne due to lower royalties, transport charges and site rehab.

• Middlemount derivative impact of $21.8 million due to increase in value of project

NPAT supported by increased production volumes, FX hedges and lower royalties

168.6

125.1

40.8

(161.6)

42.6

49.5 1.4

(21.8)

5.6

0

50

100

150

200

250

FY09 Volume Sales Prices FX and Hedging Costs Equity Accounted

Losses

Middlemount Derivatives

Other FY10

NPAT AnalysisYear ended 30 June 2009 vs 30 June 2010

$ Million

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• Macarthur has delivered value to shareholders since listing in July 2001 at $129m Market Capitalisation and has paid $250 million in total dividends

• TSR for FY2010 was 88%, compared to 13% for ASX Top 200 companies

• TSR since listing has been 1,084%, compared to 80% for ASX Top 200

• TSR of 93.7% and ranking of No. 5 of ASX Top 300 over the last 3 financial years

FY2010 in Review – Total Returns

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%

1800%

2000%

Jun 2001 Jun 2002 Jun 2003 Jun 2004 Jun 2005 Jun 2006 Jun 2007 Jun 2008 Jun 2009 Jun 2010

MCC ASX200 ASX200 Resources

Total Shareholder Return% Return

Source: Thompsonreuters

Management focused on creating shareholder value

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FY2010 in Review – Coal Markets

• Responded to changing market positions with sales to China

• Traditional customers have returned as the global economy has recovered

• Macarthur has focused on increasing LV PCI sales from Moorvale Mine (versus thermal coal)

• Record sales achieved with Macarthur’s surplus DBCT port capacity

• Quarterly sales pricing commenced June 2010 quarter

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10

Mil

lio

n t

on

ne

s

Traditional Non Traditional LV PCI %

Coal sales structure

Focus on maximising LV PCI coal sales

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Steel Markets - Asia dominates

• Asia ex-China steel production remains robust with expectation of increased China production

• World ex-Asia recovering with demand recovery tightening the coal market

• China steel production higher than pre GFC but slowed in the September quarter due to seasonal weakness, Government closure of inefficient mills and drive to reduce power consumption

• We expect ageing coke ovens and blast furnace expansions to create stronger differential growth for LV PCI

Global steel production higher than pre-GFC levels, driven by China

0

200

400

600

800

1000

1200

1400

Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10

China Asia (ex China) South America North America EU

Annualised Crude Steel Production(Million tonnes)

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Coal and Steel Markets - China

China has emerged as a new market for seaborne metallurgical coal

Source: Energy Publishing Pty Ltd

• We see China’s steel production increasing due to continued infrastructure development, industrialisation and urbanisation

• Strong imports of coking coal into China since March 2009 and we expect this to continue given the higher quality and comparable landed cost of supply

• Seaborne Met coal market ~250Mtpa; China has emerged to become one of the top three importing countries globally

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38

52

34

44 46 45

-19 -20-17 -16 -14

-23-18

-8

-30

-20

-10

0

10

20

30

40

50

60

Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sept 10

Coking coal imports from ROW Coking coal exports Coke exports

China import vs export annualised tonnage (Million tonnes)

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Global pig iron production to 2020 Asia is dominant in pig iron production. Global total exceeds 1bt in 2010 and reaches almost 1.7bt by 2020 with Asia 73%; China will be around 56% and India over 12%.

Source : H & W Worldwide Consulting

China

Asia ex China

Europe

N AmericaS America

CIS

Other

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

millio

n t

on

nes

Asia will continue to dominate steel production in the near term

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FY2011 Year to Date

• December quarter has seen seasonal weakness and destocking with lower sales prices, but recent rebound in Chinese steel prices and improved demand has seen increases in spot prices

• Expectation of improved conditions in March 2011 quarter for MET coal sale prices

• Hedging of December quarter contracts offset current higher AUD

• Infrastructure delays easing in the first half to December 2010

• Middlemount development on schedule but commissioning of CHPP delayed, given insufficient coal due to operations not yet commenced

• Exploration drilling affected by the recent wet weather

• Completion of Institutional Placement and Share Purchase Plan of $A494m, used for MDL162 transaction and to fund future growth

• Macarthur joined ASX Top 100

Macarthur remains on track to deliver production target for FY 2011

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FY2011 Performance Outlook:FOB cost evolution

FOB cost increases due to increased LV PCI prices and step change in operating costs

29.3

50.3

5.1

5.8

2.8

5.3

2.8

4.9

4.6

8.8

0

10

20

30

40

50

60

70

80

90

100

FY2005 FY2010 FY2011

$A

/t s

old

MCC FOB cost $A/t evolution

Mining, processing and site overheads Rail Port Demurrage Royalties FY10 FY11 increase

Mining, processing

and site overheads

40%

Rail20%

Royalties40%

•Mining cost increase due to terrace

mining and higher proportion of LV

PCI sales at the Moorvale Mine and

increased strip ratio at the Coppabella

Mine

•Increased rail costs due to transition

to cargo assembly rail contract

Royalty

40%

Mining

Processing and

Site O/H

40%

Rail

20%

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• H1 forecast NPAT range is $115m to $125m prior to any necessary non-cash accounting adjustments, based on 2.5 to 2.7 Mt of sales

• Global steel production has contracted slightly over the September quarter however strong growth is forecast from China, India, and Brazil

• Currently too many uncertainties to provide profit guidance for FY2011, particularly with quarterly sales prices and foreign exchange rates

• Despite unseasonal wet weather Macarthur currently remains on track to reach sales target of 5.0Mt, with target of 93% LV PCI coal sales

• Cost management will continue to be a focus with FOB costs increasing due to higher mining strip ratio at Coppabella, terrace mining at Moorvale and higher rail costs due to cargo assembly contracts

• DBCT port throughput and wet weather could impact sales and/or costs

• Increased capex spend for additional fleet at Coppabella due to increased strip ratio ($40m), water management infrastructure at both sites ($9m) and CHPP maintenance ($4m)

FY2011 Performance Outlook

H1 2011FY forecast NPAT range is $115 to $125 million

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Macarthur has a significant development pipeline, which is its primary focus

• Codrilla feasibility study due for completion in December 2010

• Willunga pre-feasibility study due for completion in December 2010

• Concept Study for West Rolleston complete by June 2011

• Monto pre-feasibility Stage 2 under evaluation

• Pre-feasibility study work on MDL162 tenement acquisition

Sustainable Growth – Organic and M&A

Focus is to progress evaluation of tenement portfolio & announce 4th mine by end of CY2010

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Sustainable Growth – Organic and M&A

Continued utilisation of infrastructure post 2020 and further development of tenement portfolio

O/C – Open Cut

U/G – Underground

Extn’s – Extension projects

ODN – Olive Downs North

2009 2014 2020

Current Port and Rail capacity

Future Port and Rail capacity

Wig

gin

s Is

lan

d, A

bb

ot

Po

int

and

DB

CT

exp

ansi

on

s

Post 2020

DB

CT

Ab

bo

tt

Po

int

Moorvale O/C , U/G, ODN+ Extn's

Codrilla or Willunga tenement development

Middlemount

Coppabella O/C, U/G, +Extn'sCoppabella O/C

Moorvale O/C + ODN

Development o f tenement portfolio including MDL 162

Macarthur has a significant Resource base (1,635.9 Mt) that will be exploited through current infrastructure post depletion of current reserves (180.7 Mt)

Macarthur is currently working to convert a number of it’s resources into reserves

Future growth dependent on the development of Queensland infrastructure, particularly Wiggins Island

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• Port contract at DBCT has increased from 7.7Mtpa to 8.2Mtpa (equity share), 5.1Mtpa for CMJV and 3.1Mtpa for the fourth mine

• Abbot Point allocation (via Northern Missing Link) of up to 3Mtpa (100%), Macarthur share 2.1Mtpa (at 70% current MCC share) being allocated to the Middlemount project

• New rail contracts with Pacific National matches DBCT and APCT port allocation

• EOI at Wiggins Island provides prospect for growth beyond 2014

Sustainable Growth - Infrastructure

Infrastructure capacity, funding and projects in place for future growth to meet 9.2Mt sales by 2014

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2011 2012 2013 2014 2015 2016 2017

Dalrymple Bay Coal Terminal Abbot Point Coal Terminal

MCC equity share (Middlemount 50% ownership)

Equity share of port contractsMillion tonnes per annum

Bars include MCC ownership of Middlemount at 70%.

Line includes MCC ownership of Middlemount at 50%

from AFY13 onwards

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• Ownership – Macarthur Coal 70%, Noble (Gloucester) 30% with Noble (Gloucester) holding an option to purchase another 20% equity in the project for $100 million exercisable after CHPP commissioning

• Initial Proved and probable reserve of 57.0Mt1 and JORC resources of 122.6Mt

• Mining Lease granted in September 2009 for a mine with production capacity of 1.8Mtpa ROM - expected in FY20122

• Expected product mix of up to 70% Semi-hard Coking coal and 30% LV PCI

• Construction of the CHPP has been completed with trial coal processed in September 2010, commissioning is to occur when coal is available

• Rail spur construction has commenced with completion expected during the second half of the 2011 calendar year

• EIS to increase production above 1.8Mtpa to be submitted by end of December 2010

Sustainable Growth - Middlemount Mine

Middlemount development progressing on schedule

1. Refer to slides 25 and 26 for Resources and Reserves Table and Competent Person Statements’ 2. Production limited to 1.8Mtpa ROM for Stage 1 until receipt of EIS for Stage 2 for up to 5.4Mtpa ROM, with approval expected December 2012 half

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• Ownership – Macarthur Coal 85%, CITIC 15%

• JORC Resource 79.5Mt1

• Feasibility study to be completed by the end of Dec 2010 upon completion of further mine planning options

• A draft Environmental Impact statement (EIS) for Codrilla is expected to be submitted for public comment by the end of the December Quarter 2010

• The project could produce up to 4.0Mtpa ROM converting to 3.2Mtpa product coal –predominantly LV PCI

• A stand alone CHPP to be constructed with the product coal hauled to Moorvale for rail loadout

• If a decision to proceed with the project were made, operations could commence in FY2013, subject to EIS and other regulatory approvals.

Sustainable Growth - Codrilla

Feasibility study to be completed by late 2010

1. Refer to slides 25 and 26 for Resources and Reserves Table and Competent Person Statements’

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• Ownership – Macarthur Coal 85%, CITIC 15%

• JORC Resource for 164.6Mt1 Vermont East / Willunga

• Pre-Feasibility Study for Willunga due for completion in late 2010 for 4.0Mt ROM open-cut mine

• Considered a potential development alternative to the Codrilla project or future development post 2014 via Wiggins Island Coal Terminal

• If a decision to proceed with the project were made, operations could commence post 2014, subject to EIS and other regulatory approvals

• Extensive exploration of the Willunga area was undertaken during the year and significant increase in JORC resource expected in FY2011

• Willunga exploration area is anticipated to produce LV PCI and thermal coal

Sustainable Growth - Vermont East / Willunga

Potential development alternative to Codrilla or future development post 2014

1. Refer to slides 25 and 26 for Resources and Reserves Table and Competent Person Statements’

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FY2011 Strategic Priority

Achievements , Initiatives and Challenges

Safety PerformanceCompany TRIFR less than 20.2, with 17.9 for operating mines.

People Focus Turnover to be 15% or less

Operational ExcellenceSales target of 5.0Mt coal sold and 6.8Mt ROM coal mineNo major environmental non-conformancesMaximise metallurgical coal sales with target of above 95%.

Cost ManagementReduce owner operator overburden mining costs ($/bcm) at Coppabella MineReduce mining costs at Moorvale to below 2011FY budget.

Sustainable Growth

Middlemount CHPP commissioned and rail line construction commencedContinue $18.8m in exploration and evaluation programmeCompletion of Codrilla feasibility study, Willunga pre-feasibility study and West Rolleston Concept StudyAnnounce 4th mineTargeted increased resources and reserves.

Sustainable Growth - FY2011 Focus

Macarthur is agile and has identified key targets for FY2011

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• NPAT guidance of $115 to $125 million for December 2010 half based on 2.5 to 2.7Mt

• Middlemount Mine development is on schedule with first coal sales planned in late FY2012

• Macarthur remains committed to producing 9.2Mt of sales by FY2014 and has the necessary projects, infrastructure and funding in place to support this growth

• Macarthur Coal is well positioned to meet future demand as steel production increases in all the major regions, particularly Asia

Conclusions

Macarthur is well positioned for growth and has a strong operational focus

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Questions

25

JORC Resources as at 30 June 2010

• Resources and Reserves on a 100% basis decreased by 10% and 1% respectively

Increased resources at Middlemount during FY2010

Refer to slide 26 for Competent Person Statements

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Competent Person Statements

Strong focus on exploration

Refer to slide 25 or the Resources and Reserves table

All Resources comply with the JORC Code 2004. Monto was re-modeled in 2009 and Coal Resources now comply with the 2004 edition of the JORC Code

resulting in a reduction in Coal Resources reported.

All Reserves reported in the above table are components of the reported Resources. Moorvale Underground Coal Reserves are based and reported on

JORC Coal Resources as at June 2009.

The information in this report that relates to Coal Reserves at Coppabella and Moorvale mines and the Middlemount Mine project is based on information

compiled by Mark Bryant, BE Mining (Hons), MAusIMM (1). Mark Bryant is a member of The Minserve Group Pty Ltd (ABN 43 010 995 767).

The information in this report that relates to Coal Resources at Coppabella and Moorvale mines is derived from geological modelling by Mal Blaik BScApp

(Geol) (Hons), MAusIMM, (2). Mal Blaik is employed by JB Mining Services Pty Ltd (ABN 99 050 708 596).

The information in this report that relates to Coal Resources at Olive Downs North, Vermont East/Willunga and Codrilla, is derived from geological modelling

by Greg Jones BSc (Hons) MAusIMM, MAIG (3) from data compiled by Rees Thomas, which updates prior information compiled by Lance Grimstone BSc

(Hons) (Geol), Grad Dipl Mngt, FAus IMM, MMICA (4). Greg Jones is employed by JB Mining Services Pty Ltd (ABN 99 050 708 596). Rees Thomas is

Chief Geologist for Macarthur Coal Limited. Lance Grimstone is employed by Lance Grimstone & Associates (Consulting) Pty Ltd (ABN 23 114 977 829).

The information in this report that relates to Coal Resources at Moorvale West, Olive Downs South and West Rolleston is derived in part from geological

modelling by Greg Jones BSc (Hons) MAusIMM, MAIG (3) with information compiled by LanceGrimstone BSc (Hons) (Geol), Grad Dipl Mngt, FAus IMM,

MMICA (4). Greg Jones is employed by JB Mining Services Pty Ltd (ABN 99 050 708 596). Lance Grimstone is employed by Lance Grimstone & Associates

(Consulting) Pty Ltd (ABN 23 114 977 829).

The information in this report that relates to Coal Reserves at Olive Downs is based on information compiled by Alwyn Hyde-Page, BE Mining (Hons),

FAusIMM CP (5). Alwyn Hyde-Page is a member of The Minserve Group Pty Ltd (ABN 43 010 995 767).

The information in this report that relates to Coal Resources at Monto is based on information verified by David Broome B App Sc, MAIG

(8), a consultant of JB Mining Services. .

The information in this report that relates to Coal Resources at Middlemount is derived from geological modelling by Greg Jones BSc (Hons) MAusIMM,

MAIG (6) from data compiled by Rees Thomas. Greg Jones is employed by JB Mining Services Pty Ltd (ABN 99 050 708 596). Rees Thomas is Chief

Geologist for Macarthur Coal Limited.

The information in this report that relates to the Underground Coal Reserves at Moorvale is based on information compiled by Jack Steenekamp,

BEng(Min)(Hons), BEng(Mech), MBA, FAusIMM (7). Jack Steenekamp is employed by Mining Consultancy Services (Australia) Pty Ltd.

Mark Bryant, Mal Blaik, Greg Jones, Lance Grimstone, Alwyn Hyde-Page, Jack Steenekamp and David Broome have sufficient experience which is relevant

to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as

defined in the 1999 and 2004 editions of the Australasian Code of Reporting of Mineral Resources and Ore Reserves.

Mark Bryant, Mal Blaik, Greg Jones, Lance Grimstone, Alwyn Hyde-Page, Jack Steenekamp and David Broome consent to the inclusion in the report of the

matters based on the information in the form and context in which it appears.