www.bandannaenergy.com.au REGISTERED & PRINCIPAL OFFICE SYDNEY OFFICE Level 12 Suite 2, Level 1 410 Queen Street 80 Mount Street BRISBANE, QLD 4000 NORTH SYDNEY, NSW 2060 T: 61 7 3041 4400 T: 61 2 9923 1520 F: 61 7 3041 4444 F: 61 2 9923 1528 www.bandannaenergy.com.au

13 October 2011 ASX RELEASE/ MEDIA RELEASE General Manager, The Company Announcements Office Australian Stock Exchange Limited Electronic Lodgement System Dear Sir,

Wilson HTM Presentation Please find attached a copy of the presentation made by Dr Ray Shaw in Brisbane today. Yours faithfully, BANDANNA ENERGY LIMITED

Matthew Scott Company Secretary

1www.bandannaenergy.com.au

Presentation for Wilson HTMby

Bandanna Energy Limited

October 2011

2

Important Notice

This presentation (Presentation) has been prepared by Bandanna Energy Limited (ABN 34 009 356 665) (Bandanna).Summary informationThis Presentation contains summary information about Bandanna and its activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete. It should be read in conjunction with Bandanna’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.Not financial product adviceThis Presentation is for information purposes only and is not a prospectus under Australian Law financial product or investment advice or a recommendation to acquire Bandanna shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Bandanna is not licensed to provide financial product advice in respect of Bandanna shares. Cooling off rights do not apply to the acquisition of Bandanna shares.Financial dataAll dollar values are in Australian dollars (A$) unless other stated. Future performanceThis presentation may contain certain statements and projections provided by or on behalf of Bandanna with respect to anticipated future undertakings. Forward looking words such as, “expect”, “should”, “could ”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. These forward-looking statements reflect various assumptions by or on behalf of Bandanna. Accordingly, these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control of Bandanna which could cause actual results or trends to differ materially, including but not limited to price fluctuations, exploration results, ore reserve and mineral resource estimation, environmental risks, general operating risks, commodity, legislative and regulatory changes, project delay, ability to meet additional funding requirements, factors relating to title to properties, native title and aboriginal heritage issues, dependence on key personnel, share price volatility, approvals and cost estimates. Consequently, there can be no assurance that such statements and projections will be realised. Neither Bandanna, or any of its affiliates, advisers, consultants, agents or any of their respective officers or employees make any representations as to the accuracy or completeness of any such statement of projections or that any forecasts will be achieved. Such forward-looking statements only speak as to the date of this Presentation and Bandanna assumes no obligation to update such information.

Important Notice

3

Asset Locations> Over 1.5 billion tonnes of JORC-code compliant resources situated within two of

Australia’s most prospective coal bearing regions

Overview of Bandanna’s Assets

4

> The largest thermal coal resource inventory of an ASX-listed, coal developer> Delineated approximately 1,534Mt of total JORC compliant resource 147Mt of

JORC compliant reserve*> ~950Mt resource in Bowen Basin assets (100% owned) and ~590Mt in

Galilee Basin asset (net to Bandanna)> ASX 300 listed Company> Recent $100 mil capital raising, clear path to first production in 2013 and 2014> Port-Rail supply chain solution following WIRP Agreement with QRN and WICET

following financial close. > Focused on bringing Bowen Basin projects into production. > Unique opportunity to develop large scale, high quality projects in an established

coal mine producing area of the Bowen Basin. > Shorter term development of Dingo West, PCI project of ~1 Mtpa> Only ASX listed company with significant mine development exposure in the

Galilee Basin* Refer Statement of Compliance at rear of presentation.

ASX:BND –a snap shotBandanna Profile

5

Asset LocationsOver 1.5 billion tonnes of JORC-code compliant resources situated within two

of Australia’s most prospective coal bearing regions

Overview of Bandanna’s Assets

6

Resources and reserves

ProjectResources (Mt) Reserves

(Mt)Measured Indicated Inferred Total

Springsure/Arcturus/Arcadia – 232 622 854 147Dingo West – – 91 91 –South Galilee2 83 103 403 589 –TOTAL 83 335 1,116 1,534 147

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

1 As at 27 July 20112 Net to Bandanna (50% interest)3 Figures may not sum due to rounding

Resources and Reserves

Over 1.5 billion tonnes of JORC-code compliant resources situated within two of Australia’s most prospective coal bearing regions

7

WICET developments

> Bandanna is a Stage 1 owner of the 27Mt development at WICET, located at the Port of Gladstone

> Over the past 12 months, Bandanna has/is:> secured an initial 4Mtpa allocation at WICET

Stage 1 and executed a Take Or Pay agreement;

> reached a commercial agreement with QR network for a below rail solution using the Blackwater corridor;

> negotiating for a further 5Mtpa allocation at WICET Stage 2(a);

> enquired about an additional 7Mtpa allocation at WICET Stage 2(b); and

> enquired about additional capacity at WICET Stage 3

> Bandanna has nominated annual capacity of 8Mtpa under the Feasibility Funding Facility Agreement (“FFFA”) which may grant it priority in future allocation rounds

WICET overview

InfrastructureInfrastructure Access : Unlocking the future

8

Conceptual regional development plansOverview of Bandanna’s Assets –Bowen Basin

> Comprises Springsure Creek, Arcturus and Arcadia, all 100% owned

> All tenements are located within 50km of each other

> Close proximity to existing Blackwater–Gladstone rail infrastructure network

> Located in well established coal mining province with highly skilled work force

> access to services and general mining infrastructure

> Over 800Mt of JORC compliant resources, capable of underpinning multiple mine development

9

Springsure Creek Project - GeologyOverview of Bandanna’s Assets –Bowen Basin

> The Springsure Creek Project (EPC 891) is located in the southern Bowen Basin, approximately 35km south east of Emerald township

> Project area focused on Aries 2 Seam, on Springton Anticline> average thickness of Aries 2 Seam is 3.0m at depths of 200 –

260m.> recent upgrade in reserves from 49Mt to 102.6Mt and

resources from 324.2Mt to 374.5Mt> underground, raw thermal coal opportunity – located within

20km of existing rail infrastructure

10

Springsure Creek Project

> Feasibility Study completed, confirming strong project economics> potential for 2 longwall operations to produce

11Mtpa

> LOM growth capital costs of approximately $1.1bn (two longwalls)

> NPV of approximately $843m

> well positioned on the cost curve when compared against emerging mines in Australia

> life-of-mine (LOM) average operating cost of $65.40/t (incl. royalties)

> Currently drilling with 2 rigs.

> To be included in the Transitional Arrangements with respect to proposed Strategic Cropping Land legislation

> Currently progressing environmental and approvals processes and DFS.

Overview of Bandanna’s Assets –Bowen Basin

11

Arcturus Project

> Arcturus Project (EPC 1221) is located in the southern Bowen Basin, approximately 30 km south east of Emerald township> total JORC resource of 206.4Mt,

including 102.6Mt indicated resource

> a maiden marketable reserve of 44.3Mt has also been delineated

> potential for joint development with Springsure Creek

> can be developed as an open cut / underground mine or as a stand alone underground mine to produce up to 5Mtpa

> Feasibility Study completed, confirming strong project economics

> Currently progressing environmental and approvals processes – subject to full SCL

Overview of Bandanna’s Assets –Bowen Basin

12

Arcadia Project

> Exploration focused on PurbrookAnticline

> Integrated study commissioned in 2010 involving the establishment of a single high production underground longwall

> Coal quality testing indicates the potential for a raw thermal coal, or a washed semi-soft coking product and lower ash thermal coal

> JORC Inferred Resource of 273Mt

> Project economics have not been evaluated on a stand alone basis

Overview of Bandanna’s Assets –Bowen Basin

13

Dingo West Project- near term production potential> Located in the Bowen Basin on the

Blackwater rail line> Near term 1Mtpa PCI project, with first coal

expected early 2013> can currently be accommodated within the

existing port capacity at Barney Point on an ad hoc basis

> Total JORC resource of 91Mt> Active drilling program underway> further resource definition expected in Q4

2011> Feasibility Study completed, confirming

strong project economics> life-of-mine (LOM) average operating cost

of $102.20/t (incl. royalties)> LOM growth capital costs of approximately

$133.5m> NPV of approximately $210m

> Mining Lease Application submitted

Overview of Bandanna’s Assets –Bowen Basin

14

Dingo West Project - Mine DevelopmentOverview of Bandanna’s Assets –Bowen Basin

> The selected mine design consists of three pits, producing up to 1.3Mtpa ROM coal using open cut mining methods

> Coal seam cumulative thickness is 3.5m to 4.5m in the target areas down to the basal Pollux Seam

> The mining method will be truck and shovel for overburden removal with a coaling fleet of excavators and trucks

> Pit selection was undertaken by Xenith Consulting using a Margin Ranking process, with the basal seam constraints applied to the Pollux Seam

15

South Galilee J.V. ProjectOverview of Bandanna’s Assets -Galilee Basin

> Located 180 km west of Emerald and 12km south-west of Alpha

> Large thermal coal project in Galilee Basin, adjacent to high-profile emerging projects> total JORC resource of 1,179 Mt> Based on over 34,000 m of drilling involving 162

open holes, 118 partially cored holes and 16 fully cored holes.

> Recently completed Pre-Feasibility Study indicates mine life in excess of 30 years> significant upward scalability expected with further

drilling during DFS stage > Achievable development timetable - series of

open-cut and longwall operations> 16.6 Mtpa peak production> targeting high quality D1 and D2 seams

> Declared Project of State significance in July 2010

> EIS and other approvals well advanced—mining lease application lodged in May 2011

16

Exploration & Coal ResourcesOverview of Bandanna’s Assets -Galilee Basin

> Principal targets are the D1 and D2 seams> 711.2Mt total resource from D1 seam, 467.2Mt resource from D2 seam> three plies, 0.5 to 4.5 metres in thickness> high volatile sub bituminous coal yielding high quality thermal product> conditions are ideal for high production open-cut and underground mining

operations

17

South Galilee J.V. ProjectOverview of Bandanna’s Assets -Galilee Basin

Pre-feasibility study identified an open-cut and underground operation with LOM >30 years and average production circa 13-15 Mtpa

18

Galilee Basin – Infrastructure rail solutionsOverview of Bandanna’s Assets -Galilee Basin

19

> T1 expansion nearly complete

> T2-T3 BHP and Hancock

> “T4 –T7” expansion is expected to be complete by FY2017

> South Galilee Joint Venture has submitted EOIs for T4-T7 access

> Offers strategic potential for early production of low ash coal during basin production ramp up.

Overview of Bandanna’s Assets -Galilee Basin

Galilee Basin – Abbot Point Port solutions

20

ASX:BND – conclusionsBandanna Profile

Funding$125 million cash in bank, fully funded to complete DFS on key projects as part of program for production in 2013 and 2014

AssetsLargest thermal coal inventory on ASX; only ASX

company with significant mine development in Galilee Basin

Reserves Significant mineable reserves identified in Bowen Basin

Mine Development Underway, EIS and DFS projects for Arcturus, Springsure Creek and Dingo West.

Rail –Port Supply Chain

Solved : Rail access agreement in place for Blackwater corridor , 4 Mtpa allocation in WICET Stage 1, 5 MtpaEOI for WICET Stage 2a including 8 Mt FFFA nominated capacity

Opportunity Implied metric EV/Resource t of approximately 27c

21

Thank You

Bandanna Energy LimitedLevel 12, 410 Queen Street, Brisbane,

Queensland

Tel : 61 7 3041 4400Web Site www.bandannaenergy.com.au

22

Additional Materials-coal quality

South Galilee Dingo West Arcturus Springsure Ck Arcadia Golden

Triangle

Air

Dried As Rec’d Air Dried

As Rec’d

Air Dried

As Rec’d

Air Dried

As Rec’d

Air Dried

As Rec’d

Air Dried

Moisture % Total 10.0 15.0 15.0 9.0 13.6

Proximate Analysis I.M. 6.7 1.5 8.5 8.0 4.5 7.3

Ash 11.0 7.8 8.5 13 14 10.2 11 13.3 14.0 12.2

Volatile Matter 34.8 13.6 14.9 26.7 28.8 26.2 28.4 28.6 30.0 28.6

F.C. 47.5 68.7 75.2 45.3 48.7 48.6 52.7 49.1 51.5 51.9

Total Sulphur (%) 0.81 0.55 0.60 0.34 0.37 0.23 0.25 0.33 0.35 0.30

Phos. (%) 0.073 0.080 .06

Chlorine (%) .004 0.05 0.06 0.01 0.01 0.03 0.03 0.04 0.04 .02

Cal Value Gross (Kcal/kg) 6,352 6,990 7,650 5,540 5,960 5,830 6,310 6,140 6,439 6,279

Net (Kcal/kg) 5,800 6,770 5,260 5,662 5,550 5,880

Additional Materials

23

Statement of Compliance

Compliance

*JORC – Statement of Compliance

The information compiled in this report relating to South Galilee resources is based on information compiled by Lynne Banwell. Lynne Banwell is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity she is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Lynne Banwell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information compiled in this report relating to Arcturus and Dingo West resources is based on information compiled by Gordon Saul, who is a member of the Australian Institute of Geoscientists and who is employed by Resolve Geo Pty Ltd. Gordon Saul has sufficient experience which is relevant to the style of mineralization and types of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves”. Gordon Saul consents to the inclusion in this report of the matters based on his information and in the form and context in which it appears. Resolve Geo Pty Ltd is a shareholder in Bandanna Energy Limited.

The information compiled in this report relating to Springsure Creek resources is based on information compiled by David Keilar, who is a member of the Australian Institute of Geoscientists and who is employed by Resolve Geo Pty Ltd. David has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. David Keilar consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Resolve Geo Pty. Ltd. is a shareholder in Bandanna Energy Limited.

Opencut Reserves estimate for Arcturus has been prepared by Mr Ken Hill.Ken Hill is the Managing Director of Xenith Consulting Pty Ltd. He holds a Bachelor in Civil Engineering degree from the University of Queensland and a Post Graduate Diploma in Business Administration from University Queensland. He has over 20 years experience in the open cut coal mining industry and substantial experience in mining operations financial evaluations. Ken Hill is a Member of the Australasian Institute of Mining and Metallurgy and as such qualifies as a Competent Person under the JORC Code. Ken Hill consents to the inclusion in this report of the matters based on his information and in the form and context in which it appears.

The Underground Reserve estimates for Arcturus and Springsure Creek have been prepared by Mr Jeremy Busfield, Principal Mining Engineer of MineCraft Consulting Pty Ltd. Jeremy holds a Bachelor of Mining Engineering degree from the University of Queensland. He is a Chartered Professional Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and a Registered Professional Engineer of Queensland (Mining) (RPEQ 10285). Jeremy Busfield has worked in various planning, operational and consulting roles for the underground coal industry for 26 years and as such qualifies as Competent Person under the JORC Code. The relationship between the Estimator and the Project owner is that of independent consultant. Jeremy Busfield consents to the inclusion in this report of the matters based on his information and in the form and context in which it appears.