Allan Fidock Investor 20:20 Presentation Managing Director 4 December 2012 & CEO Disclaimer & Competent Person
This document has been prepared as a summary only and does not contain all information about OGL Resources Limited (the Company) assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attached to the Company’s securities. The document should be read with any public announcements and reports released by OGL Resources Limited. The information is based on publicly available information, internally developed data and other sources. Where any opinion is expressed no warranties or representations can be made as to the origin, accuracy, completeness, or reliability of the information. Some of the statements contained in the presentation are forward looking statements. Forward looking statement information may include, but is not limited to, information with respect to the future financial and operating performance of the company or its affiliated companies statements relating to the continued advancement of the Company’s project and other statements which are not historical facts. When used in this document and other published information of the Company, the words such as “aim”, “could"," estimate”, “expect”, “may”, “potential”, “should” and similar expression are forward looking statements. Although, the Company believes that its expectation reflected in the forward looking statement area reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward looking statements. Various factors could cause actual results to differ from these forward looking statements including the potential that the Company’s projects may experience technical, geological, metallurgical and mechanical problems, changes in commodity prices, changes in government regulation, policies or legislation, unforeseen expenses, fluctuation in the exchange rate of the Australian dollar and the United States dollar and other risks not anticipated by the Company or disclosed in the Company’s published material. The Company does not purport to give financial advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstance, including their financial and taxation position.
Coal Production Target: For Phase 1a and 1b - Coal Production estimate and forecast is based on the current estimated 13.7Mt of JORC Probable Reserves in the Mining Lease (ML 4712) and approved Plan of Operation mine operation for production of 1Mtpa of coal. For Phase 2 - Coal Production estimate and forecast is based on the current estimated JORC Resources and OGL Resources Limited’s conceptual future development target of the Bremer View Project (MDL 172). The production estimate is conceptual in nature and there has been insufficient work done at present by way of a feasibility study to support this forecast.
Competent Persons Statement Runge Limited – Greg Maiden: The estimate of Coal Reserves for ML 4712, as presented in this presentation has been prepared in accordance with the guidelines of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves, prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australasian Institute of Geoscientists and Mineral Council of Australia, December 2004. The information in this presentation to which statement is attached that relates to the Reserves of ML 4712, is based on the information reviewed by Gregory Maiden, who is a member of the Australasian Institute of Mining and Metallurgy. He is full time employee of Runge Limited. Gregory Maiden has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a “Competent Person’’ as defined in the 2004 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.
Salva Resources Pty Ltd: The estimate of Coal Resources for ML 4712, as presented in this presentation has been prepared in accordance with the guidelines of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves, prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australasian Institute of Geoscientists and Mineral Council of Australia, December 2004.The information in this presentation to which statement is attached that relates to the Resources of ML 4712, is based on the information reviewed by Lyndon Pass, who is a member of the Australasian Institute of Mining and Metallurgy. Lyndon Pass is a geological consultant for Salva Resources Pty Ltd and has over 16 years of exploration and mining experience in a wide variety of coal deposits. Lyndon Pass has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a “Competent Person” as defined in the 2004 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves.
Runge Limited – Shaun Ayshford: The information relates to the estimates of Coal Resources and Exploration Target statement for the Bremer View Project as in this Presentation has been prepared in accordance with the guidelines of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves, prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australasian Institute of Geoscientists and Mineral Council of Australia, December 2004. The information in this presentation to which statement is attached that relates to the Bremer View Coal Resources, is based on the information reviewed by Shaun Ayshford, who is a full time employee of Runge Limited and is a member of the Australasian Institute of Mining and Metallurgy. Shaun Ayshford has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a “Competent Person’’ as defined in the 2004 edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Shaun Ayshford consents to the inclusion in this Presentation of matters based on this information in the form and context in which it appears.
Exploration Target: A further 360-370Mt of low to moderate ash thermal coal has been defined as an exploration target additional to the Inferred Resources already stated. The Exploration Target is delineated by wide spaced geophysically corrected drilling between 1,000m and 2,000m and maintains the interpretation of the area being structurally homogenous with multiple thin flat lying seams. Coal quality for the Ebenezer Seams is expected to be similar to that mined at Ebenezer. Delineation of the coal quality for the Mt Morts coal sequence will be the focus of ongoing exploration. The potential quality and quantity shown within is conceptual in nature and there has been insufficient work done at present to define a Mineral Resource in this area under the JORC (2004) Code. The nature of an Exploration Target is such that is uncertain if further exploration will result in the determination of a Mineral Resource in this area. 3 Company Overview
. OGL has an exclusive agreement to purchase two advanced coal tenements in SE Qld within 90kms of the Port of Brisbane . Current JORC Probable Reserves of 13.7Mt and JORC Resources of 308.2Mt (24.1Mt Indicated and 284.1Mt Inferred categories) high grade thermal coal (6,700kCal/kg) . Additional 360-370Mt Exploration Target of low to Moderate ash thermal coal1 . Mining Lease (ML) is granted and Environmental Approvals are in place - no impediments to immediate mining . OGL to recommence mining (Phase 1)2 at a rate of 600ktpa within 12 months from the Ebenezer Mine - expansion to 1.5Mtpa within 2-3 years, 3+Mtpa (Phase 2)2 from year 4-5 from the Bremer View MDL 172 . Available transport infrastructure - immediate access via road (82km) & Pinkenba precinct (Port of Brisbane) - up to 1.5Mtpa . OGL Resources is seeking to raise $60m-$100m to complete the acquisition of the coal assets of Zedemar Holdings, and recommission the Ebenezer coal mine in SE Queensland . Secured Cape Lambert Ltd (ASX: CFE) as cornerstone investor . Agreed terms for a US$50m debt facility from EIG Global Energy Partners
1Refer to the Exploration Target Statement in the Disclaimer and Competent Person (Slide 2) 2Refer to the Coal Production Target Statement in the Disclaimer and Competent Person (Slide 2) 4 Project Acquisition
. OGL signed a Heads Of Agreement with Zedemar Holdings Pty Ltd (Zedemar) in May 2011 to acquire 100% of the Ebenezer and Bremer View tenements for a total consideration of A$50m: $40m cash; and 50m OGL shares at the public offer price ($10m) when acquisition financing occurs Agreement has been extended to enable settlement after resolution of legal challenge . To complete the Acquisition of the tenements: OGL will need to raise between A$60m-$100m; and 1:2 share consolidation at 10c - concurrently with the capital raising occurring at $0.20/share (pre-money value $20m) . The sale is conditional on, amongst other things: OGL completing a placement to raise not less than A$60m; Re-compliance with Chapters 1 and 2 of the ASX Listing Rules; and Obtaining shareholder approval for the transaction along with ASX approval to re-list
Significant Value accretion since acquisition by OGL Resources . OGL Tenements, Mine Site & Infrastructure OGL commissioned Runge and Salva Resources to complete geological model due diligence Result: Maiden JORC Reserve and Resources and Bremer View Project Resource upgrade OGL commissioned transport and mine costs studies Secured key long term processing equipment - includes a CHPP and crusher units . Infrastructure Solution Engaged key infrastructure partners in discussions to progress work and determine access viability Result: Short Term - IAP rail 600ktpa (QRN), rail COP and road option to Port solution through executed MoU Long Term - Rail COP for proposed expansion of QBH/Fisherman Islands and EOI for Fisherman Island via Port of Brisbane . General Assisted in the renewal of Mining Lease - ML 4712 (application was made in April 2008 but approved under the guidance of OGL) Appointment of well respected coal industry Directors to oversee future development of the assets
5 Board of Directors
Mr Jack Tan – Non-Executive Chairman Jack has more than 20 years experience in finance roles in finance and investment banking. He was the former Non-Executive Chairman of e-pay Asia Ltd, a leading prepaid mobile phone company based in Malaysia which is listed on the ASX, Non-Executive Director of Orocobre Ltd, an emerging, Lithium & Potash Producer in Argentina and Executive Chairman of Timah Resources Ltd, a NSX listed Australian Iron Ore company. He was the founder and former Director of Rocklands Richfield Ltd (RCI) and Norton Gold Fields Limited both listed on the ASX.
Mr Allan Fidock – Managing Director & CEO Allan is a coal executive with more than 30 years’ experience in open cut and underground coal mining operations. Prior to joining OGL Resources, Allan was a member of Macarthur Coal Executive Leadership Group and responsible for mine operations of the company and was the former CEO of Middlemount Coal. Allan’s previous coal experience includes Technical Services Manager at the Drayton Mine, roles with Thiess Pty Ltd - Project Development Manager, Mining Manager at the Mt Owen Complex and Senior Project Engineer within the Mine Engineering Group. Other mine management and Engineering positions included Project Manager/Mine Manager at Liddell and Westside Open Cut Mines, Mine Manager at Brickworks Open Cut – Gunnedah Colliery and Senior Mining Engineer at New Hope Corporation. Mr Roger Marshall OBE – Non-Executive Director Roger has over 40-years experience in the Mining Industry, covering management, marketing, finance and operational roles. He has been responsible for the development and production of a number of mines. Roger was previously the Deputy Chairman of Macarthur Coal Limited (since July 2001). He previously served on the Boards of MIM Holdings Limited (1984 - 1992), CITIC Australia Trading Limited (2002- 2009), Energy Brix Corporation (1993-1996), AGD Mining Limited (1999 - 2004), Macarthur Diamonds Limited (2004-2005), Copper Resources Corp Limited (2005-2007) and Queensland Ores Limited (Chairman from May 2005 - June 2009 and director from June 2009 to September 2009). In 1989, he was made an Officer of the Order of the British Empire for his services to the Mining Industry and is an Honorary Life Fellow of the Australasian Institute of Management
Mr Neil Stuart – Non-Executive Director Neil is a qualified senior geologist who began his career in the mining industry in 1968. Neil has worked all over the globe and developed extensive experience in a wide range of mineral commodities including coal, uranium and base metals. Neil was a founding Director of Oroplata Ltd and Rimfire Pacific Mining N.L. He is presently a Non-Exec Chairman of Bowen Energy Ltd and Non-Executive Director of Orocobre Ltd and Axiom Mining Ltd.
Mr Henry Khoo – Non Executive Director Henry has extensive sales, marketing and management experience in consumer and durable products in Asia Pacific. He has also been involved in project acquisitions, evaluation, company mergers and Initial Public Offerings.
6 Strong Fundamentals
There are a number of significant strategic advantages to these tenements . Large resource base Over 300Mt of JORC compliant resource Significant exploration target . Close proximity to existing transport infrastructure QR owned rail loop adjacent to Mining Lease Major highways/motorways , road haulage approvals being completed Only 90kms to Port of Brisbane . Access to existing ship loading facility Existing ship loader underutilized Feasibility study completed on new coal stockpile and reclaim system Have commenced negotiations on exclusive operating agreement Low capital and short time frame for availability (12 months) . Low cost producer Low Strip Ratio in ML reserve (5.2:1) Low onsite capital requirement . High quality export product High CV (6,700 kcal) Low sulphur/low Nitrogen Well regarded product when mine historically produced and sold in the market . Low operating risk Mine operated for 15 years Open cut mining, known geology Environmental approvals in place . Near term producer Product to market within 12 months of raising capital 7 Supreme Court Case Briefing
. Background: Two local residents challenged the Queensland Government’s Minister for Mines’ powers in his decision to renew Mining Lease (ML 4712) in Sep 2011, judicial review action Supreme Court hearing held in Mar 2012 Judgment received in May 2012, case was dismissed, ML 4712 renewal upheld Applicant filed to Supreme Court of Appeal in late May 2012 Court of Appeal hearing 12th Sep 2012 Appeal judgment pending - expected within a maximum of 6 weeks
. Legal Position Legal advice is Appeal will be unsuccessful and dismissed NO injunction exists against ML 4712 - hence no impediment to the tenement owner to be on ground now recommissioning the mine NO future injunction legally possible Last legal option is an application to the High Court of Australia, low risk (<5%) of High Court accepting application and hearing the case
. Capital Raise On track to raise minimum of A$60m, terms for $50M debt facility agreed with EIG Global Energy Partners Capital Raise timetable pending judgment date from Supreme Court of Appeal Strong investment interests from institutions after previous road shows (domestic and international)
8
OGL Tenements Location OGL’s mining/exploration tenements are the closest to the Port of Brisbane
Yancoal 380km Peabody New Hope 293km 227km
Tenements
Mining & Exploration Tenements are located <85km to the Port of Brisbane 9 ASX Listed Project Comparables
Ebenezer is one of the closest emerging coal mines to an established Port in Australia
Ebenezer (OGL) 90km (West Moreton) Thermal
Jeebropilly (New Hope) 90km (West Moreton) Thermal
New Oakleigh (New Hope) 100km (West Moreton) Thermal
Doyles Creek (Nucoal) 100km (Hunter Valley) Thermal
New Acland (New Hope) 227km (West Moreton) Thermal
Dingo West (Bandanna Energy) 260km (Bowen) PCI/Thermal
Wilkie Creek (Peabody) 293km (West Moreton) Thermal
Vickery South (Coalworks) 350km (Gunnedah) SSCC/Thm
Range (Stanmore) 360km (Surat) Thermal
Maules Creek (Aston) 380km (Gunnedah) SSCC/Thm
Columboola (Metrocoal) 380km (Surat) Thermal
Cameby Downs (Yancoal) 380km (West Moreton) Thermal
Meteor Downs (Endocoal) 420km (Surat) Thermal
0 50 100 150 200 250 300 350 400 450 Rail Distance To Nearest Port (km)
Key: Projects located in same basin as Ebenezer (OGL) Source: OGL Review and Company Review 10 Key Project Details
. The tenements (ML4712 & MDL172) are both located in SE Queensland, near Ipswich . Ebenezer covers 675ha with freehold titles Location . Tenements are in close proximity to New Hope Corporation Limited’s (“New Hope”) existing Jeebropilly and New Oakleigh coal mines . Coal transport solutions identified – road and rail haulage and MoU for Port access
. Total JORC Probable Reserves of 13.7Mt and JORC Resources of 308.2Mt (24.1Mt Indicated and 284.1Mt Inferred categories) Existing JORC Resources . Ebenezer (ML4712) – 13.7Mt JORC Probable Reserve, 31.3Mt JORC Resource (24.1Mt & Reserves Indicated and 7.2Mt Inferred categories) . Bremer View (MDL172) – 276.9Mt JORC Inferred Resource . Additional 360-370Mt of low to moderate ash Exploration Target identified1
Product . Coal is high quality export thermal coal (6,659kCal/kg – adb, LOM Average)
. Ebenezer was mined from 1988 until closing in 2003 Ebenezer . Historic production of 33.6Mt ROM coal (max. annual production 3.0Mt ROM) Historical Production . Idemitsu owned – closed due to low prevailing coal prices A$37/t (mid US$20/t)
. Geology well understood – previously mined and extensively explored Geology . Located in the Walloon Coal Measures and exhibit the same geology as nearby New Hope operating coal mines Jeebropilly and New Oakleigh
1Refer to the Exploration Target Statement in the Disclaimer and Competent Person (Slide 2) 11 Key Project Details
. Near term coal production (within 12 months) Ebenezer Initial Mine . Phase 1a – 1Mtpa ROM to produce approximately 600ktpa of export quality coal Plan product . Phase 1b – Expansion to produce ~1.2-1.5Mtpa of export quality coal Strip Ratio . Ebenezer: LOM average 5.2 bcm per ROM tonne (1st 4 years at average 4.5:1) . Power – 110KV power lines, sub-station supply in place onsite Onsite Infrastructure . Water supply secured via a dedicated pump & pipeline from the Bremer River . Tailings dam, raw water dam, ROM pad, site office . 82km to Pinkenba precinct (Port of Brisbane), State owned highways/Tollways – no Road Access expected restrictions to truck movements, 3 trucks per hour for 600Ktpa production . Adjacent existing rail line loop and rail to the Port of Brisbane approximately 90km away Rail Access . Existing West Moreton railway line owned by QR and operated by QR National . East of Toowoomba Range bottleneck – major advantage for latent train capacity . Phase 1a-1b – Pinkenba precinct (Port of Brisbane) – under-utilised (currently at ~20%) . Phase 2 – Pinkenba precinct (Port of Brisbane) plus additional capacity through Port of Brisbane (Fisherman Island) expansion plans. Existing coal terminal operated by Port Access Queensland Bulk Handling (“QBH”) – current capacity of 10Mtpa . Port of Brisbane Authority is targeting a doubling of coal export capacity to 20Mtpa by 2020 – initial expansion to 14Mtpa – OGL is a logical cornerstone customer due to proximity to Port 12 Ebenezer Mine (ML4712) Overview
Resources and Reserves Summary for Ebenezer Ebenezer Coal Specifications Low 15 Years Newcastle Resources Reserves High Ash Category Coal Quality Ash LOM Export Product (Salva Estimate) (Runge estimate) Product Average Benchmark Probable Reserves 13.7 Moisture % 4.0 4.0 4.0 2.3 Indicated Resources 24.1 Ash % 14 22.4 14.4 13.5 Calorific 6,700 5,800-6,300 6,659 6,760 Inferred Resources 7.2 Value kcal/kg Total 31.3 13.7 Sulphur % 0.47 0.50 0.48 0.60
Proposed Production Profile
'000 tonnes Export Coal Product Represents <2% 3,500 discount to Newcastle 3,000 benchmark on average CV 2,500 basis
2,000 Phase 2
1,500
1,000 Phase 1 500
0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
13 Coal Quality – Ebenezer Mine Comparables
The Ebenezer project has export quality thermal coal. The coal qualities include high calorific value, low sulfur and low nitrogen
18 10 % adb % adb Moisture Content Ash Content 9 16 8 14 Newcastle Benchmark
7 12 6 10 5 8 4 6 3 Newcastle Benchmark 2 4 1 2
0 0 Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ 6,900 kCal/kg CV Calorific Value Newcastle Benchmark 0.8 6,700 % adb Sulphur Content 0.7 6,500 Newcastle Benchmark 0.6
6,300 0.5
6,100 0.4
0.3 5,900 0.2 5,700 0.1 5,500 0 Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ Cameby Downs Wilkie Creek New Acland Jeebropilly EBZ Source: OGL 14 Ebenezer Mine
Historical Ebenezer Lanes Pit Operation and Current Site Layout
15 Ebenezer Geology – Thin Seam Mining
The mining process utilises smaller, readily available equipment with lower capital and consumable costs (eg. tyres)
Mine Measure Coal Sequence Geological Characteristics 0-100m depth; 6 seam groups (A-F), 52 plies – 0.2m ave.coal Ebenezer Walloon Ebenezer thickness = >10m coal 0-120m depth; 6 seam groups (Ebenezer), 5 seam group (Mt Mort), Bremer View Project Walloon Ebenezer & Mt Mort 132 plies – 0.26m ave. coal thickness => 34m coal 0-120m depth; 7 seam groups, 43 plies – ave. coal thickness between Jeebropilly Walloon Jeebropilly 0.06-0.43m
New Acland Walloon Acland-Sabine 6 seam groups, 47 plies – 0.23m ave coal thickness
Working coal seam section
Historical Ebenezer Mine Photo Historical Ebenezer Mine Photo 16 CHPP Infrastructure
. OGL has an arrangement to purchase a suitably sized CHPP Modular CHPP Unit - 175-200t/hr for construction and commissioning on site . The CHPP is a key operating item required to bring the project into production . The CHPP is a second hand unit and will require refurbishment and commissioning by an independent industry contractor
Raw Crusher Unit - 500t/hr Modular CHPP Unit - 175-200t/hr
17 Production Profile & Infrastructure
Phase 1: 0.6-1.5Mtpa Coal (Ebenezer Mine) Phase 1a – 600ktpa Coal1 . Transport: Road . Port: Pinkenba precinct (Port of Brisbane) – dedicated coal stockpile area (seek exclusive OGL use) Advantages: Near term start, immediate access to port, low capex, no resident impact by road Phase 1b – 1.5Mtpa Coal1 . Transport: Road . Port: Pinkenba precinct (Port of Brisbane) – dedicated coal stockpile area (seek exclusive OGL use) Advantages: quick ramp up to higher coal output volume from mine site, target to expand via simple change to “Plan of Operations”, minimal capex for expansion at mine site
Phase 2: 3Mtpa Coal (Bremer View Project) . Transport: Road and Rail for increased output from 1.5Mtpa to 3.0Mtpa1 . Port: Pinkenba precinct (Port of Brisbane) and Fisherman Island (Port of Brisbane) . Fisherman Island (Port of Brisbane) coal terminal expansion plan – to 14Mtpa by 2014 and targeting 20Mtpa by 2020 Advantages: OGL operation strategically located – nearest coal operation to Fisherman Island site, east of the Toowoomba Range avoiding rail bottleneck, potential significant coal producer to support/cornerstone Fisherman Island expansion plans
1Refer to the Coal Production Target Statement in the Disclaimer and Competent Person (Slide 2) 18 Infrastructure Options
Coal Haulage and Port Access Options
19 Infrastructure Options
. Port Access – Capacity available for 600ktpa + Road Transport . Approvals – Low Risk, state road . Capital Costs – Low Pinkenba Precinct . Transport Costs – Moderate, 82km Port of Brisbane . Timeframe – Immediate access . Operational Usage – Short/Long term option . Operational Capacity – 600ktpa to 1.5Mtpa+
. Port Access – QBH fully contracted, PBPL planned expansion option only Rail Transport . Approvals – Low Risk, QR/QRN IAP obtained . Capital Costs – High Fisherman Island Terminal . Transport Costs – Low-Moderate, 90km Port of Brisbane . Timeframe – minimum 2 years . Operational Usage – Long term . Operational Capacity – up to 3Mtpa*
* OGL estimates, subject to PBPL’s planned expansion
20 Road Access Road to the Export Market . Travel distance by road to the Pinkenba precinct is approximately 82km . Path via major state highway, motorway (toll way) and into industrial port zone (no residential impact) . Low traffic impact, heavy duty highway/motorway was recently upgraded . Permits and Approval process are known and will require standard engagement of key stakeholders . Road Transport Impact Study is completed, this study will form the basis of a submission for haulage approval . Engineering group Parsons Brinkerhoff have completed the Road Transport Impact Study and are assisting with approval submissions to required agencies
Roadways to Export Port: 1.Mine Site 2.Champions Way Port Site 3.Cunningham Highway 4.Ipswich Motorway (M2) M1 5.Logan Motorway (M2) 6.Gateway Motorway (M1) 7.Kingsford Smith Drive 8.Pinkenba precinct
21 Port Access - Phase 1a & 1b
Pinkenba Precinct - Port of Brisbane Facility . Existing under-utilised port ship loading facility . OGL is progressing road haulage approvals – low capital costs and immediate access . MoU executed for Feasibility Study on construction of a coal stockpile which connects into an existing reclaim system . Feasibility Study completed, study confirmed the planned arrangement is economically and practically feasible
. 12 month approval and construction timeline . Negotiation on Commercial arrangements for exclusive use have This facility enables OGL to be an independent producer of commenced high quality export thermal coal 22 Rail Access
ML4712 Site Layout and Rail Loop Location . Tenements are 90km by rail to the Port of Brisbane
. OGL received an initial Indicative Access Proposal (“IAP”) from QR National to rail up to 600,000 ton of coal p.a. for 15 years from the Ebenezer Mine
. The existing rail spur and loop is a QR-owned multi user facility historically shared with the Jeebropilly mine . OGL has submitted formal request to QR for rail capacity to Fisherman Island (Port of Brisbane) for Phase 2 production output
23 Port Access Phase 2 – Fisherman Island
Fisherman Island Terminal, Port of Brisbane . Existing Port capacity at the Fisherman Island (Port of Brisbane) is currently 10Mtpa and fully contracted . The coal terminal is operated by Queensland Bulk Handling (QBH) – a 100% subsidiary of New Hope Corporation Limited . Formal request has been made to QBH to access existing capacity and future expanded capacity
. The Port of Brisbane Authority has publicly stated that it is seeking to expand the volume of export capacity to 20Mtpa by 2020 . Short term expansion to 14Mtpa by 2014 . Due to OGL’s strategic mine location and close proximity to the Port of Brisbane, there is an ability to support/cornerstone future expansion plans at Fisherman Island
24 Bremer View (MDL172)
Tenement Highlights Location Map of Bremer View Project . Bremer View is located adjacent to the Ebenezer Mine . Tenement covers 9,202ha of private land with extensive exploration drilling by Ebenezer Mining Company . Current JORC Inferred Resources of 276.9Mt . Coal resources occur between 0-120m depth. JORC Resource estimate based on 435 historical drill holes . Additional 360-370Mt Exploration Target of low to Moderate ash thermal coal1 has been estimated by Runge and future exploration will seek to upgrade this to a JORC compliant resources . Coal quality is consistent with that of the Ebenezer and Jeebropilly Mines . Bremer View tenement (MDL 172) granted to 31 October, 2015
. Tenement contains coal seams from the Walloon Coal Resources Summary for Bremer View Measure in 2 coal sequences: Category Bremer View (Mt) – Ebenezer (6-8 seam groups) Indicated - – Mt Mort (5 seam groups) Inferred 276.9 1Refer to the Exploration Target Statement in the Disclaimer and Competent Person (Slide 2) Total 276.9
25 Bremer View (MDL172)
Priority Resource Locations at MDL 172
142.4Mt
23.8Mt
22.3Mt 50.2Mt . Priority - Initial Phase 2 development target area
8.8Mt
. Beyond Phase 2 29.4Mt development target area
Source: Runge Limited 26 Costs & Funding
Ebenezer Mine - Operating Costs Use of Funds A$60m A$100m
Project Acquisition $40.2m $40.2m . Expected to be a Low-Cost West Moreton coal producer . Close to existing rail and port infrastructure <90km Equipment and Capital Costs $5.0m $25.1m
. Strong operating margin and solid cashflow Site Preparation and Start-up $2.5m $8.2m
. Close proximity to skilled workforce (no FI/FO) Bremer View Exploration & Development $2.0m $10.4m
Expenses of the offer $6.5 m $7.5m Estimate of Operating Costs*: Stamp Duty on acquisition $2.6m $2.6m . Mining and processing costs – A$33/t ROM A$55/t Product . Transport costs – A$11-$14/t Product Working Capital $1.7m $6.5m . Port costs - $6-8/t Product Total* $60.5m $100.5m
. Total Operating Cost: A$72-$77/t Product OGL Capital Requirement A$60m to A$100m . Funds to commence operations; . Exploration and development expenditure planned for MDL 172 to increase resource; and . Initial reserve classification for mining feasibility studies
* OGL Resources conceptual operating costs estimates Proposed Project Timeline Key next steps: . Complete project acquisition . Finalise infrastructure solution . Engage key personnel for mine commissioning and project development
Calendar Year 2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Project Acquisition
Infrastructure and Transport Access Agreements
Waste Removal Site Infrastructure Works
Construction to commissioning of CHPP
Commencement of Operations/Coal Mining (Ebenezer)
ML 4712 Reserve/Resources Upgrade
First Coal Sales From Ebenezer Mine – Phase 1a MDL172 Exploration Preparation Plan of Operation lodgement and Approvals (Phase 1b expansion) Infrastructure Development & Construction (Phase 1b expansion) Initial Coal Production (Phase 1b expansion) 28 Investment Highlights
Near term production export quality thermal coal
Mining Lease – All approvals in place JORC Probable Reserves 13.7Mt Existing Site Infrastructure Road Transport Access – Approval Underway Port Facility – Operating Agreement Negotiation Underway High Quality Thermal Coal Product
29 Thank you Contacts
SYDNEY BRISBANE Level 28 Level 1 31 Market Street 349 Coronation Drive OGL Office Addresses Sydney NSW 2000 Milton QLD 4064
Phone: +61 2 9267 4633 Phone: +61 7 3720 8023 Fax: +61 2 9267 4388 Fax: +61 7 3729 8988 Email: [email protected]
Bill Kemmery Fortbridge Consulting Phone: +61 400 122 449 Media & Investor Email: [email protected] Relations
Matthew Storey Jonathan Pearce Joint Lead Canaccord Genuity (Aus) Patersons Securities +61 2 9263 2730 +61 2 8238 6218 Corporate Advisors +61 419 666 069 +61 412 898 993 [email protected] [email protected]
31 Offer Details
Post-Consolidation
Shares & Options $60m Equity Raise & $50m Debt Facility $100m Equity Raise
Un-diluted Fully diluted Un-diluted Fully diluted Shares on Issue 81,922,313 17.7% 13.6% 81,922,313 12.4% 10.6% Vendor Shares (Zedemar Holdings) 50,000,000 50,000,000 10.8% 8.3% 7.6% 6.4% Placement Investors 300,000,000 64.9% 49.8% 500,000,000 75.5% 64.5% Options on Issue – Existing (OGLO.AU) 30,000,000 30,000,000 5.0% 3.9% Convertible Notes 20,000,000 20,000,000 (if converted to Shares) 4.4% 3.3% 3.0% 2.6%
Debt-related options (unlisted) 60,213,590 10.0% N/A Performance Shares & Options*
Performance Shares 10,000,000 2.2% 1.7% 10,000,000 1.5% 1.3% Performance Options - Board, 50,000,000 83,333,333 Management & Broker 8.3% 10.7% Total 461,922,313 140,213,590 100.0% 100.0% 661,922,313 113,333,333 100.0% 100.0% Market Capitalisation A$92.4m A$132.4m
On completion of listing, OGL will have cash at bank of ~A$8m-46m after costs are paid
*Milestone Payments required for Performance Shares and Performance Options to Vest (in equal 25% increments) 1. OGL receiving written confirmation from infrastructure providers to deliver and export coal from ML 4712 2. JORC compliant Reserves increase by 50Mt above existing reserves to a minimum of 63.7Mt total JORC Reserves 3. OGL completing cumulative coal sales totaling 500,000 tonnes at pricing deemed commercially acceptable by the Board of Directors 4. Acceptance of a plan of operation for expansion to 1.2Mtpa of saleable product 32