Pike River 2010

PIKE RIVER COAL LIMITED Annual Review 20101 Key Events FEBRUARY MAY First export Successful $90m SEPTEMBER shipment capital raising Second export APRIL AUGUST shipment Access roadway ABM20 miner Commissioning of through graben operating hydro-mining coal into coal

2 PIKE RIVER COAL LIMITED Annual Review 2010 Contents Chairman’s Overview 2 Chief Executive’s Review 4 Board of Directors 16 Corporate Directory Inside back cover

PIKE RIVER COAL LIMITED Annual Review 2010 1 Chairman’s Overview

to buy a second similar machine. In April 2010, Pike River completed The first of these machines arrived a $50m rights issue which was in late July 2010 and made an fully subscribed and at the immediate positive impact on the same time refinanced 40$ m of rate of roadway development. The convertible bonds (previously held second machine is due for delivery by Liberty Harbor) with cornerstone by year-end and should assist mine shareholder NZ Oil and Gas. The development work to return to $90m capital-raising project was schedule. The Waratah continuous successfully completed in May 2010. miners will be progressively Prices for hard coking coal over converted from electric to hydraulic the past year have maintained drive and redesigned to be more their upward trend with a slight effective in local conditions. softening in recent weeks. The coal Coal quality continues to be very price achieved for the company’s pleasing with the thickness of inaugural export shipment of the seam as predicted and with premium hard coking coal in This has been a year of excellent underground mining February 2010 was US$122 per significant milestones conditions. The coal ribs and tonne. The industry has since for Pike River. roof are standing up well and moved to a mixture of annual and the coal is cutting as expected. quarterly coal price setting. For the We have completed construction Preparations are on course for the quarter ended June 2010, pricing of most of the remaining surface commencement of hydro-mining was US$200 per tonne (FOB) and infrastructure including the coal in September. Underground pump US$225 per tonne (FOB) for the preparation plant and rail loadout stations have been excavated, quarter ended September 2010. terminal at Ikamatua; preparation pumps and piping installed and Pike River’s price is benchmarked for hydro-mining is well advanced roadways to the first hydro- against Goonyella’s price for hard and we shipped our first coal in mining panels are complete. Once coking coal which has been settled February 2010. However, it has hydro-mining starts we should for the quarter ended 31 December also been a year of continuing see a significant increase in coal 2010 at US$205 per tonne (FOB). frustration with the rate of production. Despite a recent softening in underground mine development. demand for hard coking coal into This has been caused in part by Our second shipment of China, industry commentators the need for more driveage in development coal worth around have observed that there is still a hard stone than expected. But NZ$6 million - significantly more strong demand and tight supply the principal reason for the slow valuable than the first shipment - of premium quality hard coking progress has been the continuing departed Lyttelton on 6 September coal and the outlook for Pike’s coal mechanical unreliability of the 2010 and was once again headed continues to be encouraging. two Waratah continuous miners. for one of the company’s life-of- In June 2010, directors took the mine customers, Gujarat NRE in Once again, Pike River has operated decision to lease a Sandvik ABM20 India. Shipments will now become to high standards of safety single-pass continuous miner to more regular and will increase in and environmental compliance boost underground development volume as hydro-mining gets fully throughout the year. An initiative capacity and subsequently decided underway. proving to be very effective is a

2 PIKE RIVER COAL LIMITED Annual Review 2010 new hazard identification and company’s CEO. Gordon has made management system introduced in a tremendous contribution to Pike February 2010 the first quarter of2010 . River’s development and I would First Shipment like to extend my personal thanks On the environment front, it is for the energy and tenacity he of Coal very pleasing to note evidence brought to the job. that Pike River’s pest and predator programme is creating It was very pleasing to announce a safer environment for the the promotion of Peter Whittall $90m endangered blue duck (whio), a to the CEO position effective Successful pair of which was sighted in the from 2 October 2010. Peter has catchment area during April 2010. been General Manager-Mines for capital-raising Environmental sensitivity is of Pike River since 2005 and with was completed paramount importance to the 30 years of coal operating and company, particularly given its managing experience he brings in May 2010 location. The Pike River mine lies the right combination of skills and under Crown land managed by leadership experience to the post. the Department of Conservation. On behalf of the board I would also The company is conscious of 180 Employees like to thank all Pike River staff for its heightened environmental their continuing enthusiasm in now work for Pike responsibilities when mining in developing ’s newest such sensitive areas and is proud River Coal mine in often difficult conditions to be an example of how mining and extend that gratitude to and conservation can co-exist our loyal investors who have harmoniously for the benefit of shared a challenging and, at both the New Zealand economy times, frustrating year with us. and the natural environment. As production improves we are Pike River has now recruited its getting a better sense of the value full operating complement of of this high-quality asset and look 180 employees. The company has forward to the commencement of attracted an international team hydro-mining and then in making of experienced managers and the transition to steady-state operators as well as a number of operations. trainee miners from and other local communities.

In September 2010 we bade farewell to Gordon Ward who had led the Pike project for 14 years J A S Dow from its inception as an exploration Chairman concept through feasibility, 22 September 2010 environmental permitting, capital raising and mine construction, and the last three years as the

Chairman’s Review 3

PB Chief Executive’s Review Hitting Hydro Two roadway tunnels driven to the end of the first hydro- mining panel ... were completed in August 2010 in preparation for first hydro-mining

Hydro-Mining Set made developing hydro-mining in the southern pit bottom area. infrastructure, beginning with Storage sumps for raw coal slurry to Commence the delivery of critical equipment and for fluming water were also Pike River is getting set to achieve including hydro-monitor pumps excavated in the hard rock within its most significant production and electrical systems that have the graben zone. Two roadway milestone at the time of writing been arriving on site over the past tunnels driven to the end of this report; hydro-mining of its 12 months. The first of the two the first hydro-mining panel, premium hard coking coal. Hydro- mobile coal receivers/crushers, where the thick coal seam varies mining uses very clean water called a “guzzler”, was dispatched between nine and ten metres, pumped at high pressure up to a from Australia to the mine site were completed in August 2010 in water cannon (a ‘hydro-monitor’) in January 2010, along with the preparation for first hydro-mining. which blasts coal from the coal mobile roof support housing the face. hydro-monitor. The guzzler went through rigorous testing on the This milestone will come after surface prior to being deployed frustrating delays during the underground. year caused by slow roadway development. On the other Underground reservoirs for clean hand, steady progress has been water storage were developed

4 PIKE RIVER COAL LIMITED Annual Review 2010 Grappling with in its southern extent and raised During this period, Pike River staff it up in its northern extent. As a and a team of contractors were the Graben result, much of the access roadway working in two primary areas, Getting through the faulted rock driveage in the six month period to underground at pit-bottom and zone, called a graben, immediately April 2010 was in stone, rather than driving access roadways out to the west of pit-bottom, proved coal, slowing roadway development towards the hydro-mining areas to be the biggest challenge for and reducing Pike River’s ability to west of the graben. The time Pike River during the year. The mine coal. frame for completing the access graben zone was identified by the roadways through the graben There was no alternative but to underground in-seam drilling in took several months longer than drive the roadways through the July/August 2009 and was the initially expected with the graben graben. Roadways in this area are result of a cluster of faults located ultimately being 205 metres wide built for the 18-year+ life of mine between two previously drilled at the point where we crossed. and, therefore, need to be driven surface boreholes drilled just 160 Getting back into the coal seam at at a constant grade to ensure that metres apart. Close proximity the right horizon was a significant coal will wash downhill in steel to the Hawera fault is the likely milestone. flumes without pumping. cause of the graben zone, which has pushed the coal seam down

Chief Executive’s Overview 5 Mining Equipment and Machinery – Challenge and Progress

In any new mine there will invariably be teething issues with new personnel and machines. However, Pike River has experienced more significant issues with two of its three coal cutting machines. Both continuous miners purchased from mining equipment supplier Waratah Engineering, have not operated to expectations and have required ongoing modifications. To overcome this problem, Pike River leased one reconditioned ABM20 continuous mining machine which satisfactorily commenced operation in August 2010 and purchased a second ABM20, expected to be mining at Pike River in January 2011.

The ABM20 is a single pass mining machine with the ability to cut and bolt at the same time, thereby reducing the production cycle when compared to our existing double pass machines.

This machine has started to prove the traction systems, are to be back of the machine, rather than its worth, achieving average replaced with hydraulic drives hauling long distances with load- development rates of more and the cutting head booms will haul-dump machines, will further than 13 metres per day since its be redesigned. This work will take enhance productivity. introduction. The cost of leasing 2-3 months for each machine. Heavier wear and tear on the the first ABM20 for 12 months The extent to which any further haulage machines whilst working (including ancillary equipment and modifications are made, will through the graben added extra contract labour) is approximately depend on how the two ABM20s costs during the last financial year. NZ$4 million; the second machine perform. Additional mining and in-seam was purchased for approximately The roadheader, also purchased drilling costs have added to Pike NZ$5 million. from Waratah, has operated River’s budgeted outlays for the During the year, both existing satisfactorily. Daily advance rates financial year ended30 June Waratah continuous miners have increased but are still not 2011, reflecting the increased underwent track replacements yet achieving the budget of 8 in-seam drilling activity and use and software upgrades which metres per day (pre-hydro mining). of contracted mining equipment. did improve performance, but Increasing the areas underground these machines are still operating where the roadheader can be well behind the required levels. deployed and the introduction The electric drives, which run of fluming coal directly from the

6 PIKE RIVER COAL LIMITED Annual Review 2010 In-Seam Drilling – A Valued Mine Planning Tool Pike River continues to benefit information for approximately the from in-seam drilling, a mine first six months of hydro-mining Pike River intends expanding and planning tool which provides extraction. intensifying its programme of in- critical data on geological and seam drilling to cover 11 kilometres Pike River is the only coal mining coal seam conditions hundreds over the year ended 30 June 2011 company in New Zealand currently of metres ahead of each working at a budgeted cost of $7 million. using in-seam directional drilling coal face. All five in-seam holes The objective by the first quarter to drill long distance holes. As drilled through the rock graben of 2011 is to have at least 6 months announced in the June 2010 have intersected a nine to eleven of roadway development and 12 quarter, the coal ribs and roof of metre Brunner seam consistent months of hydro-mining covered in the coal seam west of the graben with the current geological model advance by in-seam drilling and to are standing up well, and the coal is and have confirmed the absence then maintain that level of advance cutting very well. The level of roof- of significant faulting in this first drilling going forwards. bolting is now back to expectations production target area. In-seam at the time of the initial public drilling conducted at the time of offering prospectus in 2007. this report, has provided detailed

Chief Executive’s Overview 7 Production Targets

Pike River has not met its such as eliminating and shortening exceptionally high fluidity, as well production targets to date, due roadways and adding additional as strong swelling numbers (9+), to geological issues (ventilation hydro-mining panels. However, it low ash (3.9% – 5.4%) and low shaft and rock graben) and has not been possible to fully offset sulphur content (0.33% – 0.41%). underperforming machines (the the effects of slower than budgeted There is considerable potential Waratah continuous miners). Now advance rates during that period. in this deeper seam which sits the mining operation has moved With the introduction of hydro- approximately 200 metres below away from the Hawera fault and mining and more consistent the Brunner seam. In-seam adjacent graben zone, the risk roadway development, the mine exploratory drilling into the of a major geological surprise is plan and schedule will be further Paparoa seam was delayed by considerably diminished. In-seam reviewed. operational priorities and is now drilling is used to increase certainty likely to commence in the first half of geological conditions and reduce of 2011. mine planning and scheduling risks. Paparoa Seam The new continuous miners, the – the Potential ABM20s, are expected to have far Successful Equity- Back in January 2009, an greater reliability and increased exploratory test drillhole into Raising performance. In the short time the the Paparoa seam on the eastern Pike River announced a $90 million first ABM20 has been in operation, side of the coal deposit, found capital-raising initiative in February it has shown ability to cut coal at three potentially mineable seams 2010 and successfully completed required rates. of low sulphur hard coking coal. the raising in May 2010. The pro We have made modifications to These seams totalled nine metres rata rights issue to raise $40 million the mine plan during the past six in thickness. Testing of the coal closed on 19 May 2010 with more months to partly offset the effects samples showed exciting initial than 6,100 shareholders (72%) of slower roadway advance rates, results: the coal, once washed, had opting to take up their rights

8 PIKE RIVER COAL LIMITED Annual Review 2010 Government entitlements for 43.3 million shares annual coal production for the Support for Mining (95.5%) out of the total offer of 45.5 remainder of the Pike River mine Pike River welcomed the Prime million shares. The rights issue was life. Minister’s announcement in his preceded by a $10 million share opening speech to Parliament The equity-raising included a cash placement which was completed on 9 February 2010 that the buffer of $18 million equivalent on 20 April 2010. Government intended to make to approximately 3.5 months legislative changes to help The final component of Pike River’s of monthly operating costs. realise the potential of New capital-raising was the issue of Production delays and increased Zealand’s mineral estate. While a new US$28.9 million (NZ$41 costs have resulted in most of this the Government did not proceed million) convertible bond to cash buffer being utilised. With with the idea of removing 7,000 major shareholder, New Zealand the Pike River mine moving into hectares of conservation land from Oil & Gas Limited (NZOG), after hydro-mining operations and more Schedule 4 to allow a low-impact Pike River shareholders voted regular coal shipments scheduled, look at the mineral potential, overwhelmingly in favour of that additional working capital is it did announce a programme issue. As part of the funding expected to be required to fund of aeromagnetic surveys in arrangements, Pike River granted this interim period between capital Northland and the West Coast of a two year option to NZOG to spend and steady revenue. the . We also support purchase Pike River coking coal at the Government’s intention to market prices negotiated annually introduce a joint decision-making or such other period as mutually process between the Minister of agreed. The maximum volumes Energy and Resources and the under that option agreement Minister of Conservation over the are the currently uncontracted issue of applications for access coal quantities for the period to arrangements to Crown land for 31 March 2013 and up to 30% of mineral developments.

Chief Executive’s Overview 9 We Are Shipping Coal

A significant milestone was our Prior to that, Pike River This shipment had a value of first20,000 tonne export coal commissioned the new $10 million around NZ$6 million and was shipment in February 2010 shipped Ikamatua rail loadout facility ahead sold at a slightly higher discount from Port of Lyttelton to Port Bedi of railing coal to Lyttelton. than contract due to higher ash in India. This inaugural shipment, levels (4.7% actual compared to 1% A second export shipment of worth in excess of NZ$3 million (5% contract specification). 22,000 tonnes of coal, was shipped ash), went to one of our life-of- to India (again, Gujarat NRE) at mine customers, Indian cokemaker the beginning of September 2010, Gujarat NRE Coke. around six weeks behind schedule.

10 PIKE RIVER COAL LIMITED Annual Review 2010 Health & Safety The health and safety of our There has been one MTI in the new Recruitment - staff, contractors and visitors is financial year ended30 June 2011 as paramount to Pike River. We take at the date of this report. Our People this issue very seriously and are, In May 2009, Peter Whittall, The past 12 months has seen Pike therefore, continually looking for attended the inaugural CEO Health River busy recruiting mining, ways to improve and enhance and Safety Summit to provide engineering, processing and our existing health and safety an operational input on behalf support staff to ensure a full initiatives. of Pike River. The summit was complement of employees for the In February 2010, the company organised by the Department of current stage of operations. As introduced scenario-based Labour to encourage business well as attracting staff from within training exercises which reflect leaders to initiate an industry-led New Zealand, the company has emergency situations that could organisation to drive improvement engaged in a significant offshore occur in any underground mining and make a step change in recruitment drive to build a top operation. These exercises become workplace health and safety in New quality workforce. In January 2010, increasingly important as the Zealand. the company recruited a highly mine moves into hydro-mining experienced Operations Manager From this first summit, a new operations. The company has also with over 30 years experience in organisation was formed called the introduced a new site-wide hazard underground coal mining in the UK Business Leaders Health and Safety identification and management and Australia. The total workforce Forum which was launched by the system to increase staff awareness now numbers in excess of 180 of Prime Minister Hon. John Key in of work-related dangers and as a which 80 are from the West Coast. July 2010. Peter Whittall is on the continuous improvement measure. steering committee for this new The number of medical treatment organisation which is the first of its injuries for the past financial year* kind in the world and has attracted is 14, two more than the company’s international attention. target KPI which is no more than 12. * Note – year ended 30 June 2010

Chief Executive’s Overview 11 Pike on the Coast Climate Change Response Act and Methane Pike River’s contribution to the local Pike River became subject to carbon Pike River will consider the economy is steadily growing. With costs on fugitive gas emissions commercial viability of ‘capturing’ current annual wages and salaries from 1 July 2010 under legislation some methane for small scale, on- of around $13 million for our mine governing New Zealand’s Emissions site power generation and on-site operation, our contribution to the Trading Scheme called the Climate flaring of methane as a possible West Coast community is significant: Change Response Act. We measure means of reducing our liability. • Pike River has recruited 80 staff our actual emissions and will apply from the Coast for a unique emission factor which • The $13 million spent on local recognises the fact that emissions wages represents about $78 from our mine are significantly less million in spending as money is than the default levels otherwise spent and re-spent within the used to calculate liabilities. The community company has estimated that its • A large underground contractor methane emissions from the presence, ranging between 20 mine for next year could range and 60, has been on site in the from between 105,000 and past four years. Many of these 185,000 tonnes of carbon dioxide were brought in from outside equivalent. the Coast, but there has also been significant use of local contracting companies.

12 PIKE RIVER COAL LIMITED Annual Review 2010 Safeguarding Our Environment Pike River has received national 500 possums. Pike River also pipeline into Big River. Independent recognition for its environmental sponsors an $85,000 per year blue international consultancy firm, performance in establishing a new duck enhancement programme. Golders, confirmed that there were mine operation on Department of This is aimed at creating a safe no adverse impacts on aquatic Conservation administered land. environment for this critically macroinvertebrate communities. endangered species which is The company further stated Creating and maintaining a safe undergoing a rapid decline due to that all indicators fell within the and secure habitat for native birds a variety of factors, most notably historical variation recorded at like the blue duck (whio) and the the effects of introduced predators. each site and environmental health great spotted kiwi (raroa) is an Pike River is also helping to fund monitoring has shown that Pike integral part of our operations Operation Egg Nest, a Department River’s discharges and water takes at Pike River. The company runs of Conservation run initiative that have had no adverse effects on the a pest and predator eradication aims to re-establish a natural receiving environment. programme which encompasses breeding population of whio in the an area of around 1350 hectares Pike Catchment. in the Pike Catchment. Over the past year, a large number of In February 2010, the company self- pests and predators have been reported to regulatory authorities eradicated including 412 rats, 83 a minor discharge of coal fines stoats, 25 goats, and approximately through the water discharge

Chief Executive’s Overview 13 Active Supporter of Local Community Pike River is an active supporter of the local West Coast community. The company has a visible presence at many local events and is a major sponsor of a number of events including the Sports West Coast Holiday Programme.

Current and Upcoming Sponsorships Greymouth Aquatic Centre Greymouth International Multiple Sclerosis Society, Greymouth District Council Film Festival West Coast (Tarpaulin for Civil Greymouth Jockey Club R.E.D. Dance School Defence emergencies) Greymouth SPCA Axemen’s Club Greymouth Fishing Club Greymouth Squash Relay for Life - Cancer Society Greymouth Golf Club Competition Sports West Coast Holiday Hunting & Fishing Greymouth (Reefton) Trotting Programme Competition Club - Pike River Pace Wallsend Coal Mine Winding AusIMM Conference Ikamatua Cockies Golf Group Wheel Restoration Project Australian Mining History Ikamatua Golf Club Waro-Rakau Rugby League Club Association Ikamatua Rugby Club West Coast Land Search & Awohono ICT Kids Conference Mawhero Young Writers Rescue Awahono School Moonlight Badminton Club West Coast Life Education Trust Blackball Unwearable Arts Moonlight Community West Coast Speedway Greymouth Amateur Events - Biathlon Westland Motor Cycle Club Swimming Club Cancer Society - Movember (Ikamatua Event)

14 PIKE RIVER COAL LIMITED Annual Review 2010 Coal Prices International coal prices steadily pricing for export coal in March The September 2010 shipment, sold increased over the past 12 months 2010. Prices for coking coal are under the quarterly pricing formula, as China and India continued to generally now a combination of achieved US$205 per tonne due to drive demand. Both countries have quarterly and annual pricing. The its higher ash content compared to been tipped to import around 20 most recent quarterly benchmark a benchmark of US$225 per tonne million tonnes of hard coking coal pricing for premium hard coking applying for that quarter. in the 2010 calendar year. For China, coal for the 3 months ended 31 Note: China/India projections from Minaxis this includes both premium and December 2010 was set at US$205 Pty Limited, January 2010. Latest quarterly standard grades. India’s imports per tonne. This compares to the benchmark pricing for premium hard coking are expected to include more than annual international benchmark coal for 3 months ended 31 December 2010 from McCloskey CoalReport, 3 September 2010. Annual six million tonnes of premium hard price which applied for the prior international benchmark price for JFY10 from coking coal. Japanese Fiscal Year ended 31 March Minaxis Pty Limited Coal Market Wrap and Analysis 2010 (JFY10) of US$128 per tonne. Report October 2009. Major international coal producers Pike River’s first shipment in JFY10 led by the BHP-Mitsubishi Alliance sold for US$122 per tonne. (BMA) agreed to change a decades-long practice of annual

Chief Executive’s Overview 15 Board of Directors

1 2 3 4 5 6 7 8

The Pike River Board includes members with proven skills 5. Dipak Agarwalla and experience in listed public companies, the private Non-Executive Director sector, and the coal industry. Dipak Agarwalla comes from a family with over 10 decades of coal mining experience in India. In 1994, he promoted Saurashtra 1. Mr John Dow Fuels Pvt Ltd, which today is one of India’s largest merchant coke Independent Director and Chairman producers. The groups have interests in pig iron, infrastructure John Dow, a geologist, has had 42 years experience as a and coal mines. He has held various positions in multilateral successful greenfields explorer, exploration manager, and trade organisations, including Indian Met Coke Manufacturers mining executive in New Zealand, Australia, Antarctica, Association. Southeast Asia, the United States, and Latin America. His most recent executive appointment was as chairman and managing 6. Roy Antony (Tony) Radford director of Newmont Australia Limited, the Australasian Non-Executive Director subsidiary of Newmont Mining Corporation. He is currently the Tony Radford has 26 years experience in resource company non-executive chairman of Troy Resources NL, non-executive management and has spent most of his career in the petroleum chairman of Glass Earth Gold Limited and chairman of Straterra and mining industries. He is a founding director, and the current Inc. chairman of NZOG, and has been a director of Pike River since 1983. 2. Gordon Ward * Executive Director 7. Arun Kumar Jagatramka Gordon Ward, with 23 years experience in the resource sector, Non-Executive Director is the managing director of Pike River. He was appointed to the Arun Kumar Jagatramka is the chairman and managing director Board in July 2006 and made chief executive in January 2007. He of Gujarat NRE Coke Limited. Appointed as an honorary NSW was previously New Zealand Oil & Gas Limited’s (NZOG) general “Sydney Ambassador” to India by the Govt of New South Wales, manager, managing NZOG’s involvement in the Pike River, Tui oil Australia, he is a member of a number of boards including Port and Kupe oil/condensate fields. Kembla Coal Terminal, Australian Coal Research Ltd and the Wollongong Hawks. He is also a member of the NSW Minerals 3. Professor Raymond (Ray) Meyer Council. Non Executive Director Ray Meyer, with 41 years experience in engineering, is a former 8. Sanjay Loyalka director of the Electricity Corporation of New Zealand Limited, Alternate Director for Arun Jagatramka Transpower New Zealand Limited, Watercare Services Limited, Sanjay Loyalka has over 22 years experience in various functional Auckland Uni Services Limited, and chairman of the Forest roles including CEO and general management. He has corporate Research Institute. He is currently deputy chairman of NZOG. finance experience in mining and metals, manufacturing and logistics-based industries in a multi-national environment. He 4. Stuart Nattrass was instrumental in the development of the Aditya Birla Group’s Independent Director operations within Australia. Stuart Nattrass has 17 years experience in international financial markets, principally foreign exchange risk management, and is a director of a number of public and private companies.

* Gordon Ward announced his departure from Pike River – including his directorship – on 10 September 2010, effective 1 October 2010

16 PIKE RIVER COAL LIMITED Annual Review 2010 Corporate Directory

Directors Registered and Head Office Shareholder Information For company information: John Dow Level 3, Axon House For information on number Telephone Non Executive Chairman 1 Willeston Street of shares or options held, +64 4 494 0190 holding statements and Gordon Ward PO Box 25 263 Facsimile changes of address contact Managing Director Wellington 6146 +64 4 494 0219 the share registrar at Raymond Meyer New Zealand Website: www.computershare.co.nz/ Freephone (NZ) www.pike.co.nz Dipak Agarwalla investorcentre; or 0800 494 021 Arun Jagatramka Telephone + 64 4 494 0190 New Zealand Stuart Nattrass Facsimile + 64 4 494 0219 Investors should register Computershare Investor Tony (RA) Radford Email: [email protected] at: www.pike.co.nz /email_ Services Limited alerts.php to receive reports, Sanjay Loyalka Private Bag 92119 Mine Site Office (alternative for Auckland 1142 news releases and other 586 Logburn Road, Atarau A Jagatramka) New Zealand company announcements P O Box 212 via email on the day they are Telephone Management Greymouth 7840 released. +64 9 488 8777 Gordon Ward New Zealand Chief Executive Telephone +64 3 769 8400 Facsimile +64 3 769 8434 Australia Peter Whittall Email: [email protected] Computershare Investor General Manager Mines Services Pty Limited Angela Horne Auditor GPO Box 2975 Financial Controller KPMG Melbourne Vic 3001 Helene Ambler 10 Customhouse Quay Australia Relationships Manager P O Box 996 Telephone Brian Roulston Wellington 6011 + 61 3 9415 4000 New Zealand Company Secretary Aust Freephone 1300 850 505

This Annual Review was printed using mineral free vegetable based inks on 100% post-consumer waste recycled paper from sustainable forests. Paper is sourced from mills with EMAS accreditation (Eco Management and Audit Scheme).

xvii In line with best practice, the company provides this Annual Review which is a companion document to the company’s Financial Review 2010 document. Together these documents form the Annual Report of Pike River Coal Limited for the year ended 30 June 2010.

Both this document and the Financial Review 2010 document are available for you to view electronically or download by visiting www. pike.co.nz/reports at any time.

W www.pike.co.nz E [email protected] xviii PIKE RIVER COAL LIMITED Annual Review 2010