COKAL LIMITED — Investor Presentation 2012

Nov 5, 2012

Investor Presentation

November 2012

DISCLAIMER

This presentation has been prepared by the management of Cokal Limited (the Company) in connection with meetings with institutional investors, for the benefit of brokers and analysts and not as specific advice to any particular party or person. The information is based on publicly available information, internally developed data and other sources. Where any opinion is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it.

The presentation contains “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information may include, but is not limited to, information with respect to the future financial and operating performance of the Company, its affiliates and subsidiaries, the estimation of mineral reserves and mineral resources, realization of mineral reserves and resource estimates, costs and timing of development of the Company’s projects, costs and timing of future exploration, timing and receipt of approvals, consents and permits under applicable legislation, results of future exploration and drilling and adequacy of financial resources. Forward-looking information is often characterized by words such as “plan”, “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words or statements that certain events or conditions “may” or “will” occur.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information, including risks associated with investments in publicly listed companies such as the Company; risks associated with general economic conditions; the risk that further funding may be required but unavailable for the ongoing development of the Company’s projects; changes in government regulations, policies or legislation; unforeseen expenses; fluctuations in commodity prices; fluctuation in exchange rates; litigation risk; restrictions on the repatriation of earnings by the Company’s subsidiaries; the inherent risks and dangers of mining exploration and operations in general; risk of continued negative operating cash flow; the possibility that required permits may not be obtained; environmental risks; uncertainty in the estimation of mineral resources and mineral reserves; general risks associated with the feasibility and development of each of the Company’s projects; foreign investment risks in Indonesia; changes in laws or regulations; future actions by government; breach of any of the contracts through which the Company holds property rights; defects in or challenges to the Company’s property interests; uninsured hazards; disruptions to the Company’s supplies or service providers; reliance on key personnel and retention of key employees.

Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management of the Company made in light of their experience and their perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable. Assumptions have been made regarding, among other things: the Company’s ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of coal, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Competent Person Statement

The information in this report relating to Exploration Results is based on information compiled by Patrick Hanna who is a fellow of the Australasian Institute of Mining and Metallurgy and is a consultant (through Hanna Consulting Services) to Cokal Limited. Mr Hanna is a qualified geologist and has 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 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Hanna consents to the inclusion in the report of the matters based on the information, in the form and context in which it appears.

The information in this report relating to Mineral Resources is based on information compiled by Tri Yoso who is a member of the Australasian Institute of Mining and Metallurgy and a full time employee of Cokal Limited. Mr Yoso is a qualified geologist and has 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 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Yoso consents to the inclusion in the report of the matters based on the information, in the form and context in which it appears.

Note 1: Exploration Target

All statements as to Exploration Targets of Cokal Limited and statements as to potential quality and grade are conceptual in nature. There has been insufficient exploration undertaken to date to define a Coal Resource and identification of a Resource will be totally dependent on the outcome of further exploration. Any statement contained in this document as to exploration results or Exploration Targets has been made consistent with the requirements of the Australasian Code for Reporting of Exploration Results, Resources and Ore Reserves (JORC Code).

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OUTLINE

• Corporate Overview

• BBM Project Description - Priority Development

• Other Company Activity

• Community Development

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OUR FOCUS

 Building A Global Metallurgical Coal Business

 Positive and Agile Decision Making

• Respect for all Stakeholders

• Ethical Decision Making

 Technical Skills for Innovative Solutions

• Results Orientated

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STRONG BOARD COAL PEDIGREE

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Peter Lynch - Executive Chairman, Mining Engineer, 25 years experience in mining; MIM, Shell Coal, MacArthur Coal, Open Cut & Underground, TSX and ASX:WCI.

Pat Hanna - Executive Director, Geologist, over 30 years experience all coal; Globally consulting on over 40 projects; strong Indonesian track record; exploration manager Riversdale; prior JORC committee member.

Jim Middleton - Managing Director, Mining Engineer, 30 years experience all coal; Corporate and operational roles with BHPB, Xstrata, Glencore, Exxon Coal, Coal & Allied; reputation for capital efficient reliable production.

Domenic Martino - Non-Executive Director, Former CEO, Deloitte Australia; ASX companies including Sydney Gas, Pan Asia, Clean Global Energy, NuEnergy Capital; Strong reputation in China and HKSE; over 12 years successful Indonesian energy and resource dealings with local partners.

– Vic Kuss Chief Financial Officer and Joint Company Secretary, Chartered Accountant; M&A activities and capital raising; worked extensively in a number of overseas mining and resource related operations including in Indonesia.

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DIVERSE AND EXPERIENCED MANAGEMENT

Duncan Cornish – Joint Company Secretary, Chartered Accountant, Ernst & Young and PWC; Successful IPO and RTO record on ASX, TSX and AIM listed companies including TSX – WCI, WCB; AIM – SLG; ASX–DGR, PGM, MET, BOW, WCI, SA, SMR.

Chris Turvey – Exploration & Resource Manager, Geologist over 22 years coal experience, 14 years Rio Tinto Australia; overseen multi-million dollar exploration programs to define resources for major Chinese coal company listings; +5 years experience in Asian coal projects including Indonesia.

Yoga Suryanegara – Resource Manager Indonesia, Geologist, international experience with SRK Consulting; Caledon Resources; responsible for overseeing multi-million dollar exploration programs in Queensland and Kalimantan; more than 10 years experience in Berau Coal (fifth largest open cut thermal coal in Indonesia).

Tri Yoso – Snr Resource Geologist, ex SRK Consulting international experience, Riversdale skilled on major geological modelling software.

Mark Imber – Environmental & Approvals Manager, ex Waratah Coal, WorleyParsons, oversaw the EPBC process for major Galilee Basin development.

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EXECUTIVE SUMMARY

Cokal Limited (CKA)

• Listed on the ASX in December 2010

• Developing Metallurgical Coal Projects in Central Kalimantan

• Objective: Metallurgical coal producer by H1 2014

Bumi Barito Mineral Project

• High quality metallurgical coal project in Indonesia

COKAL CAPITAL STRUCTURE

ASX Code CKA Shares on Issue 411M Options on Issue 30M Debt nil Cash at 30 September $20M

• 77 Mt JORC Indicated & Inferred Resource – 70% Coking Coal and 30% PCI

• Low ash, low sulphur and high calorific value (Direct Shipping)

Initial Development Study Completed at BBM

• Open pit coking coal mine targeting first coal H1 2014

• Confirms low initial capital expenditure requirements and operating cost

• Recommendation to proceed to feasibility stage

Financial Position

• Total Cash at present $20M

• Sufficient for exploration of existing tenements

• Potential to develop direct ship low Capex operation

• H1 2014, 1[st] phase BBM mine (2Mtpa)

Price history as at 30 October 2012

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PROJECT LOCATIONS – INDONESIA

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BBM & BBP TENEMENTS – INDONESIA

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BBM PRIORITY PROJECT

INVESTMENT HIGHLIGHTS

 High quality coking coal with significant upside potential

 Near term production

• Low cash operating cost

• Flexible development plans – low capital requirement

• Advantageous export location – close to markets

• Experienced Management Team with a strong record of delivering hi h erformance and low ca ital o erations g p p p

Advanced development plan: In Feasibility phase

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BBM PROJECT TIMELINE

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Stage 2 is an aspirational plan. There is insufficient Resource to support this plan at present. Current logistics planning takes into account possible expansion at a time when Studies and data support such an expansion plan.

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INITIAL DEVELOPMENT STUDY OUTCOMES

Stage 1: Real NPV of $US497M (100% Project)

• Stand-alone Development Study at BBM recently completed by SMEC

• Capable of rapid expansion (Stage 2)

• Confirms low initial capital expenditure and operating cost

• Schedule for production in H1 2014

• Proceeding to definitive feasibility phase

ASSET DESCRIPTION	ASSET DESCRIPTION
Project	BBM, Central Kalimantan, Indonesia
JORC Resources	77Mt (70Mt Inferred + 7Mt Indicated)
JORC Exploration **Target1 **	200-350Mt
Coal Product	Premium coking coal / Semi soft (90%/10%)
Mining Method	Single strip open-cut
First Coal	1H 2014
Run of Mine Production	2Mt (Stage 1)
Yield	~98%

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MINE COSTS

Development Capital	US$ (Million)		Operating Cost (excluding 7% Royalty)	US$/t Avg
Stage 1: Direct ship to start production	50		Stage 1: Direct ship to start production	72.17
- Ramp up to 2Mtpa	50		- Average first 5 years	67.84
TOTAL	100		Stage 1 Stand-alone case (LOM)	89.58

• Highly competitive: • Capital investment

• • Operating costs

• • Margin

Note: Based on contract mining and barging

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BBM APPROVALS

Current Approvals

• IUP (Exploration), on ‘Clean & Clear’ List

• PT BBM approved Foreign Owned company (PMA status)

• Cokal Shareholding of PT BBM approved by BKPM (Central Government Foreign Investment Co-ordination Board)

• Exploration Forestry Permit (IPPKH Izin Pinjim Pakai)

Upcoming

• Environmental Approval (AMDAL)

• IUP (Production)

• Forestry Permit (Production)

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ON THE DOORSTEP OF THE BIGGEST MET COAL MARKETS

Fastest and lowest cost shipping to key customers

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DEVELOPING A NEW COKING COAL PROVINCE

Indonesian Coal Reserves

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BBM – 77MT INDICATED AND INFERRED RESOURCE

Resources b Seam Resources b De th y y p

	Seam Thickness (m)	Indicated Resources (Mt)	Inferred Resources (Mt)	Total Resources (Mt)			Indicated Resources (Mt)	Inferred Resources (Mt)	Total Resources (Mt)
Seam Name						Depth Range (m)
J	1.40	7.0	10.0	17.0		0-50	4.0	8.0	12.0
D	1.30		25.0	25.0		0-100	7.0	21.0	28.0
C	1.06		20.0	20.0		0-150	7.0	33.0	40.0
B	0.87		15.0	15.0		0-200	7.0	44.0	51.0
Total		7.0	70.0	77.0		0-300	7.0	70.0	77.0

Sufficient Resource to underwrite 2Mtpa initial open cut production plan

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BBM - PREMIUM QUALITY COKING AND PCI COAL

Coal ualit of B C and D Seams Q y ,

Seam		Inherent Moisture		Volatile Matter	Fixed Carbon	Total Sulphur	Calorific Value		Relative Density	Phos- phorus
	Product		Ash					CSN
D	PCI	0.9	5.1	10.3	83.7	0.43	8,204	1.5	1.36	0.002
D	Coking	0.9	5.1	14.4	79.7	0.39	8,287	9.0	1.33
C	PCI	1.0	5.5	9.3	84.3	0.41	8,191	1.0	1.36	0.001
C	Coking	0.5	5.5	14.5	79.5	0.24	8,265	8.5	1.33	0.001
B	PCI	0.9	14.0	9.5	75.6	0.41	7,676	1.5	1.40	0.004
B	Coking	0.5	12.6	13.8	73.1	0.23	7,591	7.5	1.38	0.002

• Low insitu-ash allows direct

• shipping potential – low OPEX and CAPEX

 Highly sought after:

Coal Quality of J Seam

Product	Yield (%)	Inherent Moisture		Volatile Matter	Fixed Carbon	Total Sulphur	Calorific Value		Relative Density	Phos- phorus
			Ash					CSN
Raw Coal			4.6 – 14.3
		0.8		17.9	71.1	0.40	7,752	>9	1.35	0.003
Washed Coal @ F1.60
	87.95	1.0	5.2	18.3	75.5	0.47	8,237	>9	1.32	0.002

• High Carbon

• Low Sulphur

• Low

• Phosphorus

• High Energy

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BBM – POTENTIAL TO INCREASE RESOURCE SIZE

 Exploration Target[1] of 200 – 350Mt down to 200m depth.

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 This potential is in addition to the current 77Mt JORC Indicated and Inferred Resources  Comprised of 13 Seams in the Eastern Block of BBM (40% of the tenement area)

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PLANNED MINING OPERATIONS

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• Seams Outcrop on the surface

• Significant length of outcrop

• J seam ~ 1.4m thick

• In-pit sizing / screening

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• Truck / Excavator operation

• Contractor operated

• Direct Ship from Pit to Jetty

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INFRASTRUCTURE and TRANSPORT

Coal to be transported in three phases, accounting for approximately 774km from the mine site to the Java Sea

• 55km haul road from mine to the Barito River

• 500km down the Barito River to the Intermediate Stockpile Port at Kelanis

• Ocean-going barges to transport coal approximately 200km to the open sea anchorage at Taboneo in the Java Sea

• Coal to be transshipped to an ocean going vessel for the customer

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TRUCK HAULAGE

• 55km road route, 2 studies done

• Detail work underway

• • Maximum grade planned @ 8%

• All weather surface

• 120t per truck planned

• • Dual trailer, side tipping proposal

• Ease of loading, unloading, reliability

• Excellent balance of operating and capital costs

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BARGE LOADING

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• Plan for direct load from trucks to barges

• Spare barges enable efficient system

• Stockpiling capability

• Front End Loader hoppers for reloading from stockpile

• Low capital, low operating cost

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• Minimises coal degradation

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SHALLOW DRAFT BARGES

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River designed barge system for safe, reliable and
economic transport
Indonesian system currently uses towed ocean going
barges
Mississippi style allows flexibility, for manoeuvring and
cargo sizes
Indonesian Style Towed Barge
USA: 40,000 km of rivers; 2.7m draft; $5B economic impact; 624Mtpa
Transferring current technology to Indonesia barging
Mississippi Style Push Barge
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• River designed barge system for safe, reliable and economic transport

• Indonesian system currently uses towed ocean going barges

• Mississippi style allows flexibility, for manoeuvring and cargo sizes

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SHALLOW DRAFT BARGES

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• Stage 1 – 6,000t convoys (4 x

• 1,500t barges) – 500km

• Shallow draft: down to 2.3m water level

• 3 Studies completed

• Full bathymetric survey of river

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Tug and

• 4 Barge Convoy

• Daily river height data for over 10 years used

• 6 tugs and barge sets for 2Mtpa

• Spare barge set at loading and unloading point

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DEEP WATER BARGE TO SHIPLOADER

• Deep water barges to Floating crane in Java Sea

• 12,000t now common (matches 2 x 6,000t upper river shallow barge convoys)

• Matches common ship hatch size

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• Many Barge operators at this point

• Many Floating crane operators offshore

• Low cost, efficient

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BBM PROJECT CONCLUSIONS

• High quality coking product

• Low operating cost

• Low capital investment required

• Good margin and quick payback

• Early production

• Geographically well positioned

• Potential for expansion

• Experienced Executive team

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OTHER TENEMENTS Central Kalimantan, INDONESIA

• BBP – 60/40 with local owner, PMA company ownership structure. 13k ha directly adjacent to BHP, Maruwai. Has bright coal seam outcrops, laboratory tests indicate low in-situ ash, low sulphur, ultra-low phosphorous and high energy

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• 1 drill rig in place

• On ‘Clean and Clear’ list

• Targeting potential following BBM Cashflow

• AAK – 75/25 with local owner, PMA company ownership structure - 5k ha with 5 outcrops (1-2m in thickness) with bright coal and possible anthracite

• AAM – 75/25 with local owner, PMA company ownership structure 10k ha – 11 outcrops have bright coal

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DEVELOPING INFRASTRUCTURE

• Two river ports and two coal-fired power stations to facilitate metallurgical coal production

• Working together for mutual benefit with the Murung Raya Regency

• CSR program on education and training, employment and local infrastructure development

• Brings jobs, education and prosperity to the region

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Dr Willy Yoseph (Head of Regency), Jim Middleton (Cokal CEO) and Domenic Martino (Cokal Director)

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CORPORATE SOCIAL RESPONSIBILITY

• Assisted with materials and labour to make repairs to the local school

• Provided medical support to the community; arranging an ophthalmologist to run a free clinic

• Co-operative business which employs local people to assist Cokal with logistics for food, general supplies and field work

• Provided an emergency generator to ensure reliable electricity for the local school

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PROJECT LOCATION West Kalimantan, INDONESIA

• Cokal 75.2% interest in PT Silangkop Nusa Raya (SNR)

• Three IUPs in Singtang Regency, West Kalimantan covers an area of 13,000 hectares

• Outcrop samples show high volatile, low ash, moderate sulphur and low phosphorus coking coal

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MARKET CAPITALISATION

Million Dollars A$ Coal Companies

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$913
$260
$195
$158 $158
$72 $61 $56 $45
BORN.JK CZA.AX BTU.AX COK.AX NCR.AX CKA.AX AFR.AX CLR.AX TIG.AX
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As at 24 October 2012

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SUMMARY

• Executive Team with strong track record

• High Margin Metallurgical Coal confirmed

• Assets with Good Potential

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• BBM Project is well positioned to be in production H1 2014, with significant upside potential

• Plans to develop the portfolio

• Plans for becoming Significant Metallurgical Coal Producer

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