HELIOS ENERGY LTD — Capital/Financing Update 2012

Oct 15, 2012

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• 16 October 2012

SIGNIFICANT UPGRADE TO JORC RESOURCE AT KINNEY COAL PROJECT

Highlights:

• JORC Resource on Kinney increases by 97% to 51.6Mt from 26.1Mt

• 87% of the resource is in the Measured and Indicated Category

• Latest drill campaign confirms high quality thermal coal in excess of 6,600 kcal/kg GAR and an average sulphur well under 1%

The Board of New Horizon Coal Ltd ( NHO or Company ) is pleased to announce a significant upgrade to the JORC Coal Resource at its Kinney Coal Project in Utah, USA. The most recent coal resource estimate uses the full thickness of the UP Seam, results of the 2012 exploration program, and includes additional coal blocks controlled by NHO. Average coal quality is high in calorific value and low in sulphur content. Of the new total, 44.8 million tonnes (87% of the total) are measured or indicated.

This upgrade coincides with a period of rapid development for the Company as it moves the Kinney Coal Project towards Bankable Feasibility and production. In addition to the stated JORC Resource upgrade, recent and upcoming highlights include:

• Continued progress on the Kinney Coal Project Pre-Feasibility Study, with results to be released in November 2012.

• Release of coal quality from the Company’s 2012 drilling program. Drilling results confirmed average quality of the Kinney coal to be: high calorific, low ash, and low sulphur, and comparable to typical Newcastle quality specification.

• Marked progress towards securing an export allocation at a new, fully-permitted port on the Gulf of Mexico coast. NHO is finalising an initial allocation, an agreement for which is expected by the end of 2012.

• Definitive negotiations with Class 1 rail carriers. NHO is working with the new, fullypermitted port facility to secure preferred haul rates from the Kinney Coal Project to the Gulf Coast.

Kinney Coal Project JORC Resource Upgrade

The JORC Resource upgrade to 51.6 million tonnes is the result of independent evaluation of the Kinney Coal Project by John T Boyd Company ( JT Boyd ). The recent coal resource determination is part of the pending Prefeasibility Study ( PFS ) being prepared by JT Boyd for release in November. All Coal Resources identified and confirmed by JT Boyd lies on mineral rights controlled exclusively by NHO.

New Horizon Coal Ltd.

Level 1, 33 Ord Street | West Perth, Western Australia 6005 Telephone: + 61 8 9420 9300 | Fax: + 61 8 9420 9399

Table 1: Kinney Coal Project Revised JORC Resource (million tonnes)

	(million tonnes)
		Initial JORCResource	Revised JORCResource	Change
	Measured + Indicated	23.9	44.8	+ 20.9
	Inferred	2.2	6.8	+ 4.6
	Total	26.1	51.6	+ 25.5

The increase in the reported Coal Resource is the result of: use of the full thickness of the UP Seam, incorporation of the recently completed 2012 exploration program results, and the expansion of the coal resource area which allowed several major coal blocks controlled by NHO to be included in the revised Resource. The Resource has been evaluated in accordance with the criteria set forth in the JORC Code (2004).

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Figure 1: Map of all mineral rights controlled by NHO

According to Michael Placha, Managing Director of NHO, “the upgrade of the JORC Resource at the Kinney Coal Project represents one of many positive steps New Horizon is taking to advance the development of this project. Taken in conjunction with our confirmation of coal quality from the summer drilling program and advanced discussions for port allocation, this demonstrates the project’s ability to be a successful producer of high calorific, low sulphur coal for the domestic and export markets.” With the upgrade, the Kinney Project now comprises over 51 million tonnes of high-heat, low sulphur thermal coal suitable to both domestic and export markets. The re-evaluation of the Kinney Coal Project Resource will also extend to adjacent tracts of mineral rights controlled by the Federal government and private owners. The target

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mineralisation of these Federal and fee coal blocks will significantly increase NHO’s coal resources, further enhancing the project’s value as a producer of high calorific, low sulphur coal. Environmental assessments for the adjacent Federal tracts are ongoing, with a competitive lease sale expected in the first half of 2013. The addition of these tracts will provide a significant upgrade to the Kinney Coal Project’s annual production and life of mine.

Pre-Feasibility and Beyond

NHO has made significant progress towards moving the Kinney Coal Project to Bankable Feasibility and production. The JORC Resource upgrade follows a 27 September 2012 announcement of laboratory results from the Company’s 2012 drilling program. This confirmed a quality specification for the Kinney Coal Project comparable to typical Newcastle quality, with average calorific value in excess of 6,600 kcal/kg GAR and an average sulphur value well under 1%.

Both the revised JORC Resource and the above laboratory results will be included in the JT Boyd PFS, to be released in November 2012. NHO expects the PFS will confirm the viability of the Kinney Coal Project as a low-cost producer of high heat, low sulphur coal suitable for both domestic and export markets.

To further enhance the project’s viability and cost-effectiveness, NHO has made significant progress to secure port allocation and preferred rail pricing. The Company is in advanced negotiations to secure an allocation at a new port located on the Gulf of Mexico. NHO expects to announce a completed deal by the end of CY 2012. Locating on the Gulf of Mexico will provide NHO unrivalled access to European and Latin American markets as well as costeffective access to Asia via the enlarge Panama Canal. NHO is currently working with the port owner to secure preferred rail pricing with several carriers, further enhancing the cost advantages available on the Gulf coast.

Enquiries

Michael Placha Telephone: +1 412 296 1473 Managing Director Email: mplacha@wasatchnr.com Carl Coward Telephone: +61 8 9322 5944 Non-Executive Director +61 422 209 162 Email: ccoward@wasatchnr.com

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About New Horizon Coal Ltd

NHO is focused on becoming a producer of high quality thermal coal, with a target of becoming a mid-tier North American coal mining company. Through its US subsidiary, Wasatch Natural Resources (WNR), the Kinney Coal Project was acquired in late 2011. The Kinney Coal Project plan involves underground mining of two major coal seams using multiple, continuous miner sections in a room and pillar mining operation. Entry will be via an exposed coal seam outcrop within the already permitted area.

The Kinney Coal Project lies in a mature mining region which has historically produced over 30 million tonnes of coal annually from underground mines. The Kinney Coal Project benefits from world-class infrastructure including three class 1 rail carriers within 30km of the proposed portal, paved roads and state highway maintenance facility directly adjacent to the mine and an experienced local workforce. The Kinney Coal Project is well positioned to meet demand for coal in the domestic and export markets with a high heat, low sulphur product.

Competent Person’s Statement

The information in this report that relates to coal resource estimates prepared in conjunction with the pending JT Boyd PFS, is based on information compiled by Mr Paul Anderson, who is a Registered Member of the Society of Mining, Metallurgy and Exploration (SME) and independent consultant to the Company. Mr Anderson is Director of Geological Services of John T Boyd Company and has over 37 years of exploration and mining experience in a wide variety of mineral deposit styles including coal. Mr Anderson has sufficient experience which is 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 reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Anderson consents to the inclusion information prepared by Mr. Anderson in this presentation.

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