JATCORP LIMITED — Capital/Financing Update 2013

Nov 18, 2013

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JATENERGY LIMITED ABN 31 122 826 242

ASX CODE: JAT

AUSTRALIAN REGISTERED OFFICE Floor 6, Suite 8 55 Miller Street PYRMONT NSW 2009 AUSTRALIA

ASX ANNOUNCEMENT

19 November 2013

Jatenergy signs binding term sheet with Chapmans Limited to significantly increase production at Indonesian coal projects

CONTACT DETAILS

Telephone +61 2 9571 8300 Facsimile +61 2 9571 8200 Email info@jatenergy.com Web www.jatenergy.com

HIGHLIGHTS

• Binding Term Sheet was signed on 19 November 2013 with Chapmans Limited.

• An initial investment of $200,000 will be made directly into the Jongkang project for 50% profit share with Jatenergy.

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• These funds will be used to increase production at the Jongkang project, which will provide substantial cash flow for Jatenergy.

• Chapmans has the option to invest a further $850,000 into Geronggang project or Blackrock Energy which houses the Barata projects.

The Board of Jatenergy Limited is pleased to announce that a binding Term Sheet with Chapmans Limited (ASX:CHP) (“Chapmans”) was signed on 19 November 2013. Chapmans Limited (CHP) is a specialist investment company engaging in short term high yielding investment opportunities across a diverse range of industries including resources, property and technology.

The Agreement

Under the agreement, Chapmans will invest $200,000 directly into the Jongkang project in return for a 50% profit share with Jatenergy. This investment will be used to substantially increase coal production. Under the agreement, Chapmans also has the option to invest a further $850,000 into the Geronggang Project direct for profit share or Blackrock through a private share subscription. The entirety of this funding will be used to increase production of the projects and to further establish the PT Barata Energy coal operation in Indonesia.

www.jatenergy.com

If they elect to make this further investment as a share subscription agreement, it will result in Chapmans having a 50% ownership of Indonesian coal production projects Jongkang, Geronggang and Sebuku.

Jatenergy and Chapmans have developed detailed business and marketing plans, and over the coming months, which will release production timelines and detailed targets.

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Figure 1 ‐ Coal stockpiled at Jongkang project ready for production

Investment Structure Chart

After investing the initial $200,000 directly into Jongkang for a 50% profit share in the project, Chapmans has either option to invest direct into Geronggang or subscribe to acquire 50% of Blackrock, in which the PT Barata Energy projects are housed.

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----- Start of picture text -----

Chapmans Limited (ASX:CHP)
Jatenergy Limited (ASX:JAT)
50% ownership through an additional
$850,000 Investment 50% ownership
Blackrock Energy Pte Ltd
(Singapore Company)
PT Barata Energy
(Indonesian Coal Production Company)
Coal Production Projects
 Jongkang
 Geronggang
 Sebuku
----- End of picture text -----

Figure 2 – Investment structure chart for Chapman’s additional investment into Blackrock.

www.jatenergy.com

Re‐opening and Establishment of Mine Sites

This joint venture will initially rework the Jongkang project into a production mine facility. If Chapman’s elects to invest the further $850,000 Jatenergy will establish a mine site at Geronggang which will take around 2‐3 months to establish. Jatenergy will also review Sebuku for potential mine opening and exploitation.

For investors this is a significant boost to the company’s strategy of acquiring short term production plays and seeking third party investment to rapidly bring forward cash flow into the company. Executive Chairman Tony Crimmins stated, “The Jatenergy Board is very pleased with the recent development of our Indonesian coal projects. With substantial capital being committed by Chapmans Limited, Jatenergy will be able to utilise this investment to significantly increase production at Jongkang and also move the Geronggang project into production. The company also plans to use some of the cash flow generated from these projects to plan the mining on Sebuku Island. This is a very exciting time for Jatenergy shareholders as this will change the nature of the play from short term to medium continuous production.”

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Figure 3 ‐ PT Barata Energy, Indonesian coal project map

Jongkang Project Overview

The Jongkang I and Jongkang II projects are currently in production and produced around 35,000 tonnes over the past year and were developed in December 2011 as part of a Joint Venture arrangement with a local Indonesian partner. Located in East Kalimantan approximately 5 km along an existing haul road from the Mahakam River, and about 25 km from a major hub of Indonesia’s coal industry at Samarinda, each concession is covered by a production license comprising 100 hectares. Upon the receipt of the investment from Chapmans, Jatenergy will move to operate the Jongkang project at increased capacity.

www.jatenergy.com

The cash flow that will be provided by the increased production of this project is an important part of the Jatenergy business as it will substantially assist with funding the expansion of the company’s operations. ‐ For more Information on the Jongkang project, please visit: http://jatenergy.com/jongkang projects/

Geronggang

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On 3 December 2012, Jatenergy announced that it had signed an exclusive MOU with PT Saijaan Prima Coal (SPC) to ultimately acquire the site. The MOU was effective for three months, during which time economic, geological and legal due diligence was conducted. After the completion of this due diligence, Jatenergy invested up to $1,500,000 to develop the project. Under its investment model, the profits from the venture are shared between Jatenergy (PT Barata Energy) and SPC. In 2013 over drilling was carried out by Jatenergy and a detailed topographical survey was undertaken to produce working mine plans which will cost $850,000 million to bring them into production. Jatenergy has the rights to market this project coal. With existing infrastructure including a number of jetties in the close vicinity, Jatenergy looks forwards to bring this project into production using the financing provided by Chapmans.

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For more Information on the Geronggang project, ‐ please visit: http://jatenergy.com/geronggang project/

Image 4 ‐ Geronggang Project Map

Sebuku

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The Memorandum of Understanding (MOU) for Sebuku was signed by Barata energy in March 2013. The project consists of a 198 hectare property on Sebuku island which lies off the southeast tip of Borneo, just south of the Geronggang coal project area.

According to geological information, in this island there are mineral deposits that have good economic value such as coal ‐ with seams ranging from 1.0‐12.0 metres in thickness. Jatenergy has planned further geological studies to confirm these initial findings. The property is the subject of a production IUP and is prospective for coal and iron ore.

Image 5 ‐ Sebuku Project Map

www.jatenergy.com

About Jatenergy

Jatenergy (ASX:JAT) is an ASX listed energy investment company, focused on conventional, second generation and energy conversion technologies. Jatenergy acquires projects, creates value through development and then sells or Joint ventures the projects to provide a return for investors.

Media and Management Contact

Tony Crimmins +61 2 9571 8300 t.crimmins@jatenergy.com

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About Jatenergy

Jatenergy Limited is a Sydney‐based diversified energy company operating in both Australia and Asia. Jatenergy’s strategic focus is on producing cash returns from its coal and Jatropha assets as well as implementing the proprietary Coal Plus technology for upgrading low grade coal into high value energy products.

Directors

Tony Crimmins

Executive Chairman

Richard Pritchard

Non‐Executive Director

Mr Xipeng Li

Non‐Executive Director

Mr Wilton Yao Alternate Director

Jatenergy Limited ABN 31 122 826 242

ASX code

JAT

Ordinary fully paid shares 98,565,568

Listed options 31,898,547

www.jatenergy.com