METRO MINING LIMITED — Investor Presentation 2012

Jun 13, 2012

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2[nd] Annual RBS Morgans EMERGING COAL CONFERENCE Mike O’Brien - Chief Executive Officer MetroCoal Limited

AN EMERGING COAL BASED ENERGY COMPANY FOCUSED ON THE SURAT BASIN REGION

Disclaimer

• Statements and material contained in this Presentation, particularly those regarding possible or assumed future performance, production levels or rates, commodity prices, resources or potential growth of MetroCoal Ltd, industry growth or other trend projections are, or may be, forward looking statements . Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties.

• MetroCoal is at an early exploration stage and although reasonable care has been taken to ensure that the facts stated in this presentation are accurate and or that the opinions expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness.

• Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors.

• Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

• Geological and resource information on MetroCoal Limited coal projects in this report had been reviewed by Mr E Radley, MetroCoal Geology Manager. Mr Radley, member of “The Australian Institute of Geoscientists” , has the experience relevant to the mineralisation being reported on to qualify as a Competent Person as defined by the Australasian Code for Reporting of Minerals Resources and Reserves. The resource information in this report has been released to the Australian Stock Exchange. Mr Radley has consented in writing to the inclusion in this presentation of the matters based on the information in the form and context it appears.

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MetroCoal in the Surat Basin

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• 7 EPCs exceeding 3500km[2]

• Down dip of major projects

• Focus on Bundi and Columboola Projects.

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MetroCoal Share Structure

ACN 117 763 443 ASX Code: MTE

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Shareprice 8 June 2012	$0.26
Shares on Issue	209m
Market Cap	$54.5m
Cash on hand*	$16.7

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$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12
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• Excludes funds available in SinoCoal Joint Venture.

Substantial Shareholders

• Metallica Minerals Limited 30.8%

• DADI Eng. Dev. Group 19.6%  Mathews Capital 16.3%

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Prerequisites for a Successful Coal Mining Project

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• Market demand - and coal price

• Resource

• Tonnes,

• Mineability,

• Saleability,

• Environmental impact

• Infrastructure

• Rail

• Port

• Way forward

• Blue Sky

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Market demand for thermal coal continues to grow

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• Approx 250Mt new production required to meet the 2020 demand forecast.

• In addition, producing mines will close and that capacity must be replaced.

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China’s Coal Consumption
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Bundi Project - Status

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• 140 part cored holes drilled

• Insitu stress measurement completed

• Seismic program scheduled in Q3 2012

• Mining horizon selected in the MU10 – MU50 coal plies

• Underground long wall target mining area identified.

• Seam continuity confirmed

• Concept studies commenced

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• Mining – Mining Consultancy Services (Australia) Pty Ltd

• CHPP – Sedgman Limited

• Environmental Impact Statement (EIS)

• Terms of Reference agreed,

• Study commenced.

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MetroCoal Resource

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** • Total Resource of 3.8 billion tonnes**

	Juandah (underground) MCU Seam**	Bundi (Underground)**	Norwood (Underground) MCU Seam**	Columboola (Underground) MCU Seam**	Dalby West**	Total (Underground)
Inferred	224Mt	1411Mt	156Mt	1,297Mt***	520Mt	3,608Mt
Indicated	24Mt	150.9Mt				174.9Mt
Total	248Mt	1561.8Mt	156Mt	1,297Mt***	520Mt	3,782.9Mt

Target tonnage in Kogan and Macallister Upper seam only

**See ASX – MTE releases – 18 November 2011, 9 December 2011 and 14 December 2011

*MTE JV share + 49%

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Surat Basin Coal Seams

• Economic coal seams occur in the Juandah and Taroom coal measures within the Walloon sub-group

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• Exploration program target the Macalister Seam Package, made up of the Macalister Upper, Middle and Lower seams.

• Seams dip between 1[0] and 3[0]

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Underground Mining at the Bundi Project

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Continuous mining section identified in the Macalister Upper Seam

• Roof

• Sandstone, siltstone or coal in thick seam areas

• Partings

• MU20 tuffaceous

• MU40 siltstone

• Floor

• Typically Sandstone or siltstone depending on the working section choice.

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Macalister Seam Cross Sections

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Bundi – Attractive Coal Quality

• Specific Energy GAR +6000 kcal/kg

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• Low ash, low sulphur, low phosphorous.

• Low ash, low sulphur, low phosphorous.	• Low ash, low sulphur, low phosphorous.	• Low ash, low sulphur, low phosphorous.
• Washability data for mining section shows • High yield – 75% to 85% • Clear cut point 1.55 – no near gravity material				Washed Product - Indicative
				PROXIMATE ANALYSIS (%ad)
				Moisture	7-8
				Ash	7-10
				Volatile Matter	38-44
				Fixed Carbon	40-44
				TOTAL MOISTURE (% ar)	14-16
				YIELD (%)	75-85
				SPECIFIC ENERGY
				Gross ad (MJ/kg)	27.2
				Gross ad (kCal/kg)	6500
				Gross ar (kCal/kg)	6070
				Sulphur (% ad)	0.35
				HGI	37

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Bundi: Longwall Mining

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Before Mining
and
After Mining
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• Shallow Depth 100m – 250m

• Favourable mining conditions

• Target Seam attractive

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• Continuous mining seam

• Continuous mining seam

• No seam weathering

• Selective mining delivers

• Higher yield

• Higher quality

• Cost competitive with higher ratio opencast mining

• Benefits from improved yield and quality

• Small environmental footprint

• Low regional impact

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SinoCoal – MetroCoal Columboola Joint Venture

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• Joint Venture with SinoCoal Resources on EPC 1165 Columboola (SC 51% - MTE 49%). Signed 2010

• Targeting down dip extensions of Cameby Downs.

• *

• Inferred resource of 1,297Mt . Substantial increases expected.

• Mining target area identified.

• Progressing to next stage – EIS, concept studies etc.

• See ASX – MTE release 18 November 2011

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Rail Connection to Gladstone

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• Rail provided by the “Southern Missing Link” and upgrade of existing rail by QR National.

• Surat Basin Rail construction commences in 2012*. Initial capacity 42Mtpa (ultimate capacity understood to be >80Mtpa)

• Rail connections to mine site in cooperation with Elimatta and Central Surat Rail (ATEC, Yancoal, Cockatoo and Columboola JV)

*SBR JV Website

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Port Infrastructure - Gladstone

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Tenement to Terminal Ltd (www.3tltd.com.au)

• 3TL is an unlisted public company. Terminal land is freehold.

• Yarwun Terminal declared a significant project by Qld Govt

• MTE holds 20% of 3TL and a priority allocation for up to 11.47 Mtpa.

• Stage 1 – 25Mtpa planned to accept coal to stockpile for shipment in 2018

• 3TL provides MetroCoal with access to port capacity and opportunities for innovative financing

Wiggins Island

• MetroCoal continues to participate in the Wiggins Island Stage 2 feasibility study

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MetroCoal Development Strategy

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• To develop a longwall mining operation at Bundi (EPC 1164) with an export coal capacity in excess of 5Mt per year

• Initial development commencing 2015

• Longwall production commencing 2017

• To develop a longwall mining operation at Columboola Joint Venture (EPC 1165) with an export coal capacity in excess of 7Mt per year

• Initial development commencing 2016

• Longwall production commencing 2018

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Blue Sky – Dalby West (EPC 1166) Roma North (EPC 1167)

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In addition to the Bundi Project and the SinoCoal Joint Venture MetroCoal has an excellent resource base to provide development opportunities well in the future or cash flow in the near term.

• *** .**

• Dalby West Inferred resource 520Mt

• An attractive target with well developed coal seams at relatively shallow depths.

• Roma North includes the Norwood Project.

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• ---

• Inferred resource 156Mt

• See ASX – MTE Release 9 December 2011

• * See ASX – MTE release 12 May 2011

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MetroCoal in 2012/13

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During 2012/13 our focus will be on project development at both Bundi and Columboola and securing access to infrastructure.

• We have sufficient funds to deliver our objectives without further capital raising.

• Discussions are continuing with potential investors in Bundi.

MetroCoal moves from exploration into the next phase of development, progressing mining and environmental studies

• Exploration will focus on closer spaced drilling, upgrading resources to indicated and measured in mining target areas of Bundi and Columboola

• EIS process commenced for Bundi and Columboola projects

• Bundi Project concept study commenced - results expected in Q3

• Commencement of the Bundi Prefeasibility Study

Infrastructure for the Surat continues to develop

• SBR investment decision 2012, construction commences 2012 (SBR website)

• Wiggins Island Stage 1 construction has commenced

• 3TL preliminary studies completed & feasibility studies to commence in 2012.

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Thank you

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MetroCoal Limited

Contact:

Mike O’Brien – Chief Executive Officer Email: mobrien@metrocoal.com.au Theo Psaros – Chief Operating Officer Email: tpsaros@metrocoal.com.au Office: +61 7 3249 3040 Web: www.metrocoal.com.au

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