METRO MINING LIMITED — Investor Presentation 2012

Jan 31, 2012

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QEC Investors’ Forum 31 January 2012

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

Disclaimer

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• 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.

• Technical information and resource targets on MetroCoal Limited coal projects in this report had been compiled by Mr Neil Mackenzie-Forbes, MetroCoal JV General Manager. Mr Mackenzie-Forbes, member of “The Australian Institute of Geoscientists” , is a competent person and has relevant experience 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 Mackenzie-Forbes 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 Share Structure

ACN 117 763 443 ASX Code: MTE

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Shareprice 30 January 2012	$0.48
Shares on Issue	208.9M
Market Cap	$100.3M
Cash on hand*	$21.2M

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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 16.7%

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Board and Management

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Wang DongPing (Non-Executive Director)

Lindsay Ward (Non-Executive Director)

David Barwick (Chairman)

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Andrew Gillies (Non-Executive Director)

Michael Hansel (Non-Executive Director)

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Robert Finch (Alternate NonExecutive Director to Wang DongPing)

John Haley (Non-Executive Director/Company Secretary)

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Mike O’Brien (Chief Executive Officer)

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Neil Mackenzie-Forbes (JV General Manager)

Theo Psaros (Chief Operating Officer)

4 Nicholas Villa (Project Manager)

MetroCoal’s Surat Basin Tenements

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• Increased activity in the Surat Basin

• Significant new corporate entrants through take over and acquisition

• New Hope/Elimatta

• Yancoal/Cameby Downs

• Rail and Port

• infrastructure is well advanced

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MetroCoal Resource

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• • Exploration Target of 2.5 – 3.5 billion tonnes by end 2011 has been achieved

• ---

• • 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

• The potential quantity and quality is conceptual in nature, and there has been insufficient exploration to define a

• Mineral Resource or Ore Reserve and it is uncertain if further exploration will result in the determination of a Mineral Resource or Ore Reserve.

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

• *MTE JV share + 49%

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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 5Mt per year

• Initial development commencing 2016

• Longwall production commencing 2018

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Bundi Project EPC 1164 and EPC 1251

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• Located down dip of New Hope’s Elimatta and Xstrata’s Wandoan mining projects.

• No material effect from proposed SCL legislation.

• *

• Total Resource 1561.9Mt

• 71 part cored holes completed in 2011

• Underground longwall target area identified - concept study commenced

• EIS process commenced with agreed TOR.

• *See ASX – MTE release 14 December 2011

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- Bundi Section

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SinoCoal – MetroCoal Columboola Joint Venture

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• $30 million Joint Venture with SinoCoal Resources on EPC 1165 Columboola (SC 51% - MTE 49%)

• JV is targeting down dip extensions that make up the Cameby Downs thermal deposit being mined by Syntech

• *

• Inferred resource of 1,297Mt announced in 2011

• No material effect from SCL legislation

• See ASX – MTE release 18 November 2011

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Dalby West - EPC 1166

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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.

• Dalby West presents an attractive target with well developed coal seams at relatively shallow depths.

• **Exploration drilling has commenced with two holes completed. A maiden Inferred resource of 520Mt ***

• has been established .

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• *See ASX – MTE Release 9 December 2011

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Roma North EPC 1167

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• Roma North includes the Norwood Project area where 156Mt* inferred resource has already been identified.

• Extensive exploration target exists to the west of Norwood. Further drilling is planned during 2012.

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• See ASX – MTE release 12 May 2011

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MetroCoal Surat Projects Indicative Coal Quality

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• Thermal coal suitable for export, at depths amenable to underground mining at all MetroCoal project areas • Attractive coal quality • low ash, low sulphur and low phosphorous. • The low nitrogen (an advantage to power stations in built up areas which have a ceiling on NOX emissions) • low iron oxide in the ash makes the coal suitable for cement manufacture		Washed	Raw
	PROXIMATE ANALYSIS (%ad)
	Moisture	8-9	7-9
	Ash	9-11	15-25
	Volatile Matter	38-42	36-38
	Fixed Carbon	38-43	30-42
	TOTAL MOISTURE (%Ar)	14-16	12-14
	YIELD (%)	75-90
	SPECIFIC ENERGY
	Gross (MJ/kg.ad)	26.6	21.8-25.1
	Gross (kCal/kg.ad)	6350	5200- 6000
	ULTIMATE ANALYSIS (%daf)
	Carbon	77.4	75.9
	Hydrogen	6.0	6.2
	Nitrogen	0.9	1.1
	Sulphur	0.4	0.4
	Oxygen	15.3	16.3
	Sulphur (%ad)	0.30	0.32
	HARDGROVE GRINDABILITY INDEX (HGI)	38	40

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Surat Basin Rail Capacity

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• Southern Missing Link is on track. Surat Basin Rail JV customer commitment process has commenced.

• MTE expects to be an “expansion” customer.

• Central Surat Rail Group established to progress the rail extension from Wandoan to Columboola.

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Port Infrastructure

 MetroCoal is confident of obtaining port capacity

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 Wiggins Island

• Wiggins Island Stage 2 process underway

• $2M bank guarantee for MTE share of feasibility study for 12Mtpa capacity (5Mtpa for Bundi - 7Mtpa for Columboola)

• Tenement to Terminal Limited

(3TL)

• 3TL is an unlisted public company

• Terminal site land is freehold

• MTE has 20% Equity in 3TL and secured a priority allocation for up to 11.47 Mtpa.

• Stage 1 – 25Mtpa planned to accept coal to stockpile for shipment in 2017

• This presents opportunities to integrate investments in port capacity with mine production.

• RFP Notices have been sent to a number of coal producers seeking interest to participate in the feasibility phase

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MetroCoal 2011 Highlights

• Resources

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• *** Total coal resources increased by 3,073.9Mt from 709Mt to 3,782.9Mt**

• Inferred by 2,922Mt from 686Mt to 3,608Mt

• Indicated by 151.9Mt from 23Mt to 174.9Mt

• MTE ASX announcements 18 November, 9 December and 14 December 2011

Holes Drilled	Holes Drilled	Metres Drilled	Metres Drilled	Cores Taken	Cores Taken	Samples Analysed	Samples Analysed
2010	2011	2010	2011	2010	2011	2010	2011
30	99	5,500	33,678	12	86	600	3708

• In the Field

• At our peak we had 7 drill rigs deployed between Bundi and Columboola

• Commenced our EIS process for Bundi and Norwood projects

• Opened our Wandoan office

• Corporate

• Investment in 3TL

• Dadi Engineering becomes a cornerstone investor

• Expansion of MTE Board with broader coal mining and infrastructure expertise

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MetroCoal in 2012 An attractive Investment Opportunity

During 2012 significant progress is expected in both infrastructure development and MetroCoal’s own project development.

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 Norwood projects

• Bundi mining concept study commenced in late 2011 - results expected early Q3

Infrastructure for the Surat continues to develop

• SBR financial close in Q3, construction commences before end 2012

• Wiggins Island Stage 1 construction has commenced

• 3TL preliminary studies completed & detailed feasibility studies to commence.

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