PACIFIC RESOURCES LIMITED — Investor Presentation 2012

Mar 20, 2012

==> picture [602 x 72] intentionally omitted <==

**PORTFOLIO

UPDATE MARCH
2012**

==> picture [721 x 260] intentionally omitted <==

Mines
&
Money
2012
–
Hong
Kong

==> picture [261 x 23] intentionally omitted <==

General

Disclaimer

• This
  document
  has
  been
  prepared
  by
  COALBANK
  Limited
  (the
  Company)
  to
  provide
  exisIng
  and prospecIve
  investors
  in
  COALBANK
  Limited
  with
  an
  update
  on
  the
  Company
  and
  its
  operaIons.

• This
  presentaIon,
  including
  the
  informaIon
  contained
  in
  this
  disclaimer,
  does
  not
  consItute
  an
  offer, invitaIon
  or
  recommendaIon
  to
  subscribe
  for
  or
  purchase
  any
  security
  and
  neither
  the
  presentaIon, disclaimer
  nor
  anything
  contained
  in
  them
  forms
  the
  basis
  of
  any
  contract
  or
  commitment.
  This presentaIon
  does
  not
  take
  into
  account
  your
  individual
  investment
  objecIves,
  financial
  situaIon
  or parIcular
  needs.
  You
  must
  not
  act
  on
  the
  basis
  of
  any
  maSer
  contained
  in
  this
  presentaIon,
  but
  must make
  your
  own
  assessment
  of
  the
  Company.

• No
  representaIon,
  express
  or
  implied,
  is
  made
  as
  to
  the
  fairness,
  accuracy,
  completeness
  or correctness
  of
  informaIon
  contained
  in
  this
  presentaIon,
  including
  the
  accuracy,
  likelihood
  of achievement
  or
  reasonableness
  of
  any
  forecast,
  prospects,
  returns
  or
  statements
  in
  relaIon
  to
  future maSers
  contained
  in
  the
  presentaIon
  (“forward-­‐looking
  statements”).
  Such
  forward-­‐looking statements
  are
  by
  their
  nature
  subject
  to
  significant
  uncertainIes
  and
  conIngencies
  and
  are
  based
  on a
  number
  of
  esImates
  and
  assumpIons
  that
  are
  subject
  to
  change
  (and
  in
  many
  cases
  are
  outside
  the control
  of
  COALBANK
  Limited
  and
  its
  directors)
  which
  may
  cause
  the
  actual
  results
  or
  performance
  of COALBANK
  Limited
  to
  be
  materially
  different
  from
  any
  future
  results
  or
  performance
  expressed
  or implied
  by
  such
  forward-­‐looking
  statements.

• To
  the
  maximum
  extent
  permiSed
  by
  law,
  none
  of
  COALBANK
  Limited,
  or
  their
  related
  corporaIons, directors,
  employees
  or
  agents,
  nor
  any
  other
  person,
  accepts
  any
  liability,
  including,
  without limitaIon,
  any
  liability
  arising
  from
  fault
  or
  negligence,
  for
  any
  loss
  arising
  from
  the
  use
  of
  this presentaIon
  or
  its
  contents
  or
  otherwise
  arising
  in
  connecIon
  with
  it.

2

==> picture [261 x 23] intentionally omitted <==

Queensland:

Emerging
Projects
&
Infrastructure

==> picture [550 x 424] intentionally omitted <==

==> picture [80 x 74] intentionally omitted <==

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

Source
:
ABARE
and
company
public
presentaIons/
media
----- End of picture text -----

==> picture [721 x 38] intentionally omitted <==

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

3
----- End of picture text -----

==> picture [261 x 23] intentionally omitted <==

ExecuIve

Summary

COALBANK
LIMITED
(“COALBANK”
or
“the
Company”)
is
an
ASX-­‐listed
company
(ASX:
CBQ)
with
an
extensive
porRolio
of
early
stage coal
projects
in
Queensland.
The
Company
holds
the
largest
coal
exploraXon
permit
footprint
in
Australia
of
any
ASX-­‐listed
company.

SCALE Tenements
exceeding 24,000sqkm in
the Surat,
Galilee,
Eromanga and Bowen
Basins

SELECTIVE

IniIal
tenements
selected
on
the
basis
of
historical
waterbore
drilling
logs
that
displayed coal
intersecXons

EARLY
SUCCESS Repeated,
significant
coal
seam
intersecIons
over 26km
of
strike in
drilling
in
Blackall
Project SUCCESSFUL A proven
team of
explorers
and
developers
of
early
stage
coal
projects TEAM

UPSIDE

Large
upside
potenIal
from
exploraIon
and
strategic
acquisiIon
targets

PROVEN
AND All
projects
neighbour producing
or
proven
coal
assets SECURE
REGION 96% of
COALBANK’s
coal
exploraIon
areas
lie outside
the
Strategic
Cropping Land
ProtecIon
Areas

Preparing
for
appointment
of
an
intermediary
to
review
strategic
opIons
and manage
approaches
received CORPORATE from
strategic
partners

Recently
raised $5
million to
conInue
drilling
acIviIes
at
the
Blackall
Project
and
achieve
a maiden
JORC FUNDING coal
resource
by
mid-­‐2012

4

==> picture [261 x 23] intentionally omitted <==

Strategic

Footprint
in
Queensland
Coal
Basins Neighbours
all
the
major
players
in
Australia's
recent
interna7onal
coal
plays

==> picture [474 x 368] intentionally omitted <==

 COALBANK: 100%-­‐owned
coal projects in
several
Queensland basins

 Large
footprint: 24,000km[2
]

 MulX-­‐deposit
potenXal in
Surat/ Eromanga
porbolio

 Major
projects
and
infrastructure planned
for
the
region
( >
AUD
40 billion
including
ports
and
rail )  Major
developers of
regional projects
include:

 GVK (Kevin’s
Corner/Alpha)

 Adani Carmichael ( )

 Vale (Degulla)

 Xstrata Wandoan ( )

 Waratah
Coal (China
First)

 AMCI (South
Galilee)

5

==> picture [261 x 23] intentionally omitted <==

Corporate

Snapshot

CapitalStructure(AUD) Share Price $0.06	CapitalStructure(AUD) Share Price $0.06
Shares Outstanding	813 m
Market CapitalisaXon $50 m
Cash and Receivables $5m
Debt	Nil
Enterprise Value	$45m
Exchange	• Australian Stock Exchange: (ASX: CBQ) • Total Shareholders: 1,200 (approximately)
Ownership	• Allegro Capital Nominees Pty Ltd (G. Baynton, Director) 49.4% • Afliated Funds of Och-Zif Capital Management LLC 11.9% • Square Resources Pty Limited (S. Ever, Director) 3.0% • Other 35.7%

6

==> picture [261 x 23] intentionally omitted <==

Key

Personnel

Bruce
Patrick Chief
ExecuXve , B.Sc,
(Hons),
Grad
Dip
Mgt,
Cert.
in
Mining,
MAusIMM

Project
Manager
for
Anglo
Coal’s
$800m
Lake
Lindsay
Project,
managing
the
project
from
iniIal
exploraIon, through
feasibility
and
approvals,
to
construcIon.

Open-­‐cut
mining
project
management
roles
in
Anglo
Coal’s OperaIons
and
Projects
and
Engineering
Group.

Early
career
as
a
geologist
for
Coal
and
Allied
Industries
and Thiess
Mining
Division
where
he
assisted
in
further
defining
the
straIgraphy
of
the
Surat
Basin.
At
Callide
Mine
in Central
Queensland
he
moved
to
mining
engineering
and
mine
operaIonal
management
roles.

**Staffan

Ever
Director,
MBA,
M.Sc,
(Civil
Eng)**

Former
CEO
of
QCoal,
former
General
Manager
of
AMCI
Australia
(12
years
with
AMCI).
Strong
experience
in managing
and
financing
coal
projects
from
greenfields
to
producIon
and
markeIng.
Previously
undertook
and oversaw
equity
investments
in
Gunnedah,
Glennies
Creek,
Coppabella
and
Moorvale
mines.

BoardofDirectors	BoardofDirectors
Roger Clarke	Chairman
Greg Baynton	Deputy Chairman (ExecuIve)
Lance Grimstone	Director
Stafan Ever	Director
William Stubbs	Director
Grahame Baker	Director

**Dr

Peter
Jorgensen Senior
Geologist** , BSc
(Hons),
PhD,
MAusIMM

Over
18
years
experience
in
the
Queensland
coal
industry,
more
than
20
years
general
geological
experience. Previous
roles
in
exploraIon,
mine
site
geology
and
resource
evaluaIon
with
Anglo
Coal,
Shell
Coal
and
as
a
self-­‐ employed
contract
geologist.

**Lance

Grimstone
Director** , B.Sc.
(Hons)
Geol.
Grad.Dipl.
Mangt.,
F.AusIMM,
CPGeo.M.MICA.

An
expert
geologist
with
over
40
years’
experience
in
the
exploraIon,
mining
and
civil
engineering
industries.
For the
last
25
years,
has
consulted
to
eastern
Australian
coal
operaIons.

He
was
a
key
geological
consultant
to Macarthur
Coal
Limited
prior
and
post
its
IPO.

Greg
Baynton Deputy
Chairman
(ExecuXve) , M.Econ
St.,
MBA,
B.Bus
(AccounAng),
Grad.Dip.
Finance
and Investment,
FFINSIA.

Founder
of
Tambo
Coal
&
Gas,
Moreton
Energy
and
Coalbank.
ExperIse
in
new
project
generaIon,
capital
raisings, corporate
structuring,
tenure
applicaIon
and
administraIon,
government
relaIons
and
Joint
Ventures.

Founder and
Director
of
Orbit
Capital,
former
Director
of
PIPE
Networks
Limited,
current
Director
of
NEXTDC
Limited
and Tissue
Therapies
Limited.

7

==> picture [261 x 23] intentionally omitted <==

Blackall

Project
–
Cross
SecIon
LocaIon
Plan Neighbours
all
the
major
players
in
Australia's
recent
interna7onal
coal
plays

==> picture [478 x 335] intentionally omitted <==

 Drilling
commenced
late
August 2011

 Repeated,
significant
coal
seam intersecIons
over 26
km
strike length

• Extent
  and
  thickness
  of
  coal intersecIons
  to
  date
  suggest potenIal
  for
  very large
  tonnages at shallow
  depths (from
  16
  metres)

• Total
  coal

  10
  metres
  confirmed
  in
  a number
  of
  CBQ
  holes
  at
  shallow depths

• Blackall
  Coal
  Project
  is
  located
  on
  an exisXng
  rail
  corridor , outside
  of strategic
  cropping
  land areas

• The
  Blackall
  Project
  represents
  a very
  small
  porXon
  (<5%) of COALBANK’s
  total
  exploraIon footprint
  in
  Queensland

• TargeIng
  northward
  extensions
  of large known
  coal
  deposits immediately
  to
  south

8

==> picture [261 x 23] intentionally omitted <==

Cross

SecIon
A:
South
-­‐
North
Seam
CorrelaIons Coal
seams
were
intersected
at
shallow
depths
over
a
distance
of
26km
with
34
holes

==> picture [658 x 380] intentionally omitted <==

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

SAMPLE
CROSS
SECTION
----- End of picture text -----

9

==> picture [261 x 23] intentionally omitted <==

Cross
SecIon
C:
West
-­‐
East
Seam
CorrelaIons Total
coal
thicknesses
exceeding
10
metres
were
intersected
in
a
number
of
holes

==> picture [632 x 365] intentionally omitted <==

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

SAMPLE
CROSS
SECTION
----- End of picture text -----

10

RAW COAL QUALITY – BL0015C	RAW COAL QUALITY – BL0015C	RAW COAL QUALITY – BL0015C	RAW COAL QUALITY – BL0015C	RAW COAL QUALITY – BL0015C	RAW COAL QUALITY – BL0015C	RAW COAL QUALITY – BL0015C	RAW COAL QUALITY – BL0015C	RAW COAL QUALITY – BL0015C
Raw Coal Calculated Ply Composites (air dried basis)
PLY	FROM (m)		TO (m)	THICK (m)	I.M. (%) ad	ASH (%) ad	S.E. (ad) (MJ/kg)	RD ad
F5		31.62	32.47	0.85	20.5	12.1	19.76	1.41
F4		32.47	33.01	0.54	21.4	6.4	21.10	1.37
F3		33.28	34.18	0.90	18.6	22.5	16.98	1.48
F2		34.22	35.11	0.53	18.8	19.4	17.94	1.45
PLY	FROM (m)		TO (m)	THICK (m)	I.M. (%) ad	ASH (%) ad	S.E. (ad) (MJ/kg)	RD ad
F1		36.60	36.97	0.37	20.4	12.6	19.63	1.41
PLY	FROM (m)		TO (m)	THICK (m)	I.M. (%) ad	ASH (%) Ad	S.E. (ad) (MJ/kg)	RD Ad
E4	42.79		43.33	0.54	20.9	10.0	20.56	1.38
E3	43.40		44.06	0.66	18.1	22.5	17.27	1.48
E2	44.06		44.54	0.48	20.7	14.6	19.00	1.41
E1	44.79		45.05	0.26	19.5	15.8	18.94	1.43
D2	45.90		46.29	0.39	17.3	31.9	14.79	1.53
PLY	FROM (m)		TO (m)	THICK (m)	I.M. (%) ad	ASH (%) ad	S.E. (ad) (MJ/kg)	RD ad
C2	53.57		54.54	0.97	18.5	25.0	16.12	1.51
C1	54.80		55.23	0.43	22.0	8.0	20.34	1.36
									11

==> picture [261 x 23] intentionally omitted <==

Blackall-­‐Surat

Project
Areas
&
New
Targets

==> picture [721 x 456] intentionally omitted <==

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

Walloon
Coal
Measure
Discoveries
East
Energy
Resources
Carlow
Xstrata
Wandoan
coal
resource [2
]
469MT
Indicated
coal
resources [1]
1,254MT
280MT
Inferred
Measured
ExploraXon
Target
729MT
Indicated
of
1.8
to
2.0BT
CSG
Fields
Permian
2,494MT
Inferred
Note: 1 Mineral Resources and Ore Reserves as at 30 June 2010 Lacerta/Don
CSG
Fields
2 East Energy Resources Limited Quarterly Activities Report, 3 Feb 2012 Juan
12
----- End of picture text -----

==> picture [261 x 23] intentionally omitted <==

East

Surat
and
Bowen
Basin
Projects Three
Eastern
Queensland
projects
all
Close
to
major
coal
deposits,
rail
infrastructure
and
ports

==> picture [432 x 301] intentionally omitted <==

**EPC

2241
-­‐
Biloela
South**

• 20km
  south
  of
  Callide
  Mine

• 40km
  west
  of
  proposed
  Monto Mine

EPCA
2239
-­‐
Coal
Creek

• 45km
  south
  east
  of
  Meandu
  Mine

• 55km
  north
  of
  Jeebropilly
  Mine

EPC
2240
&
EPCA
2359
-­‐
Coalbank
South

• 15km
  east
  of
  New
  Acland
  Mine

• All
  have
  coal
  intersecIons
  at
  shallow depths
  reported
  in
  the
  waterbore logs
  eg.
  24.4
  metres
  of
  coal
  in EPCA2239

• Geographical
  diversity
  should
  miIgate the
  impact
  of
  adverse
  weather within
  the
  combined
  porbolio

13

==> picture [261 x 23] intentionally omitted <==

Biloela
South
Project

==> picture [605 x 416] intentionally omitted <==

==> picture [721 x 38] intentionally omitted <==

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

14
----- End of picture text -----

==> picture [261 x 23] intentionally omitted <==

Coal
Creek
Project

==> picture [605 x 416] intentionally omitted <==

==> picture [721 x 38] intentionally omitted <==

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

15
----- End of picture text -----

==> picture [261 x 23] intentionally omitted <==

Coalbank
South
Project

==> picture [605 x 417] intentionally omitted <==

==> picture [721 x 38] intentionally omitted <==

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

16
----- End of picture text -----

==> picture [261 x 23] intentionally omitted <==

Coal

ExploraIon
and
Development
Plans

==> picture [625 x 387] intentionally omitted <==

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

2011 2012 2013 2014 2015
Q3
Q4
Q1
Q2
Q3
Q4
Task
First-­‐pass
drilling
on
selected
targets
Drill
follow-­‐up
targets
to
JORC
Resource
level
First-­‐pass
drilling
on
next
targets
Drill
next-­‐round
targets
to
JORC
Resource
leve
l
MINE
1
Concept
Study
Pre-­‐feasibility
Study
Feasibility
Study
Mine
Development
MINE
2
Concept
Study
Pre-­‐feasibility
Study
Feasibility
Study
----- End of picture text -----

17

==> picture [261 x 23] intentionally omitted <==

Metals
Projects
(100%
owned) Harvest
Metals
Pty
Limited
(100%
subsidiary)

==> picture [268 x 176] intentionally omitted <==

Chillagoe (EPM11980
and
EPM
applicaXons
18325 applicaXon)

• “Leane’s”
  copper
  discovery
  in
  breccias
  in
  shallow (circa
  50m)
  drilling

==> picture [179 x 253] intentionally omitted <==

==> picture [130 x 159] intentionally omitted <==

• High
  potenIal
  for
  similar
  porphyry
  breccia model
  to
  Mungana
  and
  Red
  Dome
  copper deposits

• Deeper
  drilling
  required
  to
  test
  for
  the
  total Mungana/Red
  Dome
  style
  porphyry
  orebody model

==> picture [721 x 38] intentionally omitted <==

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

18
----- End of picture text -----

==> picture [261 x 23] intentionally omitted <==

Mungana
–
PotenIal
Model
for
“Leane’s”

==> picture [407 x 458] intentionally omitted <==

At
Mungana
the
window
of mineralisaIon
extends

500m Breccia
extends
200m
from
surface into
skarn The
skarn
stretches
200m
into marble Below,
marble
extends
into
intrusive porphyry

==> picture [237 x 166] intentionally omitted <==

19

==> picture [261 x 23] intentionally omitted <==

Metals
Projects
(100%
owned) Harvest
Metals
Pty
Limited
(100%
subsidiary)

**Mt

Morgan
(EPM17850)**

• Surrounds
  the
  historic
  gold
  mining
  town
  of
  Mt Morgan
  (265
  sq
  kms)

• Targets
  include
  significant
  Cu
  in
  soil
  anomalies
  (> 500ppm
  Cu)

• 6
  main
  targets
  idenIfied
  in
  VMS
  province including
  Au,
  Cu
  &
  Zn
  skarns

==> picture [139 x 171] intentionally omitted <==

==> picture [296 x 352] intentionally omitted <==

==> picture [721 x 38] intentionally omitted <==

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

20
----- End of picture text -----

==> picture [261 x 23] intentionally omitted <==

Harvest
Metals
–
PotenIal
Spin-­‐off

Interest from potential partners for Chillagoe and Mt Morgan projects Independent Expert’s Report released in February 2012

New tenement application in Chillagoe Formation north of Mungana/Red Dome Option for in specie distribution of Harvest Metals during 2012 Legal and tax planning under way

Discussions with potential partners for Chillagoe & Mt Morgan Projects continue

21

==> picture [261 x 23] intentionally omitted <==

Surat

Gas
Pty
Ltd
(100%-­‐owned)

==> picture [285 x 415] intentionally omitted <==

More
than
20,000
sq
km
of
ATPs close
to
pipeline infrastructure Favourable sesngs
for
unconvenIonal
shale
gas and
CSG
plays
+
convenIonal
oil
and
gas Breakthrough in
seismic
reprocessing
has
brought to
light
the
geometry
of
very
large,
unexplored down-­‐faulted
basins

   

Favourable sedimentary
history
with
abundance of
source
rocks
from
Devonian
to
Jurassic Favourable structural
/sedimentary
traps
and
host rocks

==> picture [7 x 5] intentionally omitted <==

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


----- End of picture text -----

Favourable maturaIon
condiIons
to
generate convenIonal
oil
&
gas
plays



==> picture [271 x 188] intentionally omitted <==

==> picture [98 x 32] intentionally omitted <==

22

==> picture [261 x 23] intentionally omitted <==

Summary

COALBANK
is
an
explorer
and
developer
of
early
stage
coal
assets

Commencement
of
growth
phase
following
recent
exploraIon
successes

A
significant
landholding
in
an
emerging
coal
basin

In
excess
of
21,000
km[2] of
overall
holdings
are
across
the
Surat/Eromanga
Basins
west
of
Roma in
Queensland

AddiIonal
projects
in
other
coal
basins
close
to
operaIng
coal
mines
with
potenIal
for
mulIple deposits
and
very
large
tonnages

Historical
water
bore
records
indicate
significant
coal
intersecIons
across
all
coal
tenement holdings

Evidence
of
a
major
coal
discovery
over
26
km
in
strike
length
south
of
Blackall,
with
total
coal intersecIons

10
metres
from
shallow
depths
(all
at
open-­‐cut
depths)

2012
drilling
program
to
achieve
maiden
JORC-­‐standard
resource
at
Blackall
currently
underway Planning
for
farm-­‐out/de-­‐merger
of
non-­‐core
metals
and
petroleum
subsidiaries

23