AGM 2014 28[TH] NOVEMBER 2014 2015 – Set to deliver

Disclaimer

The information contained in this document (“Presentation”) has been prepared by Guildford Coal Limited (the “Company”). This Presentation does not constitute an offer or invitation to any person to subscribe for or apply for any securities in the Company. This Presentation contains summary information of a general nature about Guildford and its activities current as at 28 November 2014. It should be read with the Company’s other periodic continuous disclosure announcements lodged with the ASX.

While the information contained in this Presentation has been prepared in good faith, neither the Company or any of its shareholders, directors, officers, agents, employees or advisers give any representations or warranties (express or limited) as to the accuracy, reliability or completeness of the information in this presentation, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as ‘information’) and liability therefore is expressly disclaimed. Accordingly, to the full extent permitted by law, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or limited, contractual, tortious, statutory or otherwise, in respect of the accuracy or completeness of the information or for any of the opinions contained in this Presentation or for any errors, omissions or misstatements or for any loss, however arising, from the use of this Presentation.

This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained in this Presentation necessarily involve significant elements of subjective judgement, analysis and assumptions and each recipient should satisfy itself in relations to such matters.

This Presentation may include certain statements that may be deemed ‘forward-looking statements’. All statements in this Presentation that address future activities or events are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may vary materially. The Company does not represent, warrant or guarantee that the information in this Presentation is complete or accurate. To the maximum extent permitted by law, the Company and its directors and officers disclaim any responsibility to inform any recipient of this Presentation of any other matter that subsequently comes to its notice which may affect any of the information contained in this Presentation. Factors that could cause actual results to differ materially from those in forwardlooking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions.

Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.

Coal Resources and Competent Persons Statement

Technical Information on Clyde Park & Springsure JORC has been prepared by Kim Maloney who has over 10 years of experience in coal mining and extractive industry throughout Australia. Kim has experience within the Central Queensland coal mines and has held various roles in these mine’s Technical Services, including Exploration Geologist, Mine Geologist and Geology Superintendent. Kim is a Competent Person for coal as defined by the JORC Code (2004). Kim is a Senior Resource Geologist previously with Moultrie Geology. Her principal qualifications are a Bachelor of Science from James Cook University and a Masters of Business Administration (Human Resource Management) from the Central Queensland University. Kim is a Member of The Australasian Institute of Mining & Metallurgy (# 229120) and a Member of the Bowen Basin Geological Group.

The information in this presentation that relates to Coal Resources for the South Gobi – North project was first reported in compliance with the principles and guidelines of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), 2012 Edition in a market release dated 25 June 2014. GUF is not aware of any new information or data that materially affects the information included in the 25 June 2014 announcement and that all assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed.

Technical information in this report in relation to the exploration targets and JORC Resources for South Gobi, Middle Gobi, and Hughenden Projects has been compiled by Mr. Mark Biggs, previously Principal Geologist of Moultrie Database and Modelling (formerly a subdivision within Moultrie Group). Mr Biggs now works for ROM Resources Pty Ltd, Mr. Biggs is a member of the Australasian Institute of Mining and Metallurgy (Member #107188) and has over 25 years of experience relevant to the style and type of coal deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined by the Australasian Code for Reporting of Minerals Resources and Reserves (JORC) 2004. The resource information in this report is being released to the Australian Securities Exchange. Mark Biggs consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

The estimates of the Coal Resources presented in this Report are considered to be a true reflection of the Coal Resources as at 30[th] June 2014 and have been carried out in accordance with the principles and guidelines of the Australian Code for Reporting of Coal Resources and Coal Reserves published in September 2004 (JORC Code).

FY 2014 Key Highlights

FY 14 Key Highlights

Summary “A year of two very different halves”:

An exciting first half of the year, with the mine boxcut excavated, 98km road constructed, culminating in the commissioning of the BNU mine. 260 employees ready to continue mining.
A disappointing second half involved waiting for the haulage permit to be granted and subsequently going in to cash preservation mode
June - Sep 13
- Received govt approval to construct the 98km road between the BNU mine with the Chinese border
- Commenced BNU box cut to expose coal in preparation for mine commissioning
- Investor visit to site and customer visits to China
- Board and management changes took effect
Oct - Dec 13
- Formal commissioning of the mine had begun
- Mine Infrastructure construction commenced, most completed and commissioned
- Phase 1 of the 98km haul road was complete, connecting the mine to market
- Commence seeking permit to transport coal
- Completion of the comprehensive core hole drilling program for the Bnu resource
- The continued exploration activity culminating in a maiden JORC indicated resource of 43Mt was achieved for the Springsure Project
- Additional funding facilities with Noble were completed (USD$22m in total) and drawn down
- Further board and management changes
Jan - Mar 14
- BNU mine commissioned
- Approval for haulage permit continues
- New OCP financing facility (USD$65m in total) where proceeds were used to repay existing debt
- DD commenced on Noble’s adjacent 12600 Exploration Lease
- BNU mine in cash preservation mode until the haulage permit approved
- As industry challenges hit harder in Australia the business focused the second half on optimisation of the Australian portfolio, increased activity in seeking out investment partners and options for key projects and active cost conservation
- Canaccord appointed to explore equity and debt financing options
Apr - June 14
- Revised JORC12 for BNU mine with higher levels of confidence
- Stockpiles of coal ready to go, washing and logistics plans put in place for when the haulage permit arrives

Mongolian Operations BNU haul road construction complete

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Mongolian Operations Mining underway

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Mongolian Operations Coal ready for market

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Mongolian Operations Mine Infrastructure

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Post FY 2014 Highlights

Summary “Excitement begins building again”:

Immediately swung into coal trials
Ongoing development of the customer base with Noble and Sojitz
Production schedule announced
Plan for debt treatment
Jul-Sep14
- Haulage permit issued
- Rights issue announced
- Sino Costruction Ltd’s (Sino) offer to buy the Australian assets announced
- First coal sales achieved
- Ramp up of production brought forward
- Renewal of Springsure Project’s Exploration Permit

• Oct-Nov 14

Shipment of the second trial batch of coal
Proposed termination of the C1 management agreement
Maiora announced take-up of the second tranche of options
Operating metrics of the mine reveal a cash positive margin of AUD$9-14, which takes into account the recent Chinese import tariff. Note that the capping of key coal parameters of ash and sulfur does not affect BNU mine coal products (Ash is 25% of capped target and Sulphur is 8% of capped target). This in turn provides a marketing opportunity
Preparation for full production
Sino bid arrives for off-market takeover of Guildford
New board announced to bolster support for vision and achievement

“First Coal on Road” Completed

On 25 August 2014, the Company completed the inaugural shipment of coal on its proprietary haulage road, shipping 8,000 tonnes of BNU North coal to the Shivee Khuren / Ceke border crossing
This shipment, part of an initial 20,000 tonne contract announced on 14 August 2014, is the critical first step to full coal quality testing
A number of Chinese customers are eagerly awaiting commercially available quantities of coal
Full-scale commercial production and shipments to commence by late 2014 / early 2015

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Strong Project Development Track Record…

Despite the turmoil of protracted and contested elections in Mongolia, the Company has successfully built and commissioned a mine in ~3 years

Terra Energy acquired a 100% stake in

Mongolian company with exploration permits in South and Middle Gobi, GUF increased stake in Terra to 70%

The South Gobi received one

mining license and a Mineral

Development License was

granted

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Equipment arrived at Box cut commenced in July site, completion of and well underway in August. the bulk samples and 20 year contract made with site construction of the Mongolian government other infrastructure over the construction and to commence in use of the road August

Mining License

granted over North Pit in the South Gobi Project and marketing agreement signed with Noble

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98km haul road connecting BNU with China is completed with additional rounds of financing (US$65mm) secured from OCP

Announced BNU Announced first BNU commissioned for coal sales contract has operations and sales been executed with by the Mongolian commercial production government to follow shortly

March, July, December, January, April, October, June, August, September, December, February, July, August, September, 2011 2011 2011 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014

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Acquired a 20% stake in Terra

Announced maiden

JORC resources of 63Mt

Energy with an in South Gobi with option to increase additional JORC stake to 70% resources for Middle Gobi

Announced favorable Scoping Study results for the South Gobi with commencement of offtake discussions

Infrastructure was established including expansions on the current camp, installation of mine security fencing, fuel storage facilities and Commencement of civil works for the workshop, ROM, customs yard and coal haulage road on the mine lease

Completion of a comprehensive core hole drilling program across the BNU resource, including preparation for upgrading the current MRAM resource

Infrastructure for the initial phase of mining was established including ROM, weighbridge infrastructure, foundations and building structures for the heavy equipment workshop. The onsite coal testing laboratory was also commissioned

“First coal

Received coal

haulage permit on road ”, from the 25 August Mongolian 2014 Ministry of Roads and Transport

September washing trial completed with superior results

Trial Shipments and Results

First and second trial shipments and results (Aug 14 and Oct 14)
Awaiting final CSR test results
Recommissioning of the washplant at Ceke, involved use of lower yielding surface coal during the Aug trial

Batch	Tonnes	Yield	Ash(ad)	VM(ad)	Sulphur(ad)	G Index	Y Index	CSR
Aug. Trial 1 wash	8,000	58%	9.0%	25	0.49%	72	14.4	TBA
Oct. Trial 2 wash	10,500	80%	8.6%	25	0.46%	75	15	TBA
Oct Trial 2 Bypass	3,800	100%	10.8%	25	0.41%	85	17	TBA

Prep for full production during Nov/Dec 14
MRAM (Mineral Resource Authority of Mongolia) have approved an increase in the annual allowable mining capacity; 1.5Mt CY2015, 2.0Mt CY2016

	Dec 14	Jan 15	Feb 15	Mar 15	Apr 15	May 15	Jun 15	Jul-Dec 15	Total
HCC Tonnes(kt)	10	50	65	65	84	93	99	558	1,024
PCI Tonnes (kt)	20	20	20	10	6	7	6	77	166
Total Prodn.(kt)	30	70	85	75	90	100	105	635	1,190

Ceke Washplant

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SINO Bid

Summary

17 July 2014 - Sino Construction Limited (Sino) made an unsolicited offer to acquire all of Guildford’s Australian coal assets
25 September 2014 - Sino announced an intention to make a takeover bid for Guildford
18 November 2014 - Sino’s bidder’s statement lodged

Details of the offer

Conditional off-market takeover offer to acquire all of the issued capital of Guildford
1 Sino share for every 4.5 Guildford shares held
Offer opened on 24 November 2014 and closes at 7pm (Sydney time) on 28 February 2015 (unless extended or withdrawn)

Timing and recommendation

Sino’s offer is subject to a number of conditions which could take several months to satisfy
Guildford recommends that shareholders take no action until the board has considered the Sino offer
Guildford has requested additional information from Sino in order to assess the offer and form the basis of a recommendation whether to accept or reject
The recommendation of the board will be contained in Guildford’s target’s statement
Shareholders are encouraged to read both documents and, if necessary, seek professional advice

Post FY 2014 Financials Summary

Financials Summary

FY 2014 result was a $65.5M consolidated loss (2013: consolidated loss of $1.5m)
Cash at Bank at the end of the financial year $9.1m
The impairment loss of $44m represented a write-down of certain exploration and evaluation assets in the Australian segment to the recoverable value. This was recognised in the consolidated statement of profit or loss. The recoverable value of $52m at 30 June for the Australian assets was based on management considering the unsolicited offer announced to the market on 17 July and independent valuation of the assets. The valuations were determined on both a market multiple and on a DCF basis, at a discount rate the company would expect a market participant to apply such cash flows. In light of the current state of the coal market, the Company continues to review the value of its assets.

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As at 30.06.2014

Future Funding Sources

Current Funding Status

Currently the Group has in excess of $4.5m cash at bank.

Existing Lenders

The Group’s existing secured lenders, Noble Group and Orchard Capital Partners, continue to provide their support to the Group. Management are currently in negotiations with both parties with a view to meeting mutually acceptable terms to defer some principal and interest payments due in December 2014 and January 2015, to facilitate the Group’s ability to maintain cash reserves and meet its production targets for the next six months. It is anticipated that these arrangements will be finalised within the next seven days.

Potential investors

Management have also been working closely with corporate advisory group, Canaccord Genuity, over the last six months to review the Group’s existing capital structure and endeavour to source additional working capital to assist with the Group’s funding needs as it moves into the production phase. While liquidity remains tight within the capital markets and sourcing both debt & equity remains a challenge for resource companies globally, the Group has made significant advancements in recent weeks with the following opportunities being progressed:

Ongoing discussions and draft Term Sheet being negotiated with a US based financial group to provide additional working capital facility
Ongoing discussion with potential Coal “pre-pay” facility provider, potentially linked to an Off Take agreement
Ongoing discussions with two global equity funders to provide additional funding
Funding Road show – February 2015
It is currently envisaged that once sufficient working capital is in place the Group will look to initiate a Funding Roadshow through Asia and potentially US/UK in or around February 2015 with a view to sourcing sufficient capital to restructure the existing balance sheet and meet all deferred payments to existing lenders.

Post FY 2014 Business Strategy

Disciplined, Focused Business Strategy in Mongolia

	Near-Term	Medium-Term	Long-Term
Primary Focus	• Production	• Consolidation • Growth	• Expansion, leveraging core competencies of Mongolian project development expertise and coal expertise
Key Objectives	• Complete coal testing • Establish customer base • Demonstrate cash flow positive coal mining operation in the Noyon Basin • Continue resource delineation program	• Explore sites for 2nd, 3rd and 4th mine development followed by immediate coal production • Aim to develop these mines to create a 8Mtpa Mongolian coking coal miner within 5 years • Consolidate South Gobi region on the basis of proven track record and established infrastructure	• Continue to expand in Mongolian coking coal • Explore other commodity opportunities within Mongolia (coming off a coal base) • Consider other Asian development opportunities, in coal and other commodities

Strategically Located Assets in Mongolia and Australia

Mongolia

GUF has equity stakes in 10 tenements in Mongolia, spread over two project areas: South Gobi and Mid Gobi
The BNU North Mine, located in the South Gobi area, is GUF’s primary current focus and is currently supporting an open-cut coking coal operation
BNU North contains a JORC resource of 27Mt (Measured and Indicated 24Mt and Inferred 3Mt); further resource definition is currently underway to delineate an expanded resource base

Australia

GUF has established a portfolio of highly prospective coal exploration tenements in Queensland, Australia
In Queensland, the Company’s assets cover an estimated 16,000 square kilometers across the coal bearing Bowen, Galilee and Maryborough Basins. The tenements are strategically positioned close to existing rail and port infrastructure

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Transformational Growth Profile Driven by Internal and External Catalysts

Transformational growth to be driven by significant production ramp-up and further resource expansion through exploration and acquisitions

Production Ramp Up

Target Exploration Areas

Commercial production scheduled to commence by late 2014 / early 2015
Aim to become a 4Mtpa producer by 2017 and a 8Mtpa producer by 2019
Developing a 12 year+ life of mine plan
Additional tonne and mine potential from 12600

Significant Exploration Upside Potential

In the winter of 2013 Geophysical Resources Services Pty Ltd designed and interpreted a ground magnetic survey on licenses in close proximity to the BNU project
The results produced four key target areas in close proximity to BNU:
A. Located on the south limb extension to the Noyon syncline. This zone has approximately 8.8 km of coal bearing stratigraphy.
B. A fault displaced south western extension to target area A. This area has approximately 9.5 line km of coal bearing stratigraphic strike length.

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C. The least geologically known target area with up to 11km of potential strike.
D. Previous East Pit area

Future Optionality and Earnings, Leveraging Established Infrastructure

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Market for Coking Coal

Easy Access to Multiple Chinese Customers

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Ceke Border
Minegate Sales
Urumqi
Winsway
Inner Mongolia
Washplant
Xinjiang Jilin, Hebei
Hebei ~1,650km
Bayi Steel Gansu Hohhot
Jiuquan, Gansu Tianjin
1,900 km Ningxia Cement
Extending Point of Sales to Direct
to End Users Shanxi Plants Inner Mongolia
JISCO Lanzhou ~785 km
Jiuquan, Gansu
432 km Wuhai Shenhua
Wuhai, Inner Mongolia
736 km
Target sales region
Railway connections
Paved road
Cement plants
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Mongolia – A Critical Source of Coking Coal for China

Chinese Coking Coal Imports

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10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
--
Mar Qtr 2011 Jun Qtr 2011 Sep Qtr 2011 Dec Qtr 2011 Mar Qtr 2012 Jun Qtr 2012 Sep Qtr 2012 Dec Qtr 2012 Mar Qtr 2013 Jun Qtr 2013 Sep Qtr 2013 Dec Qtr 2013
Period
Australia Mongolia Canada & US Russia
Quantity 000’ Tonnes
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Source: Shaanxi Fenwei Energy Consulting.

Met Coal Market 2014

Persistent supply overhang, tightened credit and muted downstream demand formed the landscape for met coal market in 2014. Spot prices for all grades of met coal are at lowest they have been since 2007 when China first entered the seaborne HCC market.
Central driver has been lack of supply discipline at the marginal end of the cost curve. Producers have aggressively upped output at many existing operations, debottlenecking wherever possible in an effort to seek lower costs but spending less on labour, contractors and sustaining capital in a ‘race to the bottom’.
Exacerbated by Chinese cost curve dropping significantly since the government removed unnecessary fees and tariffs under the anti-corruption push.
Mongolia has positioned itself aggressively to displace marginal tonnes, with import figures up 11% YoY to 10.8Mt at the close of Q3. This gain has offset imports from Australia (-0.3% to 21Mt), Canada (-42% to 5Mt), Russia (-33% to 4.5Mt) and USA (-61% to 22.1Mt).

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Strong Chinese Coking Coal Demand

Chinese Coking Coal Imports

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CAGR
Mt
7%
80
70
60
50
40
30
20
10
0
2012 2013 2014 2015 2016 2017
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Source: China Coal Resources (CCR).

Tand bolon bayartai bayarlalaa (Thank you and goodbye)