Compliance Energy Corp · OTC:CPYCF
Compliance Energy — Investor Presentation (October 2006)
26 slides from Compliance Energy's investor presentation, October 2006
Slide 1: October 2006 TSX Venture Exchange: CEC
October 2006 TSX Venture Exchange: CEC
Slide 2: Safe Harbor Statement & Risk Factors
Safe Harbor Statement & Risk Factors Assumptions used in financial forecasts are purely conceptual. Statements contained in this presentation which are not historical facts are forward-looking statements which involve risk and uncertainties which could cause actual results to differ materially from
Slide 3: Our Strategy
Our Strategy Develop and Operate Highly Profitable Coal and Energy Projects with Revenue Exceeding $150 Million by 2010 z Power Supply to B.C. Hydro z 30-year contract; locked-in revenue growth z Thermal Coal Production at Basin Mine, Princeton B.C. z Open pit mine in operation; large coal resource
Slide 4: Accomplishments
Accomplishments Aug 06: signed 30 year Electricity Purchase Agreement with BC Hydro Nov 05: signed option agreement with West Fraser for 82,000 acres on Van Island May 04: secured power plant site with significant infrastructure in place May 04 – Present: Basin Coal Mine thermal coal accepted by loc
Slide 5: CEC Timeline
CEC Timeline 2006 – Thermal Coal Production & Sales 2007 – Met Coal & Power Plant Development 2008 – Met Coal & Power Plant Construction 2009 – Met Coal & Power Plant Production 2010 –Target Revenue: $150 million +
Slide 6: The Team
The Team John Tapics, P. Eng President & CEO z 30+ years mining, electrical industry experience z 4 years as CEO of Alberta Electric System Operator z 11 years at Transalta (led Transmission, DIstribution units) Jim O’Rourke, BASc, P.Eng. Chairman & Director z 35+ years development and operating exp
Slide 7: BC's Energy Plan
BC’s Energy Plan Encourages investment in energy development, including coal, natural gas in coal, and other energy sources Independent power producers – “key partners for future” Minister confirms BC Government support for wood waste/coal power
Slide 8: Responding to BC's Energy Plan
Responding to BC’s Energy Plan July 06 awarded 30 year Electricity Purchase Agreement $200 million dual fuel power plant z 56 MW fueled by wood waste/coal z $40-55 million annual revenue z $22 million EBITDA Designed to meet or be better than new regulatory emission standards
Slide 9: New Coal Fired Power Plant Point Source Emission Limits
New Coal Fired Power Plant Point Source Emission Limits (August 2005 ) Limits ( ng/J - output basis ) 600 500 New BC Limits Comparable in N.A. 400 300 200 100 0 n rta da 5 3 to 00 00 be a ng -2 -2 an Al hi BC BC C as W NO2+ SO2 Particulate
Slide 10: CEC Power Project
CEC Power Project “Wood waste will be sourced within a 120 km radius area and helps eliminate Basin inefficient Coal methods of Mine dealing with woodwaste” Power Plant (Similco)
Slide 11: Regional Wood Waste Production
Regional Wood Waste Production SOURCE Waste Produced Currently Usefully Used (ODT’s) (ODT’s) Mills Kamloops Forest 1,161,000 1,000,000 Region (includes small producers) (22 mills) Small Producers 40,000 (34 entities) Municipal Woody Debris 70,000 ? ( 6 municipalities) Logging Bush Debris ? ? Total +
Slide 12: Additional Wood Supply to come from Pine Beetle Damaged Forests
Additional Wood Supply to come from Pine Beetle Damaged Forests BC has 8.7 million hectares of Pine Beetle Invested Forests
Slide 13: Power Plant Site
Power Plant Site Water Tanks Building Roof Mill Building 138 KV Power Line Extended To Extended & Transformer Accommodate Boiler Site Attributes: 4,400 gpm water license & system 138 KV power line to site transformers 1 KM off major paved highway 15 Km from Princeton, BC
Slide 14: Power Plant Site
Power Plant Site Site Attributes: Wood Waste feed 30 day storage capacity for wood waste conveyor system and coal will be provided for on site. Water Tanks Building Roof Mill Building 138 KV Power Line Extended To Extended & Transformer Accommodate Boiler Admin Building Coal Stockpile
Slide 15: Basin Coal Mine
Basin Coal Mine Mine Site – 30 km northwest of Princeton, BC Vancouver, BC Coal Project
Slide 16: Large Land Position
Large Land Position 12 Million MTRC 8,295 Acres B.C. Gov. report 240 million tonne resource in Tulameen coal basin
Slide 17: Current Status
Current Status 30-year Take-or-pay Contract Signed August 2006 Coal Resource Secured (CEC’s Basin Mine) Wood Supply Study Completed Project Site and Most Infrastructure In Place Connection to B.C. Power Grid On-Site Water System License, Most Permits Obtained Application for Air Emission Permit Star
Slide 18: Summary - Princeton Power Project
Summary - Princeton Power Project Dual-fuel power plant: thermal coal and wood waste Take-or-pay contract with B.C. Hydro (30 years) Growing revenue stream: $40m Year 1, $55m Year 30 Excellent profitability: EBITDA estimated at $22m/year Total capital spending required: $200 million Timeline 2007 –
Slide 19: Vancouver Island Coal Deposits
Vancouver Island Coal Deposits Curcio’s 1975 82,000 acres Report: Comox Basin has coal Resources of 890 Million Tons* * Not 43-101 compliant Raven Coal Deposit •38.5 million tonnes resource Bear Coal Deposit •13,680 Btu/lb •8.5 million tonnes resource •Ash 9.5% (Washed) •13,333 Btu/lb •FSI 8 •FSI 6
Slide 20: Raven & Bear 10Km Apart
Raven & Bear 10Km Apart BEAR Rav-06-01 Extends coal resource by ½ km! NEW SHOWINGS ! RAVEN 2006 EXPLORATION AREA ADIT#1 BULK SAMPLE
Slide 21: Next Steps For Island Assets
Next Steps For Island Assets 2006 – Complete $2.1M Development /Exploration 2007 – Pre-feasibility Study & Permits 2008 – Feasibility & Construction 2009 – Target Production + 1.0M tpy
Slide 22: CEC Timeline
CEC Timeline 2006 – BCM Coal Sales 2007 – Island Coal & Power Plant Development 2008 – Island Coal & Power Plant Construction 2009 – Island Coal & Power Plant Production 2010 –Target Revenue: $150 million +
Slide 23: Summary Highlights
Summary Highlights Two high potential projects for cash flow & growth Experienced development and operating team > 20 Years Coal Resource Low Debt and cash in the bank Early opportunity in a Growth Sector
Slide 24: Activity Summary
Activity Summary Power Plant Project 30 Year Contract Signed With BC Hydro Basin Thermal Coal Mine In Production Metallurgical Coal on Vancouver Island Major exploration program underway
Slide 25: Required Disclaimer
Required Disclaimer PURCHASERS’ RIGHTS OF ACTION Purchasers resident in Ontario, Alberta and British Columbia who purchase units of securities (“Units”) sold pursuant to an offering memorandum (a “Memorandum”) have statutory rights of action for rescission or damages if the Memorandum and any amendm
Slide 26: Compliance Energy Corporation
Compliance Energy Corporation Suite 584 – 885 Dunsmuir Street Vancouver, BC V6C 1N5 Ph (604) 689-0489 Fax (604) 681-5910
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