Hallador Energy Company · NASDAQ:HNRG

Hallador Energy — BB&T Conference 2012

17 slides from Hallador Energy's conference presentation, Mar 28, 2012

  1. Slide 1: Hallador Energy Company Corporate Overview

    HALLADOR ENERGY COMPANY CORPORATE OVERVIEW RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS

  2. Slide 2: Agenda

    Agenda Hallador Introduction DEVELOP. u Right Place, Product, Process Project Overview Summary rains * del This contai related to future, not past events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as

  3. Slide 3: Business Units

    R ENERGY COMPANY /HNRG Business Units | Hallador Business Interests 45% Holdings | Sunrise Coal igs si 50% Savoy Energy | Hallador Land 18 CBM & Shale Gas ILB Coal Gas & Oil beri Carlisle Mine Reserve Allerton 2014 RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS |

  4. Slide 4: Corporate Ownership

    HALLADOR ENERGY COMPANY / HNRG Corporate Ownership oal Interests Hallador Energy Armstrong Coal NOLA Export Terminal 45% Majority Owner Majority Ov Sunrise e Savoy Coal Energy RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS |

  5. Slide 5: Record Coal Sales

    Record Coal Sales Record Oil Sales Record Gas Sales Record Earnings Per Share | RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS

  6. Slide 6: Hallador Stock History

    $1500 HALLADOR STOCK HISTORY 389% increase since 2004 $400 000 RIGHT PLACE RIGHT PRODUCT RIGHT |

  7. Slide 7: Right Place: The Switch to ILB from CAPP

    a AALLADOR ENERGY COMPANY / HNRG RIGHT PLACE THE SWITCH TO ILB FROM CAPP IS HAPPENING 300 cap ge US. In Min ie |g 100 - Oo 2009 2010 201! 2012 2013 2014 2015 2016 ‘*Source: Jota T. oye US CostVison™ 2011 —@ Central Appalachia —-— Illinois Basin RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS De |

  8. Slide 8: Right Product: High Ash Fusion, Low Chlorine

    HALLADOR ENERGY COMPANY / HNRG RIGHT PRODUCT UNIQUE HIGH ASH FUSION - LOW () CHLORINE Ash Fusion Temperature <.10 Chlorine RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS Pe |

  9. Slide 9: Right Process: Efficient Processes = Low Cash Costs

    ENERGY COMPANY / HNRG RIGHT PROCESS EFFICIENT PROCESSES = LOW CASH COSTS ILB Companies — 201 1-Q4 Sales Price and Cash Costs $60.00 Geiss $50.63 $50.98 $50.11 $3000. Tes $44.73 saris $43.09 $40.00 OUR $30.00 : 2 MINING s200 fa fe by Fa | costs ane soo a aE z $9 LOWER : a than our doses $0.00 competi

  10. Slide 10: Sunrise Coal

    HALLADOR ENERGY COMPANY / HNRG SUNRISECOAL RIGHT PLACE RIGHT PRODUCT RIGHT |

  11. Slide 11: Carlisle Mine

    ALLADOR ENERGY COMPANY / HNRG CARLISLE MINE HIGH FUSION — LOW CHLORINE COAL ‘SUNRISE COAL SALES & CONTRACTED INVENTORY 2014: Contracted 1,100,000 @ $46.34 — 32% of Capacity 2013: Contracted 2,900,000 @ $40.14 — 85% of Capacity 2012: Contracted 2,900,000 @ $42.25 — 85% of Capacity A SUNRISECOAL 2011:

  12. Slide 12: Allerton Reserve

    LLADOR ENERGY COMPANY / HNRG ALLERTON RESERVE DUPLICATING THE LOW-COST CARLISLE MODEL EXPECTED PRODUCTION Approximately 3 MM/tons per year A TONS IDENTIFIED SUNRSECOAL Leased: 32.3 MM tons Non-Controlled: 21.8 MM tons Total: 54.1 MM tons Operations anticipated: 2014 RIGHT PLACE RIGHT PRODUCT RIGHT P

  13. Slide 13: Innovative Safety

    LLADOR ENERGY COMPANY / HNRG 3O0CFROLYMPICS INNOVATIVE SAFETY SARREGERYS TION THA 4 Quarters post to 30 CFR: * Total fines dropped 46% + S&S Citation fines dropped $250,000 SAVING LIVES SAVING MONEY INCREASING PRODUCTION RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS Pe |

  14. Slide 14: Sunrise Energy

    2 ENERGY COMPANY / HNRG SUNRISE ENERGY NEW ALBANY SHALE GAS CBM PARTNERSHIP 50% Ownership Invested $2.875 MM in 2010 Returned 32% in 14 months oN RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS De |

  15. Slide 15: Savoy Energy Oil & Gas

    JOR ENERGY COMPANY / HNRG SAVOY ENERGY OIL & GAS WELL PRODUCTION (Net Daily Average Oil in Barrels) 2011: 805 2010: 655 2009: 195 4A SEC PV10 (In illons, proportionate to Hallador's 45% Ownership) 2011: 2010: $15 2009: $6 RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS De |

  16. Slide 16: Hallador Land Holdings

    LADOR ENERGY COMPANY / HNRG HALLADOR LAND HOLDINGS OIL & GAS LAND SALE 2011 Invested $2.5 MM in North Dakota Lease Play Sold 90% for a gain of about $10.6 MM & Retained a 3% ORRI RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS De |

  17. Slide 17: Hallador Energy Company Summary

    FHALLADOR ENERGY COMPANY /HNG Located in Fastest Growing Basin Lowest Cost Producer Safety Leader Unique High Fusion Low Chlorine Growing Coal Reserves Repeatable Low-Cost Model RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS RIGHT PLACE RIGHT PRODUCT RIGHT PROCESS

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