Stanmore Resources Ltd · ASX:SMR

Stanmore Resources — Stanmore Coal — Queensland Exploration Council Capital Raising Seminar (October 2014)

15 slides from Stanmore Resources's conference presentation, Oct 28, 2014

1. Slide 1: Capital Raising for Coal Projects

   For personal use only Capital Raising for Coal Projects Queensland Exploration Council 28 October 2014

2. Slide 2: Important Information

   IMPORTANT INFORMATION For personal use only This document has been prepared by Stanmore Coal Limited (“Stanmore Although due care and attention has been used in the preparation of Competent Persons Statement: Coal”) for the purpose of providing a company and technical overview to forward looking sta

3. Slide 3: About Stanmore Coal

   ABOUT STANMORE COAL For personal use only  Queensland based coal  Emerging coking coal  Strong Board and  Well funded with a strong development company producer at Belview management team with shareholder base proven track record of  Counter-cyclical investment  Additional pipeline of  No tak

4. Slide 4: Located in Queensland's Premier Coal Basins

   LOCATED IN QUEENSLAND’S PREMIER COAL BASINS For personal use only Emerging Bowen Basin coking coal producer at Belview  Belview hosts high quality underground coking coal on existing rail line  First coking coal exports planned from Belview in 2018 Pipeline of additional coal projects  Lilyvale h

5. Slide 5: Capital Raising for Coal Projects

   For personal use only Capital Raising for Coal Projects 5

6. Slide 6: Overview

   Overview  Sources of capital for exploring and developing coal projects include: For personal use only Source Current status Grants & exploration support Limited Private equity Some availability (in theory) Strategic JV investment Limited Equity capital markets Effectively closed Debt capital marke

7. Slide 7: Timing is critical: the coal price cycle typically drives investment decisions

   Timing is critical: the coal price cycle typically drives investment decisions in the industry For personal use only  Significant fluctuation in the coal price over the last decade highlights the cyclical nature of the industry  The price boom of 2008-2011 resulted in many new projects being devel

8. Slide 8: Project level equity has been an important source of development capital

   Project level equity has been an important source of development capital in the coal market historically For personal use only  Through development milestones and approvals, project capital raisings such as equity sell-downs can realise significant value for project owners. Recent examples include:

9. Slide 9: The stage of the project will influence the capital strategy

   The stage of the project will influence the capital strategy For personal use only THE RANGE BELVIEW CLIFFORD Source: Lilford, 2007 GRANTS / FUNDING SUPPORT PROJECT LEVEL EQUITY SOURCES OF CAPITAL PROJECT FINANCE EQUITY CAPITAL MARKETS Exploration/Concept phase Pre-Feasibility phase Feasibility/Cons

10. Slide 10: Recent capital raising experiences – Clifford Project

    Recent capital raising experiences – Clifford Project  Exploration agreement signed in 2013 with Japan Oil, Gas and Metals National Corporation (“JOGMEC”) to provide A$4.5 million over 3 years For personal use only to earn up to a 40% economic interest in the Clifford Project  At completion of the

11. Slide 11: Recent capital raising experiences – Belview Project

    Recent capital raising experiences – Belview Project  Exploration support agreement signed in 2013 with Taiheiyo Kouhatsu Inc. (“Taiheiyo”) supported by the Japan Oil, Gas and Metals National For personal use only Corporation (“JOGMEC”) to provide A$688k to fund drilling and coal quality testing ac

12. Slide 12: Recent capital raising experiences – The Range Project

    Recent capital raising experiences – The Range Project  Exploration support agreement signed in 2012 with Taiheiyo Kouhatsu Inc. (“Taiheiyo”) supported by the New Energy and Industrial Technology For personal use only Development Organisation (“NEDO”) to provide A$1.2 million to fund drilling activ

13. Slide 13: Capital raising trends – when will the equity market window for coal reopen?

    Capital raising trends – when will the equity market window for coal reopen? For personal use only  The cost of extraction from existing mines increases over time as the resources typical get deeper and the mines deplete. Thermal coal spot price versus 90th percentile cost  It is estimated that ap

14. Slide 14: Some final words of encouragement

    Some final words of encouragement For personal use only 14

15. Slide 15: Contact

    For personal use only Stanmore Coal Limited For further information, please contact: Mr Nick Jorss - Managing Director (ph) 07 3238 1000 (ASX:SMR) Mr Andrew Roach – Chief Financial Officer & Company Secretary (ph) 07 3238 1000 15

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