Slide 1: Premium Coal Supply for China and Central Asia
For personal use only PREMIUM COAL SUPPLY FOR CHINA AND CENTRAL ASIA March 2013
Slide 2: Disclaimer
Disclaimer For personal use only The information contained in this presentation (“Presentation”) has been prepared by Celsius Coal Ltd (“Company” or “Celsius” or “CLA”) and is being communicated for general background informational purposes only. The information contained in this Presentation is sub
Slide 3: Company snapshot
For personal use only Company snapshot Section 1 Drill rig operating at Kargasha, 2012 (Uzgen Basin coking coal project) 3
Slide 4: Capitalization and structure
Company snapshot Capitalization and structure For personal use only Capitalization summary Corporate structure Share price (at Mar 12, 2013) A$0.024/share Australia Celsius Coal Shares outstanding 1,959.3m Ltd. Market capitalization A$47.0m Cash (at Mar 31, 2013’F) A$5.3m Hong Kong 100% 80% Enterpri
Slide 5: License location and tenure
Company snapshot License location and tenure For personal use only Uzgen Basin coking coal licenses Kargasha Status: Exploration license Expiry: December 2013 Size: 8,000ha Kokkia Status: Exploration license Expiry: December 2013 Size: 1,576ha Sary Mogol Bel Alma Min Teke Alai Status: Mining license
Slide 6: Recent achievements and current status
Company snapshot Recent achievements and current status For personal use only Completion of 2012 exploration and maiden JORC-standard Resource (15 March) Completed 5,300 meters of core drilling during 2012 – mainly focused on twining extensive historical Soviet-era data on the Kargasha Prospect
Slide 7: Directors
Company snapshot Directors For personal use only Name and position Background Alexander Molyneux Previously CEO, SouthGobi Resources (2009-2012) – largest foreign coal producer in Executive Chairman Mongolia (US$550M market cap./ US$800M EV). Successfully took SouthGobi from explorer to mine produ
Slide 8: Investment themes
For personal use only Investment themes Section 2 Hard black bituminous coal recovered during core drilling at Kargasha, 2012 8
Slide 9: Large-scale coking coal resource
1 Large-scale coking coal resource JORC Resource of 255 million tonnes with upside For personal use only Summary of coal Resources (Uzgen Basin Coking Coal)1 Inferred Total Kargasha 230 230 Kokkia 25 25 Min Teke – – Total 255 255 Total targeted tonnages (including exploration targets)2 JORC Resource
Slide 10: Premium quality coals
2 Premium quality coals Uzgen Basin licenses contain quality coking coals For personal use only Indicative coal qualities Calorific Volatile Inherent Ashad Sulphurdb Free Swell Valuedaf Matterad Moisture Uzgen Basin (%) (%) Index (Kcal/kg) (%) (%) Kargasha 7,862(1) 31.6(2) 1.3(2) 12.7(2) 0.64(2) 7-7
Slide 11: Premium quality coals: Coals position well in the market
2 Premium quality coals Coals position well in the market For personal use only Chinese coking coal classification system China’s benchmark (Shanxi Liulin – 2012 China pricing US$190-240/t) Fat (FM) Gas fat (QF) Australian benchmark premium hard coking coal (Goonyella – 2012 seaborne 85 pricing US$1
Slide 12: China: Xinjiang, the Chinese neighbour with unique prospects
3 Proximity to growing high-value markets China: Xinjiang, the Chinese neighbour with unique prospects For personal use only Xinjiang Province China, basic facts Population: 22m GDP/capita: US$4,600 (1/3-1/2 coastal levels) Xinjiang development and infrastructure Xinjiang has been highlighted
Slide 13: China: Celsius has Xinjiang's nearest premium coking coal
3 Proximity to growing high-value markets China: Celsius has Xinjiang’s nearest premium coking coal For personal use only Xinjiang - key coking coal markets (steel mills) Key customers Urumqi area 10mtpa coking coal market by 2015 Key customer: Bayi Steel 10mtpa steel maker (sub of Baosteel – Ch
Slide 14: Kyrgyz Republic and Central Asia: Premium markets
3 Proximity to growing high-value markets Kyrgyz Republic and Central Asia: Premium markets For personal use only Kazakhstan – thermal coal price US$65-90/t Bishkek / Talas market – US$65- 105/t Jalalabad / Osh market – thermal coal price US$110-140/t Tajikistan – thermal coal price US$130-160/t 14
Slide 15: Existing roads link to Kashgar
4 Feasible routes to market Existing roads link to Kashgar (major market and China rail) For personal use only Existing Kyrgyz road export routes to China Export route for Uzgen Basin coking coal Uzgen Basin coking coal to Osh (130km) Osh to Irkeshtam border crossing (255km) Cost to border app
Slide 16: Trans-Asia railway will transform access for Uzgen project
5 Feasible routes to market Trans-Asia railway will transform access for Uzgen project For personal use only Existing primary road route and proposed Rail export potential for Uzgen coking coal Trans-Asia Railway China, Kyrgyz Republic and Uzbekistan have agreed to construct a 20mtpa railway, link
Slide 17: Soviet era geology confirmed by extensive 2012 program
5 Well-known geology Soviet era geology confirmed by extensive 2012 program For personal use only Resource status 2012 and Soviet era work locations Kargasha (230 million tonnes) Contained in 11 seams (seam cut-off 0.5m) Seven new 2012 cored holes (approximately 3,800m) 60 Soviet era drill hol
Slide 18: Milestones and strategies
For personal use only Milestones and strategies Section 3 Mining operations at Min Teke, 2012 18
Slide 19: Fast-track to establish a scale coking coal export operation
Milestones and strategies Fast-track to establish a scale coking coal export operation For personal use only Establishment of customer relationship or distribution partnership (mid 2013) Substantially upgraded exploration and analysis campaign – 4 to 5x the amount of drilling, resource estimates
Slide 20: More on geology
For personal use only More on geology Appendix 1 20
Slide 21: Location of projects
More on geology Location of projects For personal use only Geological map of Kyrgyz Republic 21
Slide 22: Geological map of Tuyuk Kargasha
More on geology Geological map of Tuyuk Kargasha For personal use only E B H F A C G D *A-B, C-D, E-F and G-H Interpreted Cross Sections through the Kargasha License showing Celsius 2012 and historical Soviet era drilling. 22
Slide 23: Tuyuk Kargasha interpreted cross-sections
More on geology Tuyuk Kargasha interpreted cross-sections For personal use only Interpreted cross-sections showing 2012 and historical drilling DD12TK007 DD12TK002 A B 4.89m coal 4.29m coal in 7 seams in 8 seams DD12TK001 C D 4.43m coal in 4 seams 23
Slide 24: Tuyuk Kargasha interpreted cross-sections (continued)
More on geology Tuyuk Kargasha interpreted cross-sections (continued) For personal use only Interpreted cross-sections showing 2012 and historical drilling DD12TK003 DD12TK006 E F 4.94m coal 8.52m coal in 10 seams in 16 seams DD12TK004 DD12TK005 G H 1.63m coal 9.28m coal in 3 seams in 14 seams 24
Slide 25: Tuyuk Kargasha and Min Teke prospects
More on geology Tuyuk Kargasha and Min Teke prospects For personal use only Schematic cross section through the Kargasha and Min Teke prospects showing interpreted geology and the structure of the Tuyuk formation Note the shallow dip of the beds as well as small scale folding resulting in the co
Slide 26: About Kyrgyz Republic
For personal use only About Kyrgyz Republic Appendix 2 26
Slide 27: A parliamentary democracy with a young population
About Kyrgyz Republic A parliamentary democracy with a young population For personal use only Country background Politics Size:199,900km2 (halfway between UK and System: parliamentary democracy Greece in size) Key figures Location: Central Asia, west of China and south President: Almazbek
Slide 28: Positive attitude to trade and business with China
About Kyrgyz Republic Positive attitude to trade and business with China For personal use only China-Kyrgyz relations Premier Wen and PM Satybaldiev (2012) China and Kyrgyz Republic were both founding members of the Shanghai Cooperation Organization in 1996 China now represents 80% of Kyrgyz exp
Slide 29: Relatively benign minerals law and attractive fiscal regime
About Kyrgyz Republic Relatively benign minerals law and attractive fiscal regime For personal use only Basic elements of law and administration Fiscal regime Minerals licensing is predominantly managed by Total royalty: 4.3%, made up of: the State Agency for Geology (SAG), which Mineral royal
Slide 30: Contacts
Contacts For personal use only Celsius Coal Limited Registered Office: Level 1, 12 Kings Park Road, WEST PERTH, WA, AUSTRALIA, 6005 Telephone: +61 8 9226 4500 Facsimile: +61 8 9226 4300 Website: www.celsiuscoal.com.au Email: info@celsiuscoal.com.au 30
Slide 31: Competent persons statement
Competent persons statement For personal use only The information in this announcement that relates to Coal Resources is based on information compiled by Dr Gavin Springbett, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Springbett is acting as a consu