#1GUILDFORD COAL HONG KONG INVESTOR PRESENTATION August 2010#2Cautionary Statement The information contained in this document (Presentation) has been prepared by Guildford Coal Limited (Company). This presentation does not constitute an offer or invitation to any person to subscribe for or apply for any securities in the Company. 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 advertisers 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. Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any inaccuracies in, or omissions from, this Presentation which may become apparent. The right is reserved to terminate any discussions or negotiations with any person. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional Information or to update this Presentation or to correct any errors. 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 discussion, other than statements of historical facts, that address further activities and events of developments that the Company expects, 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 further performance and actual results or represent, warrant or guarantee, expressly or implied, that the information in this Presentation is complete or accurate, To the Maximum extent permitted by law, the Company disclaims any responsibility to inform any recipient of this Presentation or 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 Forward-looking 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. 2 Guildford Coal#3Guildford Coal Snapshot Six Key Projects: • Hughenden • Maryborough • Sierra • Sunrise • Monto . • Comet Cash: A$29.5 million (as at 31/7/10) Listed on ASX: 360 million shares at A$0.20 per share on the 22/7/2010 Market Cap: A$104.4 million (as at 23/8/10) Experienced Board: •⚫ Craig Ransley (Chairman) • Mick Avery (MD) • Norah St.George (Finance) EPC's • Mike Chester (NED) 3 Western Australia Queensland Coal Projects Northern Territory Queensland South Australia New South Wales Victoria Guildford Projects G Summary of Portfolio: Estimated 21,000km2 of exploration tenement located across Queensland's major coal bearing basins Target Coal Products: . Hard Coking • Export Thermal ⚫ PCI Q Tasmania GUILDFORD COAL QUEENSLAND COAL PROJECTS GUILDFORD COAL LIMITED Access to Infrastructure: All priority Projects have ready access to rail and port infrastructure QUEENSLAND Exploration Plan: •Drilling commenced July 2010 3 drills operating by end of September 2010 ⚫4 drills operating by end of 2010 Stany Project Maryborough Priest Resource Statement Goals: • Target maiden thermal JORC Inferred on Hughenden by end of 2010 Target maiden coking JORC Inferred on Maryborough by end of 2010 Guildford Coal#4Corporate Overview ASX Code: GUF Capital Structure 4 Shares on Issue 360 million Q Major Shareholders Major Shareholders TheChairmen1 Pty Ltd CS Fourth Nominees Pty Ltd UBS Nominees Pty Ltd HSBC Custody Nominees (Australia) Ltd Citicorp Nominees Pty Ltd Share Price A$0.29 (23/8/10) ANZ Nominees Ltd Market Cap A$104.4 million Share Price Chart Options on Issue Nil VDL(M) GUILDFORD SHARE PRICE A$ 100 0.35 90 033 Cash (31 July 2010) A$29.5 million 80 031 70 50 50 Enterprise Value A$74.9 million 40 30 029 027 0.25 023 021 0.19 20 10 00 22-Jul-10 29-Jul-10 05-Aug-10 12-Aug-10 0.17 0.15 19-Aug-10 VOLUME TRADED SHARE PRICE Guildford Coal#55 BOARD OF DIRECTORS Non Executive Chairman - Craig Ransley Managing Director - Michael Avery Finance Director - Norah St.George Non Executive Director - Michael Chester Q Guildford Coal#6Board of Directors Q Craig Ransley Non-Executive Chairman Craig has extensive experience in the mining industry. He founded TESA Group Pty Limited (TESA) and developed a number of mines for its clients. TESA was acquired by Skilled Group Limited in 2006. In the same year, Craig commenced developing Australia's first training mine, located in Jerry's Plains. During the course of the project, he was responsible for attaining regulatory approval, making land purchases and putting together the management team required to complete the back door listing of NuCoal Limited. He founded, and is currently the Non-Executive Chairman of ResCo Services Pty Limited (ResCo). ResCo provides skilled labour, operation and management of mines, maintenance of plant and equipment, and critical spare parts and consumables to primarily the coal sector. Michael Avery Managing Director and Company Secretary Michael has worked in the coal industry for over 28 years. He has performed senior management and technical roles for a number of blue-chip mining companies at operations in NSW, throughout Australia and around the World. Michael's experience spans the full life cycle of coal assets from resource exploration and evaluation to conceptual design, pre-feasibility, feasibility, construction, operation and management. Michael has a Masters in Business Administration from Mt Eliza Business School, a NSW Open Cut Coal Mine Managers Certificate of Competency, and a Bachelor of Mining Engineering from the University of New South Wales with First Class Honours. Michael is also a member of the Australian Institute of Mining and Metallurgy. 6 Guildford Coal#7Board of Directors Q Mike Chester Non-Executive Director Mike has more than 25 years experience in the areas of investment banking, mining company research and analysis, and funds management. During his career he has worked with companies including Solomon Smith Barney/County NatWest, Grange Securities and McIntosh Securities. Mike has originated initial public offerings and equity placements in the industrial and mining sectors for listed and unlisted companies. He has significant expertise in financial modeling, and project analysis. Mike is currently involved in corporate advisory and funds management. He holds non-executive directorship in other listed entities including NuCoal Resources NL, Carpentaria Exploration Limited and Black Fire Minerals Limited. Norah St. George Executive Director of Finance Norah has held a series of senior financial and commercial positions in industry, professional firms and during fourteen years tenure in the Australian Black Coal industry with Peabody Resources, BHPB, BMA, Thiess and Peabody Australia. Norah is a Qualified CPA and Longstanding CPA member. As well as specialist accounting qualifications Norah has a range of tertiary qualifications including a Bachelor of Arts (Sydney University), a Master of Commerce (Professional Accounting) (UNSW) and a Master of Business Administration (Deakin University). 7 Guildford Coal#88 COMPANY OVERVIEW Overview of Assets Summary of Coal Targets Priority Projects Project Development Schedule Q Guildford Coal#9QUEENSLAND COAL PROJECTS EPC 1720 Secondary to Marida EPC 1727 Secondary to Matlida EPO 1353 GUILDFORD COAL LIMITED Abbot Pont Hughenden Project EPC 1570 EPC 1430 EPC 1475 BPC 1478 cnc 1000 SPO EPC 2047 EPC 1477 ETC 2040 EPC 1874 EPC 2105 PC 2040 E CPC 3040 EPC 1904 Ongeach Mutabun EPC's palaris Guildford Coal Ljor wholly owned Springwums Mining Pty Lt (under megations Secondary to Medida FTB (OLD) Pty LM() Orion Mining Ply LM (00%) Guildford Coal Limited Queensland Coal Projects Date: December 2009 Draw GAL Awwa VP-020/50+0 9 EPC 1942 1641 Competing EPC 1728 Secondary to Marida SPC 1002 EPC 1963 EPC 1000 EPIC 2100 Competiro EPC 1600 Compar Emanes Comet Project EPC 1956 Competing Sierra Project EPG. 1022 Springcure Project EPC 1674 Sunrice Project End 2000 EPC 2007 QUEENSLAND 1 Maryborough Project EPC 1972 Monto Project CPO 1850 Guildford Coal EPC 2005 Bungabe 200#10Summary of Coal Targets Q Depth Project Target Formation Basin Age Range (m) Proposed Mining Method Coal Product Type Beneficiation Required EPC's Hughenden Blantyre / Injune Creek Eromanga Jurassic 0-100 Open Cut Domestic Thermal No All Hughenden Blantyre / Injune Creek Eromanga Jurassic 0-100 Open Cut Export Thermal Yes All Hughenden Betts Creek Beds Galilee Permian 0-150 Open Cut Domestic Thermal No 1250, 1641, 1478, 1479 Hughenden Betts Creek Beds Galilee Permian 0-150 Open Cut Export Thermal Yes 1250, 1641, 1478, 1479 Hughenden Betts Creek Beds Galilee Permian 150-500 Underground Export Thermal Yes All Hughenden Betts Creek Beds Galilee Permian 300-900 In-situ Gasification SynGas N/A All Sierra Burngrove Bowen Permian 0-100 Open Cut Coking Yes 1822 Sierra Fair Hill Bowen Permian 0-100 Open Cut Coking Yes 1822 Sierra Crocker Bowen Permian 0-100 Open Cut Export Thermal No 1822 Comet Rangal Coal Measures Bowen / Denison Permian 300-500 Underground Export Thermal No 1976 Sunrise Birkhead Sunrise Bandanna Sunrise Bandanna Surat Bowen / Denison Bowen / Denison Jurassic Permian Permian 0-100 400-600 400-600+ Open Cut Export Thermal No 2057, 2058 Underground Export Thermal No 2057, 2058 In-situ Gasification SynGas N/A 2057, 2058 Sunrise Rieds Dome Bowen / Denison Permian 600+ In-situ Gasification SynGas N/A 2057, 2058 Monto Monto Mulgildie Mulgildie Nagoorin Graben Jurassic 0-200 Open Cut Export Thermal Yes 1870 Mulgildie Jurassic 0-200 Open Cut Export Thermal Yes 1870 Maryborough Burrum Coal Measures Maryborough Cretaceous 0-100 Open Cut Export Thermal / Yes 1872, 2003 Coking 10 Guildford Coal#11PRIORITY PROJECTS 11 HUGHENDEN • Estimated 18,000 km2 of exploration tenement Export thermal coal target in Galilee and Eromanga Basins Open Cut, Underground and UCG resource targets Close to rail and ready access to port Estimated 220km of projected Galilee Basin edge Other Major Galilee Basin Projects include Linc Energy, Waratah, Reinhart and Bandanna which have estimated 250km of Galilee Basin edge and have a reported cumulative JORC Inferred Resource of 22 billion tonnes Two drills operating by end of September 2010 Maiden JORC inferred targeted before end of 2010 Guildford Coal#12PRIORITY PROJECTS 12 MARYBOROUGH • Hard coking coal target in Burrum Coal Measures of Maryborough Basin Open Cut and Underground resource targets Close to rail and ready access to port Northern Energy - Colton Project to the south east with 57Mt JORC Inferred • One drill operating by end of September 2010 • Maiden JORC inferred targeted before end of 2010 Guildford Coal#13PRIORITY PROJECTS 13 SIERRA • Hard coking coal target in Fair Hill, Burngrove and Crocker Formations of Bowen Basin Open Cut resource target Close to rail and ready access to port • Stanmore - McKenzie River Project adjoins to the north with exploration target 110 Mt – 170Mt - Aquila - Washpool Project further to north east with 185.5Mt JORC Inferred, Indicated and Measured Resource in similar formations One drill operating by end of 2010 Guildford Coal#14Path to Production - Indicative Schedule GUILDFORD PROJECT/Activity HUGHENDEN - Un der grou nd Drilling In dep end ent Geological Report Conceptual Mine Design and Analysis Pre-fe asi bil it y Assessment Feasibility Assessment EIS/Development Con se nt/Mining Lease HUGHENDEN - Open Cut Drilling In dep end ent Geological Report Conceptual Mine Design and Analysis Pre-fe asi bil it y A sse ss ment Feasibility Assessment EIS/Development Con se nt/Min in g Lease MARY BOROUGH Drilling In dep end ent Geological Report Conceptual Mine Design and Analysis Pre-fe asi bil it y Assessment Feasibility Assessment EIS/Development Con se nt/Mining Lease SIE RRA Drilling In dep end ent Geological Report Conceptual Mine Design and Analysis Pre-fe asi bil it y Assessment Feasibility Assessment EIS/Development Con se nt/Min in g Lease MO NTO Drilling In dep end ent Geological Report Conceptu al Mine Design and Analysis Pre-fe asi bil it y A sse ss ment Feasibility Assessment EIS/Development Con se nt/Min in g Lease SUNRISE Drilling In dep end ent Geological Report Conceptual Mine Design and Analysis Pre-fe asi bil it y A sse ss ment Feasibility Assessment EIS/Development Con se nt/Mining Lease Not es Q GUILDFORD COAL PROJECT PLAN - JULY 2010 2010 2011 2012 Jul Aug Sep Oct N ov Dec Jan Fe b Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Se p Oct Nov Dec Scout Open Hole Drilling to confir m JORC Targeted Open Hole Drilling with so me Partial C or ing JO RC Targeted Open Hole Drilling and Core d Hole Drilling JORC Concept JORC JORC Targeted O pen Hole JORC Targeted Open Hole Drilling with so me Partial C or ing JOR C Concept Commence EIS JORC Pre-Feasibility Targe ted Open/Core JORC Targeted Open Hole Drilling and Partial Co ring JORC JOR C Concept Pre fe asibility Wet Se aso n Commence E IS Targeted Open Hole Drilling and Co red Hole Drilling JORC Concept Commence EIS Assumes Comet EP Ca19 76, Ne bo EPCa 1608, Hail Creek North EPC a215 8 and Pentland EP Ca16 41 has not been granted in favour of Guildford within the timeframe Assumes all ungranted tenements are granted in the timeframe fo reca st Assumes identified potential coa Itarget sa re confirmed with drilling Assumes confirmed coa Itargets justify eva lua tion through to feasibility 14 Full Feasibility Obtain Mining Le ase Full Feasibility Obtain Mining Lease JORC Targete d O pen Hole Drilling and Core d Hole Drilling JORC Pre-Feasibility Wet Season Scout Open Hole Drilling Scout Open and Partial Core Hole Drilling JORC JO RC Guildford Coal Wet#1515 KEY ASSETS Hughenden Project Maryborough Project Sierra Project Sunrise Project Comet Project Monto Project Q Guildford Coal#16• Hughenden Project The Hughenden Project contains an estimated 18,000 square kilometres of exploration permits for coal with an estimated 6,000 square kilometres granted. • • • Target large export thermal coal resource with open cut, underground mining potential as well as underground coal gasification potential. Located in close proximity to infrastructure with the Mt Isa to Townsville rail line running across the project area and leading to the Townsville Port and Abbot Point Port. There are two coal bearing stratigraphic horizons within the Hughenden Project area which are the primary exploration targets: - Permian aged Betts Creek Beds of the Galilee Basin; - Jurassic aged Blantyre Beds (Injune Creek Group) of the Eromanga Basin; The Permian coal seams of the Betts Creek Beds have a known sub-crop line along the north-eastern edge of the Hughenden Project exploration area along strike with EPC1250 and EPC1641. The Queensland Geological Survey cored drill hole, GSQ Hughenden 6 is located adjacent to EPC1477 and recorded coal intersections of approximately 7 metres net across four separate seams of the Betts Creek Beds at a vertical depth of 200 metre - 300 metre. The Hughenden Project has in the order of 220km of cumulative interpreted strike extensions of the coal bearing Galilee Basin. This compares favourably with the combined total of 250km of strike extensions across the other major Galilee Basin Projects which include: - Linc Energy - Galilee Project, - Hancock Coal - Kevin's Corner Project, - Waratah - North Alpha Projects, - Bandanna - South Galilee Project These other major Galilee Basin Projects collectively contain a reported 22 billion tonnes of inferred resource. 16 Guildford Coal#17Hughenden Project - Tenement Plan 17 50 kilometres GUILDFORD COAL 100 White Mountains Coal Mine Pentland (Xstrata) Townsville Galilee Basin outline Galilee (Linc Energy) North Alpha (Waratah) Hancock Coal China First (Waratah) Emerald -South Galilee (BNDIAMCI) Guildford Coal#18Hughenden Project - Tenement Plan 7650000 m 7700000 m 7750000 m 7800000 m 50000 m xwelton 100000 m 150000 m 200000 m 250000 m 300000 m 350000 m EPC1576 EPC1573 EPC1480 LLLL EPC2047 EPC1574 EPC2048 EPC2046 Stamford EPC1300 EPC1478 EPC1726 EPC1477 EPC1394 EPC2049 EPC1727 EPC1250 Hughenden EPC2105 EPC1964 50000 m 50 km 100000 m Corfield Guildford Coal Ltd 150000 m GUILDFORD Hughenden Project - Tenement Plan COM 18 EPC1893 200000 m 250000 m 300000 m PENTLAND Pentland PENTLAND EPC1728 EPC1962 EPC 892 EPC1963 Drawn: BL Figure: 2.1 350000 m Revision: V3 Date: 26/07/2010 Q Hughenden Project EPCs FTB (Qld) Pty Ltd Orion Mining Pty Ltd. Secondary to Matilda Coal Resource Areas EPC Cities Drainage Roads EPC 890 PALARIS MINING Rail 7800000 7650000 m 7700000 m 7750000 m 7600000 m Guildford Coal#1919 Hughenden Project Stratigraphic Section GALILEE BASIN EROMANGA BASIN CRETACEOUS Cadna-owie Formation Murta Formation Namur Sandstone Injune Ck Grp Westbourne Formation Adori Sandstone Birkhead Formation JURASSIC Hutton Sandstone Poolowanina Fm Blantrye Sandstone Target Seams TRIASSIC Moolyamber Fm Clematis Gp Rewan Gp Betts Ck Beds Target Seams PERMIAN Boonderoo Beds Guildford Coal#20Hughenden Project Galilee Basin Edge (EPC1250) Q 20 Guildford Coal#21Maryborough Project • The Maryborough Project contains two exploration projects (EPC 1872 and EPC 2003) • Q The primary exploration target within the Maryborough Project is the Burrum Coal Measures, which shall be explored in the hope that the area contains a potential open cut and underground mineable resource of low ash, high energy coal and high quality coking coal. Close to the Northern Rail Line which joins onto the main Blackwater Rail System which feeds the Gladstones Ports and the Wiggins Island Coal Export Terminal • The borehole B001C was drilled between EPCA 1872 and EPCA 2003 and contained 5.5 metres net thickness of coal. The basal seam intersected was 4.38m in thickness at less than 50m depth Further south-east in the Maryborough Basin, Northern Energy Corporation Ltd announced in January 2010 an Inferred resource of approximately 57 million tonnes of hard coking coal at the planned Colton Mine. Coal quality data suggest a high volatile coking coal and high volatile thermal coal product. The properties of the high volatile coking coal include low ash (<10%), and high CSN (>6 typically 8.5). The high volatile thermal coal has medium ash (<15%). 21 21 Guildford Coal#2222 Maryborough Project - Tenement Plan 7190000 m 7210000 m 7230000 m 7250000 m 7270000 m Tirroar 1000000 m 1020000 m Wallaville Morganvie 10 km- 1000000 m EPC2003 quilet Creek 1020000 m Yandaran EPC1872 Moore Park Avondale Kolan South Q Guildford Coal Ltd GUILDFORD Maryborough Project Childers 1040000 m 1060000 m Bundaberg Alloway Bargara BURRUM GREGORY BURBANK COAL INFERRED AREAS Maryborough Project EPC Coal Resource Areas EPC Cities Drainage Roads BURGOWAN NO.7 COLLI NEWFIELD URGOWAN NUMBER 12 DUNSTAN CHURCHILL 1040000 m 1060000 m Drawn: BL ->> Tenement Plan Date: 24/05/2010 Figure: 8.1 Revision: V1 PALARIS MINING 7190000 m Rail 7210000 m 7230000 m 7250000 m 7270000 m Guildford Coal#23- Maryborough Project – Exploration History ryta h d Mousan Tychonden And emprov Fosed ala thy MONDURAN Span STATE FOREST 23 43 ABULB Movin VIL aanbred $2,003 Norval Perk LIITAGE LA 17- Man MONTE KAIMAS EXAM T STATE A Burrum Coal Boyan Measures, MITZ BAN KO AN RAMAL Auver poogped's Mocre Fark B001C Coal intersected 1.872 to le Crank Kolan Area 25Mt material near surface (non JORC) Belarg Branyan Area Splittra Bindert Burdher Soubor Aarautour BUNDABERG South Ma BURNETT HE Mon F Misban Fark Guildford Coal#2424 - Maryborough Project – Stratigraphic Section MARYBOROUGH BASIN QUATERNARY Mainly Alluvium TERTIARY Elliot Formation - Incl. Basalt Burrum Coal Measures Target Seams LOWER CRETACEOUS Maryborough Formation JURASSIC Duckinwalla Grp Graham's Creek Formation Tiaro Coal Measures Myrtle Creek Sandstone Guildford Coal#25• Sierra Project Q The Sierra project contains one exploration permit (EPC 1822) which is in the application stage. 25 Of potential economic interest in EPCA 1822 are the coal seams of the Burngrove, Fair Hill and Crocker Formations as they are inferred to subcrop within EPCA 1822 and each may have potential for open cut extraction. Close to rail with the Blackwater Rail System running across the northern edge of EPCA 1822 and delivers coal to the Gladstone Ports and the proposed Wiggins Island Coal Export Terminal The Burngrove and Fair Hill seams have previously been overlooked as they are typically banded and require beneficiation to produce a saleable product. It is anticipated that the Fair Hill seams would subcrop through the central area of EPCA 1822 making them the primary exploration target presenting a low stripping ratio open cut resource target Stanmore Coal's Mackenzie River Project which occurs adjacent to the northern boundary of EPCA 1822 has identified target horizons within the Fair Hill seam and the lower section of the Lepus seam which overlies the Fair Hill seam and has an exploration target of 110 Mt - 170Mt. Aquila Resources has completed a concept study on viability of the Washpool Project, which occurs along strike further to the north of EPCA 1822 and has 185.5Mt JORC Inferred, Indicated and Measured Resource in similar formations Guildford Coal#2626 7345000 m 7365000 m 7385000 m Sierra Project - Tenement Plan 7405000 m ENSHAM YAMALA ENSHAM 645000 m ENSHAM ENSHAM TOGARA NORTH SPRINGTON (SPRINGSURE CREEK Comet 665000 m EPC1822 GUILDFORD GAL 10 km 645000 m Guildford Coal Ltd Sierra Project - TOGARA SOUTH 665000 m Tenement Plan 685000 m Drawn: BL Figure: 3.1 Revision: V1 Date: 24/05/2010 685000 m CURRAGH CURRAGH NORTH (FOR CORRAGH NO AQUILA WASHPOOL PROJECT CURRAGH CURRAGH WEST CURRAGH WEST CURRAGH SOUTH BLACKWATER WOR Blackwat BLACKWATER SOUTH BLACKWATER INFERRED COAL AREA Stanmore Mackenzie River Project Sierra Project EPC Coal Resource Areas EPC Cities Lines Roads Rail PALARIS MINING 7345000 m 7365000 m 7385000 m Guildford Coal 7405000 m#2727 Sierra Project - Stratigraphic Section BOWEN BASIN EARLY TRIASSIC LATE PERMIAN EARLY PERMIAN Back Creek Grp Blackwater Grp Rewan Grp Rangal Coal Measures Burngrove Formation Virgo Leo Aquarius Phoenix Pegasus Fairhill Formation Hercules Target Seams Canis MacMillan Formation Lepus Fairhill Crocker Formation Maria Formation Aldebaran Sandstone Cattle Creek Formation Reids Dome Beds Guildford Coal#28Sierra Project - Schematic Section 28 200 West 100 0 -100 -200 Metres MacKenzie River Comet Anticline EPC 1822 Target Section Macmillian Fm. Crocker Fm. Ingelarra Fm. Burngrove Creek Creek East HERCULES Burngrove Fm. ****** PEGASUS ----- *Fair Hill Fm. CANUS ------- ----- LEPUS _ ........ ----GERMAN CREEK 0 2 4 6 8 10 Kilometres palaris PO BOX 1225 NEWCASTLE 2300 NSW AUSTRALIA Guildford Coal Limited Sierra Project East West Cross Section Date: August 2010 Drawing No: Drawn: Revision: G.A.L. Q Guildford Coal#29Sunrise Project Q The Sunrise Project contains two exploration permits (EPC 2057 and EPC 2058) which are in the application stage. The Sunrise Project is located in a region where the Surat Basin is underlain by the Permian Bowen Basin. The area has previously been targeted by petroleum and coal seam gas companies. The area to the east of the Sunrise Project has proven to be a successful coal seam gas producing field, with Australia's first producing wells located in the Fairview Field. Closer to the Sunrise Project, coal seam gas exploration has been targeting the Permian Bandanna Formation coals, which occur within EPCA 2057 and 2058. The only historical coal exploration in the area was conducted by Agip Australia within A-P 385C in the 1980's. This area, known as Westgrove is located adjacent to the south-eastern tip of current EPC 2058. The Agip report identified three possible targets for coal exploration in the area: - Jurassic Walloon Coal Measures which outcrops near the surface; - Upper Permian Bandanna Formation which occurs between 450 and 550 metres depth; - Lower Permian Reids Dome Beds (below 1,000 metres depth). 29 29 Guildford Coal#30Sunrise Project - Tenement Plan 7145000 m 7165000 m 7185000 m 7205000 m 7225000 m 45000 m 45000 m 565000 m 30 GUILDFORD COAL 565000 m 585000 m 605000 m 625000 m 645000 m 665000 m 685000 m 705000 m EPC2058 EPC2057 MUNYA NINDERRA 50 km 585000 m 605000 m 625000 m 645000 m 665000 m Guildford Coal Ltd Sunrise Project - Tenement Plan RIDGELAND 685000 m Drawn: BL Figure: 6.1 Revision: V1 Date: 24/05/2010 Fairview Gas Fleid HIHE 705000 m PALARIS MINING Q Sunrise Project EPC EPC Cities Drainage Roads 7145000 m Guildford Coal Rail 7165000 m 7185000 m 7205000 m 7225000 m 7245000 m#3131 Sunrise Project - Stratigraphic Section BOWEN BASIN SURAT BASIN MIDDLE JURASSIC Walloon Coal Measures Hutton Sandstone Evergreen Formation EARLY JURASSIC Precipice Sandstone Moolayember Formation MIDDLE TRIASSIC Clematis Sandstone EARLY TRIASSIC Rewan Formation LATE PERMIAN EARLY PERMIAN Back Creek Grp Blackwater Grp Bandana Formation Black Alley Shale Mantua Formation Peawaddy Formation Catherine Sandstone Ingelara Formation Freitag Formation Aldebaran Sandstone Cattle Crk Formation Reids Dome Beds 1 Q Target Seams Target Seams Target Seams Guildford Coal#32Comet Project 32 Q The Comet Project contains one exploration permit (EPCA 1976) which is a competing application. Based on information relating to boreholes within EPCA 1976 and from the adjacent tenements, the coal seams of the Rangal Coal Measures, the Burngrove Formation and the Fair Hill Formation occur at depth. The coal seams of the Rangal Coal Measures, and in particular the Aries seam, will be the main target for any exploration drilling conducted within EPCA 1976, which may be conducive to underground extraction methods. The borehole DME Denison 55 shows that the Aries 2 seam is present within EPCA1976 and has a thickness of approximately 2 metres, similar to the thickness of the seam at the Yamala Underground Project adjacent to the north. Based on the depths to the Aries 2 seam in the borehole DME Denison 55, the depth of the seam is likely to occur between 300-400 metres throughout the tenement Similar to Yamala, the Aries 2 seam has potential for underground extraction to produce an export grade thermal coal, although more exploration is required to confirm seam depth, thickness continuity, quality and structure. Guildford Coal#3333 Comet Project - Tenement Plan 7345000 m 365000 m 7385000 m 640000 m H EPC1976 YAMALA ENSHAM Comet 660000 m TOGARA NORTH SPRINGTON (SPRINGSURE CREEK) 10 km 640000 m GUILDFORD Guildford Coal Ltd Comet Project - COM ARCTURUS (SPRINGSURE CREEK) Tenement Plan TOGARA SOUTH Coal Inferred Areas Comet Project EPC Coal Resource Areas EPC Cities Drainage Roads Rail 660000m Drawn: BL Figure: 4.1 Revision: V1 Date: 24/05/2010 PALARIS MINING 7355000m Guildford Coal#3434 Comet Project - Stratigraphic Section BOWEN BASIN EARLY TRIASSIC LATE PERMIAN EARLY PERMIAN Back Creek Grp Grp Grp Blackwater Rewan Rangal Coal Measures Burngrove Formation Fairhill Formation MacMillan Formation Crocker Formation Maria Formation Aldebaran Sandstone Cattle Creek Formation Reids Dome Beds Target Seams Guildford Coal#35Monto Project 35 Q The Monto Project contains one exploration permit (EPC 1870) which is in the application stage. The exploration philosophy for the Monto Project is to test for a southern extension to the Nagoorin Graben, and to also assess the potential for a northern extension of the Mulgildie Basin. Both the Nagoorin Graben and the Mulgildie Basin contain sequences of low rank, Jurassic coals. The Nagoorin Graben contains very thick sequences of lignite coal which may have the potential to be bulk mined. The extent of the Nagoorin Graben is not well defined and exploration within EPCA 1870 hopes to encounter coal bearing sequences in the southern portion of the basin. In the northern Nagoorin Graben a banded coal seam has been intersected in coal seam gas wells, up to 130 metres in thickness with almost 90 metres of net coal. The coal is described as low rank lignitic coal. Limited selective analysis of the seam indicates an ash content ranging from 13% to 50% and a Volatile Matter content of from 16% to 40%. The Mulgildie Coal Measures of the Mulgildie Basin contain numerous groups of thin coal seams generally 1-2 metres and have been identified as equivalent to the Walloon Coal Measures of the Surat Basin Guildford Coal#3636 7230000 m 7250000 m Monto Project - – Tenement Plan 7270000 m 900000 m 920000 m Soominglah Mungungo Monto Mulgildie 900000 m Guildford Coal Ltd GUILDFORD Monto Project - Tenement Plan EPC1870 Bancroft 50 km MONTO 940000 m 920000 m 940000 m Builyan Drawn: BL Figure: 7.1 Revision: V1 960000 m Monto Project EPC Coal Resource Areas EPC Cities Drainage Roads Rail 960000 m PALARIS MINING Date: 24/05/2010 7230000 m Guildford Coal Q 7250000 m 7270000 m#3737 Monto Project - Stratigraphic Section SURAT BASIN Mulgildie Coal Measures Nagoorin Beds Target Seams MIDDLE JURASSIC Hutton Sandstone EARLY JURASSIC Evergreen Formation Precipice Sandstone Guildford Coal#38Competent Persons Statement Q The information in this presentation is based on information compiled by Mr Cameron Switzer, who is a Member of the Australasian Institute of Mining and Metallurgy (112798) and the AIG (3384) and has had sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activities which are being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Switzer is the Exploration Manager for Guildford Coal Limited and consents to the inclusion of the matters based on his information in the form and context in which it appears. Mr Switzer is an exploration geologist with in excess of 23 years experience spanning numerous commodities including coal, copper and gold. 38 Guildford Coal#3939 Thank You Q Guildford Coal