EGM Presentation - Guildford Coal

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EGM Presentation - Guildford Coal

EGM PRESENTATION6 th JULY 2011


South Gobi DrillCORPORATE OVERVIEWGUF Geologist on South Gobi ProjectTownsville Port4Guildford Coal


CORPORATE OVERVIEWCapital StructureASX Code: GUFListed on ASX 22 July 2010Share Price ChartShares on Issue413 millionShare Price$1.16 (4/7/11)Market CapA$479 millionOptions on IssueNilCash (31 May 2011)A$35 millionEnterprise ValueA$444 million5 Guildford Coal


QUEENSLAND SNAPSHOTGuildfordQueenslandProjectsSummary of Portfolio:Estimated 20,000km2 of exploration tenementlocated across Queensland’s major coal bearingbasins including:• Bowen• Galilee• MaryboroughTarget Coal Products:• Hard Coking• Export Thermal• PCIPriority Projects:• Hughenden (Exploration Target # of 40Mt to 815Mt)• Kolan (Maryborough)• SierraHughendenSierraAccess to Infrastructure:All priority Projects have ready access to rail and portinfrastructureSunriseMontoKolanExploration Plan:• 6 drills planned to be operating in 2011• 4 Hughenden• 1 Kolan• 1 Sierra6 Guildford Coal


MONGOLIAN SNAPSHOTSummary of Portfolio• South Gobi Project with 4 exploration licences and MiddleGobi Project with 2 exploration licencesSouth Gobi Project:• South Gobi Project is the priority project which coverslarge open cut coking and thermal coal prospects• Consisting of 4 exploration licence’s located in the SouthGobi desert approximately 60km to the Chinese border• Adjacent to two operating coal mines (SGS and MAK)• Exploration Target # of 0 to 460Mt• Mineral Reserve Statement to be lodged with MRAM in 3 rdQuarter 2011Middle Gobi Project:• Middle Gobi Project comprises large open cut thermal coalprospects• Consisting of two exploration licence’s located in theDundgovi Province• Approximately 200km north of the Tavan Tolgoi Project• Exploration Target # of 29Mt to 149MtTarget Coal Products:• Coking and Thermal CoalMiddle Gobi ProjectSouth Gobi ProjectExploration Plan:• 5 drills operating in 2011• 4 South Gobi• 1 Middle Gobi7 Guildford Coal


PROGRESS SINCE LISTINGCorporateHughendenKolanSierraSouth GobiMiddle Gobi8Guildford Coal


ACHIEVEMENTS SINCE LISTINGCorporate• Strong share price performance since listing in July 2010growing from $0.20 ($72m mkt cap) to $1.16 per share ($479mmkt cap)• Augmented GUF Board with 2 Independent Directors• Made an institutional placement in Nov 2010 to OZ Funds of52.1 million shares at A$0.48 per share to raise A$25m tofurther strengthen balance sheet• Completed Acquisition of 20% stake in Mongolian ExplorationCompany Terra Energy LLC which includes an option to increasethis stake to 70% subject to the achievement of explorationmilestones• Signed Call Option Deed with OZ Funds which provides OZ theright to acquire a 25% stake in Terra Energy LLC for A$25m incash• Completed the acquisition of a 51% stake in EPC1260 from TiaroCoal Limited (Tiaro)• Through acquisition and exploration, developed a totalExploration Target # for Projects managed by GUF of:• Queensland 40Mt to 815Mt Thermal• Mongolia 29Mt to 609Mt Coking & Thermal• Total 69Mt to 1.424BtGUF MD conducting DD in South GobiWhite Mountain Project (EPC1260) Drill Plan9 Guildford Coal


ACHIEVEMENTS SINCE LISTINGQueensland - Hughenden• Independent Geologists developed an Exploration Target # for theHughenden - White Mountain Project of 40 to 815 million tonnes ofGalilee Basin thermal coal for the combined EPC1250 and EPC1260• Preliminary conceptual design developed for the White MountainProject:• 3-4 Mtpa low ratio open cut coal mine• Multi seam conventional truck and excavator design• Coal could be hauled by road to a rail siding at Pentlandwhich is only located approximately 15km south east of thesouthern boundary of EPC1260• Signed MOU with ARG, the QR National subsidiary in November2010, ARG is the primary rail operator on the Mt Isa to Townsville railline that traverses the Hughenden Project• Signed MOU with the Port of Townsville Limited to conduct afeasibility study on the logistics of exporting of coal throughTownsville Port via the Eastern Rail Access CorridorPort of Townsville Expansion Plans(courtesy POTL website)10 Guildford Coal


ACHIEVEMENTS SINCE LISTINGQueensland - Hughenden• Despite impact of long and heavy wet season combinedwith some poor drill performance in some localised difficultdrilling conditions now have four drills operating on theProject:• 2 drills on EPC1477 completing pattern for JORC UGResource• 1 drill on Richmond area scouting to define shallowEromanga targets• 1 drill on White Mountain drilling a pattern for JORCOC Resource• Intersected significant coal seams on EPC1477 with aninterpreted 11.9m of net coal from the Permian Betts CreekBeds with multiple individual seams up to 5.5m in thickness• Overlying Eromanga Basin Blantyre coal sequence has alsobeen intersected with thin seams reported to date.Preliminary results of laboratory analysis conducted on coresamples indicates this coal has some coking properties• Historical exploration reports showed thicker intersectionsof this Blantyre coal sequence in the old Blantyre UG Minelocated on Guildford tenements where net coal thickness ofover 4 metres was reportedCoal Outcrop on White Mountain ProjectCore Tray for GSQ Hughenden 3 located east ofGuildford Hughenden Tenements11 Guildford Coal


ACHIEVEMENTS SINCE LISTINGQueensland – Hughenden ScaleNote: Diagrams are only approximately scaled12 Guildford Coal


ACHIEVEMENTS SINCE LISTINGQueensland - Kolan• Located in the hard coking coal bearing Maryborough Basin inQueensland, Australia• Estimated 23,700 hectares of coal exploration permit in twotenements which are 100% GUF owned – EPC1872 andEPCa2003• Exploration target is high value modest tonnage coking productwith CSN of 8, low ash and low moisture• Connected to the port of Gladstone via the MaryboroughNorthern Rail System which runs adjacent to the project• The Kolan Project is a proponent for 1Mtpa of capacity in theWiggins Island Coal Expansion Terminal Stage 2 at Gladstone• Drilling has commenced on EPC1872 (1 drill currently)• Most prospective area mapped on EPC2003 which should begranted in July 201113 Guildford Coal


ACHIEVEMENTS SINCE LISTINGQueensland - SierraStanmoreMcKenzie RiverProject99Mt JORCInferred Resourceand additional 70-80Mt explorationtargetNewlandsResourcesComet RidgeProjectTarget of 200 to250Mt of Fair HillFormation withraw CSN values ofup to 8.5AquilaWashpool Project138Mt JORCIndicated andInferredBurngroveFormationGuildfordSierra ProjectFair Hill andBurngroveFormation target• Hard coking coal target in Fair Hill, Burngrove andCrocker Formations of Bowen Basin Queensland,Australia• Close to rail with the Blackwater rail system cuttingacross the northern edge of the tenement• Drilling to the south by Newlands Resources Limited(NRL) in their Comet Ridge Project has confirmed theconcept for the Sierra Project• Multiple thick intersections of up to 14m thickness ofthe Fair Hill formation near surface were reported byNRL• The coal was also reported by NRL to have raw CSNvalues of up to 8.5• Based on this drilling NRL have reported a target of 200to 250 million tonnes in their project based on a 5kmstrike extension of the Fair Hill formation• The Guildford 100% owned Sierra Project has aninterpreted 20km of strike extension of the same FairHill formation running north-south across the project14 Guildford Coal


ACHIEVEMENTS SINCE LISTINGMongoliaMiddle Gobi Drilling Camp• Setup Terra Energy LLC with Office and ManagementTeam established in Mongolia• Drilling commenced in the Middle and South GobiProjects (5 drills currently operating) and over 8,500mdrilled• Mapped approximately 6km of coal outcrop across bothProjects• Intersected thick near surface coal with drilling on bothProjects• Exploration Target # of 0 to 460 Mt on South Gobi Project• Exploration Target # of 29 to 149 Mt on Middle GobiProject• GUF has just elected to exercise its 50% option in TE totake shareholding up to 70% for $10m based on theextremely promising analysis of results of:• Historical drilling• Russian geological mapping• Field mapping of coal outcrops• Drilling results to dateMiddle Gobi Drilling Camp15 Guildford Coal


EXERCISE TE OPTIONMiddle Gobi ProjectMiddle Gobi Coal Outcrop• Field mapping of coal seam outcrop has been conducted within EL12929X ofapproximately 4 kilometres of coal outcrop• Historical boreholes drilled within the central-northern area of EL12929X haveencountered several coal seams with reported thicknesses of up to 16 metres,and the interpreted structure based on these holes is shown in the figure below• Intersections from recent drilling with three boreholes, 12929X_DH4,12929X_DH5 and 12929X_DH6 having intersected coal seams with netthicknesses ranging from 1.8m to 9.2m• An Exploration Target # range of 29 to149 Mt for the potential resource domainswithin EL12929X has been developed• There is upside potential for further drilling to increase the exploration target onEP12929X plus the second Middle Gobi tenement also has mapped coal outcrop.16 Guildford Coal


EXERCISE TE OPTIONSouth Gobi Project• Field mapping of coal seam outcrop has been conducted with approximately 1.5 kilometres of coaloutcrop• Intersections with multiple exploration holes of thick coal seams that are near surface• Of significance being approximately 21 metres apparent thickness of net coal intersected at potentiallyopen cut mineable depths which included an estimated 13.7m seam apparent thickness (Core Trayphoto shown below)• An Exploration Target # range of 0 to 460 Mt for the potential resource domains within the Projecttenements has been developedSouth Gobi Coal OutcropSouth Gobi Core Tray17 Guildford Coal


GOALS FOR NEXT FINANCIAL YEARSGS Mine neighbouringthe South Gobi Project18Guildford Coal


GOALS FOR NEXT FINANCIAL YEARQueensland• Complete Feasibility on Hughenden Coal transport and shipping solution(ARG/POTL)• Commence drilling on Sierra Coking Coal Project and define a JORC Resource• Commence drilling on Kolan Coking Coal Project - EPC2003 and define a JORCResource• Complete planned drill pattern on Hughenden Thermal Project - EPC1477 anddefine JORC UG Resource• Complete planned drill pattern on Hughenden Thermal Project - White Mountainand define JORC OC Resource• Identify areas of potentially thicker Eromanga Coal sequence with Scout drilling inRichmond and Blantyre areas on Hughenden Project• Drill and define and Exploration Target on Hughenden Thermal Project -EPC1300/1478• Complete Pre-feasibility Study on Hughenden - White Mountain Project• Complete IAS on Hughenden - White Mountain Project20 Guildford Coal


Thank You21 Guildford Coal


About GuildfordGuildford Coal has established a portfolio of coal exploration tenement areas in Queensland, Australia and morerecently in Mongolia. Guildford Coal’s Queensland tenements cover an estimated area of 20,000 square kilometresand are defined within project areas as follows:• Hughenden Project (Galilee / Eromanga Basins):• FTB (Qld) Pty Ltd (Guildford 80%)• Orion Mining Pty Ltd (Guildford 80%)• White Mountain Project - EPC1250 (Guildford 100%)- EPC1260 (Guildford 51%)• Kolan Project (Maryborough Basin);• Sierra Project (Bowen Basin);• Comet Project (Bowen Basin);• Sunrise Project (Surat/Bowen Basin);• Monto Project (Nagoorin Graben).Guildford Coal has an equity share in 6 tenements contained in two projects in Mongolia through its 20%shareholding in Terra Energy LLC with the option to increase to a 70% shareholding. The coal projects are located inthe South Gobi and Middle Gobi coal bearing basins which contain thermal and coking coals.Guildford Coal’s key objective is to create shareholder value through the identification, securing and exploration andpotential development of coal deposits. In order to achieve this objective, Guildford Coal intends to:• Drill and assess existing exploration permits with the aim of establishing coal resources;• Complement and diversify Guildford Coal’s existing portfolio through application for and acquisition ofadditional coal assets;• Undertake project development for high priority targets where economic coal deposits are proven; and• Ultimately produce and sell a variety of coal products into export markets if successful in explorationobjectives.22 Guildford Coal


Competent Persons Statement# Exploration TargetReferences to Exploration Targets in this document are in accordance with the guidelines of the JORC Code(2004). As such it is important to note that in relation to reported Exploration Targets any references to qualityand quantity are conceptual in nature. Exploration carried out to date is insufficient to be able to estimate andreport coal resources in accordance with the JORC Code (2004). It is uncertain if further exploration will result inthe determination of a Coal Resource.Competent Persons StatementThe information in this report is based on information compiled by Brendan Lloyd, who is a Member of theAustralasian Institute of Mining and Metallurgy (208658) and has had sufficient experience which is relevant tothe style of mineralization and type of deposit under consideration and to the activities which are beingundertaken to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves’ . Mr. Lloyd is Exploration Manager forGuildford Coal Limited engaged under secondment from Palaris Mining Pty Ltd and consents to the inclusion ofthe matters based on his information in the form and context in which it appears. Mr Lloyd has over 10 yearsexperience in exploration and mining of coal deposits.23 Guildford Coal

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