Alpha Coal Project & Proposed Kevin’s Corner Project

LONGWALL 2012

Crowne Plaza Hunter Valley

22nd October 2012

Andy MifflinGVK Resources

Alpha Coal Project and proposed Kevin’s

Corner Project

2

Important notice- Disclaimer

IMPORTANT: The information in this document has been provided to you for information only by Hancock Coal and the GVK

Group (GVK) and is subject to change without notice. Nothing contained in this document constitutes investment, legal, tax or

other advice. The information in this document does not take into account your investment objectives, financial situation or

particular needs. Before making an investment decision, you should consider, with or without the assistance of professional

securities adviser, whether an investment in Hancock Coal and GVK is appropriate in the light of your particular investment needs,

objectives and financial circumstances.

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in which, or to any person to whom, it would be unlawful to make such an offer or invitation. The distribution of this document

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By accepting this document you agree to be bound by these limitations. Hancock Coal and GVK have prepared this document

based on information available to it. Although reasonable care has been taken to ensure that the facts stated and opinions given in

this document are fair and accurate, the information provided in this document has not been independently verified. Accordingly, no

representation or warranty, express or implied is made as to the fairness, accuracy, completeness or correctness of the information

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or agents or any other persons accepts any liability for any loss whatsoever arising from any use of this document or its contents,

or otherwise arising in connection therewith.

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Mt

China India Japan South Korea Taiw an Malaysia Germany Other

ForecastHistorical

Source: Wood Mackenzie

• World thermal demand projected to more than triple in volume within the life of the mine.

• Seaborne coal demand is expected to grow at 5.5% CAGR over the next 20 years.

• Growth is primarily concentrated in the Pacific basin.

• Australian thermal coal exports are expected to increase from 145 Mt in 2011, to 316 Mt in

2020, reaching 654 Mtpa by 2030 subject to infrastructure constraints being addressed.

Market Setting

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Source: Factset, Factiva, company presentations.

Operations

Eight Power Projects – Gas, Hydro &

Thermal

5,106 MW of Power

India’s Largest Private Airport Operator

Mumbai International Airport – 30m pax

Bangalore International Airport – 12m pax

India’s First 6 Lane Expressway

Over 550km of roads under construction /

development with plans for Mass Rapid

Transit

Greenfield port planned (Gujarat)

7 deepwater oil & gas blocks in partnership

with BHP Billiton

Alpha and associated port and rail

infrastructure

Kevin’s Corner and Alpha West deposits

Two mines in India

Two large-scale integrated developments in

urban environments

Airport City (Mumbai) and GVK One

(Hyderabad)

6 world-class properties and one under

construction

Total room base of over 1,000

Provides a broad spectrum of across the

R&D value chain in chemistry, biology and

informatics;

Pow

er

Air

port

sT

ransport

Oil

& G

as

Hote

lsU

rban

Min

ing

GVK Group includes GVK Power and Infrastructure Limited (“GVKPIL”) and various other

interests of the GVK Family

GVKPIL is a listed entity and an ultimate holding company of “GVK” which operates in

diversified assets through different vertical businesses

GVK’s assets are predominantly in energy, airports and transportation

Revenues are derived primarily from O&M fees, incentives for operating the businesses of

subsidiaries, and secondarily from the interest income earned out of managing surplus funds

through superior financial planning

GVK employs over 8,000 people plus another 15,000 staff for its not for profit EMRI business

Project value add

GVK is a natural strategic fit for the Galilee Projects

Ability to link Australia to India and the Ultra Mega Power Projects (UMPP) programme

As a major emerging coal user, GVK is committed and aligned to the successful development

of its Galilee Basin projects

Infrastructure expertise

GVK is a leading infrastructure player

The development of the rail and port infrastructure is the key to opening up and developing

the Galilee Basin

Experience in financing and developing large scale projects

Investment / financing capability

GVK has strong relationships with leading global banks across debt and equity

It has a track record of success in working with partners and attracting financing for the

delivery of large complex projects

Commitment to Australia

GVK is committed to expanding its business in Australia

GVK is seeking to expand its resource and infrastructure portfolio to include Australia,

particularly Queensland with its Galilee Basin investment being its seed asset.

Overview

Bio

scie

nce

Introduction to GVK

5

In 2011, GVK acquired a 79% interest in each of the Alpha Coal Project and the Alpha West Project and 100%

interest in Kevin’s Corner Coal Project and 100% of the Infrastructure Projects:

Hancock Transaction

Hancock Alpha

West (Alpha West

coal project )

Hancock Galilee

(Kevin’s Corner coal

project)

79%

Hancock Coal

(Alpha coal project)

GVK Galilee

Infrastructure (Rail

and Port projects)

21%

79%100% 100%

GVK FamilyGVK Power and

Infrastructure

90% 10%

54%

GVK Family

Privately owned with interests spanning

energy, infrastructure, transportation,

realty, hospitality, bioscience and

manufacturing

90% investor in the Galilee Basin assets

Management responsibility

GVK Power and Infrastructure

Publicly listed, 54% owned by the GVK

Family

10% investor in the Galilee Basin assets

Not a key decision maker but will have a

board representation

Potential to participate in the coal offtake

arrangements on behalf of GVK’s coal fired

power stations

Hancock Group

Hancock Prospecting Pty Ltd (Hancock Prospecting) is a leading

privately owned, Australian mining company with interests in iron

ore, coal, manganese, uranium, diamonds and copper/gold

Hancock would be a minority partner in the Alpha and Alpha West

projects

GVK Coal Developers

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Alpha Coal (GVK 79%) Kevin’s Corner (100%) Alpha West (GVK 79%) GVK Railway (100%) GVK Port (100%)

Expected to be the first thermal

coal project to commence mining in

the Galilee Basin

It will rank as one of the largest

thermal coal operations in the world

and represents the next generation

of independent thermal coal supply

Up to 32Mtpa export grade thermal

coal

Also expected to rank as one of the

largest thermal coal mines in the

world

Up to 30Mtpa export grade thermal

coal mine

Large underground mine west of

Alpha

16-24Mtpa export grade thermal

coal mine

495km, standard gauge, stand

alone rail link from Galilee Basin to

Abbot Point

25,000t haul per train designed to

replicate the efficiencies of the

Western Australian iron ore

industry

Dedicated terminal at Abbot Point

Queensland’s most northern coal

port

Ability for up to 70Mtpa subject to

more efficient use of stockpile area

and berth configuration

1.82Bt resource

1.1Bt reserves 4.3Bt resource 1.8Bt resource

60Mtpa capacity

Scalable to 120Mtpa

Awarded Preferred Developer for

T3

Framework Agreement agreed

Open cut mining, 30 years mine life

First coal by H2 2016

Ramp up from 2016 to 2019

Open cut & underground mining

30 year mine life

Underground mining

30 year plus mine life

First privately owned railway in

Queensland Offshore berth option elected

High grade thermal coal for export

markets, mainly suitable for the

premium North Asian utility market

High grade thermal coal for export

markets

First coal by 2017

Ramp up from 2017 to 2020

High grade thermal coal for export

markets

Pre feasibility drilling has

commenced

Mining targeted for 2018

Supported by State and Federal

governments

Rail corridor finalised

2 x 30Mtpa stockpile capacity

2 x dedicated ship berths

BFS completed

Mining lease expected to be issued

by Q1 2013

Native Title negotiated

Construction tenders commenced

LOIs for 43Mtpa received

Prefeasibility completed

BFS commenced

Mining lease expected to be issued

by 2013

Native Title negotiated

Concept study completed

BFS expected by 2014

Leverage Alpha related studies and

approvals

Rail approval by Q2 2012

Third Party and ACCC consultation

underway

Native Title negotiated

State significant project

Land owner discussions well

advanced

Port approval in place

The Galilee Basin assets comprise a large scale, high quality thermal coal resource with integrated rail and port infrastructure located in

Australia’s next major coal basin

Summary of Assets

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Regional setting of the Galilee Basin

Galilee Project highlights:

Thick, consistent coal seams

Shallow seam occurrence at the eastern flank of

the basin

Gentle dip to the west

Minimal structure (faulting, folding)

Significant resource base

Good thermal coal

Low gas content

Not affected by Strategic Cropping Land policy

GVK Coal Projects

Location of the Coal Project’s within the Galilee

Centre of projects approximately 70km north west of

Alpha

Alpha approximately 170km west of Emerald

Rail line approximately 490km to the port of Abbot

Point

0 150km

Galilee

Basin

Bowen

Basin

GVK

Railway

GVK Port

Major highway

Existing railway

Alpha Coal Project

The Galilee Basin

Carmichael Project (Adani)

(Vale Exploration)

Kevin’s Corner (GVK)Alpha Coal Project (GVK)

South Galilee Coal Project

(AMCI / Bandanna Energy)

China First Project (Waratah Coal)

Waratah Coal exploration

Alpha West (GVK)

China Stone (Macmines)

Kevin’s Corner Project

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Strategy

If you had the opportunity to create new mine, in a new coal basin, in a

location that demanded application of the latest technologies …

What would you do?

If you had a mine that had a billion tonnes of coal from just one of the

seams to be recovered over 30 + years …..

What would you do?

If you reframed your thinking, to consider that we are an energy exporter,

so we have to use less to produce more…

What would you do?

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Introduction to Kevin’s Corner

Kevin’s Corner is a self-contained mining complex of 3 undergrounds and 2 open-cuts.

It has a moderate energy thermal coal targeted for India and South East Asia.

There are challenges with new focus on energy intensive industries and carbon generation

It also has a set of ‘unconstraints’of having large geometry reserve (18km along strike and 12km down dip from ~100m DoC to a peak of 300m beyond 30yrs, dipping at just 1 to 2deg

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10

Seam Cross-Section

10

AB

CD

Open-cut

10:1

Vert:Horiz

Scale

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Kevin’s Corner Objectives

10 Mtpa ROM target output from each of the 3 longwall Mines, with additional coal

from open-cut operations.

Interchangable “hot-start” longwall systems

Ventilation system designed to handle the most severe conditions to ensure the right

air is there when we need it.

New thinking in the way vehicles and people will communicate and interact.

People roles as either specialists or generalists; decision-makers rather than doing

robotic and repetitive tasks (which will be progressively prepared for automation).

Safety and operating systems that run as default, rather than an add-on.

Technology applications; Proven, New , & On the way

Innovation where there isn’t a solution – Wider industry applications.

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Industry Context

Where we have come from:

In the 1990’s 3 Mtpa longwalls were considered to be the benchmark

In the 2000’s 5 Mtpa longwalls were considered to be the benchmark

By 2009, Newlands and Oaky North were showing what could be done in

Australia

The USA has long been considered to have benchmark Longwalls

China is delivering longwall performance and standards that we can all be

envious of

Kevin’s Corner has the right DNA to deliver benchmark performance

In anticipation of this:

The project has been designed for 15 Mtpa (each LW) i.e. 1.2 Mtpm:

Capacities in place

Anticipating further technology advances.

Minimising barriers to incremental improvement.

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ACARP Project C15008(L15)

Defining the system needs for a 15MTPA Longwall Operation

Management Management systems ,styles and process engineering

Equipment Capacity requirements

Resources Resources to support the footprint

Strata Control Weak roof and inadequate support smart monitoring

Development Clear understanding of process & effective management

Hazard Management Ventilation, gas, dust Spon com

Water Consumption and management / Modeling

Utilisation Nameplate capacity / Maintenance management

Community Licence to operate / sustainability

Technologies Automation/ Communication

ACARP Project C15008 (L15)

High capacity Underground Coal Mining: Scoping Study

D.Reece, G.Rowan,Dr G.Chitombo

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Kevin’s Corner DNA

Gas – Very low > 0.2m3/t but panels require 3x800kw fans & intake shafts

Dust – post-dewatering dust will be an issue with BI-Di cutting

Heat – Planned for BAC’s and Heat dumps to returns. Vent system tested to

be able to turn to homotropal if required

Spontaneous Combustion – A key factor in the designs

Water – Surface to seam dewatering will be required to effectively manage

the potential flows into the mine

Faults – A combination of 2D seismic and aeromagnetics has been used to

identify potential faults. No intrusions.

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Roof –immediate 2m of roof between 8 to 24 MPA with the next 6m to 8m in

the range 16 to 24MPA. Minimum 50m of fresh cover base defines the start

of longwall mining.

Seam characteristics – Firm roof, hard coal and Firm Non Slaking Floor.

Panel orientation – Dictated by stress direction is NE–SW (3.6 to 4.9MPA

at 200m depth). Maingates on the stress relieved hence a N-S retreat along

strike. Panels progress down dip (West). 250m depth of cover after 30yrs.

Seam Splits – Defines the boundary for the Northern mine (2.5 to 3.5m)

South and the central area 4.5 to 5.5m

Kevin’s Corner DNA

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Productivities

Productivities are defined by acceptable industry averages for bankability.

The systems has been designed for benchmark performance

(Capex/Opex conflict for bankability)

Development – 200 to 250m per week

Longwall – 15000 to 16000 tonnes per shift

Outbye – Specialist crews operating between 3 mines

Opencut – 8Mtpa ROM flexible operations providing swing capacity

CHPP – 42Mpta ROM / 6000tph capacity DMC and Reflux Classifier

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Coal Handling

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Kevin’s Corner CPP – Processing Module

Coarse Coal CircuitFine Coal Circuit

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Site Infrastructure

Mine Infrastructure consists of:

Mine access corridors

Accommodation Village

Airport

Light industrial area

Control rooms

Inertisation facilities

Water Management

Designed as a remote operation with a strong focus on

logistics of people, plant and materials

Designed to support benchmark performance operations

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Accommodation

Designed for 900

to 1200 people

with master

planning to go

larger

Different

strategies in how

we regard

accommodation

infrastructure.

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Inertisation Equipment

Assumed immediate

demand for Proactive

Inertisation

Longer term ambition

to go to Integrated

Cryogenic systems

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Airport

Personal & Freight

Logistics are an

important part of the

mine’s operations.

An airport is key to

making it work as well

as rail freight.

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Light Industrial Area

A purpose built LIA is

made possible due to

the 3 Undergrounds

and 2 open cuts to

consolidate non-core

infrastructure and

consider a remote

operating mine.

It’s designed to be

developed

progressively and its

use will change over

time

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Control Room

Rethinking how control

rooms need to work

across a multi-mine

complex considering

safety & process

control.

Communications

systems designed for

off-site OEM support

and remote office

systems.

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People factors

Next workforce generation expectations

Baby Boomers

Gen X, Gen Y, Gen Z

Workforce life choice decisions

4 careers / 16 jobs

Current continued acceleration in computing power

Currently greater than exponential growth

Technology cost crossover

The point at which one mining process cost out ways another

The 99 to 1 rule

Treating the 100% for the actions of the 1%

Flexibility is the norm

Constraint on remote operations and expectations

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In Conclusion…

Kevin’s Corner is a mine with the right DNA, and happening at the right time

to create a benchmark in underground performance.

The project team has been largely unconstrained in the design of KC,

however ensuring that the CAPEX that underlines the master planning

doesn’t conflict with “Bankable Expectations”.

Can we do a 3 x 10Mtpa Longwall Complex?

In fact we have ambitions and a

master plan to go well beyond this

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I would like to thank the many various engineering and consultancy

groups for their patience and assistance in being able to push the

edges of some of the projects designs to align with our strategy

whilst at the same time recognising the need to deliver a bankable

project.

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Thank You !