DELIVERING VALUEas Australia’s newest coking coal producer

Mines and Money Hong HongApril 2016

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IMPORTANTINFORMATION

This document has been prepared by StanmoreCoal Limited (“Stanmore Coal”) for the purpose ofproviding a company and technical overview tointerested analysts/investors. None of StanmoreCoal, nor any of its related bodies corporate, theirrespective directors, partners, employees oradvisers or any other person (“Relevant Parties”)makes any representations or warranty to, or takesresponsibility for, the accuracy, reliability orcompleteness of the information contained in thisdocument, to the recipient of this document(“Recipient”), and nothing contained in it is, or maybe relied upon as, a promise or representation,whether as to the past or future.The information in this document does not purportto be complete nor does it contain all theinformation that would be required in a disclosurestatement or prospectus prepared in accordancewith the Corporations Act 2001 (Commonwealth). Itshould be read in conjunction with Stanmore’sother periodic and continuous disclosureannouncements lodged with the AustralianSecurities Exchange, which are available atwww.asx.com.au.This document is not a recommendation to acquireStanmore Coal shares and has been preparedwithout taking into account the objectives, financialsituation or needs of individuals. Before making aninvestment decision prospective investors shouldconsider the appropriateness of the informationhaving regard to their own objectives, financialsituation and needs and seek appropriate advice,including financial, legal and taxation adviceappropriate to their jurisdiction. Except to the extentprohibited by law, the Relevant Parties disclaim allliability that may otherwise arise due to any of thisinformation being inaccurate or incomplete. Byobtaining this document, the Recipient releases theRelevant Parties from liability to the Recipient forany loss or damage that it may suffer or incurarising directly or indirectly out of or in connectionwith any use of or reliance on any of thisinformation, whether such liability arises in contract,

tort (including negligence) or otherwise.This document contains certain “forward-lookingstatements”. The words “forecast”, “estimate”,“like”, “anticipate”, “project”, “opinion”, “should”,“could”, “may”, “target” and other similarexpressions are intended to identify forward lookingstatements. Indications of, and guidance on, futureearnings and financial position and performanceare also forward-looking statements. You arecautioned not to place undue reliance on forwardlooking statements.Although due care and attention has been used inthe preparation of forward looking statements, suchstatements, opinions and estimates are based onassumptions and contingencies that are subject tochange without notice, as are statements aboutmarket and industry trends, which are based oninterpretations of current market conditions.Forward looking statements including projections,guidance on future earnings and estimates areprovided as a general guide only and should not berelied upon as an indication or guarantee of futureperformance.Recipients of the document must make their ownindependent investigations, consideration andevaluation. By accepting this document, theRecipient agrees that if it proceeds further with itsinvestigations, consideration or evaluation ofinvesting in the company it will make and rely solelyupon its own investigations and inquiries and willnot in any way rely upon this document.This document is not and should not be consideredto form any offer or an invitation to acquireStanmore Coal shares or any other financialproducts, and neither this document nor any of itscontents will form the basis of any contract orcommitment. In particular, this document does notconstitute any part of any offer to sell, or thesolicitation of an offer to buy, any securities in theUnited States or to, or for the account or benefit ofany “US person” as defined in Regulation S underthe US Securities Act of 1993 (“Securities Act”).

Stanmore Coal shares have not been, and will notbe, registered under the Securities Act or thesecurities laws of any state or other jurisdiction ofthe United States, and may not be offered or sold inthe United States or to any US person withoutbeing so registered or pursuant to an exemptionfrom registration.Marketable Reserves Note – The Range: TheMarketable Coal Reserves of 94Mt is derived froma JORC compliant run of mine (ROM) ProbableCoal Reserve of 117.5Mt based on a 14.8% ashproduct and predicted yield of 80%. The 94Mtmarketable reserve is included in the 287Mt totalJORC Resource (18Mt Measured + 187MtIndicated + 82Mt Inferred Resource).Marketable Reserves Note – Isaac Plains: TheMarketable Coal Reserves of 3.7Mt is derived froma JORC compliant run of mine (ROM) Reserve of5.0Mt based on a predicted yield of 73%. The 3.7MtMarketable Reserve is included in the 48.2Mt totalJORC Resource for Isaac Plains(15.2Mt Measured+ 23.0Mt Indicated + 10.0Mt Inferred Resource).Marketable Reserves Note – Isaac Plains East:The Marketable Coal Reserves of 8.3Mt is derivedfrom a JORC compliant run of mine (ROM)Reserve of 10.3Mt based on a predicted yield of81%. The 8.3Mt Marketable Reserve is included inthe 28.7Mt total JORC Resource for Isaac PlainsEast (18.7Mt Indicated + 10.0Mt InferredResource).Competent Persons Statement:The information in this report relating to explorationresults and coal resources is based on informationcompiled by Mr Troy Turner who is a member ofthe Australian Institute of Mining and Metallurgyand is a full time employee of Xenith Consulting PtyLtd. Mr Turner is a qualified geologist and hassufficient experience which is relevant to the styleof mineralisation and type of deposit underconsideration and to the activity which he isundertaking, to qualify as Competent Person as

defined in the 2012 Edition of the “AustralasianCode for Reporting of Exploration Results, MineralResources and Ore Reserves”. Mr Turnerconsents to the inclusion in the report of thematters based on the information, in the form andcontext in which it appears.The information in this report relating to coalreserves for Isaac Plains and Isaac Plains East isbased on information compiled by Mr Ken Hill whois a full-time employee of Xenith Consulting Pty Ltd.Mr Hill is the Managing Director of XenithConsulting Pty Ltd, is a qualified civil engineer, amember of the Australian Institute of Mining andMetallurgy (AusIMM) and has the relevantexperience (30+ years) in relation to themineralisation being reported to qualify as aCompetent Person as defined in the “AustralasianCode for Reporting of Exploration Results, MineralResources and Ore Reserves (The JORC Code2012 Edition)”. Mr Hill consents to the inclusion inthe report of the matters based on the information,in the form and context in which it appears.The information in this report relating to coalreserves for The Range is based on informationcompiled by Mr Richard Hoskings who is a memberof Minserve Pty Ltd. Mr Hoskings is a miningengineer, a Fellow of the Australian Institute ofMining and Metallurgy (AusIMM) and has therelevant experience (30+ years) in relation to themineralisation being reported to qualify as aCompetent Person as defined in the “AustralasianCode for Reporting of Exploration Results, MineralResources and Ore Reserves (The JORC Code2012 Edition)”. Mr Hoskings consents to theinclusion in the report of the matters based on theinformation, in the form and context in which itappears.

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STANMORE COALDELIVERING VALUE AS AUSTRALIA’S NEWEST COKING COAL PRODUCER

CREATING A LOW COST COKING COAL OPERATION WITH SIGNIFICANT MINE LIFE BYCOMBINING TWO NEIGHBOURING ASSETS

✓Transformationalacquisitionof Isaac Plains (July 2015),established open-cut minewith $350m (replacementcost) of operating assets

On track to deliver first coal inApril 2016 using optimised,low cost mining approach

✓Fully fundedfor production via cash,A$57m vendor paymentsand US$42m interest onlyfacility

✓JORCResources andReservesupgrades1

(April 2016) extend open-cut mine life from three toten+ years

✓Adjacentinvestment(July 2015) of Isaac PlainsEast

Adjacent resource withsubstantial operatingsynergies and minimalcapital requirements

Note 1: Refer Competent Persons Statement and Marketable Reserves Notes, p23

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THE TIGHTLY HELD BOWEN BASINTHE MAJORS DOMINATE OWNERSHIP & PRODUCTION

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Major Unlisted junior & mid-tier ASX listed junior miner

THE TIGHTLY HELD BOWEN BASINSTRATEGIC MET COAL INVESTMENT OPPORTUNITIES ARE RARE

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BOWEN BASIN MET COAL PEER ANALYSIS – ANNUAL PRODUCTION RATES

Limitedopportunities

for directinvestment incoking coal

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A TRANSFORMATIONAL INVESTMENT

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COAL QUALITY Metallurgical coal – semi-soft,

semi-hard Sold into major steel mills in

Japan, Korea and India

ISAAC PLAINS MINETRANSACTION OVERVIEW & RATIONALE

LOCATION Located near Moranbah in

the heart of the Bowen Basin 172 km from DBCT via

Goonyella rail line

ACQUISITIONPRICE

$1ACQUISITION OF ESTABLISHEDMET COAL MINE Existing open-cut operation

previously in care and maintenance Near term cash flows Rail and port access agreements in

place, exporting through DalrympleBay Coal Terminal (DBCT)

HISTORY Commenced production in 2006

as a truck shovel operation Dragline operations commenced

in 2011 Placed on care and maintenance

late 2014 by previous owners ValeSA and Sumitomo Corp

Maximum historical production2.3Mtpa (product coal)

APPROVED MINING LEASE ANDENVIRONMENTAL AUTHORITY Up to 4.0Mtpa run of mine (ROM)

production approval in placeTRANSACTIONCOMPLETEDNovember2015

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ISAAC PLAINS MINEACQUIRED ASSETS – REPLACEMENT VALUE > $350m

DRAGLINE

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TRAIN LOADOUT

Bucyrus BE1370 High performance machine

Product stockpile, trainloadout, rail loop Conveyor feed to rail

surge/loading bin

COAL HANDLING AND PREP PLANT (CHPP) OFFICE FACILITIES AND WORKSHOPS

500tph feed rate (3.5 Mtpa)constructed in 2006 Belt press filter – no tailings

dams Flexible operating setup to

produce multiple coal products

Established office setupincludes communications andother infrastructure Several maintenance

workshops

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A VALUE-ADDINGADJACENT ACQUISITION

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Acquisition from Peabody Energy inJuly 2015

Coking coal adjacent tenures

Low strip ratio coal starting <6:1(lower than Isaac Plains)

Significant synergies with IP, withminimal capital requirements

3km haul back to Isaac Plainsprocessing and transport infrastructure

Transaction:

– Upfront payment of $2 million

– Contingent payments of:

$2 million upon grant of aMining Lease (ML); and

$3 million payable as a $1royalty per tonne sold

ISAAC PLAINS EASTLOW STRIP RATIO, ADJACENT RESOURCE

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UNTAPPING VALUE:OPTIMISED MINE PLAN &EXTENSIONS

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RIGHT SCALE OF OPERATION Asset re-optimised at 1.5Mtpa ROM

(1.1Mtpa product) to maximise proportionof low cost dragline Open cut mining of lower strip

ratio northern pits only Contractors’ rates are significantly lower

than recent boom period Reduction in take-or-pay contracts from

2.8 Mtpa to 1.1 Mtpa match optimisedproduction level

ISAAC PLAINS OPTIMISEDA LOW COST APPROACH

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1. Wood Mackenzie and Stanmore Coal analysis

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• Cost curve is not margin adjusted for product mix• AUD:USD 0.75

CREATING A LOW COST OPERATIONISAAC PLAINS COSTS REDUCED BY 35%1

Global seaborne coking coal cost curve – 2016

Source: Stanmore Coal analysis and Wood Mackenzie13

US$

/t

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0 25 50 75 100 125 150 175 200 225 250 275 300

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50

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nTotal Cash Cost

Isaac Plains Eastestimated cost

per tonne (LOM)

Isaac Plainsestimated cost

per tonne (LOM)*

ISAAC PLAINS MINE – OPTIMISED Right sized production for dragline and

mine Competitive mining costs locked in via

three year contract Low overheads Renegotiated other contracts where

possible

ISAAC PLAINS EAST – LOW COSTEXTENSION Significant additional cost reductions due to

lower strip ratio Enhanced quality improves yield and

product spec

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MAJOR UPGRADE TO PROJECT SCALEDETAILED EXPLORATION & STUDIES RECENTLY COMPLETED BY STANMORE

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PREVIOUS UPDATE APRIL 2016 % INCREASE

IP IPE TOTAL IP IPE TOTAL

JORC RESOURCES1

Measured 10.0 0.0 10.0 15.2 0.0 15.2 52%

Indicated 9.1 0.0 9.1 23.0 18.7 41.7 358%

Inferred 11.0 0.0 11.0 10.0 10.0 20.0 82%

Total Resources 30.1 0.0 30.1 48.2 28.7 76.9 155%

JORC RESERVES1

Proved 3.7 0.0 3.7 3.7 0.0 3.7

Probable 1.3 0.0 1.3% 1.3 10.3 11.6 792%

Total Reserves 5.0 0.0 5.0 5.0 10.3 15.3 206%

JORCUPDATEAPRIL20161

DoubledJORC Resources

to 76.9MtTripledJORC Reserves

to 15.7Mt

Note 1: Refer Competent Person Statement and Marketable Reserve Notes, p2

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Growth opportunities to utilise IP infrastructure including underutilised CHPP and rail loop

UNDERGROUND RESOURCE EXTENSIONS Over 20Mt JORC Measured & Indicated

within underground Resources at Isaac Plains Potential for highwall mining accessed from

the disused southern pits Investigating underground extraction methods

for 7.5Mt ROM using a Bord and Pillartechnique

Potential additional annual production 0.8 -1.3 Mtpa

ISAAC PLAINS EAST – OPEN CUT EXTENSION Extends open cut mine life to over 10 years

at 1.5mtpa ROM production rate Materially lower strip ratio than IP

CURRENT ISAAC PLAINS OPEN CUT 3 years at 1.5mtpa ROM production rate

SIGNIFICANT GROWTH OPTIONSSYNERGIES & LIFE-OF-MINE EXTENSIONS

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Parameter1 Isaac Plains Isaac PlainsEast

(Indicative)

Coking Thermal Coking

Product split (%) 80% 20% +90%

Inherent Moisture (%) 2.5 3.1 2.3

Ash (%) 9.4 14.0 9.5

Volatile matter (%) 25.4 24.2 24.4

Fixed Carbon (%) 62.3 58.7 63.7

Total Sulphur (%) 0.36 0.37 0.40

Phosphorous (%) 0.100 0.161 0.070

CSN2 4 4+

HGI3 65

Calorific Value (kcal/kg) 7,434 6,600 7,380

HIGH QUALITY COKING COALPRE-SOLD TO MAJOR ASIAN STEEL MAKERS

HIGHLIGHTS

JPY 2017 contracts signed / terms agreed with top tierJapanese and Korean steel mills on annual benchmarkcontracts for 900,000t of coking coal

Current marketing plan sees Isaac Plains producing 80%semi-soft coking coal and 20% thermal, total productyield 73%

Indicative coal quality shows improvement in IsaacPlains East:

Total product yield of 81% with higher proportionof coking coal

Ability to enhance coking properties by splittingseam and optimising washing yield

Notes:1. Air dried basis unless stated otherwise2. Crucible swell number3. Hardgrove grindability index 16

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Two strategic transactions completedto present multiple pathways toenhance shareholder value

Delivered without dilutionto existing shareholders

TRANSACTIONSUMMARY

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Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16

Shar

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($)

Price (LHS)

DELIVERING ON KEY MILESTONESCURRENT MARKET CAP: A$50M

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AcquireIsaacPlainsEast

Extension

Optimise IPmine plan to

reduceproduction

cost by 35% –award mining

contract

Sign Offtakefor coking coal

with leadingAsian

Steelmakers

AdditionalJORC

Resources&

Reservesannounced

AcquireIsaacPlainsfor $1

UPCOMINGMILESTONES

✓ First shipment

✓ Highwall miningfeasibility

✓ Undergroundfeasibility

✓ Lodge expansionapprovals

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Conference

Booth M4 at Hong Kong Mines & Money

Head Office

Level 8, 100 Edward Street, Brisbane QLD 4000GPO Box 2602, Brisbane QLD 4001Phone +61 7 3238 1000Email info@stanmorecoal.com.au

CONTACT USFOR FURTHER INFORMATION

ASX : SMR

AUSTRALIA’S ONLYASX LISTED JUNIORCOKING COAL PRODUCER

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APPENDICES

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Over 150 years of coal exploration, development and operational experience

Neville SneddonChairmanMining engineer with 40years experience in coal,formerly CEO of AngloCoal Australia, Chairmanof DBCT Port andDirector of PWCS Port.

StephenBizzellExtensive experience incommercialisingresources companies,former executive directorof Arrow Energy andcurrent Chairman ofBizzell Capital Partners.

VivForbesOver 40 years of BowenBasin coal experienceincluding all phases ofcoal mine developmentat Goonyella, SouthBlackwater, Burton, andTahmoor coal mines.Formerly Director ofDBCT Port.

ChrisMcAuliffeCo-founder and MD ofSprint Capital Partners.More than 20 yearsexperience in investmentbanking and privateequity in Asia.

PatrickO’ConnorExperience in a widerange of industriesincluding mining, oil &gas exploration, forestry,biotechnology andgovernment utilities.Former non-executivechairman of TFSCorporation Limited.

Nick JorssManaging Director20 years in engineering, projectmanagement, resourcefinancing and M&A.

Mike McKeeChief Operating OfficerMine manager with over 30years experience, mainly in theBowen Basin. Most recentlyGeneral Manager at Minerva,Yarrabee and Sonoma mines.

Andrew RoachChief Financial Officer10 years of accounting andfinance experience in theresource and financial sectors.

NON-EXECUTIVE DIRECTORS

Nigel CliffordSenior Geologist10 years of experienceincluding within Stanmore Coaland Linc Energy.

STRONG BOARDAND MANAGEMENT TEAM

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KEY MANAGEMENT

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OVERVIEWOF STANMORE ASSETS

ISAAC PLAINS – 100% Total Resources 30.1 Mt Total Reserves 5.0 Mt Ramp-up to operations

THE RANGE – 100% Total Resources 287 Mt Total Reserves 112 Mt Development

BELVIEW – 100% Total Resources 330 Mt Pre Feasibility underway

LILYVALE – 85% Exploration

MACKENZIE – 85% Coking Coal Total Resources 143 Mt Exploration

ISAAC PLAINS EAST – 100% Undertaking development

activities

Note*: Assumes full farm-incompleted by JV partner

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BOWEN BASIN – Coking Coal

SURAT BASIN

THE RANGE – 100% Total Resources 287 Mt Total Reserves 112 Mt Development

CLIFFORD – 60%* Total Resources 370 Mt Exploration & studies

SURAT BASIN – Thermal Coal

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FULLY FUNDED FOR PRODUCTIONCASH & ADDITIONAL FINANCING

HIGHLIGHTS

✓A$57m in VenderCompensationPaymentsA$50m to be repaid to thevendors via a production-based royalty once hardcoking coal prices areabove A$160 per tonne(CPI adjusted)

✓Strategy in place torefinance theTaurus facilitieswithin 2 years withlower cost bankdebt

✓Cash balance of$17.6m as at 31March 2016

✓US$42m TaurusMining FinanceFund interest onlyfacility for a termof 2 yearsUS$26m for financialguarantees (downfrom $30m on acquisition)US$12m undrawncontingent working capitalfacility

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GLOBAL COST CURVE SUPPORTMACRO FACTORS SUPPORT A POSITIVE OUTLOOK FOR METALLURGICAL COAL

Source: Wood Mackenzie Coal Supply & Coal Market Services

MARKETS CONTINUE TO BE CHALLENGINGFOR PRODUCERS OF METALLURGICALCOAL

Current prices indicate significant tonnagesare losing money

Continued production rationalisation is likely toassist in the short term but it is the lack ofcurrent project development in the face ofongoing steel demand that will drive theupward price trajectory as supply demand isrebalanced

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GLOBAL HCC US$ MARGINS @US$78 / TONNE

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nAustralianCanadanUnited StatesnRussianRoW

99Mt or 48%<$5/t margin

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GLOBAL COST CURVE SUPPORTMACRO FACTORS SUPPORT A POSITIVE OUTLOOK FOR METALLURGICAL COAL

Source: Wood Mackenzie; Stanmore Coal analysis

INCENTIVE PRICE FOR METALLURGICAL COAL PROJECTS(US$/TONNE, 15% IRR)

25Note 1. Platts Daily Assessment, 31 March 2016

THE NEXT WAVE OFMET COAL PROJECTSREQUIRES A SIGNIFICANTINCREASE IN PRICING

Incentive price curveshows almost no newprojects would bedeveloped in current priceenvironment

Ince

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%IR

R(U

S$/t)

350

0 20 30 4010 50 60 70 80 90 100 110 120 130 140

300

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nAustralianRest of world50% > US$145/t25% < US$126/t

Marginal projectincentive pricein 2035

Current spot priceUS$831

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