INTERNATIONAL COAL LIMITED

2013 Annual General Meeting

“Building a pathway from exploration to production”

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Building a pathway to productionIntroduction

• Setting the pathway• Developing a vision for our portfolio of high potential assets• Focusing on areas with greatest potential for return for shareholders

• Clearing the path• Building strategic relationships and alliances• Leveraging joint venture relationships• Maintaining a strong financial position• Investing in core business (exploration and development)

• Moving to production

• Catch the rising tide in the coal market

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Setting the pathway

Consuelo ProjectEPC 2318, 2327 & 2332Exploration Target: 800‐1700Mt1 in Bandanna FormationNearby Deposits: Rolleston Mine, Arcadia ProjectInfrastructure: 20‐30km to rail, 400km via rail to GladstoneMine Potential: Combined open cut/underground, semi‐soft coking and thermal productsTimeline to production: 2016‐17

1 The Bandanna Formation has been given an average density of 1.4 g/cc . Mantuan seam excluded; total in situ tonnes with no constraints. Unexpectedgeological loss mainly due to seam splitting and thinning over large distances between boreholes. It should be noted that the tonnages quoted above areconceptual in nature and there has been insufficient exploration to define a coal resource. No coal quality data within the project area was uncovered inprevious reports. Although a preliminary analysis was undertaken, insufficient data exists to confidently correlate coal seams and generate a grid meshmodel. It is uncertain whether further exploration may lead to the reporting of a JORC‐standard resource however there is some evidence to support thecurrent exploration tonnage calculations, and the sufficient coal thicknesses interpreted from historic drilling to warrant further investigation in someareas.

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Setting the pathwayConsuelo ProjectRail and Port• Close to existing Blackwater line (upgrade in progress)• Multiple spur line options• Current preferred option 20‐30km following existing 

corridors where possible• Distance to port via rail 400km• Competitive secondary access market• Early stage discussion with Rail and Port providers• Capacity available and cost competitive

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Setting the pathwayConsuelo ProjectRoad• Existing Dawson Highway and Carnarvon to 

Rolleston Road traverses tenements• High quality sealed road access for transport of 

equipment and product• Multiple options for location of facilities• Not far from well serviced community (Rolleston)• Good access for mine development• Skilled local workforce with Rolleston Mine 

operating to northwest

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Setting the pathwayConsuelo ProjectVision for conceptual Mine Plan:• O/C production in 2016/17• Longwall production 2020• Expected mine life 30 years • Open‐cut pits developed short term providing 

access to long wall at extremely low cost• Single CHPP and surface operation for entire 

project• Shovel, truck and mobile crushing and conveying 

plant to increase efficiency (up to 20%)

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Setting the pathwayConsuelo Project ‐ Timeline

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Setting the pathwayConsuelo Project ‐ Timeline

Large resource potential (Exploration Target)

Existing infrastructure

Coal producing area with active developments nearby

Potential for both open-cut and underground mining

Resource potential supported by current data and modelling

Low ash, high energy thermal coal and semi-soft coking coal product potential

Strong pathway to mine

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Setting the pathwayBundaberg ProjectEPC 2196 (9 sub‐blocks)• Maryborough Basin (Burrum Coal Measures)• 28.5Mt JORC Inferred Resource2• 20‐40Mt Exploration Target3• Hard coking coal comparable with Bowen Basin (German Ck, Peak Downs, 

Moranbah North, Saraji) • CSN between 8‐9• maximum Gieseler Fluidity 2500 ddpm• average ash of 9.5%• average calorific value of 7,450kcal/kg• yields of 50%‐65%. 

• Less than 150km from Gladstone, easy access in region geared for mining• Further drilling aimed at improving JORC resource

3 Exploration Target based on an average relative density of 1.45 g/cc, except the F and G seams have been assigned an averagedensity of 1.40, due to their lower raw ash contents. These are to approximate wet, in situ densities as no moisture holdingcapacity tests exist to calculate the Preston and Sanders corrections. Unexpected geological loss included mainly due to seamsplitting and thinning over large distances between boreholes. It should be noted that the tonnages quoted above areconceptual in nature and there has been insufficient exploration to define a coal resource. Although a preliminary analysis wasundertaken, insufficient data exists to confidently correlate coal seams. It is uncertain whether further exploration may lead tothe reporting of a JORC‐standard resource however there is some evidence to support the current exploration tonnagecalculations, and the sufficient coal thicknesses interpreted from historic drilling to warrant further investigation in some areas.

2 Constraints on the Inferred Resources are as follows: Coal seams not intruded or not outside the tenure boundaries; coal thicknesses<0.2m excluded; depth range of calculation was from the base of weathering to 450m below natural topography; coal seams where the GL1and GL2 ash (adb) >50% are excluded from the calculations; discount factor of 12% has been subtracted from the initial calculation forunexpected geological losses. This accounts for unexpected conditions such as seam thinning, splitting, or seams missing in barren zonesaround faults. The geological modelling package used was Minescape and seam structure and thickness contours were generated usingstandard modelling algorithms and methodologies. Inferred masks were generated from base circles drawn 2,600m between Points ofObservation; Points of Observation were defined as those boreholes that had known surveyed positions, detailed lithological logs andcoverage of the target coal seams with a suite of downhole geophysical logs that must include density in units of Kg/m3.F

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Setting the pathwayBundaberg Project• Recent drilling demonstrated seams extend to NE• BUN013P

• 4.16m of cumulative coal (including partings) across a 6.87m interval @ 343.44m to 350.31m. • BUN012PR

• 2.44m of cumulative coal across a 4.51m interval @ 565.32m and 569.83m.• Some variability in coal character/seam splitting• Full results expected in coming weeks

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Setting the pathwayBundaberg Project

Envisage small to medium underground mine developmentPotential mid term development horizon Current joint venture gives access to significant mining and technical expertisePotential to increase size of development in partnership with adjacent tenement holdersEarly port and rail options being researched

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Setting the pathwayDon Juan ProjectEPC 2286 (43 sub‐blocks)• Surat Basin ‐ known to produce high quality, low 

ash and high yield thermal coal.• Exploration Target up to 435Mt4 in Walloon Coal 

Measures.• Adjacent to 345.1Mt Inferred Resource at 

Bendoba Deposit.• Nearby raw coal quality indicates potential for 

high quality thermal coal product (5,500 to 6,700kCal/kg(ad) with low ash of 5 ‐20%).

• In process of engaging with rail/port consortia.• Existing rail corridor Injune ‐ Roma – Miles 

requires upgrade for combined coal/agricultural haulage.

4 It should be noted that the tonnages quoted above are conceptual in nature and there hasbeen insufficient exploration to define a coal resource. No coal quality data within the projectarea was uncovered in previous reports. Although a preliminary analysis was undertaken,insufficient data exists to confidently correlate coal seams and generate a grid mesh model. Itis uncertain whether further exploration may lead to the reporting of a JORC‐standard resourcehowever there is some evidence to support the current exploration tonnage calculations, andsufficient coal thicknesses interpreted from historic drilling to warrant further investigation insome areas.F

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Setting the pathwayDon Juan Project

Mid to long term thermal coal playHigh potential to add to JORC bookNearby Bendoba and Wandoan depositsGood coal qualityMoving to secure future rail and port accessRequires shift in thinking on Surat Basin

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Setting the pathwaySouth Blackall Project EPC 2197• 90km west of Charleville just north of rail line• Thermal coal potential• JORC Inferred Resource 1,246Mt5 Winton Fm• Gross Raw CV of  4,360‐5,040kcal/kg• Part of chain of very large, shallow deposits in emerging 

coal province (Eromanga Basin) • Proposed GVK‐Hancock‐Aurizon rail option• Potential for rail expansion to Port of Brisbane• In discussion with other parties to support development 

of Eromanga/Galilee Basin as a new coal province of global scale

4 Constraints on the Inferred Resources are as follows: coal seams not intruded or not outside the tenure boundaries; coal thicknesses <0.2m excluded; the depth range ofcalculation was from the base of weathering to 450m below natural topography; coal seams >50% adb from coal quality or estimated from downhole density logs (in g/cc)excluded from the calculations; a discount factor varying from 10‐20% has been subtracted from the initial calculation for unexpected geological losses. (this accounts forunexpected conditions such as seam thinning, splitting, or seams missing in barren zones around faults); the mine planning package used was Minescape and seam structureand thickness contours were generated using standard modelling algorithms and methodologies; inferred masks were generated from base circles drawn 2,600m betweenPoints of Observation; Points of Observation were defined as those boreholes that had known surveyed positions, detailed lithological logs and coverage of the target coalseams with a suite of downhole geophysical logs that must include density in units of Kg/m3.F

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Setting the pathwaySouth Blackall Project 

Foothold in emerging thermal coal provinceEromanga Basin holds billions of tonnes of existing JORC Inferred ResourcesPotential for large scale mining needs investigation – could be 30 billion tonnes of coalCoal to liquids also a potential optionMoving to develop consortia to develop provinceConsidering moving to MDL

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Clearing the pathway

Strategies for clearing pathway for project development

• Building strategic relationships• Leveraging joint venture relationships• Maintaining a strong financial position• Investing in core business activity

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Clearing the pathwayBuilding strategic relationships

• Queensland Resources Council – the lead industry body for coal industry in Queensland.• Queensland Coal Investments (Hancock coal subsidiary) – strong coal experience with 

deep links in Queensland coal industry.• Coal Face Resources Pty Ltd – owned by Jason Moultrie who also owns the Moultrie 

Group – one of the largest geological and technical service companies in the Queensland coal industry.

• Balance Resources – leaders in infrastructure development involved in a number of consortia to develop the Bowen and Surat coal provinces in Queensland.

• UTM Global – providing expertise in tenement management and mining law.• WICET Consortium – applying for Category B shareholder status.• Port of Brisbane Expansion – moving for inclusion in process.

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Clearing the pathway

Leveraging joint venture relationships

• Over 20 holes drilled at Bundaberg – financed by QCI• Significant desktop work completed at Consuelo and Don Juan by CFR• Injection of strong technical expertise from both joint ventures• Results delivered at Bundaberg with hard coking coal discovery• Over $2m worth of exploration completed at no cash cost to ICX

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Clearing the pathway

Maintaining a strong financial position

• Cash and cash equivalents at 30 June 2013 ‐ $1.459m – note on subsequent tax claim announced to market

• Cash at bank $1.74m at 30 September 2013• In discussion with strategic international investors (mining and investment houses) 

to secure longer term funding for vision

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Clearing the pathway

Investing in core business activity• $1.5m spent by QCI in 2012‐13 on exploration at 

Bundaberg (providing right to earn‐in ato 20%)• $1.07m spent by ICX in 2012‐23 on exploration at 

South Blackall and Don Juan• Focus on Consuelo and Bundaberg (coking projects)• Exploration underway at Consuelo in 2013‐14• Continued low cost target generation activity

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Catch the rising tideCoal Forecasts (source: Alpha Securities Report – in press citing Woods McKenzie Coal Forecast)• Global coal market fundamentals remain strong with demand increasing to 2020• Longer term, forecasts show significant an increase in demand for thermal coal in North, 

SE and South Asia from 2015 to 2030• Price forecast trending upward from 2015• The next window (2017‐2020) ‐ the main target for ICX

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Catch the rising tide

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Moving to production

Summary

Outlook remains strong for thermal and coking coalSeeking to target 2016‐2020 market window for Consuelo and Bundaberg projectsIn discussion with international mining and investment housesMoving on rail and port accessDelivering explorationMaintaining a strong financial positionOn pathway to production

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Competent Person’s StatementThe estimates of the Coal Resources presented in this Report are considered to be a true reflectionof the Coal Resources as at the various dates listed, and have been carried out in accordance withthe principles and guidelines of the Australian Code for Reporting of Coal Resources and CoalReserves published in December 2004 (JORC Code). If quoted, it should be noted that whereExploration Target tonnages are calculated and documented in the report they are considered non‐JORC and are conceptual in nature. There has been insufficient exploration to define a Coal Resourceand that it is uncertain if further exploration will result in the determination of a Coal Resource.

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