A Forbes & Manhattan Group Company

Investor Presentation

September 2011 TSX/JSE : FMC

EMERGING SOUTHERN AFRICAN COAL COMPANY

2

TSX/JSE : FMC Disclaimer This presentation contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the development potential and timetable of the Magdelena and Aviemore projects; the Company’s ability to raise additional funds as necessary; the future price of coal; the estimation of mineral resources; conclusions of economic evaluations (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Company’s projects are based on assumptions underlying mineral resource estimates and the realization of such estimates; results of previous mining activities at the projects, and detailed research and analysis completed by independent consultants and management of the Company; research and estimates regarding the timing of delivery for long-lead items; and knowledge regarding certain factors described in the technical report filed under the profile of the Company on SEDAR. Capital and operating cost estimates are based on results of previous mining activities, research of the Company and independent consultants. Production estimates are based on mine plans and production schedules, which have been developed by the Company’s personnel and independent consultants. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of exploration and mining activities; changes in project parameters as plans continue to be refined; future prices of coal; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements except in accordance with applicable securities laws. Investors are advised that National Instrument NI 43-101 of the Canadian Securities Administrators (“NI 43-101”) requires that each category of mineral reserves and mineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Johan Odendaal, B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), a director of Minxcon and an independent Qualified Person, as defined in National Instrument 43-101 has reviewed and approved the scientific and technical information contained in this presentation. Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

3

TSX/JSE : FMC Company Overview

Forbes & Manhattan Coal Corp.’s (“Forbes Coal” or the “Company”) vision is to build a high quality bituminous and anthracite coal company with production

capacity in excess of 10 million tonnes per year

C o m p a n y S u m m a r y

Headquarters: Toronto, Ontario Total coal resource (NI 43-101):

51.7 million tonnes Bituminous 50.8 million tonnes Anthracite1

Number of mines:

2 (Magdalena and Aviemore)

Historical annual saleable production:

648,000 saleable tonnes in fiscal 2011

Mine location: Kwa-zulu, Natal, South Africa

2 year target production2: 1,000,000 saleable tonnes Bituminous - Magdalena 420,000 saleable tonnes Anthracite - Aviemore

Production capacity: 1.5 million saleable tonnes

1.  As set out in the Technical Report of the Company entitled “An Independent National Instrument 43-101 Technical Report on Slater Coal and Subsidiaries, KwaZulu-Natal Province, South Africa”, dated March 1, 2011, prepared for the Company by Minxcon (the “Technical Report”). A copy of the Technical Report is available under the profile of the Company on SEDAR at www.sedar.com.

2.  As per management’s guidance

4

TSX/JSE : FMC Investment Highlights

  Strategic assets in one of the best developed coal markets in the world

  Substantial resource base of high quality bituminous and anthracite coal

  Ability to TRIPLE production within three years from 2010 historic levels using existing infrastructure and capacity

  In-place infrastructure to reach export corridors and growing domestic market

  Substantial upside through organic production growth and strategic acquisitions

  Experienced coal-focused management team

As per management’s guidance

5

TSX/JSE : FMC Experienced Management Team   Stephan Theron, B.Comm, CGA │President and Chief Executive Officer

Extensive management, project finance and equity analysis experience in the mining, energy and infrastructure sectors Previous capital and project experience includes Weir PLC and AMEC PLC Former sector head materials and energy with a specific focus on South African coal market

  Malcolm Campbell, Pr. Cert. Eng. (Mining) │Chief Operating Officer

Fourth generation coal miner with 25 years industry experience Skilled in operational management, turnaround strategies and business development Spent 20 years with Anglo Coal; held a variety of positions including Regional Manager for New Business Development and Strategy

  Johan Louw, Pr. Eng. │Vice President, Business Development

Capital project specialist with over 15 years experience in the Southern African mining and energy sectors Former project manager for Weir PLC and KBR Inc. Former senior plant metallurgist for Anglo Coal covering numerous export focused coal mines

  Kuda Muchenje, │VP Exploration & Development Seasoned exploration geologist with over 15 years experience in the generation of exploration targets and management of exploration and evaluation programs Former Country Manager(Mozambique)for Rio Tinto

  Deb Battiston, CGA │Chief Financial Officer

Financial specialist with over 20 years experience in the mining sector   Kevern Mattison, NHD (Mining), B. Tech.│General Manager

More than 20 years operational coal mining experience Spent over 20 years with Anglo Coal, most recently Manager Mining

6

TSX/JSE : FMC Directors

  Stan Bharti, P.Eng. │ Executive Chairman Business consultant and a professional mining engineer with more than 25 years experience Founder and Chairman of Forbes & Manhattan, Inc., a private merchant focused on the resource sector, since July 2001

  Stephan Theron, B.Comm, CGA , │ President and CEO   David Stein, MSc., CFA │ Director

Over nine years of asset evaluation, research and corporate finance experience President and Director of Aberdeen International (seed investor in Forbes Coal)

  Grant Davey, P. Eng. │ Director

Mining Engineer with close to 20 years experience in coal, platinum and gold mining industry Previously held senior operational management roles for Anglo American in South Africa & Australia

  David Gower, P. Geo. │ Director

Professional Geologist and the former Global Head of Nickel Exploration for Falconbridge   Ryan Bennett, M.Mining Eng. │ Director

Masters degree in Mining Engineering from the Colorado School of Mines Extensive technical mining project analyses experience Senior Partner of Resource Capital Fund;(significant shareholder in Forbes Coal)

7

TSX/JSE : FMC Progress to Date

September 2010

Completed RTO within 60 days, began trading on the Toronto Stock Exchange under the symbol

“FMC”

March 2011

Closed CDN$42 million capital raise at $4.55/share; Forbes Coal increased ownership in Slater Coal to

76.75%; Completed second NI 43-101 Technical Report

July 2011

Co-Listied on the Johannesburg Stock Exchange debut under the

symbol “FMC”;; Experienced COO joined FMC

Corporate Milestones…dual listed with a growing management team

December 2010

Increased export capacity at Navitrade Terminal at Richards Bay; Magdalena upgraded mining

operations; increased saleable production capacity by 330,000 tonnes per annum

Signed three year offtake agreement with leading energy trading company for 1.75 million tonnes of thermal coal; January and February 2011 production

increases 28%

April 2011

May 2011

Released fiscal 2011 full year results: FMC produced 648,000 saleable tonnes

(combined) and $16.5 million EBITDA (for 12 months ended February 28,2011 at Slater

Coal properties)

Operational Highlights…production up 34% since acquiring the Slater Coal properties

August 2011

Reported a 45% increase in

production and 65% increase in average monthly revenue for

Q1 2012

8

TSX/JSE : FMC Coal Markets Overview

•  Thermal (bituminous) coal sold directly to independent industrial companies in South Africa

•  Thermal coal sold at circa US$80 per tonne vs low quality coal sold to Eskom priced at US$20 - 30 per tonne

•  Demand increasing from emerging Asian markets, especially India and China

•  Indian government expecting domestic coal shortfall of approx. 112 million tonnes for year ended March 2012; 35% increase from previous forecasts

•  South African coal exports to India increased 161% 2008 – 2009

•  China imported165 million tonnes of coal in 2010, up 31% from prior year

Domestic

Export

•  Aviemore one of four listed metallurgical (anthracite) coal producers in South Africa

•  Cost-effective replacement for coking coal/coke

•  Applications include iron ore pelletizing, PCI for blast furnaces, calcining for electrode manufacturing, ferroalloys and power generation

Thermal Metallurgical

Source: Company reports 1.  McCloskey Coal Report, March 22, 2 011

•  Demand driven by the metal refining industry

•  Asia dominates demand for anthracite coal

o  83% of global imports; 95% of expected export demand growth

•  Pricing highly correlated with PCl coal prices

•  Australian coal producers starting to settle PCl contracts at a record US$275 per tonne FOB for April –June quarter 1

9

TSX/JSE : FMC Established Mining Region

Source: Company reports

10

TSX/JSE : FMC

Company Outlook

11

TSX/JSE : FMC 2010 – 2013 Mine Plan

Saleable Production1

•  Increasing production: saleable production is expected to grow at a CAGR of 41% from 2010 to 2013

–  Driven by expansion of production from the Magdalena and Aviemore underground mines

(000 t)

1.  Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.

505 648

1,061

1,423

2010FY 2011FY 2012FY 2013FY Bituminous Anthracite

12

TSX/JSE : FMC Organic Growth Opportunities

Ramp up at Magdalena •  Double production from fiscal 2010 to fiscal 2013 •  FY2011 CAPEX: $9.7 million

•  Estimated FY2012 CAPEX: $12.4 million

Increase wash plant recovery rates •  Improve from current level of 60% to 70% •  Investigate product upgrade potential •  FY2011 CAPEX: $1.5 million

•  Estimated FY2012 CAPEX: $1.2 million

Aviemore anthracite operations •  Ramp-up saleable production to 500,000 by tonnes/

year by fiscal 2014 •  FY2011 CAPEX: $0.16 million •  Estimated FY2012 CAPEX: $3.7 million

Source: Company reports, all figures in CDN $ unless otherwise indicated

13

TSX/JSE : FMC Positioned for Multi-Year Export Growth

Milestone agreement inked on December 7, 2010 increases export capacity incrementally by 960,000 tonnes per annum for a total export capacity of 1,157,000 tonnes in 2013.  

SECURED ADDITIONAL EXPORT CAPACITY AT RICHARD’S BAY

SIGNIFICANT OFFTAKE AGREEMENT PROVIDES STEADY CASH FLOW

Three year offtake agreement reached with global energy trading company for 1.75 million tonnes (total) of thermal coal Cash flow from offtake agreement will fund continued ramp up of production at the two operating mines  

14

TSX/JSE : FMC External Growth Opportunities

Source: Company reports

Target consolidation in area •  6 mining operators estimated in

the region

•  1 acquisition opportunity currently identified in Kwa-Zulu, Natal, South Africa

•  Substantial enhanced upside by improving acquired business operating practices

•  Increased export allocation and marketing advantage

•  Synergy in product base and cost savings with central management team

15

TSX/JSE : FMC Mining Resource

NI 43 – 101 Global Resource1

Measured Indicated Inferred MI & I Yearly ROM2

LOM

Magdalena Bituminous

51.7 m - - 51.7 m 1.0 m + 20 years

Aviemore Anthracite

1.6 m 34.1 m 15.1 m 50.8 m 0.25 m + 20 years

1.  Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com. 2.  As per management’s guidance

16

TSX/JSE : FMC U/G LOM Production Profile1

1.  Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com. 2.  As per management’s guidance.

Magdalena2

•  Section 1: ABM30 High Seam, 40,000 tonnes/month •  Section 2: Conventional Low Seam, 10,000 tonnes/month •  Section 3: Dyke, 12,000 tonnes/month

•  Section 4: ABM30 High Seam, 40,000 tonnes/month •  Section 5: CM Low Seam, 25,000 tonnes/month •  Section 6: CM Low Seam, 25,000 tonnes/month

•  Section 7: CM Low Seam, 25,000 tonnes/month

Aviemore2

•  Section 1: Conventional, 22,000 tonnes/month •  Section 2: Conventional, 22,000 tonnes/month •  Investigate low seam CM’s for future

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Tonn

es

Magdalena O/C Magdalena U/G Aviemore U/G

17

TSX/JSE : FMC Magdalena Bituminous Coal Operations

18

TSX/JSE : FMC Magdalena Bituminous Coal Operations

Location: •  Dundee, Kwa-Zulu, Natal

Coal Type: •  Bituminous

Resource: •  51.7 million tonnes

Acres: •  4,557

Average BTU: •  12,250 BTU/lb •  6,800 kcal/kg

Ash: •  15.0%

Volatility: •  16.7%

Saleable Production:

•  2011FY2: 555,000 tonnes •  2012FY2: 900,000 tonnes

Mine Life: •  Approximately +20 years

Infrastructure: •  Wash plant, processing plant and siding

Asset Summary1

1.  Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com. 2.  Fiscal year-end February 28

Magdalena Operations and Site Layout

19

TSX/JSE : FMC Magdalena Bituminous Coal Production Profile

•  Ramp-up on schedule •  New ABM30 continuous miner arrived in December 2010 (further increased

saleable production capacity by close to 30,000 tonnes per month)1

•  Second ABM30 continuous miner scheduled for delivery end September 2011

Magdalena Saleable Bituminous Coal Production2

(000 t)/February 28 year-end

299 347 326 449 485

556

900 1,003

2006 2007 2008 2009 2010 2011 2012E 2013E Magdalena - open pit Magdalena - underground

1.  As per management’s guidance 2.  Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.

20

TSX/JSE : FMC Magdalena Project Area & Mining Rights1

1.  Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.

21

TSX/JSE : FMC Aviemore Anthracite Coal Operations

22

TSX/JSE : FMC Aviemore Anthracite Coal Operations

Location: •  Dundee, Kwa-Zulu, Natal

Coal Type: •  Anthracite

Resource: •  50.8 million tonnes

Acres: •  13,818

Average BTU: •  12,800 BTU/lb •  7,100 kcal/kg

Ash: •  13.7%

Volatility: •  7.9%

Saleable Production:

•  2011FY2: 92,000 tonnes •  2012FY2: 161,000 tonnes

Mine Life: •  Approximately +20 years

Infrastructure: •  Wash plant, processing plant and siding

Asset Summary1

1.  Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com. 2.  Fiscal year-end February 28

Aviemore Operations

23

TSX/JSE : FMC Aviemore Anthracite Coal Production Profile

•  Annual production capacity expected to hit 500,000 tonnes of saleable coal per annum in fiscal 20141

Aviemore Anthracite Coal Saleable Production2

(000 t)/February 28 year-end

59 62 61 102 20

92 161

420

2006 2007 2008 2009 2010 2011 2012E 2013E

1.  As per management’s guidance 2.  Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.

24

TSX/JSE : FMC Aviemore Project Area & Mining Rights1

1.  Source: National Instrument 43 – 101 Report (Minxcon March 1, 2011) available under the profile of the Company on SEDAR at www.sedar.com.

25

TSX/JSE : FMC Corporate Structure

Source: FM Coal Corp

Forbes Coal Ownership Structure

Slater Coal (Proprietary) Limited (South Africa)

Zinoju Coal (Proprietary) Limited (South Africa)

Aviemore Anthracite Coal

Magdalena Bituminous Coal

76.75% → 100%

70%

100% 100%

Forbes and Manhattan Coal Inc. (Ontario)

23.25% → 0%

30%

Corondale Prospecting and Mining (Proprietary) Limited

Dormant Company 100%

Forbes and Manhattan Coal Corp. (Ontario, TSX/JSE Listed)

Slater Vendors

BEE (Nulane)

100%

26

TSX/JSE : FMC

•  Has a good working relationship with its two unions: National Union of Mineworkers (NUM) and Amalgamated Mining & Construction Union (AMCO)

•  Labour contracts are on an annual basis

•  Currently in the process of implementing internationally recognized safety, health, environmental and quality management systems

•  Adheres to the tenets of the Mining Charter and promotes local procurement and procurement from BEE companies

•  Committed to developing local communities

 

Responsible Development

27

TSX/JSE : FMC Capitalization and Share Performance

Company Ticker TSX: FMC

Closing Price (Sept 10, 2011) C$2.45

Trading Range (since September 27, 2010)

C$2.22 – $5.01

Market Capitalization (Basic) C$85 million

Market Capitalization (FD) C$98 million

Canadian Share Performance South African Share Performance

Company Ticker JSE: FMC

Closing Price (Sept 10, 2011) ZAR 2,100

Trading Range (since July 28, 2011)

ZAR2,100 –2,750

Market Capitalization (Basic) ZAR 731million

Market Capitalization (FD) ZAR 829 million

1 Includes 2,700,000 performance warrants that convert into common shares upon the company reaching certain operating targets. Also includes 3,445,300 options with a weighted average exercise price of C$5.35 per share, 763,887 broker warrants convertible into common shares at an exercise price of C$2.80 per share and expiring on January 23, 2012 and 480,000 broker warrants convertible into common shares at an exercise price of C$4.55 per share and expiring on February 22, 2013.

Basic Shares Outstanding 34.8 million

FD Shares Outstanding1 39.5 million

Share Structure

28

TSX/JSE : FMC Peer Group Trading Analysis

Price:earnings comparables South African listed peers

Source: Bloomberg, 30 August 2011 (1) Excluding Forbes Coal FY12 and FY13 P/E is projected

•  The listed South African peer universe for Forbes Coal includes:

―  Exxaro, Optimum Coal, Coal of Africa, Keaton Energy,

Wescoal, Resources Generation, Hwange and Firestone

Energy (the latter 4 of which are not set out in the analysis

alongside due to lack of broker forecast earnings)

•  The relative sizes of these peers are set out below, in terms of

market capitalization:

FY+1 average (1)= 8.3x FY+2 average(1) = 5.9x

Sales growth (FY12 to FY13) versus FY12 P/E: South African listed peers

Peer Market Capitalization (R’m)

Share price performance 6 months to date

Share price performance 12 months to date

Exxaro 62 821 17.4% 62.0%

Optimum Coal 7 931 -5.9% 25.1%

Coal of Africa 4 037 -21.6% -9.6%

Resources Generation

1 163 -18.6% 7.3%

Forbes Coal 681 -38.4% -19.1%

Hwange 633 -22.1% 80.4%

Keaton Energy 487 -26.9% -32.4%

Firestone Energy

421 -21.1% -54.4%

Wescoal 115.1 -33.0% 43.4%

Bubble sizes represented by market cap

11.3

8.5 8.2

6.4

3.0

8.5

2.9

7.1 6.3

2.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Keaton Energy Coal of Africa Optimum Coal Exxaro Forbes Coal Corp.

FY 12 P/E FY 13 P/E

Exxaro Optimum Coal

Coal of Africa

Keaton Energy

Forbes Coal

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0

Sale

s G

row

th (

FY12

to F

Y13

)

FY12 P/E

29

TSX/JSE : FMC Summary

  Currently producing high quality bituminous and anthracite coal

  Plans to organically TRIPLE production from 2010 historic levels to 1.5 million saleable tonnes per annum in three years

  Export capacity at Richards Bay Coal Terminal and Grindrod Terminals Richards Bay to increase incrementally to 1,157,000 tonnes per annum by 2013

  Offtake agreement with global energy trading company provides cash to fund ramp up at two operating mines

  Growing demand for coal from emerging markets

  Looking at strategic acquisition opportunities in the region

  Strong balance sheet and coal-focused management team

30

TSX/JSE : FMC

Appendix

31

TSX/JSE : FMC South Africa – Overview

•  South Africa is the most attractive country in which to do business according to Ernst & Young 2011 Africa Attractiveness Survey

•  Modern infrastructure system supporting distribution of commodities for both domestic and export markets

–  Extensive rail network (10th longest in the world)

–  Majority of electricity generated via coal fired power stations

–  Richard’s Bay port in South Africa is the world’s largest bulk coal terminal

•  91 million tonne capacity •  Coal railed from approximately

49 mines

•  Long history in resource development

–  World’s largest PGM & ferrochrome producer

–  Significant coal, iron ore and manganese resources

Richard’s Bay Port World’s Largest Coal Terminal

32

TSX/JSE : FMC Historical Coal Prices

•  South African thermal coal (Richard’s Bay terminal) and coking coal prices have increased significantly over the last several months

•  The recovery to 2008 levels have been driven by increased demand, particularly from China and India, and higher cost supply from key producing nations such as Russia and the U.S.

Historical South African Thermal Coal and PCI Coal Prices

$0

$50

$100

$150

$200

$250

$300

Jan-

07

Mar

-07

May

-07

Jul-0

7

Sep-

07

Nov

-07

Jan-

08

Mar

-08

May

-08

Jul-0

8

Sep-

08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-0

9

Sep-

09

Nov

-09

Jan-

10

Mar

-10

May

-10

Jul-1

0

Sep-

10

Nov

-10

Jan-

11

(US$

/ton

ne)

Richards Bay Thermal Coal Spot Price McCloskey/Xinhua Infolink's Coking Coal Price

Source: Bloomberg

33

TSX/JSE : FMC Thermal Coal Global Overview

•  Significant upside potential to export prices

•  A tightening of the global seaborne market in late 2010 provided the initial base for thermal coal to rise

•  Robust import demand from India

•  Growing imports into China due to increasing demand and production curtailments

•  Slowing export supply growth from Indonesia as more coal is diverted for domestic use

•  Short-term supply constraints caused by flooding in Australia

•  Australia is the second-largest exporter of bituminous coal

•  Wood Mackenzie stated that prices could exceed 2008 highs

Global Thermal Demand and Supply Forecast

Source GTIS, Macquarie Research, February 2011

34

TSX/JSE : FMC

•  Global thermal trade flows show India and China as major global importers of thermal coal

•  South Africa exported an estimated 23 million tonnes of thermal coal to India in 2010

Thermal Coal Global Overview

35

TSX/JSE : FMC Thermal Coal Global Overview

•  India will be relying heavily on coal fired power plants in the near future

36

TSX/JSE : FMC Thermal Coal Global Overview

•  As a result of reliance on thermal power generation, Indian thermal imports are expected to rise significantly

Source GTIS, Macquarie Research, February 2011

37

TSX/JSE : FMC Thermal Coal Global Overview

•  Chinese thermal coal imports have been huge; this trend is expected to continue into near future

38

TSX/JSE : FMC

Global Thermal Demand and Supply Forecast

Metallurgical Coal Global Overview

•  The coking coal market was fundamentally tight prior to the Queensland floods, which have further constrained the market

•  Current situation highlights the lack of geographical diversity to supply side portfolio, leaving it prone to shocks

•  Market deficit likely to prevail, keeping price at decent premium to cost support

•  Requirement for projects in high geopolitical and infrastructure risk regions will keep long-term prices elevated

Source GTIS, Macquarie Research, February 2011

39

TSX/JSE : FMC Metallurgical Coal Global Overview

Source GTIS, Macquarie Research, February 2011

•  Many metallurgical coal basins exist, however there is a challenge in bringing new projects online

40

TSX/JSE : FMC Metallurgical Coal Global Overview

•  Supply growth in 2011 is set to be much lower than in 2010, while key regions increase demand

41

TSX/JSE : FMC

•  Global anthracite coal demand driven by the metal refining industry –  Cost-effective replacement for coking coal/coke

•  Emerging markets consuming the most steel •  China is the world largest steel producer

–  Accounts for 44% of global steel production –  Expected to sustain steel consumption growth of 6%-8% annually

•  China accounts for 52% of the world’s coking coal consumption –  Imports more than half of coking coal consumed from export markets

Global steel consumption: Macquarie Commodities Research February 2011

Increasing steel production and consumption drives demand for anthracite coal

Metallurgical Coal Global Overview

42

Stephan Theron President & CEO Forbes & Manhattan Coal Corp.   Tel: + 1 416 861 5912   info@forbescoal.com www.forbescoal.com

September 2011

CONTACT INFORMATION

65 Queen Street West, Suite 815 P.O. Box 71, Toronto, Ontario, Canada, M5H 2M5

Sabina Srubiski Investor Relations Manager Forbes & Manhattan Coal Corp.   Tel: + 1 416 309 2957   ssrubiski@forbescoal.com www.forbescoal.com

TSX/JSE : FMC