BANDANNA ENERGY LIMITED ACN 009 356665 

Registered Office :C/‐ DFK Richard Hill,  Level 12, 32 Martin Place Sydney, 2000 Brisbane Business Office : Level 12, 410 Queen Street, Brisbane, Qld, 4000. 

Telephone 07 3041 4400, Facsimile 07 3041 4444 Sydney Business Office:  Suite 2, Level 1 80 Mount Street North Sydney, 2060 

Telephone 02 9923 1520; Facsimile 02 9923 1528 Email : Info@bandannaenergy.com.au; website www.bandannaenergy.com.au 

16 February 2009 ASX RELEASE  General Manager, The Company Announcements Office Australian Stock Exchange Limited Electronic Lodgement System  Dear Sir, 

   

1. Award of New Exploration Permit   Bandanna Energy Limited (Bandanna – ASX Code BND) is pleased to announce that its application EPCA 1195,  through  its wholly owned  subsidiary Carnarvon Coal Pty  Ltd, has now been  approved by  the Queensland Government authorities. The new EPC 1195 is located in the southern Bowen Basin and is contiguous  with  EPCA  1189,  which  is  currently  an  application  by  Bandanna  Energy  (refer  to accompanying figure).    EPC 1195 covers an area of 339 km2 and  lies approximately 41 km  to  the north of  the  township of Injune. The Charleville – Brisbane railway is located approximately 120 km from the EPC.    

2. Application for  New Exploration Permit   Bandanna Energy  Limited wishes  to advise  that  its wholly owned  subsidiary, Advocate Holdings Pty Ltd,  has made application for an Exploration Permit for Minerals (EPMA 17932). This EPMA, which  lies adjacent to Bandanna’s recently awarded EPM 17568 (refer to accompanying figure), is located in the southern Bowen Basin.   Together these areas cover approximately 140 km2 and have been applied for  in order to explore for potential  deposits of the mineral bentonite.       

3. Wet Weather results in Force Majeure   Custom Mining Dingo Pty Ltd, a partially owned subsidiary of Macarthur Coal Limited,     has  informed the  Company  that  due  to  heavy  rain  and  localised  flooding    it  has  been  necessary  to  invoke,  in accordance with the Joint Venture Agreement,  force majeure for its current exploration operations in  EPC 881  (Dingo West). At  this stage  field activities may be temporarily suspended  for a minimum of approximately 2 weeks until ground conditions improve.   

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 4. Competent Person’s Statement   

  Reference  is made  to  the  visual  component  of  the  Boardroom  Radio  presentation  released  to  the market  on  12  February  2009.  That  presentation  contained    certain  resource  statements  and exploration  targets  which  inadvertently  omitted  the  necessary  Competent  Person’s  Statement authorizing  their  usage  in  the  form  and  context  provided.  Please  refer  to  the  attached  revised presentation which incorporates same on the second slide.        Yours faithfully, BANDANNA  ENERGY LIMITED  Dr Ray Shaw Managing Director

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0 10 20 30 40 505Kilometers

Bandanna Energy/09-005a/EPC 1189 & 1195_enlargement/2-2-09/lp

")

")

EPC 1195

EPCA 1189

Beilba

Mount Howe

148°30'0"E

25°30'0"S

Datum GDA 94Zone 55

20km

BANDANNA ENERGY

CARNARVON COAL TENEMENTSFEBRUARY 2009

Bandanna Energy Coal Licences

LEGEND

Coal licence - application

Coal licence - granted

Highways

Minor roads

Towns")

1000km

Brisbane

Gladstone

MAP AREA

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Bandanna Energy/09-005a/arcadia mineral tenements/2-2-09/lp

BANDANNA ENERGY

ARCADIA MINERAL TENEMENTSFEBRUARY 2009 Note: EPM or EPMA do not form any part

of the sales process

149°00'0"E

Advocate Holdings Pty Ltd Mineral Licences

")

LEGEND

Mineral licence - granted

Mineral licence - application

Highways

Minor roads

Towns

Arcadia Coal Pty Ltd Mineral Licences

Datum GDA 94Zone 55

10km0

1000km

Brisbane

Gladstone

MAP AREA

EPM 17568

EPMA 17932

Dawson Hiy

ghwa

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Company Overviewp yFebruary 2009

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Disclaimer

This presentation may contain certain statements and projections provided by or on behalf of Bandanna Energy Limited (BND) with respect to the anticipated future undertakings. These forward-looking statements reflect various assumptions by or on behalf of BND. Accordingly , these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyondsubject to significant business, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control of BND which could cause actual results or trends to differ materially, including but not limited to price fluctuations, exploration results, ore reserve and mineral resource estimation, environmental risks, physical risks, legislative and regulatory changes, political risks, project delay or advancement, ability to meet additional funding requirements, factors relating to title to properties, native title and aboriginal heritage issues, dependence on key personnel, share price volatility, approvals and cost estimates. Accordingly, there can be no assurance that such statements and projections will be realised. Neither BND, or any of its affiliates, advisers, consultants, agents or any of their respective officers or employees (Relevant Parties) make any representations as to the accuracy or completeness of any such statement of projections or that any forecasts will be achieved.

Additionally, the Relevant Parties make no representation or warranty, express or implied, in relation to, and to the fullest extent permitted by law, no responsibility or liability (whether for negligence, under statute or otherwise) is or will be accepted by the Relevant Parties as to or in relation to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this Presentation or any omission from this Presentation or of any other written or oral information or opinions provided now or in the future to any Recipient or it d i I f i hi thi t ti BND d t k bli ti t id dditi l d t d i f ti h th lt fits advisers. In furnishing this presentation, BND undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.

JORC – Statement of Compliance

―The information compiled in this document relating to resources is based on information compiled by Mr Gordon Saul, who is a member of the 

Australian Institute of Geoscientists and who is employed by Resolve Geo Pty Ltd, and is a director and shareholder of that company. Resolve Geo Pty 

Ltd is a shareholder in Bandanna.  Mr Saul has sufficient experience which is relevant to the style of mineralization and types of deposit under 

consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the JORC Code. Mr Saul consents 

to the inclusion in this document of the matters based on his information in the form and context in which they appearto the inclusion in this document of the matters based on his information in the form and context in which they appear. 

―With respect to exploration target tonnages these are conceptual in nature. There is insufficient exploration to define a Mineral Resource across the 

target area (excluding any existing inferred or indicated resources) and it remains uncertain if further exploration will result in the determination of a 

Mineral Resource across the whole area. In the case of Springsure Creek the range of exploration target was determined from bore hole and seismic 

22

information within the exploration lease which points to a continuous A2 seam, averaging 3.09 m in thickness, mineable with underground methods, 

underlying an area of at least 97.8 km2 to 140.8 km2. 

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1. Executive Summaryy

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Executive Summary― Bandanna Energy Limited (‘Bandanna Energy’) is an Australian based

coal and energy exploration / development company with most assets gy p p p ylocated in Queensland.

― Five coal projects in the world’s leading coal province, the Bowen Basin

L t l j t i th dj t G lil B i t ti l b l l i― Long term coal project in the adjacent Galilee Basin, a next generation global coal province.

― Total JORC compliant resources in excess of 750Mt

― Two projects have attracted substantial farminees – AMCI (Alpha) & Macarthur (Dingo West)

Diversified Portfolio of Projects

― Assets include 5 oil shale, 1 bentonite project and 6 oil and gas projects.

― Chairman , Jeremy Barlow, also a Non-Executive of Arrow Energy Limited and previously a principal of coal consulting group Barlow JonkerE i d principal of coal consulting group Barlow Jonker

― Managing Director Ray Shaw has over 25 years’ experience in the resource sector

― Director Robert Johansen held various positions in the coal industry for over 10 years

Di t D id G h l N E ti Di t f B k f Q l d

Experienced and Well Respected Management

― Director, David Graham, also a Non-Executive Director of Bank of Queensland.

― COO and CFO both have strong Qld coal industry backgrounds.

― Significant Expenditure for coal exploration in H1 2009 calendar yearSignificant

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g p p y

― Expenditure for oil and gas $1.2 mil, including 50% funding of Planet Downs-1 well, ATP 539Significant Expenditure

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Overview of Bandanna Energy

B d E i ASX li t d (ASX BND) l

Trading History and StatisticsShare Price (29 December 08) A$0.165

Corporate Overview

― Bandanna Energy is an ASX-listed (ASX: BND) coal and energy exploration / development company

― Formerly known as Enterprise Energy, renamed following acquisition of Bandanna Coal in September 2008

Share Price (29 December 08) A$0.165

SOI (m) 30.3m

Market Capitalisation A$5.0m

Fully Diluted SOI (m)* 332.2m2008

― Completed an A$10m capital raising in connection with the A$240 million Bandanna Coal acquisition-fully underwritten by ABN AMRO Morgans

Fully Diluted Market Capitalisation A$54.8m

Cash A$9.1m

Debt -

Fully Diluted Enterprise Value A$45.7mFully Diluted Enterprise Value A$45.7m

Key Management / Directors

Non-Executive Chairman Jeremy Barlow

Share Price Performance

On 15 Sep 08 Enterprise Energy acquired 0.7 1.4 )

Managing Director Raymond Shaw

Non-Executive Director Robert Johansen

Non-Executive Director David Graham

Chief Operating Officer James Porter

Bandanna Coal following a 1:10 share consolidation

0 4

0.5

0.6

shar

e)

0 8

1.0

1.2

Volu

me

(milli

on s

hare

s)

Chief Operating Officer James Porter

Chief Financial Officer Matthew Scott

0 1

0.2

0.3

0.4

Shar

e Pr

ice

(A$/

s

0 2

0.4

0.6

0.8

Shar

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ice

(adj

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d) &

55

-

0.1

Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 -

0.2 S

Volume [RHS] Share Price

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Thermal Coal MarketOverviewOverview

― Thermal Coal Prices: W ld D d Th l d M t ll i l

World thermal coal demand expected to remain strong― Thermal Coal Prices:

― 2008 thermal coal contract settled at US$125/t FOB amid tight market

― Spot prices fallen in line with weakness in short term demand

World Demand – Thermal and Metallurgical

1,000

1,200 Thermal Metallurgical

― Industry expectation is that 2009 contract prices will be close to current spot level (US$75-80/t FOB) but yet to be settled

― Demand:200

400

600

800

Mtp

a

― World thermal coal demand projected to remain strong in medium to long term, underpinned by demand growth from Asia

― China is shifting to a net importer of thermal coal Source: Wood Mackenzie, Oct 2008

-

200

2006 2007 2008 2009F 2010F 2011F 2012F 2013F 2014F 2015F 2016F 2017F 2018F

Wood Mackenzie Forecast

― New coal-fired generating capacity in India will increasingly rely on imported coal

― Steady growth from Korea expected in 2009 as new coal-fired generating units come online

S l

China’s traded thermal coal

― Supply:

― Global supply growth over next 5 years expected to come from Australia, Indonesia and Colombia

― Australia currently supplies 27% of world coal export

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y pp p

― Debottlenecking of port and rail to enhance Queensland supply capacity

Source: Wood Mackenzie

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Thermal Coal MarketAustralian Thermal CoalAustralian Thermal Coal

St t i Ad t A t li Th l C l Q lit

Australian Thermal Coal – well positioned to meet additional global demand

― Strategic Advantage:

― Mature and world-leading coal export industry

― Largest exporter of black coal since 1986

Australian Thermal Coal Quality

70

80

90

Aust Rangeg p

― Located in close proximity to Asian markets

― Less than 14 days sail from Gladstone Port t A i

20

30

40

50

60

% o

r Kca

l/kg Aust Range

World Range

to Asia

― Australian coal properties:

― Typically high quality with minimal contaminants Source: Wood Mackenzie

0

10

T.M.% ar V.M. % ad Ash % ad F.C. % ad S % (x 10)ad

N % (x 10)ad

CV/1000

― Relatively low production costs

― Australian thermal coal prices internationally competitive:

Cost Curve Percentile

Australia

C dcompetitive:

― Typically in the lower end of cost curve

― Low cost compared to major producing countries

Canada

Colombia

Indonesia

Russia

South Africa

United States

77

including America, Canada and Russia10 20 30 40 50 60 70 80 90

PercentileSource Wood M ackenzie

Source: Wood Mackenzie, Oct 2008

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Overview of Bandanna’s Coal Assets

― Bandanna Energy’s coal interests include: Location of Bandanna Energy’s Coal Interests

A D i iWanella /

Asset Description

Arcadia

(Bowen Basin)

— Bandanna holds 100% interest

— JORC inferred resource of 273Mt

Spring Creek

Springsure Creek (Bowen Basin)

— Bandanna holds 100% interest— JORC indicated resource of 17.5Mt &

inferred resource of 239Mt

Fenlee ProjectArcturus(Bowen Basin)

— Bandanna holds 100% interest— JORC inferred resource of 138Mt

Wanella(Bowen Basin)

— Bandanna holds 100% interest

Fenlee Project

Dingo West

Springsure C k(Bowen Basin) — Potential for deep coking coal within

Leichardt Seam

Dingo West (Bowen Basin)

— JORC inferred resource of 91.1Mt

Creek

Arcturus

Arcadia(Bowen Basin) — Bandanna holds100% interest

— Macarthur Coal earning up to a 70% interest

Alpha

(G )

— Targeting JORC resource during Q1 2009

C 0%

Alpha

88

(Galilee Basin) — AMCI Australia earning up to a 50% interest

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Bandanna’s ProjectsSpringsure Creek

― The Springsure Creek Project (EPC 891) is located in the Southern Bowen Basin, approximately 35 km south east of Emerald, Australia

Springsure Creek

pp y

Drill hole locations, seismic and domain distribution

Bandanna Project Location

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Bandanna’s ProjectsSpringsure CreekSpringsure Creek

Ownership — Bandanna holds 100% interestOwnership Bandanna holds 100% interest

Infrastructure — 18 km from the Blackwater rail line

— 350 km from the Gladstone Port

Resources — Total resource 239 Mt, comprising 17.6 Mt indicated and 221.4 Mt inferred

— Aggressive drilling program with an exploration target of 417 – 600 Mt, inclusive of current resource

Coal Quality — Drilling results indicate quality export thermal coal with low ash, low sulphur and good specific energy

— No wash plant required, crushing and screening only— Potential for similar development to Arcadia - initial 5 Mtpa ROM project with 20

i lifyear mine life— Exploration permit currently under renewal

Potential Timeline

— 2009/2010: to have measured resource of 80 Mt and completion of feasibility study

— 2011: geotechnical drilling, mine planning and mining lease applicationg g, p g g pp

— 2012/2013: mining lease granted & infrastructure development commences

— 2014: mining commences

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Bandanna’s ProjectsArcadiaArcadia

― The Arcadia deposit lies within the north-west trending Denison Trough, located along the western margin of the Bowen Basin

― Encompasses coal within the Permian age Bandanna Formation, the regional equivalent of the Rangal Coal Measures

― Bandanna Formation generally capped by Tertiary basalts & unconsolidated sands and clays

― EPCs dominated by two north west trending anticlines, Rolleston & Purbrook

― Number of coal seams present, but primary target is ‘Aries 2’, located at the Purbrook Anticline

Arcadia Project Structural Data

― Depth of approximately 210m, gently dipping to the north east from the top of the Purbrook Anticline

― Average seam thickness of 2.2m with a maximum of 4.0mArcadia Stratigraphic Section

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Bandanna’s ProjectsArcturus Project

― The Arcturus Project (EPC 1221) is located in the Southern Bowen Basin, 22 km east of the town of Springsure, Australia

Arcturus Project

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Regional Ecosystem Map Bandanna Project Location

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Bandanna’s ProjectsArcturus ProjectArcturus Project

Ownership — Bandanna holds 100% interest

Infrastructure — Covers an area of ~430 km2, immediately south of the Springsure Creek project

— 15 km west of Rolleston and Blackwater rail line

— Approx 350 km from the Gladstone Port

Resources — 138 Mt JORC compliant inferred resource ( including 98 Mt at depth of less than 60 m)

— High volatile, low rank bituminous coal

— Potential for open cut development

Previous Exploration

— Completion of 38 exploration and coal stratigraphic holes, including 4 core holes— Limited seismic coverage demonstrates stratigraphic continuity through the area— Drill hole spacing irregular with majority of core holes and chip holes

concentrated in the eastern area

Coal Quality — Targets export quality thermal coal at open cut depths

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Conceptual Project Development PlanUpside potential – One possible visionUpside potential One possible vision

Potential for fully integrated regional development in excess of 20 Mtpa

Projects Relative Location

― Arcadia is within 50 km of Bandanna’s neighbouring Springsure Creek (EPC 891) and Arcturus (EPC 1221) t t

Projects Relative Location

1221) tenements

Springsure Creek (100% owned)

― Potential for significant shallow LW ndergro nd thermal coalunderground thermal coal

development

Arcturus (100% owned)

Potential for significant open cut

ArcturusOpen Cut2-4 Mtpa

Springsure Creek

― Potential for significant open-cut thermal coal development

Anticipated Synergy

Longwall operations at Arcadia

UG 4-9 Mtpa

― Longwall operations at Arcadiaand Springsure Creek could utilise some of the open cut developmentinfrastructure at Arcturus Arcadia

1414

UG 5-9 Mtpa

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Bandanna’s Other ProjectsDingo West

― The Dingo West Project (EPC 861) is located on the Blackwater rail line, approximately 150 km west of Rockhampton, in the Southern

Dingo West

pp y pBowen Basin, Australia

Dingo West Project Location

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Bandanna’s Other ProjectsDingo WestDingo West

Ownership — Macarthur Coal earning up to 70% by funding development to first productionOwnership Macarthur Coal earning up to 70% by funding development to first production

Infrastructure — Located on the Blackwater rail line and the Capricorn Highway bisects the permit

— Approximately 250 km from the Gladstone Port

Resources — 91.1 Mt inferred resource

— Drilling and seismic targeting 40 Mt measured resource

Coal Quality — PCI and thermal coal

Development — All infrastructure to be provided and funded by Macarthur Coal including securing port and rail allocation

— Completion of farm-in will see Bandanna free carried through to:

Open cut mine with capacity of at least 1 9 Mtpa production of PCI coal currently— Open cut mine with capacity of at least 1.9 Mtpa, production of PCI coal currently scheduled for Q1 2011

— Construction of coal handling and washing plant

— Securing of infrastructure capacityg p y

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Bandanna’s Other ProjectsAlpha Project

― The Alpha Project is located immediately south of the town of Alpha in the Southern Galilee Basin, Australia

Alpha Project

― Includes EPCs 1048, 1049, 1179 & 1180

― Galilee Basin is an emerging new globally significant thermal coal region

Regional Ecosystem Map Bandanna Project Location

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Bandanna’s Other ProjectsAlpha ProjectAlpha Project

Ownership — AMCI earning up to 50% interest by funding exploration & development program (up toOwnership AMCI earning up to 50% interest by funding exploration & development program (up to $25m)

Infrastructure — Approximately 160 km to the west of Emerald.

— Queensland Government to oversee establishment of common access infrastructure to port (most likely Abbot Point)

Resources — Resource estimate due by end of Q1 2009

Previous Over 80 holes drilled including 18 holes in October 2008Previous Exploration

— Over 80 holes drilled, including 18 holes in October 2008

— Drilling assessing coal seam quality of Seams B, D1 and D2

— Coal intersections indicate a substantial volume of export thermal coal suitable for open cut & underground mining

Development — Galilee Basin represents a new globally significant thermal resource— Economic development is likely to include common infrastructure involving all major

stakeholders in the Galilee Basin, including AMCI, Bandanna, Hancock, Vale and Waratah

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Overview of Bandanna’s oil & gas assets

― Bandanna Energy’s oil and gas interests include: Location of Bandanna Energy’s Oil & Gas Interests

A D i iAsset DescriptionATP 539

(Cooper Basin)

— Earning 50%

— Funding 50% of Planet Downs-1, Q1 09

ATP 549 (West) — 41.3% Participating Interest( )

(Cooper Basin)

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PEL 88(Cooper Basin)

— 50% Participating Interest

PEL 100 — 5 % Participating InterestPEL 100(Cooper Basin)

5 % Participating Interest

PEL 106

(Cooper Basin)

— Udacha, Paprika, Rossco and SmegsyBlocks12.5 – 25% interests subject to production.production.

PL 18

(Surat Basin)

— 10% participating interest outside existing oil fields.

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Current Activities

Bandanna has drilled over 240 coal exploration holes in its― Bandanna has drilled over 240 coal exploration holes in its tenements to date. This includes :

AMCI has drilled a total of 18,000 m of boreholes in the Alpha Project area involving > 80 individual bore holes (including 41 core holes) as part of its farmin commitments.

Macarthur has drilled a total of 21,000 m of boreholes in the Dingo West Project area , g jinvolving >115 individual bore holes (including 5 core holes) as part of its farmin commitments.

― Currently Bandanna budgeted to drill up to an additional 65 bore holes up to June 2009, outside of AMCI and Macarthur farmin activities.

― Bandanna to fund 50% of Planet Downs-1 petroleum well in ATP 539 during February 2009.

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Conclusions― Coal primary focus, but with broader energy base interests

― Well experienced board strong industry experience – proven performers― Well experienced board, strong industry experience – proven performers.

― Proven ability to manage and de-risk projects

Alpha Project farmout to AMCI ($25 mil)

Dingo West Project farmout to Macarthur ($9.65 mil)

― Have medium and long term potential for new major thermal coal development in Rolleston-Springsure-Emerald Triangle.

L t t ti l f j j t i G lil B i― Long term potential for major project in Galilee Basin

― Oil and Gas interests in the Cooper Basin.

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