Riverside Energy Ltd

presenter

Dr John Bishop executive chairman

16th August, 2012

Disclaimer No representation or warranty is made as to the accuracy, completeness or reliability of the information contained herein. Any forward-looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Riverside Energy Ltd.

Summary

Has large resources of coal in the UK suitable for both conventional mining and exploitation by underground coal gasification (UCG)

Provides exposure to worldwide demand for thermal and coking coals

Is well placed to help fill the UKs Gas Gap (now >50%) and increasing demand for energy security

Riverside Energy:

To take significant equity interest through early seed funding

The Opportunity:

Why?

An exciting time for energy: growth and change

The final solution for sustainable power will be: nuclear fusion?, geothermal?, ?

Hydrocarbons will always be needed for chemical feedstocks, if not for liquid fuels

Gas will be a decades-long source of energy (largest growth)

What are the requirements for a successful source of energy?

What energy sources fit those criteria?

World energy consumption

per capita

(kg of oil equiv.)

UCG

Oil Gas

Coal

Global Fossil Fuel Resources (IEA) (pre-shale gas)

Why UCG?

Coal is the worlds most plentiful source of energy

Making gas from coal is long-established (town gas)

UCG gas (syngas) is all in-situ and reduces carbon output by 50% to 100%. UCG has come of age with directional drilling

Syngas is a versatile gas and can be used for:

Electricity generation

Transport fuels

Fertilisers

Hydrogen (cheapest production)

Other chemical feedstocks

Why Europe?

Europe has a strong desire for energy security and energy self- sufficiency

Europe has high energy costs and a stable, favourable regulatory regime with a 'coal culture

Numerous offtake opportunities in close proximity to production

The UK has near-zero acquisition costs and minimal royalties, plus a common language and history

UCG has a long history in the UK

Why Riverside?

The Projects: very large resources including the Firth of Forth: One of the best UCG sites in Europe

The People: engineers and scientists experienced in UCG

The Directors: experienced in creating and running resource companies

A Plan B: excellent resources of thermal and coking coals suitable for conventional mining

UCG Explained

The same process used to make town gas (at the Gas Works) is carried out within the coal seam. Simplified:

Two boreholes are drilled into the coal seam using directional drilling technology: one injection hole and one production hole

A small portion of the coal is burned to provide the heat for the chemical reaction

Air / oxygen / steam down the injection hole

Syngas up the production hole

Typical syngas composition: H2 30%, CH4 15%, CO 15%, CO2 40%

Linc Energy

C + H2O = H2 + CO (syngas)

UCG Process

Gas to liquids plant

Syngas clean up, CO2 separation &

sequestration

Hydrogen-fired power station: zero emissions

UCG is a safe process

Stay away from aquifers, go deep and beneath sealing strata.

Maintain a negative pressure in the gasification chamber. The gas is then contained and flows up the production well.

Subsidence minimised or eliminated by good operational design.

Environmentally Safe

UCG CSG

Energy Source Coal Gas in Coal

Gas Produced Syngas Methane

Energy Extracted 50-100%

CSG/Coal/UCG Energy Efficiencies

CSG

Advanced

Coal-Fired

UCG

after Eskom (2010)

Global UCG Projects

Gasifying

Angren: 50 yrs cont. operation

ENN: 2.5 yrs 5MW operation

Majuba project operating for 4 yrs

LNC & CNX pilot plants

NZ Govt project u/way

Linc Energy: Wyoming, China, UK

Carbon Energy: Chile, Turkey, USA

Riverside: UK

Announced or planned

Swan Hills: UCG @ 1400m

Previous EU Pilot

Riverside Energy Ltd: A pre-IPO Australian Underground Coal

Gasification Company with UK subsidiaries holding the licences

(REL: 100%)

Seed capital raised to date: $2M

Issued capital: 59.2M shares / 53 shareholders

Experienced, technical Board of Directors:

o Dr John Bishop, Executive Chairman

o Doug Goodall, Non-Executive Director

o Dr Roger Lewis, Non-Executive Director

Corporate

Dr John Bishop, e: j.bishop@riversideenergy.com.au, m: +61 418 373 429

Level 8, 350 Collins St, Melbourne, Australia, 3000

Firth of Forth

Amble

Thames Estuary

Whitehaven

Liverpool Bay

Riversides Projects

* Six granted UCG licences + two applications, REL: 100% * Inserts show licence boundaries & seismic coverage * Areas chosen for previous mining & good infrastructure * CCS / EOR potential in North & Irish Sea oil/gas fields * Negotiating for onshore licences

Firth of Forth: the best site

REL model of the Lower Coal Measures in the Firth of Forth

Described by RELs consultants as arguably the best UCG project in Europe Approx 1 billion tonnes of coal estimated Potential for CCS / EOR via existing infrastructure to North Sea oil & gas fields Potential for extensive underlying oil shales

Extensive offshore workings beneath the Firth of Forth. RELs licences in solid red.

Dr John Bishop, FAICD; CEO. John is a geophysicist by training with more than 30 years involvement in the resources industry. He was the founding Managing Director of Carbine Tungsten Ltd (ASX: CNQ) and founding Chairman of KUTh Energy Ltd (ASX: KEN).

General Manager. The GM is a mechanical engineer with 17 years experience, mostly in the power generation industry; including 4 years as manager of a UCG project, taking it from concept to commissioning. He is currently completing a large power station renewal and will be available in early 2013.

Dr John Rippon, Consultant. John is a deep mine geologist with more than 40 years experience in the UK coal industry. He is a UCG Consultant with the Institute of Petroleum Engineering (IPE) at Heriot-Watt University and has been involved with several UCG studies across the UK.

Prof. Brian Smart, FREng, FRSE, FIMMM, CEng; Advisor. Brian is a previous Head of the IPE and Vice Principal at Heriot-Watt University. Brian has introduced British engineering degrees to several countries and has close connections to China, Middle East, SE Asia and Russia. He has a special interest in UCG and is a co-author of the 2006 study into the feasibility of UCG under the Firth of Forth.

The Technical Team

Riversides Strategy

1. Acquire a portfolio of large-tonnage UCG permits, in stable regions with high energy costs and a strong desire for energy security: DONE

2. Acquire experienced team of engineers to design, build and operate syngas plant: READY

3. Locate site for first operation and obtain offtaker agreements: UNDERWAY

4. Procure sufficient funding for pilot gas flaring: NEXT STEP*

5. Listing planned post pilot flaring to maximise valuation

* To be at least partially funded by Riversides conventional coals

Supplementary Slides

Riversides Firth of Forth UCG Project. Schematics and quotes from UK Dept of Trade and Industry 2006 report: Creating the Coalmine of the 21st Century,

The Feasibility of UCG under the Firth of Forth

The FoF is well placed to provide commercial quantities of UCG gas for power stations and

industrial complexes located along its shoreline. (DTI, 2006)

Coal for Conventional Mining

(1) Amble thermal coal

Multiple shallow seams of high calorific value thermal coal overlie the UCG targets.

These seams were mined in the adjacent Ellington Mine (closed 2005), and

Were extensively explored by the National Coal Board in the 1980s.

Recent evaluation for Riverside suggests a net (ie, saleable) tonnage of at least 80Mt.

Amble thermal coal : Riverside licence boundary in red, Ellington mine licence in

purple, NCB exploration in solid blue

Coal for Conventional Mining

Multiple shallow seams of high calorific value thermal coal overlie the UCG targets.

These seams were mined in the adjacent Ellington Mine (closed 2005), and

Were extensively explored by the National Coal Board in the 1980s.

Recent evaluation for Riverside suggests a net (ie, saleable) tonnage of at least 80Mt.

(1) Amble thermal coal

Amble thermal coal : Riverside licence boundary in red, Ellington mine licence in

purple. Plus NCB exploration borehole collars (in green) and seismic lines

Coal for Conventional Mining

At Whitehaven, seams of metallurgical coal sub-crop close to the coast and dip offshore.

900m long access drifts from 1990s operation, may allow a quick and low-cost pre-mining development

Excellent infrastructure including working railway within 100m of planned portal

Total tonnage is estimated at ~1Bt with a significant proportion suitable for mining.

(2) Whitehaven coking coal

Whitehaven coking coal : two offshore and one onshore licences. Showing some

borehole collars (in blue) and seismic lines

UCG Capital Requirements

1. A pilot gas flaring, proof-of-concept, operation is estimated to cost ~20m and take up to 18 months to complete. The information obtained will be used to prepare a BFS for a commercial operation.

2. A gas cleaning plant providing syngas to end-users will cost ~100m. With offtake agreements, up to 50% of this amount can be debt funded with the balance raised at IPO.

UCG Rough Financials

Assume an energy content of 25GJ/t (eg, FoF); 75% recovery and 75% efficiency to convert to Syngas. For a mining rate of 1Mtpa, and a discounted UK gas price of 5 per GJ:

Gross revenue is 70Mpa, (Capex ~ 100M)

Assuming an overall life of mine cost (ie capex+opex) of 1 per GJ (LLNL quote US$1.36 per GJ and Carbon Energy, AU$1.25 per GJ), then:

Net Revenue is ~56M for every 1Mt of coal gasified

----------------- Note: most companies are planning for an on-site value-adding activity: eg, gas-to-liquids (Linc); electricity generation (Carbon); fertiliser (Liberty)

(Syngas from 1Mtpa (gross) will power ~200MW power station)