WPG Resources LtdWPG Resources Ltd For personal use only · Deutsche Bank warrants (not yet issued)...

WPG Resources LtdWPG Resources LtdWPG Resources LtdWPG Resources Ltd

Near Term Iron Ore ProductionNear Term Iron Ore Production

withwithwithwith

Much More to FollowMuch More to Follow

Stockbrokers Association of Australia PresentationStockbrokers Association of Australia Presentation21 July 201121 July 2011

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Introduction

Stockbrokers Association Presentation 21 July 2011 2

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Key Corporate Informationy pDirectors:– Bob Duffin (Executive Chairman)– Heath Roberts (Executive)

Gary Jones (Executive)– Gary Jones (Executive)– Bob Richardson (Independent Non Executive)– Len Dean (Independent Non Executive)– Dennis Mutton (Independent Non Executive)

Lim See Yong (Independent Non Executive)– Lim See Yong (Independent Non Executive)

Executives– Martin Jacobsen (COO)

G H di (CFO)– Greg Harding (CFO)– Myles Fang (iron ore marketing)– Larissa Brown (Company Secretary)– Adrian Horne (Mine Manger)

A K (G l C l)

Issued shares 247.8mUnlisted options, share rights 8.2m– Anne Keaney (General Counsel)

Cash: $66m (30 June 2011)

S b t ti l h h ld

Unlisted options, share rightsDeutsche Bank warrants (not yet issued)

8.2m 15.4m

Fully diluted 271 4mSubstantial shareholders:– Acorn Capital 9.3%– Bob Duffin 5.9%– Other institutions hold ~24%

Fully diluted 271.4mMarket cap (undiluted) @ $0.95/shareFully diluted

$235m

$257m

Stockbrokers Association Presentation 21 July 2011

Fully diluted $257m

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Our Key Project AssetsIRON ORE• DSO: Peculiar Knob,

Buzzard and Tui depositsBuzzard and Tui deposits • Magnetite BIF: Kestrel

and Goshawk, Harrier, E l Kit d F l tEagle, Kite and Falcon at Hawks Nest

• Haematite BIF: Buzzard d T i f t lland Tui footwall

COAL• Penrhyn, Perfection Well, y , ,

Pidinga, LochielEXPLORATION• Mt Brady Windy Valley• Mt Brady, Windy Valley


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Our DSO Iron Ore Projects• Peculiar Knob

• Buzzard

• Tui


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Peculiar Knob - Current StatusAPPROVALS AND PERMITTING• All approvals required for project development now granted

FUNDING• $85m equity raised Nov/Dec 2010• Deutsche Bank US$120m facility committed and financing documents being finalised for

signing late July or early August Quantum of facility may be increasedsigning late July or early August. Quantum of facility may be increased• We spend $70m of our money before Deutsche Bank money becomes available; we spent

$20m in June Quarter and will spend a further $50m in September Quarter

CONSTRUCTION AND PRODUCTION• 240 man accommodation village (Maluku Kuru) completed and ready to be transported to

site• Expect mining to commence late 2011 with sales in June 2012

CONTRACTSAll t ti d i id t t d d d d t ti b i fi li d• All construction and service provider contracts awarded and documentation being finalised

• All material construction contracts are on a fixed rate basis• Service provider contracts on a fixed schedule of rates basis but indexed for labour and

fuel price movements


fuel price movements

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Development Plan – Peculiar Knob

• Fully permittedS l t 3 3 t t t t• Sales at 3.3 mtpa to start May-July 2011

• We will build a haul road to Wirrida Siding

• Maluku Kuru village for 240Crushing plant at siding• Crushing plant at siding

• Rail haulage 11,200 tonnes per train 6 days per week to Port Pirie

• Transshipment to Capesize ships in deep water in Upperships in deep water in Upper Spencer Gulf

• One ship every 3 weeks


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Mining, Crushing and Rail Loadingg, g g• Mining, crushing and rail loading contracts

have been awarded to MACA Ltd• Crusher will be located at siding to allow

for multiple mines feeding just one crusher• We will build a loading loop at Wirrida long g p g

enough for 2 trains (1.8 km each) which is a more efficient way to load long trains than a linear siding


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Site Accommodation and Water Supplypp y• Maluku Kuru accommodation village to be

built on site for 240 persons; readilybuilt on site for 240 persons; readily upscaled for new projects

• Village units already built by Ausco and ready to be relocated to sitey

• We have 3 borefields – more than enough process and potable water with RO plant


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Road and Rail Haulageg• Road haulage contract awarded to Giacci

(Giacci also has management contract for(Giacci also has management contract for the Port Pirie facilities)

• Rail haulage contract awarded to GWA• Locos (9 off) now being built by UGL andLocos (9 off) now being built by UGL and

wagons (374 off), by China North Rail. Two train consists will do 3 round trips each per week


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PK – Australia’s Best Quality FinesPeculiar Knob Total Fines Sample

Wet size distribution - % wt passing

90 0100.0

WPR H d i Si t S l

The combination of:

• high Fe grade

50.0

60.070.080.090.0

wt p

assi

ng

WPR Hyundai Sinter SamplePilbara Blend Fines• low P

• low Al2O3

10.020.030.040.0%

w

low Al2O3

• low %age of ultrafines

makes PK the best quality fines 0.00.01 0.10 1.00 10.00

Size (mm)

Fi P dAssay (%)

makes PK the best quality fines

produced in Australia

WPG h MOU i l Fines Producty ( )

Fe SiO2 Al2O3 P LOI 1000%

Robe River CID 56.30 5.96 2.87 0.041 9.11

Yandi CID 59.22 5.26 1.09 0.044 8.73

WPG has MOUs in place for >5 mtpa which is much more than we will

d O fft k Pilbara Blend BID 62.20 4.26 2.07 0.075 4.14

Cliffs BID 62.10 3.96 1.96 0.079 4.26

WPG Fines 63.21 8.28 0.34 0.012 0.44

produce. One offtake contract now in place; others will follow before

l


sales commence

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The Importance of GradeI O P i CIF N th Chi

225.0

Iron Ore Prices CIF North ChinaSource: The Steel Index

150 0

175.0

200.0

100 0

125.0

150.0

S$/to

nne

50.0

75.0

100.0

US

62% F

0.0

25.0

50.062% Fe62% Fe 2% Al2O363.5% Fe

Spot price: 62% Fe: US$174/t; 62% Fe 2% Al2O3:US$178/t; 63.5% Fe US$181/t

Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11


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Current Cost EstimatesCAPEX:• Total capex: $143m (including $7m

unallocated contingencies) vs $139m in September 2010 BFS

REVENUE:• 3 month average CIF: US$174/t (62%),

US$181/t (63.5%)• In A$: $166/t (62%) $172/t (63 5%) atSeptember 2010 BFS

OPEX:• Average cash opex over LOM: $68/t to FOB

R lti dd th $6/t

• In A$: $166/t (62%), $172/t (63.5%) at A$/US$=1.05

MARGIN:• Royalties add another $6/t• Carbon tax adds another $1/t• Total cash opex: $75/t to FOB• Sea freight $12/t to north Asia

• Cash operating margin: A$87/t at 3 month average price for 62% Fe

• Mine operating surplus on 3.3 mtpa: A$260m pa at 3 month average price;Sea freight $12/t to north Asia

• Cash opex to delivery in China: $87/t

WORKING CAPITAL:O i i ll ti t d t $29

A$260m pa at 3 month average price; A$280m if we can capture 63.5% Fe price

Peculiar Knob’s Cash • Originally estimated at $29m• Will increase reflecting financing fees,

prepayments to contractors, escrowed amounts, higher rehab bond and EPBC environmental offset requirements

Generation Capacity is Very Strong and it is

environmental offset requirements• Precise amount still being determined in

negotiationsWPG’s Intention to

Monetise the Deposit ASAP!!


ASAP!!

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Peculiar Knob Debt and Equity PackageDEBT:

WPG and Deutsche Bank AG have signed $

EQUITY:

WPG raised $85m in November and December 2010 by l t d i ht i t t lli 125 h t $0 68commitment letter to provide US$120 million debt

funding package.

Package consists of:

placement and rights issue totalling 125m shares at $0.68 per share

• US$70m senior secured notes• US$50m iron ore pre-pay

Notes carry 8% coupon and are repayable in 3 5Notes carry 8% coupon and are repayable in 3.5 years

Notes also have detachable warrants totalling 6% of WPG’s capital exercisable at 30% premium to VWAPp p

Iron ore facility is to be satisfied by delivery of approx 526,000t iron ore over 18 months

Deutsche Bank will also purchase as an arms-length customer a further 1.1mt of iron ore fines (total over life of mine) at market price


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Buzzard and Tui - Current StatusEXPLORATION AND FEASIBILITY STUDY• Both drilled out with JORC resources • Mine design completed for Buzzard but not yet for Tui

M t ll i l t t k l t d f B d b t t t f T i• Metallurgical testwork completed for Buzzard but not yet for Tui

APPROVALS AND PERMITTING• Buzzard on MC 3810 and Tui in EL 4248 (both now 100% WPG but EL 4248 subject to WISCO ( j

JV)• Both require application for then grant of mining lease• Then lodge a new MARP (now known as PEPR – Program for Environmental Protection and

Rehabilitation) and have it approvedRehabilitation) and have it approved• Defence, Native Title approvals in place for exploration but not yet for mining• Also need approvals of pastoral leaseholders, holders of other mining tenement holders• WPG expects the above will take ~18 months

FUNDING• Not yet addressed but expect to be able to fund capex, working capital out of retained earnings

CONSTRUCTION AND PRODUCTION• Add 50 man units to accommodation village and build 60km haul road• Expect production to commence mid 2013


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Mineral Resource Estimates Totals – DSO Deposits

(Peculiar Knob, Buzzard, Tui)(Peculiar Knob, Buzzard, Tui)Category Million

TonnesFe %

P %

SiO2%

Al2O3 %

LOl %

Measured resource 25.7 63.1 0.03 7.6 0.8 0.7

Indicated resource 9.3 61.8 0.05 9.2 0.8 0.8

Inferred resource 2.6 63.1 0.05 7.9 0.5 0.4

Total resource 37.6 62.8 0.04 8.0 0.8 0.7Total resource 37.6 62.8 0.04 8.0 0.8 0.7

NB: Addition of Buzzard and Tui doubles the DSO tonnage available relative to P li K b t d l b i


Peculiar Knob on a stand-alone basis

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PK: Low Capex Intensity• Capex site only $85m for 3.3

mtpa => US$26/annual tonnepa US$ 6/a ua o e• Increases to US$42/annual

tonne if Port Pirie capex is includedincluded

• Current benchmark US$100-US$120/annual tonne


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Port Pirie:Port Pirie:A Key Asset y

Every Much as Valuable as Iron Ore


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Port Pirie• We have a 10 year lease on Berth 7

with 2 X 10 year options• DA for construction of facilities

approved• Transshipment to deep water

anchorage to load Capesize vessels• Capacity 7 mtpa => commercial

opportunity for unused capacity


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Port Pirie• Kerman Contractors have contract to

build facility• We have bought a key block of land

from the state government on which we will build our facilities

• Site activity to commence ASAP• Giacci will manage facility and CSL

will handle transhipmentwill handle transhipment


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Port Pirie• We will use a transshipment operation

similar to that at Whyalla• But we will use a small ship not tugs• But we will use a small ship, not tugs

and barges• First anchorage 11 nm offshore, top

up further outup further out• Can load a Cape in 8 days


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Low Capex Intensity for the Port as Well

100

Iron Ore Ports - WA

30405060708090

$/to

nne

01020

Hedland Dampier Cape Lambert Oakajee Anketell Point SimpleAverage

Capex per Tonne of Annual Capacity

90

Coal Ports - NSW and QLD

304050607080

$/to

nne

Iron ore ports: $36/annual tonne capacity (average)

0102030

Wiggins Island BalaclavaIsland

Abbott Point Newcastle Port Waratah SimpleAverage

Coal ports: $40/annual tonne capacity

Port Pirie: $8/annual tonne capacity O t t di l Att ti M t i !


Capex per Tonne of Annual Capacity– Outstandingly Attractive Metric!

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Our Hawks Nest MagnetiteOur Hawks Nest MagnetiteProjectProject


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Mineral Resource Estimates Magnetite DepositsMagnetite Deposits

• KestrelCategory Million

TonnesFe %

P %

SiO2%

Al2O3 %

LOl %

• Kestrel Measured resource 100 37 0.06 37 0.8 0.6

Indicated resource 60 36 0.06 38 1.0 0.8

Inferred resource 60 36 0.06 39 1.1 0.8

T t l 220 36 0 06 38 0 9 0 7

• All magnetite

Total resource 220 36 0.06 38 0.9 0.7

Category Million Tonnes

Fe %

P %

SiO2%

Al2O3 %

LOl %

Kestrel – measured, 220 36 0.06 38 0.9 0.7• All magnetite Kestrel measured, indicated and inferred

220 36 0.06 38 0.9 0.7

Goshawk - inferred resource

148 35 - - - -

Cl t ti l Harrier - inferred resource

54 35 - - - -

Eagle - inferred resource

92 31 - - - -

Clear potential to increase total resource to >1 billion tonnes Kite - inferred

resource30 51 - - - -

Falcon - inferred resource

25 32 - - - -

billion tonnes with further drilling


Total resource 569 36 - - - -

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Why is Hawks Nest SuchA Good Magnetite Deposit?A Good Magnetite Deposit?

• Large tonnage • Large tonnage • High Fe grade • High Fe recovery • High Fe recovery • Fine grinding not necessary

Low mining strip ratio • Low mining strip ratio • High concentrate grade

A t i f t t • Access to infrastructure • Low capex

L l t • Low capex per annual tonne


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Hawks Nest Magnetiteg

• High Fe grade • Fine grinding not necessary • High recovery

S C t M t l 12 J l 2011


Source: Centrex Metals 12 July 2011

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Hawks Nest Magnetiteg

Key Elements of ythe Hawks Nest Magnetite Deposit:

• Low capex Low capex • Low capex/t

Source: Murchison Metals 4 July 2011


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The WISCO Magnetite Deal – Key Elementsg y• WISCO will sole fund first $45m to earn a 50% JV interest in the Hawks

Nest tenement (excluding DSO)Nest tenement (excluding DSO)• WISCO cannot withdraw until it has spent $25m and if it does then its

interest will be 28%interest will be 28%• Money will be spent on BFS/exploration/development• WPG’s interest cannot fall below 50% and WISCO’s cannot be >50%• WPG will be manager of the JV (BFS and production stages)• WISCO to have right to purchase part of WPG’s share of cons• WISCO will assist WPG with capex and Port Bonython• Deal fully executed, has NDRC approval and meets FIRB guidelines;

iti l ifi ti f D f ’ l f t f WPAawaiting clarification of Defence’s new rules of engagement for WPA• WPG will seek to negotiate certain changes to the JV to reflect changed

circumstances now


circumstances now

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Hawks Nest Haematite BIFThe haematite BIF at Hawks Nest is similar to the itabirites of Africa

Resource Category Tonnage(mt)

Grade% Fe

Indicated resourceInferred resourceTotal Resource

23.978.6102.5

38.237.237.4

• Further metallurgical testwork is required to optimise the processingrequired to optimise the processing flowsheet

• This zone was not deliberately targeted; a unique discoverytargeted; a unique discovery

• There is enormous upside potential in this material


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Exploration Targets, Hawks Nest BIFEL 4248 MC 3809 and MC 3810EL 4248, MC 3809 and MC 3810

Mineralisation Category Exploration Target

Tonnage Range Million Tonnes Fe Grade RangeTonnage Range Million Tonnes Fe Grade Range%

Magnetite BIF 790 – 890 32 – 37

Haematite BIF 1,400 – 1,680 22 – 43

Total 2,190 – 2,570 22 – 43


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Our Coal ProjectsOur Coal Projectsand the Evergreen Energy JVand the Evergreen Energy JV


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Penrhyn Coal ProjectPermian semi-bituminous coal in the Arckaringa Basin 40 km SW of Coober Pedy and 20 km from Peculiar Knob haul road and

Resource Category Tonnage (mt)

rail loader

Measured resourceIndicated resourceInferred resourceTotal Resource

185.4150.516.5

352.4

• WPG sees Penrhyn as domestic power station coal or export coal after upgrading using clean

Additional Exploration Target: 300-330 mt

coal or export coal after upgrading using clean coal technology

• Penrhyn may be an ideal coal for upgrading using the Evergreen Energy’s K-Fuel ProcessM l b it bl f f• May also be suitable for energy source for Hawks Nest magnetite project and potential pig iron project

• Large tonnage lends itself to large scale


Large tonnage lends itself to large scale development

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Lochiel North Coal ProjectLignite in the St Vincent basin 80 km south of Port Pirie and alongside railway line

Coal Category Tonnage (mt)

Inferred coal resource 270

• Lochiel North (aka Snowtown) is similar to the Lochiel and Bowmans coal (lignite) depositsdeposits

• Explored by ETSA in the 1980s as a potential replacement for Leigh Creek

• WPG sees Lochiel North as domestic t ti l t l ftpower station coal or export coal after

upgrading using clean coal technology


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WPG – Evergreen Energy Coal JVEvergreen Energy Inc (NYSE Arca: EEE) has developed the K-Process, a Origin

Moisture HHV (kcal/kg)Raw K‐Fuel® Raw K‐Fuel®

clean coal upgrading technology that upgrades low value sub-bituminous coals and lignite to higher rank th l l lit K F l i

Origin Raw Coal

K Fuel Product

Raw Coal

K Fuel Product

Source 1 31.72% 14.00% 3,922 5,043Source 2 44.96% 14.80% 3,563 5,666

thermal coal quality. K-Fuel is a new generation of energy processes that can significantly reduce air emissions

d th ll t t f l b i

Source 3 64.12% 22.00% 2,229 5,069Source 4 51.91% 24.60% 3,140 5,139Source 6 50.06% 14.30% 3,203 5,648Source 7 26 95% 13 20% 4 789 5 862and other pollutants from coal-burning

power plants.

Key Points of WPG-Evergreen JV:

Source 7 26.95% 13.20% 4,789 5,862

Source: Evergreen Energy

y g

• 50/50JV in which WPG contributes coal tenements in SA and Evergreen the technology and know-how

• JV has the exclusive right to use the K Process for the first 15 mtpa upgraded coal• JV has the exclusive right to use the K-Process for the first 15 mtpa upgraded coal produced anywhere in Australia and first right to any other Australian production

• WPG has sent coal core samples from Penrhyn to Evergreen for testwork• JV documents have been signed and JV will come into effect soon


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Evergreen’s Wyoming Facilityg y g y• Evergreen built and operated a 750,000

tpa production plant at Gillette Wyoming• Product was purchased by power stationsProduct was purchased by power stations

and proved concept• Production plant has now been sold• Evergreen owns a laboratory scale pilot g y p

plant at Gillette which is used for testing coal samples and refining engineering design


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Pig Iron


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Pig IronPig iron is an intermediate value added product that sits between iron ore and pellets on the one hand, and steel on the other hand.

Pig Iron:

• Was the ultimate production objective of the old SASE project that was based on iron ore from Peculiar Knob and Hawks Nest and coal from Lake Phillipson

• Can be produced by many processes, including a blast furnace, Ausmelt process (A i ) K b IT Mk 3 t(Ausiron), Kobe IT Mk-3, etc

• Can be used as feedstock for electric arc furnace

• Cheap Chinese modular blast furnaces can pnow be bought “off the shelf”


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What If?


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What’s the Upside if We Can Achieve All This?Annual Tonnage

• Peculiar Knob is low risk starter project capable of underpinning WPG’s pipeline of other projects

Annual Tonnage

Clean coal

Pig iron

10.0

12.0

14.0

miWPG s pipeline of other projects

• There is no exploration risk in the projects – all have JORC compliant HN magnetite conc4.0

6.0

8.0

llion tonp j p

resources• Export tonnages can leverage off PK

PK haematite fines HN haematite fines

0.0

2.0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Financial Year

nnes

infrastructure – particularly Port Pirie; they don’t rely on new Port Bonython

• Will need new DA to export these

Annual Revenue

Pig iron2,000

2,500

$• Will need new DA to export these tonnages from Pirie

• Price assumptions: DSO HN magnetite conc

Clean coal

1,000

1,500

millionsp

fines, magnetite cons $180/t; clean coal $120/t; pig iron $480/t

PK haematite fines HN haematite fines

0

500

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Financial Year


NB: All tonnages, cashflow at 100% project level

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Scorecard


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Our 2009 Vision – and Our 2011 Progressg• Bring Peculiar Knob into production at 3.3 mtpa FINANCED BY EQUITY AND DEBT (SUBJECT TO

DOCUMENTATION), FULLY PERMITTED – NOW UNDER CONSTRUCTIONB i B d i t d ti i ll l ith PK DSO l i t 5 t ALL NECESSARY• Bring Buzzard into production in parallel with PK so DSO sales increase to 5 mtpa ALL NECESSARY APPROVALS EXPECTED IN 18 MONTHS WITH PRODUCTION IN 2 YEARS

• Continue exploration at Hawks Nest to discover more DSO deposits to extend DSO project life beyond 10 years – great exploration prospectivity for DSO No foreign investment required for DSObeyond 10 years – great exploration prospectivity for DSO. No foreign investment required for DSO WILL START EXPLORATION IN H2 2011

• Commence BFS on Hawks Nest magnetite in 2011 and commit to project development in 2015 so that magnetite sales are 6-10 mtpa for 30 years from 2016-7 WISCO JV EXTENDED BUT STILL g p yREQUIRES COMMONWEALTH APPROVAL – EXPECTED H2 2011 – MAY NEED SOME CHANGES TO JV TO REFLECT DEFENCE CONDITIONS AND CHANGED CIRCUMSTANCES

• More testwork on Hawks Nest haematite BIF to supplement magnetite concentrates with haematite concentrates and add value NOT YET STARTED

• Define measured/indicated/inferred coal resource at Penrhyn of not less than 200 mt DONE – 352.4 MT RESOURCE DEFINED AND ANNOUNCED JULY 2011C it t l l t h l j t t P h d i 10 t b 2016 JV WITH• Commit to clean coal technology project at Penrhyn producing ~10 mtpa by 2016 JV WITH EVERGREEN ENERGY INC UNDERWAY

• Divert part of magnetite/haematite concentrates and Penrhyn coal to production of 1-2 mtpa seaborne-traded pig iron by 2017 NOT YET STARTED


seaborne-traded pig iron by 2017 NOT YET STARTED

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Competent Personsp The review of exploration activities and results and the mineral resource estimates for the Peculiar Knob, Buzzard and Tui DSO deposits and

the non-Kestrel magnetite deposits at Hawks Nest contained in this presentation are based on information compiled by Mr Gary Jones, a Member of the Australasian Institute of Mining and Metallurgy. He is Technical Director of WPG Resources Limited and a full time employee of Geonz Associates Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits underp y yp pconsideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Gary Jones has consented in writing to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

The mineral resource estimate for the Kestrel magnetite deposit at Hawks Nest contained in this presentation is based on information compiled by Mr Arnold van der Heyden a Member of the Australasian Institute of Mining and Metallurgy He is an employee of Hellman &compiled by Mr Arnold van der Heyden, a Member of the Australasian Institute of Mining and Metallurgy. He is an employee of Hellman & Schofield Pty Ltd. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Arnold van der Heyden has consented in writing to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

Th ti t f th P li K b d B d d it t i d i thi t ti b d i f ti il d b M The ore reserve estimate for the Peculiar Knob and Buzzard deposits contained in this presentation are based on information compiled by Mr John Wyche, a Member of the Australasian Institute of Mining and Metallurgy. He is an employee of Australian Mine Design and Development Pty Ltd. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). John Wyche has consented in writing to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

The review of exploration activities and results for the Penrhyn coal deposit contained in this presentation is based on information compiled by Mr Gary Jones, a Member of the Australasian Institute of Mining and Metallurgy. He is Technical Director of WPG Resources Limited and a full time employee of Geonz Associates Limited. He has sufficient experience which is relevant to the style of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian y g q y pCode for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Gary Jones has consented in writing to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

The exploration targets in this presentation are based on the currently available drill hole data and are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the determination of a mineral resource


resource

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Important Noticep This presentation contains forward looking statements concerning the projects

owned by WPG Statements concerning mineral resources and ore reserves mayowned by WPG. Statements concerning mineral resources and ore reserves may also be deemed to be forward looking statements in that they involve elements based on specific assumptions

Forward looking statements are not statements of historical fact, and actual events lt diff t i ll f th d ib d i th f d l kior results may differ materially from those described in the forward looking

statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on WPG’s beliefs, opinions and estimates as of the date they are made and no obligation is assumed to update forward looking t t t if th b li f i i d ti t h ld h fl t thstatements if these beliefs, opinions and estimates should change or reflect other

future developments Data and amounts shown in this presentation relating to capital costs, operating

costs and project timelines are based on consultant reports, contractor quotes andcosts and project timelines are based on consultant reports, contractor quotes and internally generated estimates

WPG cannot guarantee the accuracy and/or completeness of the figures or data in this presentation

All d ll t i di t d i thi t ti i A t li d ll l All dollar amounts indicated in this presentation are in Australian dollars unless otherwise stated

Certain images shown in this presentation are not of assets owned by WPG or its contractors


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