Xcoal Energy & Resources

Consol Xcoal BEFH US NAPP Coal - a

Reliable Fuel for India’s Cement Sector

CMA Conference, 29 November 2018

Agenda

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• Xcoal overview

• Value proposition of Consol Xcoal BEFH US NAPP Thermal coal

Xcoal Energy & Resources overview:

» Privately owned and operated coal marketing company headquartered in Latrobe, Pennsylvania USA

» A team of ~100 professionals is actively engaged in the business. The team is led by Ernie Thrasher, Chief Executive Officer & Chief Marketing Officer, and Jack Porco, President & Chief Commercial Officer

» Marketer of metallurgical and thermal coals from U.S., Canada, Australia, Indonesia, Mongolia, and others • Specializing in U.S. origin coking coal, thermal coal and anthracite coal.

» Creative & competitive transport and logistics company • Complete supply chain ownership

» Internationally recognized company with a strong customer base

» Dedicated to supplying diversified energy resources to our customers via our newly announced XLNG venture and Xnergy & Resources Pte Ltd.

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Xcoal Company Profile:

Privately held company specializing in the export of U.S. origin metallurgical, thermal, semi soft, PCI, and anthracite coals to integrated steel mills, cement plants and electric generators throughout the world.

Highlights:

2017 exports = 20.3m MT

2016 exports of 14.2m MT

2015 exports of 15.0m MT

2018 exports projected to be ~22.0m MT

Market penetration of new regions continue as coals are tested/approved

Contracts for rail and throughput capacity to ensure reliable and timely deliveries

Met coal / Thermal coal sales are approximately 84% / 16%

Term contracts of multi-year year duration with major integrated steel mills in Asia

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Global Marketing Team:

» Key office locations to support global growth initiatives

with high customer service standards: • United States of America

› Latrobe, PA (Headquarters), Pittsburgh, PA, Baltimore, MD,

Norfolk, VA, New York, NY & San Antonio, TX

• Asia & India locations

› Tokyo, Seoul, Beijing, Shanghai, Singapore, Brisbane, &

Mumbai

• European locations

› Zug, Switzerland, Brussels, Essen

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• 2017: Xcoal accounts for 25% of all U.S. coal exports • Baltimore: 7.1 million tons, 38%of all throughput

• Hampton Roads: 8.4 million tons, 27% of all throughput

• Mobile: 1.0 million tons, 12% of all throughput

• 2016: Xcoal accounted for 24% of all U.S. coal exports • Baltimore: 4.64 million tons, 32% of all throughput

• Hampton Roads: 6.94 million tons, 32% of all throughput

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Xcoal is a dominant US coal exporter…..

Business Supported by Long Term, Lower Cost

and Strong Partnerships

» Proven, long term suppliers to Xcoal continue to produce tons in the current market environment: • CONSOL Energy

• Blackhawk Mining

• Coronado Coal

• Rosebud Mining Company

• Warrior Met Coal

• Curragh Mining

• Bounty Mining

» Xcoal business relationships remain with Norfolk Southern & CSX on domestic rail shipments

» World class export terminals on the US East Coast remain in place within the Xcoal logistics process: • CNX, Curtis Bay Pier, DTA, Pier 9 and Lamberts Point.

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Positive aspects of Xcoal’s business

» Thorough understanding of mining operations and the relationship to

global market opportunities

» Xcoal’s suppliers have the ability to produce various grades of

metallurgical coal, thermal coal, and anthracite

» Xcoal’s transportation providers remain supportive of our export

activities

» Xcoal’s network of offices provides “on the ground” marketing and

technical support in the regions of the world where demand for our

products remains strong

» Xcoal has the ability to adjust its business model to meet demand for

different products and in different regions of the world • Adjusted our marketing efforts to reflect additional demand for thermal coal

• Adjusted our marketing efforts to capture business in India as demand warrants

• Increased our supply base to include new suppliers and products

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Innovative supply chain solutions

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Xcoal’s “top off” operation

has been recognized by

World Coal magazine in its

Annual review of

innovative coal projects

Xcoal has performed 135

“top off” operations since

2010, totaling approximately

7.7 million tons of

transferred cargo

Sales & Volume Forecast:

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Geographic Customer Diversification

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Product mix: coking vs thermal

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Value Proposition of Consol Xcoal

BEFH U.S. NAPP

High CV Thermal Coal

Three highly productive, well-capitalized

underground coal mines in the Pittsburgh #8 coal

seam: Bailey, Enlow Fork, and Harvey

Five longwalls and 15-17 continuous miner sections

Largest central preparation plant in the United

States

~79% of 735 mm ton reserves are owned and

require no royalty payment

Extensive logistics network served by two Class I

railroads: NS and CSX

Access to seaborne markets through CONSOL

Marine Terminal

Nearly $1.5bn invested in the mine operations since

2012

Non-union workforce since 1982

Pennsylvania Mining Complex Overview (PAMC)

2017 PA Mining Complex Domestic Power Plant

Customers

PA Mining Complex

CONSOL Marine Terminal

Transportation Infrastructure Advantage

Geography and access to an

efficient supply chain enables

competitive deliveries with

global reach

Dual served mines and terminal

Superior transportation routes

Alternative routes are high cost

Complicated

Transportation

PAMC

PAMC Operations

Quality

Impact

$$$ Rail

Efficient Rail Competitive

Freight

Options

CMT- Coal export terminal strategically located

in Baltimore, MD

» 15.0 million tons per year throughput

capacity

» 1.1 million tons coal storage yard capacity

» Sole East Coast coal export terminal served

by two railroads

Achieved significant service and operating cost

efficiencies starting in 2016

CMT achieved a record year in 2017

» Throughput volume of 14.3 mm tons

CONSOL Marine Terminal (CMT) Overview

Exclusive access to throughput ensures

reliable rail & throughput operations

Extensive Reserves & High Quality Coal

U.S. Mines

International Mines

Thermal coal reserve base unrivaled

Among the highest heat content in North America

Low chlorine content favorable

NAPP Marketing Landscape is Shifting

Rail and terminal capacity constraints will limit access to the market by traders

Spot transactions won’t disappear, but the ability to build an economic supply

and delivery model will be more challenging without investment in the supply

chain

» Security of supply comes with this investment

Increased financial strength among buyers in India will further drive down the role

of traders

» Customers want to purchase directly from the producer or their designated

marketing partner

Operating efficiencies realized with a marketing consolidation

Rail and terminal capacity constraints will limit access to the market by traders

Why CONSOL Xcoal BEFH Coal in the Cement Kiln?

» Extensive experience: has been successfully used in a number of kilns in the U.S.,

India, Egypt, Togo, DR Congo

» High heat content (~6900 kcal/kg NAR) superior to most other fuels

» Lower sulfur, vanadium, and nickel content than pet coke

» High volatile matter and char reactivity lead to ideal combustion profile

characteristics

» Excellent grindability and handling characteristics

» CONSOL and Xcoal provide a demonstrated track record of consistent quality,

reliable delivery, and outstanding customer service

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Advantages of CONSOL Xcoal BEFH Coal

» Excellent milling characteristic

• Higher typical HGI enables full pulverizer performance expectation to be

achieved

• Lower variability in HGI index than pet coke

• Less abrasive than pet coke, lower pulverizing mill wear

» Improved combustion characteristics

• Higher volatile matter release and carbon char reactivity

• Rapid ignition in the kiln sintering zone

• Better heat distribution and more uniform kiln temperature profile for clinker

sintering (1450 – 1500o C)

• Supports stable ignition of other alternative fuels

› Pet coke, tyres, municipal waste, etc.

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» Lower total vanadium than pet coke

• ~0.1% V2O5 can be found in cement clinker with 50% pet coke use; higher amounts

occur with CKD recirculation

• Significantly lower vanadium content in coal (at least 25x less than pet coke) leads to

corresponding reduction in cement clinker V2O5 content

• Lower V2O5 in the clinker leads to:

› Increased free lime in clinker

› Increased clinker grindability index

› Reduced cement sulfate expansion improving stability

› Longer kiln maintenance intervals

» Lower sulfur content than most pet cokes

• Lower sulfur/alkali ratio and lower propensity to form alkali sulfate kiln deposits

• Reduced kiln gas SO2 cleanup costs

» Better carbon burnout, lower CKD Carbon content

• CKD can be used as a replacement in some cement applications

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Advantages of CONSOL Xcoal BEFH Coal vs. Pet Coke

Other Key Characteristics of CONSOL Xcoal BEFH

Coal for Cement Kiln Applications

» Coal ash composition compatible with cement clinker

• Fuel ash incorporated into clinker with compatible chemistry

» Low chlorine levels

• Always less than 0.20% accepted limits

• Low impact on cement setting time

» Stable on-site storage

• Excellent compaction reaching 70 lb/cubic foot (1,121 kg/m3)

• Excellent quality retention while in storage

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Thank you

Q&A

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Contact Information

Xcoal Energy & Resources India Office:

Sujogya Kumar Dash

MD – South and South East Asia

Phone: +91 (22) 6692 0000

Email: xcoal_india@xcoal.com

Corporate Office:

One Energy Place, Suite 9000, Latrobe,

PA 15650, USA

e-mail: xcoal@xcoal.com

Web: www.xcoal.com

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Additional Information

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Proximate Analysis

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Basis

CONSOL

Pitt 8 Coal

Moisture % as-received 6.3

Volatile Matter % as-received 37.0

Fixed Carbon % as-received 49.0

Ash % as-received 7.7

Key Quality Characteristics

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Basis

CONSOL

Pitt 8 Coal

Sulfur % as-received 3.0 - 3.5

Chlorine % as-received 0.1

Vanadium ppm dry 27

Nickel ppm dry 12

Gross Calorific Value Btu/lb as-received 12,950

Net Calorific Value kcal/kg as-received 6850 - 6900

HGI 54 (51-57)

Typical Ash Composition

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% dry ash % dry ash

SiO2 45.8 MgO 0.7

Al2O3 22.0 Na2O 0.6

TiO2 1.0 K2O 1.7

Fe2O3 22.7 P2O5 0.4

CaO 2.5 SO3 2.4

OTHER 0.2