STANMORE RESOURCES LIMITED — Investor Presentation 2014

NOOSA MINING AND EXPLORATION CONFERENCE CORPORATE PRESENTATION July 2014

IMPORTANT INFORMATION

This document has been prepared by Stanmore Coal Limited (“Stanmore Coal”) for the purpose of providing a company and technical overview to interested analysts/investors. None of Stanmore Coal, nor any of its related bodies corporate, their respective directors, partners, employees or advisers or any other person (“Relevant Parties”) makes any representations or warranty to, or takes responsibility for, the accuracy, reliability or completeness of the information contained in this document, to the recipient of this document (“Recipient”), and nothing contained in it is, or may be relied upon as, a promise or representation, whether as to the past or future.

The information in this document does not purport to be complete nor does it contain all the information that would be required in a disclosure statement or prospectus prepared in accordance with the Corporations Act 2001 (Commonwealth). It should be read in conjunction with Stanmore’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

This document is not a recommendation to acquire Stanmore Coal shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek appropriate advice, including financial, legal and taxation advice appropriate to their jurisdiction. Except to the extent prohibited by law, the Relevant Parties disclaim all liability that may otherwise arise due to any of this information being inaccurate or incomplete. By obtaining this document, the Recipient releases the Relevant Parties from liability to the Recipient for any loss or damage that it may suffer or incur arising directly or indirectly out of or in connection with any use of or reliance on any of this information, whether such liability arises in contract, tort (including negligence) or otherwise.

This document contains certain “forward-looking statements”. The words “forecast”, “estimate”, “like”, “anticipate”, “project”, “opinion”, “should”, “could”, “may”, “target” and other similar expressions are intended to identify forward looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. You are cautioned not to place undue reliance on forward looking statements.

Although due care and attention has been used in the preparation of forward looking statements, such statements, opinions and estimates are based on assumptions and contingencies that are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.

Recipients of the document must make their own independent investigations, consideration and evaluation. By accepting this document, the Recipient agrees that if it proceeds further with its investigations, consideration or evaluation of investing in the company it will make and rely solely upon its own investigations and inquiries and will not in any way rely upon this document.

This document is not and should not be considered to form any offer or an invitation to acquire Stanmore Coal shares or any other financial products, and neither this document nor any of its contents will form the basis of any contract or commitment. In particular, this document does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of any “US person” as defined in Regulation S under the US Securities Act of 1993 (“Securities Act”). Stanmore Coal shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exemption from registration.

Marketable Reserves Note: The Marketable Coal Reserves of 94Mt is derived from a JORC compliant run of mine (ROM) Probable Coal Reserve of 117.5Mt based on a 14.8% ash product and predicted yield of 80%. The 94Mt marketable reserve is included in the 287Mt total JORC Resource (18Mt Measured + 187Mt Indicated + 82Mt Inferred Resource).

Competent Persons Statement:

The information in this report relating to the Belview Project exploration results and coal resources is based on information compiled by Mr Troy Turner who is a member of the Australian Institute of Mining and Metallurgy and is a full time employee of Xenith Consulting Pty Ltd. Mr Turner is a qualified geologist and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Turner consents to the inclusion in the report of the matters based on the information, in the form and context in which it appears.

The information in this report relating to all other project exploration results and coal resources is based on information compiled by Mr Troy Turner who is a member of the Australasian Institute of Geoscientists and is a full time employee of Xenith Consulting Pty Ltd. Mr Turner is a qualified geologist and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as Competent Person as defined in the 2004 Edition of the JORC Code. Mr Turner consents to the inclusion in this document of the matters based on the information, in the form and context in which it appears.

The information in this report relating to coal reserves is based on information compiled by Mr Richard Hoskings who is a member of Minserve Pty Ltd. Mr Hoskings is a mining engineer, a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM) and has the relevant experience (30+ years) in relation to the mineralisation being reported to qualify as a Competent Person as defined in the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code 2004 Edition)”. Mr Hoskings consents to the inclusion in the report of the matters based on the information, in the form and context in which it appears.

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STANMORE COAL

• Queensland based coal development company

• Counter-cyclical investment opportunity with advanced thermal and metallurgical coal development projects

• Emerging coking coal producer at Belview

• Additional pipeline of attractive projects

• Rail and port infrastructure in place for key coking coal projects

• Strong Board and management team with proven track record of developing and operating coal mines

• Small, highly skilled team with low overhead cost base

• Well funded with a strong shareholder base

• No take or pay obligations

• Capacity to pursue opportunities in the down-cycle

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ASX Code SMR Total JORC Resource [4]
20% 20% Sprint Capital 933.2 Mt
Share price A$0.15 [2]
Measured and
Board and
indicated JORC
Management
Shares 209.1m Resource [4]
Institutionals
231 Mt
21%
Market cap $31.4m [2] 39% Other JORC Marketable
Reserves
Cash A$18.2m [3] 94 Mt
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MANAGEMENT TEAM

Mining engineer Over 40 years of with 40 years Bowen Basin experience in coal experience coal, formerly including all CEO of Anglo phases of coal Coal Australia, mine Chairman of development at DBCT Port and Burton, South Director of Blackwater and PWCS Port Goonyella coal mines. Formerly Director of DBCT Port

Extensive Co-founder and experience in MD of Sprint commercialising Capital Partners. resources More than 20 companies, years former experience in executive investment director of banking and Arrow Energy private equity in and current Asia Chairman of Bizzell Capital Partners

20 years in 15 years of engineering, accounting and project finance and commercial management, resource experience in financing and property, M&A investment and contracting sectors

Mine manager with 30 + years experience, mainly in the Bowen Basin. Most recently General Manager at Minerva, Yarrabee and Sonoma mines

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STRATEGY

The Company’s strategy is to:

• Undertake drilling activities and studies to support development of key projects particularly Belview

• Continue to deliver further exploration programs through our strong relationships with key funding partners (the Japan Oil, Gas and Metals National Corporation and Taiheiyo Kouhatsu Inc.)

• Opportunity to engineer substantial capital costs out of all projects

• Working with key contractors and suppliers to reduce operating and capital costs

• Enhance projects to ensure we are at the front of the queue of coal development projects as existing mines are depleted

• Pursue expansion of existing projects to further enhance project economics via farm-in and joint venture arrangements with adjacent tenement holders

 Review late stage

development assets that become available to support potential acceleration of production

• Running costs have been reduced substantially – continue to monitor and manage through the cycle

• Maintain core team to deliver strategy and retain ability to respond quickly when market conditions improve

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LOCATED IN QUEENSLAND’S PREMIER COAL BASINS

Emerging Bowen Basin coking coal producer at Belview

• Belview hosts high quality underground coking coal on existing rail line

• First coking coal exports planned from Belview in 2018

Pipeline of additional coal projects

• Lilyvale hosts underground coking coal in the German Creek seam

• The Range (Surat Basin) open-cut 5 Mtpa (low emission) export thermal coal at feasibility stage

• Other prospective thermal, PCI and coking deposits in the Bowen and Surat basins

Well located for infrastructure

• Rail and port capacity for Belview is expected to be available in line with development timeline

• Bowen Basin assets are adjacent to existing rail lines

• Surat Basin assets located within close proximity to proposed Surat Basin Rail line

 No “take or pay” exposure

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WHERE ARE WE IN THE RESOURCES CYCLE? Bottom of the cycle opportunity – long term outlook is strong

Cyclical lows

Renewed focus on cost and productivity

• Coking and thermal coal are at their lowest levels since the GFC driven by oversupply not a reduction in demand

• The majors continue to aggressively pursue cost reduction initiatives and productivity improvement

• Slower industrial growth and increased domestic coal supply in China is having an impact

• The need to ship coal to offset significant take or pay liabilities has impacted producer behaviour and further exacerbated oversupply

• A significant percentage of seaborne coal producers are unprofitable at current pricing levels – an unsustainable position

• Typical bottom of the cycle behaviour observed in both miners and investors creates opportunities

Strong long term demand from Asia

• Major steel production and other manufacturing facilities will be relocated to the west and south of China which makes imported coal more competitive

• Japan has a renewed focus on coal fired generation capacity in light of the ongoing restrictions on nuclear

• New Government in India may allow electricity tariff to rise – a major potential driver of coal demand

• South East Asian countries are increasing their reliance on coal fired power generation to meet the electricity demands from their growing economies as regional gas supplies deplete

Historical pattern of strong recovery

• History tells us that resource down-cycles are followed by inevitably stronger up-cycles

• The majors have turned off the tap to new projects – thus It is likely that the longer the downturn, the bigger the upswing

ASEAN Primary Energy Demand by Source

Coal is forecast to contribute an even greater %

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Source: IEA,
World Energy
Outlook 2013
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SUPPLY/DEMAND OUTLOOK Macro factors support a strong coal demand

Short term oversupply

Quantity and quality of resources declining globally

• China re-stocking typically occurs in the second half of the year

• Seaborne cost curve suggests that a number of unprofitable producers will be forced to shut

• Indonesia is becoming increasingly conscious of energy security and will likely constrain export growth

• Increased focus from China on the emission profile of imported thermal coal

• The quality and calorific value of Indonesian (Australia’s primary competitor into China) export coals falls away dramatically over time

• Australia still has abundant supply of good quality relatively shallow coal e.g. Surat Basin

Long term demand growth is underpinned by Asia Seaborne thermal coal demand forecast in the Pacific basin (Mt, %)

Standard Energy for Indonesian Greenfield Projects

Source: Wood Mackenzie Coal Supply & Coal Market Services

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ENVIRONMENTAL IMPACT OF COAL Modern technologies reduce emissions and increase efficiencies

Burning high quality thermal coal will reduce the emission profile of emerging economies

• Centralised ultra-critical power plants are significantly more efficient and produce less particulate and other emissions

• Japan and the United States addressed the emissions challenges created through their rapid urbanisation through adopting efficient coal technologies and controlling vehicle emissions

• Australia is endowed with substantial deposits of high energy, low emission thermal coal which is increasingly sought after in Asian markets

In Japan, air pollution has historically decreased as coal consumption increased due in part to the use of efficient, supercritical coal plants

Sources: Reproduced from New Hope Coal Corporation Limited’s Half Year Results Presentation 25 March 2013 Air Pollution: “FY 2004 Status of Air Pollution” by Ministry of the Environment; Government of Japan

Coal Demand: 1970 to 2000: “Annual Report for Energy Production and Supply-demand Figures” (edition for each year) by Ministry of Economy, Trade and Industry; Government of Japan

• 2000 onwards: “Foreign Trade Statistics” by Ministry of Finance; Government of Japan

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BELVIEW PROJECT

Significant coking coal project in the Bowen Basin 100% owned

• Substantial coking coal deposit in heart of the Bowen Basin –342 Mt JORC Inferred Resource

• Infrastructure in place – located on existing Blackwater Rail Line to Gladstone Port

• Surrounded by operating coking coal mines; one of limited number of large scale coking coal projects in Queensland

• Mining lease application submitted

• Funding from Taiheiyo Kouhatsu and JOGMEC demonstrate the attractiveness of the project to third party investors and off-takers

• Coal testing indicate that Belview will produce a Hard Coking Coal (“HCC”) primary product and a secondary low volatile Pulverised Coal Injection (“PCI”) product

• 2014 drilling confirms HCC quality is excellent, exhibiting low ash, low volatile matter and low sulphur

• PCI quality is also very good, exhibiting high calorific value, low volatile matter and low sulphur

• Overall washed total yield is in the range of 73% to 83% for two high value metallurgical coal products (62% HCC, 38% PCI)

• Further drilling to support Indicted Resource planned this year with PFS to follow

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LILYVALE PROJECT

Coking coal project

• The Lilyvale Project is targeting the German Creek seam which is mined as a prime coking coal at nearby operating mines:

• Kestrel UG Longwall (Rio Tinto)

• Crinum UG Longwall (BMA)

• Historical drilling results and knowledge of surrounding assets suggest Lilyvale can produce an export grade coking coal from a 2.4 m thick seam

1. Min and max values are derived from regional borehole information as well as two boreholes within the tenement, although on the western edge. Expected values are estimates based on typical variances observed when depth of cover increases, as well as a trend towards borehole NS 7, a single data point located on the eastern boundary.

2. Option exists to enhance washing to reduce yield and increase CSN, but not included in the estimate.

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THE RANGE PROJECT

Open cut, high energy, export grade thermal coal mine 100% owned

• Feasibility Study complete on 5 Mtpa open cut export thermal coal mine over 25 years

• EIS completed and Mining Lease in process; no further expenditure required until 190km Surat Basin Rail is committed

• High energy, low emission thermal coal sought after in Asia

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CLIFFORD PROJECT

Large exploration area with open cut potential

• Substantial exploration opportunities within the 1,161km[2] Clifford Project Area

• Potential to host a substantial thermal coal deposit suitable for open cut mining

• Substantial synergies with the Range

• JOGMEC funding allows for $4.5M of exploration activity at Clifford over the next 3 years for a 40% project interest

• Strategic Japanese government interest in the Surat Basin supports long term value in Stanmore projects

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RESERVES AND RESOURCES

1. Refer to Competent Persons Statement (p. 2)

2. Refer to Marketable Reserves Note (p. 2)

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