Jatenergy Limited

Investor Roadshow: August 2011

DISCLAIMER
This document has been prepared by Jatenergy Limited to update existing
and prospective shareholders.
Any statements, opinions, or other material contained in this document do
not constitute any commitments, representations or warranties by
Jatenergy Limited or/and associated entities or its directors, agents and
employees.
Except as required by law, and only to the extent so required, directors,
agents and employees of Jatenergy Limited shall in no way be liable to any
person or body for any loss, claim, demand, damages, costs or expenses of
whatsoever nature arising in any way out of, or in connection with, the
information contained in this document.
This document includes certain information which reflects various
assumptions. The assumptions may or may not prove to be correct.
Recipients of the document must make their own independent
investigations, consideration and evaluations prior to making any decisions
in relation to investing in the Company.
2
Breaking News
Jatenergy Proceeds With Second Fast-to-Production Coal Mine in Indonesia
Jatenergy Limited (ASX code: JAT) announced on 22
nd
August that it had reached conditional
agreement for a new coal mining joint venture in East Kalimantan that is expected to move
rapidly into coal production.
The Jongkang Project:
Simple logistics East Kalimantan 5 km existing haul road to Mahakam River
Department of Mines report high quality thermal coal
Strong local partner CV Wijaya Mulia well known to Jatenergy COO Indonesia Chris
Flanagan
Fast start-up / mobilisation CV Wijaya Mulia owners already operating a proximate mine
producing high quality thermal coal
Transaction: Jatenergy provide working capital (1.5 to 2 m) and have rights to market 100 %
of the coal for 30 % stake, and CV Wijaya Mulia provide tenement, local management for 70
% stake. Transaction subject to Jatenergy legal and technical DD
Investment Highlights
A diversified energy company with conventional (coal) and renewable (oil seed) assets,
an experienced board and strong backing
Target is to produce coal this year fromEast Kalimantan
Increasing oil seed sales revenue and utilising large land bank for plantation expansion
Large potential strategic coal resource in Central Kalimantan Indonesias Galilee Basin
Strategic coal tenement footprint in Galilee and Bowen Basins in Queensland hotly
sought-after areas
Clear, simple plan for revenue and growth
Appears to be well belowbenchmark peer value in the market
4
Simple Dual Energy Strategy
5
Jatenergy has a dual energy strategy to develop and operate
conventional and renewable energy projects in Asia and Australia
driven by strong demand for coal and rapidly expanding market
potential for crude oil fromoil seeds
Targets
* First coal production in H2, 2011 from East Kalimantan
* Apply initial coal revenues to
a) Develop several short-to-production mines in Indonesia
b) JORC-drill larger Katingan project, Central Kalimantan
c) Develop Queensland coal tenements
* Complete capital raising for Central Java crude jatropha oil JV to increase sales
volumes to the global aviation industry.
Jatenergy.energy now & for the future
Capital Structure
Capital Structure*: ASX code JAT
Market Capitalisation: $ 8.65 m
Shares on issue: 78,615,568
Options / Performance Shares:
Director / employee 2,000,000
Options Traded 5,500,000
(exercisable 1/3/2014 @ 0.25)
Performance Shares 37,500,000
(3 tranches based on Indo coal KPIs)
Loyalty option offer 1:2 @ $ 0.01 / share strike
price $ 0.25, Record date 23/8, Close 23/9. If
fully subscribed 39,307,784
Cash on hand: $ 3.4 m
*As at 1/8/11
Trading suspended February 2011
Consolidated 4:1 and re-listed April 2011
Raised $3.5 m in capital
6
Major Shareholder
Sheng Run Holdings Ltd (Mr Li Xipeng) ~ 16.5 %
Mr Li Xipeng is an experienced executive and has served as
a Director and Chief Executive Officer of Pinglin Expressway
Limited, and via Sheng Run holding companies owns several
infrastructure and energy assets in China
Operational Overview
Projects - Coal
Indonesia:
NEW PROJECT: Jongkang: 30/70 JV on 100 Ha East
Kalimantan tenement simple logistics
Atan Bara: Right to mine 100% of 500 to 680 kT
exploration target of high quality thermal coal
Katingan: 80 % of JV 36.5-43.1 MT exploration
target of medium quality thermal coal
Australia
Galilee Basin: Purchase agreement for 4
exploration tenements
Bowen Basin: Purchase agreement for 6
exploration tenements (2 completing applications)
Projects Crude Oil from Oil Seeds
Indonesia:
Central Java: 2000 Ha oil seed plantation plus
rights for 20 + 5 + 5 years + a further 9000Ha land
bank for expansion.
Development Plan
Q1, 2011 Sales of 200T of crude jatropha oil to
aviation industry
Q2, 2011 Acquisition of Indonesian coal assets
Q2, 2011 Re-list on ASX and raise $3.5 m in capital
Q3, 2011 Agreement to buy Australian coal
tenements in Bowen and Galilee Basins
Q3, 2011 Granting of production licence Atan Bara
Q3, 2011 Agreement for second coal mine in East
Kalimantan - Jongkang
Q4, 2011 Complete acquisition of Australian coal
tenements
Q4, 2011 - Commence coal production from East
Kalimantan mine
H2, 2011 Commence JORC assessment of Katingan
H1, 2012 Commence coal production from second
coal project in Kalimantan
H1, 2012 Achieve 1000T in crude jatropha oil sales
from oil seeds business
7
Jatenergy has bolstered its coal expertise
Alan Broome AM (new
Jatenergy Board Member)
Alan Broome has more than 20 years
experience in the secondary metals
industry as a metallurgist and 20
years experience in the mining
industry. He holds ASX-listed
chairmanships (Nimrodel Resources
and Endocoal) and directorships,
(Micromine, Inbye Mining Services,
WorkPac Group, Buccaneer Energy,
Solid Energy (NZ) and CRL Energy (NZ).
Chris Flanagan (new COO
Indonesia)
Chris Flanagan has a Bachelor of
Science in Mine Engineering
(honours) from The Royal School of
Mines in London, and more than 30
years experience in South Africa,
Ghana, the UK and Australia, where
he was Mining Director for Gloucester
Coal. He has spent the last 6 years in
Indonesia, building expertise in mining
operations, project identification,
coal supply and coal industry
regulatory processes.
Nick Croom (new Director
Jatenergy in Singapore)
Nick Croom has 20 years experience
working in commodity trading and
investment banking in Sydney,
London and Singapore for ANZ, BNP
Paribas, Glencore, RBS Sempra and
JP Morgan. While in Singapore his
core responsibilities included
origination of investment banking
transactions and product
development surrounding physical
commodities with imbedded risk
management.
8
Indonesian Coal Projects + our New Project: Jongkang
License
Status
and
Area
Indicative
Calorific
Value
(adb
kcal/kg)
Potential
Explor-
ation
Target
(MT)
Haulage
(km)
Estimated
Time to
Production
Katingan
Exploration
IUP
5000 Ha
5,500
6,000
36.5 to
43.1
50
23 years
(2014)
Atan Bara
Exploration
IUP
200 Ha
5,900
6,400
0.5 to
0.7
6
69
months
from IUP
Produksi
Jongkang
(New
Project)
Exploration
IUP
100 H
6400
6674*
tbd 5
3-6
months
from IUP
Produksi
BHP Billiton Maruwai Coal Project
Cokal limited projects
Realm Resources Limited Katingan Ria project
East Kalimantan established coal mining and
export area
9
Jongkang
Indonesia Department of Mines records
Note: Future work may or may not outline these targets in whole or in partD
New Project Jongkang
- proximate to our partners
existing mining operation
Photo of the working mine of the owners
of CV Wijaya Mulia on their current
tenement
10
Jongkang Project: new 100 Ha tenement
with CV Wijaya Mulia
Jongkang Project Simple logistics, strong established
partner.
11
Current CV Wijaya Mulia mine jetty.
The new Jongkang project is about 5
km from the Mahakam River along an
existing haul road.
CV Wijaya Mulia:
Principal - Hendry Dirgo - well known
to Jatenergy CCO Indonesia Chris
Flanagan
Hendry Dirgo has been in coal
operations for over 10 ten years in
Indonesia
Transaction:
Jatenergy Provides working capital
(estimated US$0.5 m to US$1.5 m)
and marketing of all coal produced
and CV Wijaya Mulia provides
tenement, local management and
infrastructure
Heads of Agreement: allows
Jatenergy option refundable
US$100 k deposit and US$50 k DD.
Full agreement with US$350 k down
payment on successful technical
and legal DD
Jongkang Project Simple plan.
Total Capital Contribution ~ USD 1 to 2 m
Typical production ^ 16 to 24 kT/month
Cost of production * USD 58 /T
Sales: FOB Barge
#
~ USD 85 to 90/T
^ Typical small mine production in East Kalimantan: 2 to
3 x 8 kT barges per month
* Average estimate . Includes royalties etc and pre
income tax, some hard rock
# Approx. conservative achievable FOB Barge price as
at August 2011- Based upon Indonesian Coal Reference
Price (HBA) as sourced from DJMBP ESDM, Indonesia
During Q3, 2011: Granting of Production License IUP Production
IUP Production + 2 weeks: Completion of Exploration Drilling Phase 2
IUP Production + 4 weeks: Completion of reserve Review / Mine Plan
Completion of Land Compensation agreement
Commencement of site mobilisation
IUP Production + 8 weeks: Completion of site mobilisation
Commencement of overburden removal
IUP Production + 12 weeks: Commencement of coal getting
IUP Production + 16 weeks: Commencement of coal sales
12
Australian Coal: Tenement Purchase Agreement
May 2011:
Revised binding offer letter executed
June 2011:
Full tenement purchase agreement signed
July 2011:
Completion of legal and technical due diligence
Q3, 2011:
Ministerial approval to transfer of all EPCs
Q1, 2012:
Target date for conversion and transfer of last EPCAs
*Paid
#EPCAs are non-transferable to be held in trust for Jatenergy until full EPCs
granted 13
Galilee Basin Tenements
Tenement Sub-
Blocks
Approx.
Area
(km2)
Comments
EPC
2101
100 330
Adjacent to Linc Energy
and Carpentaria
Concessions, proximate
to extensive Guildford
coal drilling activity
EPCA
2166
18 59
~ 15 km North of Linc
Energy concessions sold
to Adani with 7.8 BT
JORC Resource
1
EPCA
1988
6 19
Abuts Waratah Coal
tenements. ~ 20 km to
the west of Hancock
Mining with 7.9 BT JORC
Resource
2
EPCA
2020
44 145
Abuts Waratah
Minerology coal
tenements to the North
East. ~ 40 km west of
Bandanna South Galilee
project with 1.2 BT JORC
resource
3
14
1. 7.3 BT Inferred, 500 MT Indicated JORC Resource
2. 4.6 BT Inferred, 2.24 BT Indicated and 1.05 BT Measured JORC Resource
3. 806 MT Inferred, 206 MT Indicated and 167 MT Measured JORC Resource
Bowen Basin Tenements
Tenement Sub-
Blocks
Approx.
Area
(km2)
Comments
EPCA
2117
6 13
In between Riot Tintos Hail
Creek coking coal mine
and Xstratas Newlands
coking coal mine
EPCA
2153
(Competi
ng)
16 52
Competing application In
between Riot Tintos Hail
Creek coking coal mine
and Xstratas Newlands
coking coal mine
EPCA
2102
5 16
In the vicinity of the
township of Moranbah.
Known coal area.
EPCA
2152
(Competi
ng)
11 36
Competing application on
the eastern side of the
Bowen Basin 40 km east of
Peak Downs mine
EPC 1956 6 19
About 40 km north west of
Baralaba coal mine
EPCA
2001
12 40
Due west of Xstratas
Rolleston thermal coal mine
15
Peer comparison
Cokal Limited
Kalimantan 4 projects
BBM50/50 JV, 20 kHa 4 seams
totalling 3 to 4 m
BBP 50/50 JV, 13 kHa up to 3
generally thin seams
AAM 75/25 JV, 5 kHa 11 outcrops
0.42 to 4 m seams
AAK 75/25 JV, 10 kHa, 5 outcrops 1.2
to 1.8 m seams
Thermal to PCI and possibly coking
coal. No exploration target.
Queensland 13 tenements
15 % carried equity in 2 Bowen Basin
and 11 Surat Basin tenements
Other 50/50 JV Tanzania
exploration tenement
Jatenergy Limited
Kalimantan 3 projects
CSB80/20 JV, 5 kHa, 58 outcrops,
seams up to 6 m, target exploration of
36.5 to 43.1 MT medium quality
thermal coal
Atan Bara mining services and 100
% off-take rights to 0.5-0.7 MT target
exploration high quality thermal coal
Jongkang 30/70 JV agreement for
100 Ha tenement in East Kalimantan
Queensland 10 tenements
100 % equity in 6 Bowen Basin and 4
Galilee Basin tenements
Other 2 kHa oil seed crops
producing revenue today
Market Cap AUSD 8.65 m
Market Cap AUSD 240 m
16
Investment Highlights Re-Cap
A diversified energy company with conventional (coal) and renewable (oil seed) assets,
an experienced board and strong backing
Target is to produce coal this year fromEast Kalimantan
Increasing oil seed sales revenue and utilising large land bank for plantation expansion
Large potential strategic coal resource in Central Kalimantan Indonesias Galilee Basin
Strategic coal tenement footprint in Galilee and Bowen Basins in Queensland hotly
sought-after areas
Clear, simple plan for revenue and growth
Appears to be well belowbenchmark peer value in the market
17
Katingan Project a large, long term play
Photo of CEO Phil Hodgson visit to 6 m +
seams at Katingan coal outcrops
5000 Ha tenement surrounded by
others including Realm Resources
Limited to the north
58 outcrops, seams up to 6 m
Commence JORC drilling H2 2011
18
Competent Persons Statement
The information in this presentation which relates to Exploration Results, Mineral Resources or
Ore Reserves, is based on information compiled by Mr Allen J Maynard, who is a member of
the Australian Institute of Geoscientists and a corporate member of the Australasian Institute
of Mining and Metallurgy. Allen Maynard is the principal of Al Maynard & Associates Pty
Limited (ACN 102 492 435) and has over 30 years of exploration and mining experience in a
variety of mineral deposit styles. Mr Maynard has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the activity that he
is undertaking to qualify as a Competent Person as defined in the 2004 edition of the
Australasian Code for Reporting of Exploration Results, Exploration Targets, Mineral Resources
and Ore Reserves. Al Maynard & Associates Pty Limited consents to the inclusion in this
presentation of the matters based on their information in the form and context in which it
appears.