Centennial CoalUBS Australian Resources & Energy Conference

Robert Dougall, Chief Financial OfficerTuesday 17 June 2008F

or p

erso

nal u

se o

nly

2

Disclaimer:

This presentation is prepared in accordance with Australian market practice.

The views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. 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 Centennial Coal Company Limited.

2

For

per

sona

l use

onl

y

3

Who Are We ?

3

For

per

sona

l use

onl

y

4

> Established in 1989, listing on ASX in 1994

> Operator of 12 mines, largely underground – all in NSW

> Australia’s largest independent coal producer

> JORC (Note) Compliant Resources & Reserves (100% basis) at 30 Jun 07 of:- Total Resource - 2.4 billion tonnes- Marketable Reserve - 0.4 billion tonnes

> Major supplier to the NSW Electricity Industry, supplying 46% of its coal needs

> Growing export exposure as rebalancing of sales mix gathers pace over the next few years –targeting 50:50

> Exports through Port Kembla and Newcastle

> Customers include power stations in Japan, Korea, Taiwan and Europe and steel mills in Japan

> Market Capitalisation of A$1.7bn + and ranked around 120 in the S&P / ASX 200

Who Are We ?

4

Note: Reference to JORC Statement is per 2007 Annual Report, page 18For

per

sona

l use

onl

y

5

March 2008 Quarterly Update

Another Strong Quarter

5

For

per

sona

l use

onl

y

6

March 2008 - Another Strong QuarterMarch 2008 Quarter (compared to December 2007 Quarter):

> Equity ROM production 4.1 million tonnes 25%

> Equity Saleable production 3.6 million tonnes 17%

> Equity Sales 3.3 million tonnes 11%

March 2008 YTD (compared on a like-for-like basis with pcp):

> Equity ROM production 12.5 million tonnes 3%

> Equity Saleable production 11.3 million tonnes 3%

> Equity Sales 11.3 million tonnes 4%

6

For

per

sona

l use

onl

y

7

March 2008 - Mine Highlights

7

• Angus Place – on track for a record year

• Springvale – move to 24/7 operating basis confirmed

• Clarence’s low sulphur coal in strong demand, commanding premium prices

• Newstan – record quarter and considering further short-term export opportunities

• Mandalong – on track for 4.7million tonnes and a record year

• Awaba – mine life extended by a further year, with production to be directed to export marketsF

or p

erso

nal u

se o

nly

8

Key Financials – Jul to Dec ‘07

> PBT – Continuing operations A$ 22.7m (pcp -$22.1m)

> Significant items * A$ 322.4m

> Profit/(loss) after tax and minority interests A$ 239.5m

> Capital return - $1.88 per share paid 29 January 2008

> 4 cent fully franked Interim Dividend (ex-date) 25 June 2008

> Debt reduced and refinanced – 4 year facility

8

* Sale of Anvil Hill & Austral Coal For

per

sona

l use

onl

y

9

Debt Refinanced

Unsecured senior debt with negative pledge

3 Australian and 4 Overseas banks

18 December 2011 (4 years)

$175 million Term loan$150 million Revolving credit facility$135 million Guarantee and LC facility

A$460 million Transaction Size

Maturity

Participants

Structure

Structure

9

US Private Placement repaid/Bank facilities restructured

For

per

sona

l use

onl

y

10

Gearing

10

050

100150200250300350400450500550600650700750

Jun 04 Jun 05 Jun 06 Jun 07 Dec 07 Apr-08

A$m

0

10

20

30

40

50

60

70

80

90

100%

Net debt Net debt/equity (%) Net debt/Net debt + equity (%)

For

per

sona

l use

onl

y

11

Operations Update

11

For

per

sona

l use

onl

y

12

Centennial’s Operations

Berrima

Scone

Rylstone

Mudgee

Muswellbrook

Singleton

Maitland

Newcastle

Lithgow

Gosford

SYDNEYKatoomba

Berrima WollongongPort Kembla

KiamaMoss Vale12

Charbon

Angus Place

Springvale

Clarence

NewstanAwabaMyunaMandalong

ManneringIvanhoe

Lamberts Gully

For

per

sona

l use

onl

y

13

Western Operations

13

For

per

sona

l use

onl

y

14

Angus Place/SpringvaleAngus Place

> Continuing high levels of production being achieved

> Heading for a record year

> New longwall equipment on site, installation at scheduled June LW changeover

> Angus Place East - Exploration drilling programme

Springvale

> Completed 1st LW move for 18 months during the half

> Optimisation plan underway to increase export tonnes

> Sustainable 24/7 operation implemented

> Lamberts Gully opencut life extended

14

For

per

sona

l use

onl

y

15

Angus Place – New Equipment / Wider Walls from mid-2008Springvale – Optimise Export Production

15

For

per

sona

l use

onl

y

16

Clarence/Charbon

Clarence

> First half of year on development

> Extensive low cost extraction areas now available > 1 year

> Feasibility into new technology to increase productivity completed, with contract negotiations underway

Charbon

> Production in line with expectations

> Examining underground potential for additional production

> Opencut extension underway

16

For

per

sona

l use

onl

y

17

Clarence – New Mining Areas

17

For

per

sona

l use

onl

y

18

Clarence – FCT Project

18

Joy Flexible Conveyor Train

For

per

sona

l use

onl

y

19

Northern Operations

19

For

per

sona

l use

onl

y

20

Mandalong

> Record production YTD

> Heading for a record year

> On track to average 5 mtpa, with export expansion plan

> Newstan development equipment and crews transferred

20

For

per

sona

l use

onl

y

21

Mandalong – Breaking Records

21

For

per

sona

l use

onl

y

22

Newstan – Record Quarter

22

Possible additional extraction of longwall coal (LW24B & LW25)For

per

sona

l use

onl

y

23

◄ Myuna – Expanding ProductionFassifern seam performing wellWallarah seam underway

23

▲ Mannering – Record Quarter and HalfNew contract will extend life

▼ Awaba – Export productionMine life extended to 2010

Northern Operations

For

per

sona

l use

onl

y

24

Expanding Export Capacity

24

For

per

sona

l use

onl

y

25

> Centennial intends to capitalise on the current strong export markets by maximising exports from current operations where possible

> Medium term objective to increase proportion of export and market-priced sales> Priority of installing export infrastructure at long life longwall mines

CEY Export Sales (FY08-FY09)

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

FY08(H1) FY08(H2) FY08 (Total) FY09 (Total)

Tonn

es (M

il)

Managed Basis Equity Basis

Note: Figures are for continuing operations & exclude Tahmoor

Centennial – Short-term Export Growth Profile

25

For

per

sona

l use

onl

y

26

Mandalong – Southern Extension

26

> Allows for extended mine life at an average 5 mtpa production rate

> 102 million tonnes of reserves

For

per

sona

l use

onl

y

2727

Mandalong Coal Transport – Haul Road

• Consent approved

• Completing detail designs

• Allows export via Newstan washery and rail loop

• New rail loop option under investigation

For

per

sona

l use

onl

y

28

Mandalong Export – Rail Option

28

For

per

sona

l use

onl

y

29

Awaba East Project> Potential major new longwall mine> Large resources of thermal and semi-soft coking coal> Concept complete, pre-feasibility underway> Existing exploration data internally reviewed and geological model updated> Exploration drilling programme commenced to further refine the reserve area> Mining options being considered

29

Indicative timeline

FY08 FY09 FY10 FY11 FY12 FY13 FY14

Newstan complete

Concept Study

Approvals

Prefeasibility

Feasibilty

Development

LW Operating

For

per

sona

l use

onl

y

30

Awaba East Area – Mine Layout

30

For

per

sona

l use

onl

y

31

> Upgrade of Lidsdale Siding export facility to take Springvale exports to 2mtpa and beyond (to support Springvale expansion) and with capacity to export 3mt per annum from Lithgow-based operations

> Charbon extended mine life - concept report completed - commencing pre-feasibility stage

> Neubeck open-cut project feasibility study

> Airly underground mine being developed

Western Region Export Capacity

31

For

per

sona

l use

onl

y

32

> Approved mining lease

> Updated feasibility and coal transport options study in progress

> Potential +1.5 mtpa mine

> Export thermal coal via PKCT

Airly Mine

32

For

per

sona

l use

onl

y

33

Airly Mine Layout

33

RailLoadingBin

Possible

Northern Turnout

PRO

POSE

D

RAIL

LOOP

Product Stockpile

Conveyor

For

per

sona

l use

onl

y

34

Looking Ahead

34

For

per

sona

l use

onl

y

35

FY08/FY09 – Strong Earnings Outlook, Low Risk

The majority of exports are through Port Kembla (rather than Port of Newcastle)No port congestionNo demurrage

Port

Export prices for JFY09 currently being finalised High degree of confidence of significant uplift in prices

Export Prices

Rail contracts are in place for the required capacityLess rail congestion on rail track to Port Kembla

Rail

~ 50% in export volume, with FY09 exports representing ~ 30% of total equity sales Short term production growth not reliant on “blue sky” projects (avoids development and start-up risk)

No weather disruptions – all the operations are in NSW

Production

For

per

sona

l use

onl

y

36

Centennial Market Mix

36

> As Centennial’s domestic contracts expire over time, additional coal will be available for exports.

> In addition, new internal projects provide further growth in exports

Note: Figures are shown on a managed basis (rather than equity)

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2009 2013 2014 2015 2009 2013 2014 2015

RO

M

Prod

uctio

n (M

tpa)

Domestic Export/Uncontracted Projects

Domestic Export

For

per

sona

l use

onl

y

37

Note: Figures shown are on a managed basis (rather than equity)

Centennial Growth Profile

37

Marketing flexibility: By 2012/13, CEY production can be evenly split between domestic and export

CEY Indicative Growth Profile

Current - Domestic

Current - Uncontracted/Export

New Projects

-

5.0

10.0

15.0

20.0

25.0

30.0

2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

Prod

uctio

n (M

tpa)

Closure of Newstan during 2009 corresponds with a drop off in

domestic contracts

For

per

sona

l use

onl

y

38

Outlook> Centennial remains Australia’s largest independent coal producer

> Conservative gearing of less than 30%, with comfortable interest/debt service cover ratios

> Focus on existing portfolio of strongly performing assets

> Organic growth from expansions at Springvale / Angus Place and Mandalong

> Well advanced “brownfield” projects at Airly / Neubecks / Awaba East

> Significant resource and reserve base

> Increasing production and exports with record prices

38

For

per

sona

l use

onl

y

39

For

per

sona

l use

onl

y