Mainly in the prospecting license stage

Reserves have to identified and established

Huge investment in infrastructure required before mining can actually commence

But….Mozambique, Botswana, other

African sources

As opposed to a steel plant being set up in 2-4 years time,

setting up a mine will require 6 – 8 years :

10 years to get the coal flow

Other Sources: Maruwai Indonesian coking coals

#

East Kalimantan

West Kalimantan

Central Kalimantan

SouthKalimantan

Banjarmasin

Palangkaraya

Muara Teweh

Muara Tuhup

Lampunut

Purukcahu

Muara Juloi

Key properties

• Range of coal, rank 0.8-1.8

• HCC to SSCC

• Very low ash

• Very high dilatation

• Good S and P

• Very high vitrinite

Key Issues

• Infrastructure

• Blending

• Costs

Emerging Met Coal Regions in Mongolia -Geopolitical concerns and Distance major concerns

Source: South Gobi company report

Source: ISMW

0

5

10

15

20

25

30

2004 2005 2006 2007 2008 2009

Mil

lio

n T

on

ne

s

Australian Met Coal Imports into India

SSCC & PCI HCC

Australian Coking Coal Production & Exports

100

110

120

130

140

150

160

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010f

Mil

lio

n t

on

ne

s

Australian Coking Coal Exports is estimated to grow over 5% in next 5 years

Production 2009-10 (MT)

Exports 2009-10 (A$ billion)

Exports 2010-11 f(A$ billion)

158 MT 24 31

Source : GTIS, Internal company forecasts

Australian Coking Coal IndustryNSW Coal basins Queensland Coal basins

Gujarat NRE Coking Coal Ltd

Australian Hard Coking Coal Producers

0

5

10

15

20

25

30

35

40

BHPB Xstrata Rio Tinto Anglo Peabody Gujarat NRE Coking Coal

MTP

A

GNCCL planned output by 2015

Source: data extracted from Australia Coal Year book, Australia Mining series 2009/10

Gujarat NRE poised to become 4th largest Hard coking Coal producer by 2015

GUJARAT NRE COKING COAL LTD

Wollongong

Kiama

Port Kembla

Port Kembla coal

loader 18 MtpaSutton

Forest

proposal

Berrima

Dendrobium

W. TahmoorAppin

Westcliff Northcliff

Southern

Coalfield

NRE No. 1

NRE WONGAWILLI

BHP Illawarra

Coal

Peabody

Metropolitan

Xstrata

Tahmoor

ASX listed hard coking coal producer

» Market capitalisation of ~A$0.6 billion

100% owner of two underground mines in NSW, Australia

» NRE No. 1 & NRE Wongawailli

JORC reserves of 99.8Mt and resources of 572.9Mt

All ROM coal sold under contract to major shareholder for captive use (Gujarat NRE Coke)

» Commercial terms based on market formula

All product exported through Port Kembla Coal Terminal

» Gujarat NRE holds 16% stake and a seat on the Board in Port Kembla

» Regional rail and port infrastructure capacity of 18Mt

Targeting to increase ROM production from 1.3Mtpa to 6.0Mtpa over the next 4 years

» Target long term cash operating cost of US$39/t FOB (pre royalties, ROM)

Surface Drive Head

0.5 0.7

1.51.8

3.03.2

0.0

1.0

2.0

3.0

4.0

FY10 FY11 FY12 FY13 FY14 FY15

Mt

Production forecast (ROM)

NRE NO.1 COLLIERY

Longwall order of $90 million placed for upgrade of the mine and to increase productivity

NRE No.1 MINE RESOURCES AND RESERVES

Resources (Mt) Reserves (Mt)

Potential

Reserves

(Mt)*

As per

mine

plan

(Mt)**

Seam Measured Indicated Inferred Total Proven Probable Total Total

Bulli 12.0 31.2 13.3 56.5 3.2 26.2 29.4 6.4 35.8

Balgownie — 34.1 41.5 75.6 — — — — —

Wongawilli 13.5 62.2 107.1 182.8 11.7 50.9 62.6 29.6 92.2

Total 25.5 127.5 161.9 314.9 14.9 77.1 92.0 36.0 128.0

*Potential reserve of 6.4 million is additional to 29.4 million JORC reserves and based on mine plans drawn-up from inferred resources. Hence is not a part of JORC reserves.**Total of Reserves and Potential Reserves.