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MPX Presentation

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  • 1. AUGUST, 2011

2. Disclaimer The material that follows is a presentation of general background information about MPX Energia S.A. and its subsidiaries (collectively, MPX or the Company) as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of thisinformation. This presentation may contain certain forward-looking statements and information relating to MPX that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like may, plan, believe, anticipate, expect, envisages, will likely result, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company, any of its affiliates, directors, officers, agents or employees nor any of the placement agents shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar damages.This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard. The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal surveys, market research, publicly available information and industry publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any material respect, we have not independently verified the competitive position, market share, market size, market growth or other data provided by third parties or by industry or other publications. MPX, the placement agents and the underwriters do not make any representation as to the accuracy of such information. This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part withoutMPXs prior written consent. . 3. MPX: a diversified energy company with the largest portfolio of integrated projects in South America .

  • Power Generation
    • 1.9 GW with power agreements secured
    • Environmental license for > 12 GW
  • Natural Resources
    • Natural Gas: > 11 Tcf of risked resources in the Parnaiba Basin
    • Coal: 35 Mtpa production target in a privileged logistics location
  • Parnaba (3.7 GW)
  • Castilla (2.1 GW)
  • Au (5.4 GW)
  • Sul & Seival (1.3 GW )

4. Starting in 2012, MPX will have steady and predictable cash flows Notes: 1. Energia Pecm is a 50/50 partnership between MPX and Edp; 2. Capacity Payments are escalated annually by the IPCA inflation index (Figures as May, 2011); 3. Parnaba TPP is a 70/30 partnership between MPX and Petra. CAGR: 63% Annual Capacity Payments 2 Installed CapacityR$ 544 MM R$ 1,241 MM CAGR: 34% 720 MW 1,561 MW 1,910 MW . R$ 1,300 MM R$ 1,070 MM Energia Pecm1 MPX Itaqui MPX Pec m II MPX Parnaba3(Bertin) MPX Parnaba3(A-3Auction ) 5. With the acquisition of the Bertin projects, MPX will kick off the Parnaiba Thermoelectric Complex MPX (70%) + Petra (30%)

  • Complete integration of natural gas E&P to power generation
  • Total licensed capacity of3.722 MW.
  • Power plants strategically located - easy access to gas supply and inexpensive connection to the grid
  • Integrated gas supply monetization of MPXs 23% stake in the E&P business in the Parnaba Basin
  • Parnaiba Thermoelectric Power Complex

.

  • Acquisition ofthe Bertin Power Contracts
  • 676 MW total installed capacity
  • 450 avg MW sold in the 2008 A-5 Auction - guaranteed annual capacity payment of R$ 392.9 million starting in January, 2013 (as May, 2011)

Contracts will be supplied by the Parnaiba Power Complex 6. Starting with 4 turbines in open cycle with an option to migrate to combined cycle, increasing total capacity with the same gas consumption . Bertin: 676 MW (open cycle) +338 MWto be sold in Free or Reg. Markets (combined cycle) 7. In 2014, the 499 MW capacity contracted in the 2011 A-3 Energy Auction starts up and Parnaba ramps up to 1,175 MW . Capacity contracted in the A-3 Energy Auction: 499 MW (combined cycle)

  • 499 MW total capacity installed
  • Start up in 2014
  • 450 avg MW sold in the 2011 A-3 Auction, with guaranteed annual capacity payments of R$327.8 million

8. MPX will have additional cash flows from the gas E&P business as the 7 onshore blocks will supply the power generation complex .

      • Declaration of commerciality of two fields (Gavio Real & GavioAzul) already submitted to ANP
      • Initial production expected in 2H12
      • Low capital and operating costs
        • Total Capex of US$ 450 M for production of 5.7 M mper day in 2013
        • Low operating field life cost of less than US$ 0.30/1,000ft 3on average
      • 7 wells drilled to date with 100% success rate
      • Second seismic crew contracted to work on the southern blocks
      • Recently approved leasing agreement of 2 additional rigs

Paranba Complex Project 11 stgas: 2H12 23 production wells Gavio Real Gavio Azul 9. In Colombia, drilling is ongoing to assess underground potential Pgina. 2KM 47m 40m 45m 15m 13m 0m shallow hole (341) 30m 78m 0(gas) 993m drilled 13m 11m 0m shallow hole (681) 4m shallow hole (573m ) MPXCanaverales Nature Reserve 45m 50m 12m+ongoing 5m Canaverales Mine 7m shallow hole (620m ) 21m shallow hole (467m )

  • 5 large capacity drill rigs on site + 3 mobilizing to start drilling in Aug
  • 12,000m drilled to-date
  • Currently, 13 coal seams identified for longwall production with seam thickness of 1.5m

. 2011 POSITIVE 2009 POSITIVE 2009 NEGATIVE 2011 PLANNED 2D-SEISMIC (2009) September October November December 10. Initial results are in line with geological model Drilling Results as of Aug 13, 2011 Source: MPX . Drill Hole Coal Seams >1.3m Cumulative Coal Thickness IntersectedTo-Date (m)Predicted Cumulative Coal for Same Stratigraphic Position (m) Remarks 336 12 46.5 46.1 337 10 40.2 63.5 Duplication of the coal pack by faulting did not occur338 10 44.5 46.7 339 5 14.8 24.5 Fault zone 341 11 45.2 30.7 342 12 49.6 48.5 343 23 NA NA Ongoing 348 7 NA NA Ongoing 349 0 NA NA Ongoing 360 0 NA NA Ongoing 142 20 77.9 75 Carried out in 2009 149 9+ 30.4+ 33+ Carried out in 2009. Stopped prematurely at 630m 165 3+ 6.6+ 7+ Carried out in 2009. Stopped prematurely at 620m 256 4+ 21.0+ 25+ Carried out in 2009. Stopped prematurely at 467m 11. In parallel, MPX is carrying out a large, high-resolution 3D Seismic program

  • Seismic program to optimize drilling operation utilizing state-of-the-art technology
  • 1,200km of seismic lines covering an area of 10 x 10km
  • Data acquired in 47% of the area interpretation in process
  • Early indications confirm overall flat-lying structure

. Seismic Registrycompleted Registry underway Zipper 1 Zipper 2+3 Caaverales mine 12. Utilizing state-of-the-art technology to optimize the drilling program Conventional Processing Geomage Multifocusing Processing Source: Geomage, Case Studies: Northwestern Russia, vinatge date. 13. MPX is also planning 2D seismic in additional areas to guide expansion plans . 2D SEISMICTotal:390.78 Km 14. MPXs track record shows reliable execution of complex projects delivering high-returns to shareholders

  • In the past couple of years
  • Complete integration of natural gas E&P to power generation:
      • Parnaiba E&P: Declarations of commerciality for 2 gas fields +Development plans to an estimated production of 5.7 million m/day by 2013, corresponding to a total production of 1.1 Tcf of gas.
      • Parnaiba Power Generation: 3.7 GW licensed + 1.2 GW contracted
  • MPX Colombia: Certification of open-pit reserves + Preliminary environmentalapproval for port location and railroad route obtained + Drilling and seismic underway to certify underground resources
  • MPX