Becoming Colombia’s Leading Independent Coal ProducerJune 2012

Becoming Colombia’s Leading Independent Coal ProducerJune 2012

TSXV: PAK

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This presentation contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the business, operations and financial performance and condition of Pacific Coal, S.A. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to business plans and strategies of Pacific Coal; information with respect to the proposed subscription receipt financing of Pacific Coal; estimated production of the various projects of Pacific Coal; the benefits of the acquisitions and the development potential of properties of Pacific Coal; the future price of coal; estimates regarding mineralization and exploration results; the ability of Pacific Coal to achieve mining success consistent with management’s expectations; and expected levels of royalty rates, operating costs, and other costs and expenses. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to the Corporation and its shareholders. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intend”, “may”, “plan”, “predict”, “project”, “should”, “target”, “vision”, “will”, or similar words suggesting future outcomes or language suggesting an outlook. Forward looking statements are based on the opinions and estimates of management at the date the statements are made, as well as a number of assumptions made by, and information currently available to, the Corporation concerning, among other things, Pacific Coal’s ability to successfully complete the proposed subscription receipt financing; anticipated geological, operational and financial performance, business prospects, strategies, regulatory developments, future commodity prices, future production levels of the Corporation’s assets, the ability to obtain financing on acceptable terms, the timely receipt of any required approvals and that there will be no significant events occurring outside of Pacific Coal’s normal course of business. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, risks relating to international operations, fluctuating coal prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of equipment or processes to operate as anticipated, and acquisitions not being integrated successfully or such integration proving more difficult, time consuming or costly than expected. Although Pacific Coal has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. Pacific Coal undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. This presentation uses the terms “measured”, “indicated”, and/or “inferred” mineral resources. United States investors are advised that while such terms are recognized by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. Unites States investors are cautioned not to assume that all or any part of mineral resources will ever be converted into mineral reserves. Inferred mineral resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

DisclaimerForward Looking Statement

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Vision

Pacific Coal is on track to produce 2.0 Mt of thermal coal in 2012

The Company has a compelling portfolio of high quality producing assets:

La Caypa (thermal coal)Cerro Largo (thermal coal)CI Jam (coke)

Cerro Largo Mine

Explore, expand and develop existing producing assets to increase efficiencies, reserves and production, while securing infrastructure capacity to capture all aspects of the value chain

Seek opportunities to secure access to markets and ensure commercial flexibility

Foster a culture of citizenship and environmentally responsible stewardship

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Strategy

RAW MATERIAL PRODUCTION

(UPSTREAM)

MANUFACTURING/ PROCESSING (MIDSTREAM)

RETAIL/MARKETING(DOWNSTREAM)

• Upgraded coke production• Colloidal coal in water (“CCW”)*• Colloidal asphaltite in water (“CAW”)*• Pyrolysis

1. Marketing of thermal coal2. Marketing of coke3. Marketing of colloidal products to:

• Power generation plants• Heavy oil producing companies and refineries

CAW/CCW plant• 50% equity interest• Carried interest for

50/50 JV

Pyrolysis plant• 100% equity interest• Not yet constructed• Pyrolysis is a proven

procedure

Vertical integration to secure market access in value-added product streams

• 100% ownership and control of La Caypa, Cerro Largo and La Tigra

• Company owns 92% of CI Jam, and controls 100%

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Source: Management estimates*Q1 2012 numbers

Well-positioned portfolio with diversified current and future production of steam coal, coke and asphaltite

Port of Santa MartaPuerto Brisa

1Port Barranquilla

Bogota

2

1

Medellin

Cali

3

1

2

3

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Asset SummaryDiverse Portfolio of High Quality Coal Assets

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5

5

6

2010A 2011A 2012E 2013E 2014E

Total Production

Cerro Largo

La Caypa

1.21.4

2.2

2.7-2.9

3.4-3.6

Source: Management estimates*Includes total production from Cerro Largo Q1/2011, before the acquisition closed

Thermal Coal Production Profile

Robust production growth from existing assets with additional greenfield and consolidation opportunities

Annu

al P

rodu

ction

(mill

ions

of t

onne

s)

2.0

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High quality steam coal production with attractive expansion and underground potential

(1) Source: Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010(2) Includes transportation, port, and administrative costs(3) Includes South Pit development at La Caypa(4) Management Estimate

La Caypa MineSignificant Thermal Coal Production

(1)

Location: • Guajira Department, Colombia• Adjacent to Carbones del Cerrejón mine, largest coal mine in South

America

Resource estimate: • 47.0 Mt of measured resource (1)

• 17.8 Mt of indicated resource (1)

Area: •300 hectares

Average BTU: • 12,264 (1)

Average Sulphur: • 0.69% (1)

Operations: • One open-pit mine currently operating₋ South pit expansion in development with expected start-up in 2012

and potential production of additional 1.0 Mtpa• One underground mine in exploration, expected development in 2013

2011 Production • 1,239,583 t

2012E Production • Approx. 1,300,000 t (4)

Projected Costs (2): • US$85/t (4)

Avg Contract Price: • US$100/t in long-term contracts for 100% of production to 2013

Infrastructure: • Secured allocation at Santa Marta (250 km)• Expected additional capacity at Puerto Brisa, mid-2013, reducing

freight costs by 40%-50%

Current strip ratio: • 8.75:1 (Q1 2012)

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La Caypa Mine OperationsIncreasing production and improving strip ratios

(1)

2012 La Caypa production forecasted to rise from 1.23 Mt to approx. 1.3 Mt

Organic growth in 2012 and 2013 driven by:

Expansion of South Pit (2012)Underground mining (2013)

Source: Management estimates* Does not include South Pit – total waste (tonnes) estimated for 2012: 2,516,505

0

50

100

150

200

250

Jan

Feb

Mar

Apr

May Jun Jul

Aug Sep

Oct

Nov Dec

La Caypa 2012 Estimated Coal Production (kt)

Coal Production (Thousand Tonnes) -2012 Actual & Forecast (Total: 1.389 Mt)

0

5

10

15

Jan

Feb

Mar

Apr

May Ju

n Jul

Aug

Sep

Oct

Nov

Dec

La Caypa 2012 Estimated Stripping Ratio*

La Caypa 2012 Estimated Operational Stripping Ratio (Total Year: 7.1:1)

Strip

ping

Rati

o: w

aste

: pr

oduc

tion

9

Extension of existing open pit to south of highwall with same premium coal characteristics as the primary pit with a similar CV Btu/lb

Straightforward integration into existing mining operations

Expected production start-up in 2012 with all permits in hand

South pit measured and indicated resources of 7.7 Mt(1)

South pit development to be concurrent with existing mining operations

Potential incremental production of 1.0 Mt per annum

La Caypa MineSouth Pit Expansion to Extend Mine Life in 2012

(1) Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010

SECTOR +400

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Mine planning underway based on 16 coal seams showing consistent thicknesses suitable for underground mining (average thickness ranging from 2.3 metres to 6.8 metres)

Measured and indicated resource of 53.6 Mt (1)

Potential thermal coal production to increase 0.8 – 1.0 Mtpa expected to commence in 2013

Existing pit provides underground access point with three contemplated levels to depth of 240 metres from pit bottom

Studies underway to determine optimum mining method and design; potential to become the largest underground coal operation in Colombia

Underground potential to drive resource expansion and continued growth in production(1)

ELEVATION: 0ELEVATION: 0

ELEVATION: -150ELEVATION: -150

ELEVATION: -300ELEVATION: -300

Level 1Cradle

Level 1Cradle

Level 1Level 1

Level 2Level 2

EXISTING OPEN PITEXISTING OPEN PIT

La Caypa MineUnderground Production to Drive Growth in 2013

(1) Source: Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010 and management projections

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Contains high volatile bituminous type B coal with high calorific values and low sulphur

Cerro Largo – La DivisaAcquisition of Significant Coal Production

(1) Source: Report titled “Independent Technical Report, Cerro Largo Mine” prepared by SRK Consulting and dated February 2011(2) Includes transportation, port, and administrative costs * Q1/2011 production of Cerro Largo was prior to Pacific Coal acquisition (3) Management Estimate

Location: • Cesar Department, Colombia in the La Jagua de Ibirico coalfield

• Adjacent to licences owned by Drummond and Vale. Glencore is currently operating an open-pit mine on the adjacent La Jagua sector

Resource estimate: • 11.6 Mt – 21.2 Mt inferred (1)

Area: •488 hectares

Average BTU: • 12,000 (1)

Average Sulphur: • 0.78% (1)

Operations: • One open-pit mine currently operating

Projected Costs (2): • US$90/t, expected to lower US$2/year with improved efficiencies and strip ratio (3)

Q1 2012 Production • 131,895 t*

2012E Production • 700,000 t (3)

Infrastructure: • Secured allocation at Santa Marta (250 km)• Expected additional capacity at Puerto Brisa in

mid-2013, reducing freight costs by 30%-40%

Current strip ratio: • 16.19:1 (Q1 2012) (during ramp up)• Long-term mine plan has been implemented

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Cerro Largo – La DivisaIncreasing production and improving strip ratio

2012 Cerro Largo production expected to rise from 298kt to approx. 700kt

Production increase and lower strip ratios due to:

New integrated mine planCommissioning additional mining equipment

Source: Management estimates

0

50

100

150

Jan

Feb

Mar

Apr

May Jun Jul

Aug Se

p

Oct

Nov Dec

Cerro Largo 2012 Estimated Coal Production (kt)

Coal Production (Thousand Tonnes) -2012 Actual & Forecast (Total: 0.7 Mt)

0

10

20

30

40

Jan

Feb

Mar Ap

r

May Ju

n Jul

Aug

Sep

Oct

Nov

Dec

Cerro Largo 2012 Estimated Stripping Ratio

Cerro Largo 2012 Estimated Operational Stripping Ratio (Total Year: 13.5:1)

Strip

ping

Rati

o: w

aste

: pr

oduc

tion

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2010A 2011A 2012E 2013E 2014E

CI Jam

Source: Management estimates

Coke Production Profile

High value coke operation with long mine life and coal to coke conversion of ~70%

Annu

al P

rodu

ction

in to

nnes

7,256

60,000-72,000

90,000-120,000

90,000-120,000

Operational adjustments during the first year of operations resulted in reduced production for 2011 (7,256 t of coke produced in Q4 2011)

These adjustments also allowed for infrastructure and capacity to be built up, resulting in longer-term production targets being achieved sooner

Ramp-up in progress

10,547 t of coke produced during Q1 2012

Expected coke production in 2012: 60,000 – 72,000 t

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Underground coking coal operation selling premium coke into high price environment

CI JamCoking Coal and Upgraded Coke Production

(1) Source: Report titled “SRK Technical Report Written To Be Compliant With NI 43-101 On Contract 7241, Boyaca, Colombia” prepared by SRK Consulting and dated August 2010(2) Includes transportation, port, and administrative costs(3) Management Estimate

Location: • Samaca Municipality, in Department of Boyaca• 3,000 small HCC producers in the area

Resource estimate: • 2.8 Mt in situ (1)

Area: •52 hectares

Average BTU: • 13,800 with coking properties (1)

Average Sulphur: • 0.92% (1)

Operations: • Underground coking coal• Upgrading coking coal to coke

Projected Costs (2) : • US$210/t (3)

2011 Production: • 7,000 tonnes of coke

2012E Production • 60,000 – 72,000 tonnes of coke (3)

2012E Avg Budget Price: • US$270/t (3)

Infrastructure: • Well maintained roads to truck coke to domestic markets and to port terminals (800 km to Barranquilla)

Status: • Completed refurbishment of 160 beehive coking ovens• Completed refurbishment of coker infrastructure

15River Transport Coal Mine Coal/Asphaltite Project Road PortsRiver Transport Coal Mine Coal/Asphaltite Project Road Ports

Legend

Significant port and road infrastructure in place to support existing regional coal production

Cauca Rive

r

Regional InfrastructureProximity to Infrastructure Supporting Growth

Colombia

Venezuela

Panama

Barranquilla

Cartagena

Magdalena Rive

r

Cartagena Port

Port of Santa Marta

La Caypa

Cerro Largo

La Tigra

Puerto Brisa

BarranquillaPort

Puerto Bolivar

CI Jam

Secured a minimum of 1.8 Mtpa of stockpiling and shipping capacity at the Port of Santa Marta until 2013

Production trucked 250 km by paved highway to Santa Marta at a cost of approximately US$20-$23 per tonne from La Caypa and 280 km from Cerro Largo at a cost of approximately US$23-US$24

Expected capacity at Puerto Brisa provides alternative port location closer to both La Caypa and Cerro Largo with potential to reduce freight costs by 40%-50% and by 30%-40%, respectively

Puerto Brisa construction expected to be completed by Q1/2013, providing additional 35 Mt of specialized coal shipping capacity

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Pacific Coal acquired a port concession situated on the Magdelena River near the Port of Barranquilla (approximately 5km from the Caribbean Sea) to be used to export coke, specialized coals, and bulk commodity products. Excess capacity at the port can be monetized by selling to other exporters

Pacific Coal plans to tender for engineering, construction and procurement by Q2/2012, expecting to have an early start on coal loading operations with a provisional set-up for Q3/2012

Port of BarranquillaInvesting in Long-Term Port Access for Coke

BARRANQUILLA CONCESSION

Main features of the final proposed scheme:

Two portable shiploaders

A pile supported concrete berth with 12 m water depth

Portable Stacker

Coal/Coke piles

Reclaim conveyor alongside the open stockpiles

Office/Maintenance building

FEL receiving hopper (rail mounted)

Overall average loading capacity of approximately 10,000 tonnes per day

BARRANQUILLA CONCESSION

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Profile

La Tigra – Asphaltite

Grahamite

Gilsonite

La Tigra outcrop

Location of La Tigra: • 80 km from Barrancabermeja

Area: •5,700 hectares

Operations: • Geophysical, metalotelluric, and gravimetric studies are in progress; results expected Q3 2012

• Production start planned for mid-2013

Infrastructure: • 70 km from Bucaramanga with paved roads between Bucaramanga and San Alberto

• 80 km from Barrancabermeja, the centre for petroleum refining and a port on the Magdalena River

Asphaltites are species of bitumen, dark-colored, comparatively hard and non-volatile solids, composed principally of hydrocarbons.

As of today in the La Tigra area, there is evidence for the presence of two different types of asphaltite: Grahamite and Gilsonite.

Management expects a significant resource at La Tigra to be confirmed with a National Instrument 43-101 compliant report – physical evidence on outcrops, oil seeps and 3 mines already in production in the area lead to optimistic forecasts on the existence of important asphaltite reserves.

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La Tigra’s Asphaltite Applications

Colloidal Asphaltite in Water (“CAW”) •Crushed asphaltite, suspended in water forming a colloid, can be used as fuel by power generators •PAK and Blue ACF are in the process of developing a pilot plant test for CAW at Babcock & Wilcox facilities in USA •Significant marketing opportunities as CAW can be sold as a fuel oil substitute•Management foresees strong market demand for CAW in Central America and the Caribbean

Colloidal Coal in Water (“CCW”) •Similar to CAW, but using coal instead of asphaltite •Blue ACF CCW trials at Babcock & Wilcox ongoing•In May 2012 Blue ACF received exclusive rights to the patent for “nano-dispersions of coal in water as the basis of fuel related technologies and methods of making same”•Blue ACF has a 36-month exclusivity period related to any vehicle developed by Blue ACF for applications of the patent using coal and asphaltite•PAK has 50% investment option in the development of CCW and CAW plants

Proven Applications

Asphalt modifiers•Oil drilling and mud additive•Metal casings•Paving/roofing asphalts•Paint resins

Pyrolysis • High margin application, potential for substantial volumes•Converts asphaltite to valuable liquid and gas products, and pet coke•Pet coke is a by-product produced through pyrolysis•Prefeasibility study indicates excellent economics based on lab tests conducted with Colombia grahamite and gilsonite•Feasibility study in progress in order to select the specific technology and to conduct pilot plant tests (100% PAK)

Applications in Evaluation Phase

Experimental Pyrolysis Products CCW Trial

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Pacific Coal Health, Safety, Environment, and Community

Health and Safety Mission: Achieve Health and Safety goals through stewardship, integrity, and empowerment

• The Company encourages its employees to participate actively in safety initiatives and prevention programs

• All of our employees take part in our community health programs as both volunteers and patients

The Company seeks to continuously reduce the number of workplace and operational safety incidents, with the ultimate goal of achieving the lowest accident frequency rates in the industry

• The Company seeks to work with partners with high health and safety policies and standards

• The Company strives for eco-friendly operations wherever possible, by forming strategic alliances with environmental corporations

• The Company maintains weekly updates of its safety performance indicators

Community Mission: Maximize shareholder value while fostering a corporate environment of responsible citizenship and respecting the interests of our stakeholders and members of the communities in which we operate • The Company aligns its initiatives with the needs and activities of local governments, to contribute to the nation’s progress

• The Company works closely with non-profit organizations to maximize its community efforts

• The Company ensures responsible operations by minimizing wherever possible its impact on the environment

• La Caypa mine named as an example of environmental best practice by SGS at the 8th Annual International Mining Congress

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Capital Structure

Pacific Coal became a publicly listed company via RTO on March 14, 2011, making the Company the only independent, public coal producer in Colombia

Fully leveraged to rising interest in Colombian coal Strong sponsorship and institutional investor support As at April 13, 2012, 11.1 million shares had been purchased for cancellation under the normal

course issuer bid

(1) Expiry date March 14, 2016(2) Based on closing price of $0.19 on 06/08/2012(3) Includes finance leases

Pacific Coal (TSXV: PAK)

Shares outstanding: 322.1 million

Options (vested & exercisable) 35.8 million

Warrants outstanding with weighted avg. exercise price of $2.10(1) 75.1 million

Fully diluted: 433.0 million

Market cap (basic):Cash (March 31, 2012)Long-term debt (3) (March 31, 2012)Enterprise value

$61.2 million (2)

$4.2 million$38.9 million$96.0 million

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Pacific CoalAchievement Scorecard

Achieved In Progress

Completion of amended NI 43-101 at La Caypa and Cerro Largo O

Commencement of development of south pit expansion /

Commencement surface work for underground at La Caypa

Implementation of integrated mine plan at Cerro Largo Transition from Port of Santa Marta to Puerto Brisa, reducing freight costs by 30%-50%

O

Completion of refurbishment of 160 beehive coking ovens at CI Jam

Commencement of exploration at La Tigra

Completion of NI 43-101 on La Tigra O

Development of Port of Barranquilla O

CAW tests and trials CCW tests and trials O

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High-grade material of which global supply is permanently depleting and thus carrying premiums High-quality coal characteristics – high BTU, low moisture, low ash, low sulphur Access to international markets via ports – improving efficiencies and cost reductions Opportunities to develop projects to access growth markets such as coking coal and colloidal fuels

Strategically located, high-quality projects in a world-class jurisdiction with significant growth potential

Pacific CoalSummary

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Luis Arturo Carvajales – Chief Executive Officer More than 20 years of experience in the mining industry, holding management positions in marketing, sales, logistics, and serving

as legal counsel

Most recently President / Legal Representative of Carbones Colombianos del Cerrejon S.A.

Miguel Velasquez – Chief Financial Officer Over 25 years experience as Finance & Administrative Manager for companies in Colombia and at Colombian branches of Canadian

companies

Peter Volk – General Counsel and Secretary

Mr.Volk has acted as General Counsel and Secretary of several Canadian public companies including PetroMagdalena Energy Corp., Pacific Rubiales Energy Corp., Gran Colombia Gold Corp., and Bolivar Gold Corp.

Executive Management Strong and Experienced Team

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APPENDIXAPPENDIXAPPENDIXAPPENDIX

25Source: Ingeominas Colombian Institute of Geology and Mining; Energy Information Administration; Reuters; Intierra

Colombia is the world’s 10th largest producer (76 million tonnes in 2009) and 4th largest exporter of coal

Coal represented 25% of total export earnings for Colombia in 2009

Colombia has one of the largest proven coal reserves in the world, with over 7 billion tonnes of recoverable reserves and 17 billion tonnes of potential reserves

Colombia’s estimated 2011 coal production is 85 million to 95 million tonnes

Pribbenow(Drummond)

Calenturitas(Glencore)

La Francia(Goldman Sachs)

El Descanso(Drummond)

La Jagua(Glencore)

Cerro Largo

LA GUAJIRA DEPARTMENT

CESAR DEPARTMENT

La Tigra

CI Jam

Cerrejon(BHP/Xstrata/Anglo)

La Caypa

Colombia A World-Class Coal District

El Hatillo(Vale)

26Source: BP Statistical Review of World Energy and Bloomberg*Economist Intelligence Unit

Colombian Coal Production (Mt) DMTU Thermal Coal Price (FOB Puerto Bolivar)

Colombia A World-Class Coal District

Colombia is a significant coal mining region with 2012 production forecast to exceed 87 million tonnes*

2012

E*

Average contract price in 2012: $100

27Source: Management estimates, Fraser Mackenzie research, and Bloomberg* Peers: Corsa Coal Corp., Forbes & Manhattan Coal Corp., Lipari Energy, and Xinergy Ltd.** Production sales as of most recent quarter on an annualized basis

Valuation MetricsOpportunity For Re-valuation

As at May 16, 2012