2. 2
Legal Disclaimers
This presentation may contain forward-looking statements, and forward looking information under applicable securities laws including
management’s expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a
number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks and uncertainties include, but
are not limited to: the risks associated with the commodity industry (e.g. operational risks in development, exploration and production; delays
or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the
uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity
price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans
with respect to exploration or development projects or capital expenditures.
There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Colonial Coal undertakes no duty to update any of the forward-looking information herein. The
reader is cautioned not to place undue reliance on forward-looking statements.
The scientific and technical information relating to the Huguenot property has been derived from the Huguenot Technical Report dated May
19, 2010, a copy of which will be filed on sedar.com under Ananda Capital, copies of the technical report will be made available to investors
on request.
The information contained in this document has not been reviewed or approved by the U.S. Securities and Exchange Commission or any
provincial or state securities regulatory authority. Any representation to the contrary is unlawful. This document does not include a complete
description of Colonial Coal or any offering. Any offer of securities Colonial Coal will be made only pursuant to a subscription agreement and
the provisions of applicable law. Any securities to be offered for sale by Colonial Coal are not expected to be registered in the United States
under the Securities Act or under any state securities laws.
Cautionary Note to US Investors Concerning Resource Estimate:
The resource estimates in this document were prepared in accordance with National Instrument 43-101, adopted by the Canadian Securities
Administrators. The requirements of National Instrument 43-101 differ significantly from the requirements of the United States Securities and
Exchange Commission (the “SEC”). In this document, we use the terms “measured,” “indicated”, and “inferred” resources. Although these
terms are required and recognized in Canada, the SEC does not recognize them. The SEC permits US mining companies, in their filings with
the SEC, to disclose only those mineral deposits that constitute “reserves.” Under United States standards, mineralization may not be classified
as a reserve unless the determination has been made that the mineralization could be economically and legally extracted at the time the
determination is made. United States investors should not assume that all or any portion of a measured or indicated resource will ever be
converted into “reserves”. Further, “inferred resources” have a great amount of uncertainty as to their existence and whether they can be
mined economically or legally, and United States investors should not assume that “inferred resources” exist or can be legally or economically
mined, or that they will ever be upgraded to a higher category.
3. 3
• Metallurgical coal developer
– Two resource stage properties in strategic locations in Peace River Coal Field
– Extensive historical work completed by Denison
• Increased activity in Peace River Coal Field
– Four producing mines in the region with two other mines pending
– Significant development and investment activity
• Huguenot Coal Project (100% interest)
– Located adjacent to Western Coal - Peace River Coal’s Belcourt Saxon JV where $23mm
spent on project and taken to feasibility level
– 45.5 million tonnes NI 43-101 compliant metallurgical coal resource in North Block
– Additional 84 –113 million tonnes potential within Middle & South Block
– Amenable to open pit mining
• Flatbed Coal Project (100% interest)
– Adjacent to Trend and Quintette mines
– Potential for large tonnage deposit
– Teck looking at opening up mines in the area
Introduction
4. 4
Management and Board
David Austin
Chairman, President & CEO
• Founder of Colonial Coal, NEMI and Western Coal
William Filtness
CFO
• Over 20 years experience as a director or officer for mining
companies
• CFO of High Desert Gold, South American Silver, and i-minerals.
Former CFO of NEMI
John Perry
COO & Director
• Over 30 years experience as a geological consultant for coal projects
in northeastern BC
Wayne Walters
Director
• Geological consultant and director of Running Fox Resources.
Former Director of NEMI
Tony Hammond
Director
• Chairman and MD of Great Orme Mines and a Director for NEMI
Ian Downie
Director
• Professional negotiator with an established mediation and dispute
resolution consulting company
Perry Braun
Corporate Development
• Over 25 years of Capital Markets experience in Toronto, London,
New York and Vancouver
5. 5
• Huguenot property located ~140 road-
km from Quintette load-out
– Flatbed located 15 km from
Quintette load out
• Well located for CN Rail to Ridley
– No infrastructure constraints
– Potential for increase in capacity
at Ridley
Location and Infrastructure
6. 6
Location and Infrastructure
• 3 load-out
facilities in the
region
• Potential for a
3rd pipeline
crossing of
Rocky
Mountains to
bring in further
infrastructure
7. 7
FLATBED
HUGUENOT
• Well positioned in a prolific coal belt
Northeast British Columbia Coal Deposits
COLONIAL COAL PROJECTS
PEACE RIVER COAL FIELD
MAJOR COAL DEPOSIT
COAL MINE
ROAD
RAILWAY
TOWN
Central South (First Coal)
Resource: 81 MM t
Production: 3 MM tpa
Production Start: 2016
Willow Creek (Western Coal)
Reserves: 30 MM t
Production: 1.7 MM tpa
Production Start: 2010
Brule (Western Coal)
Resource: 34 MM t
Production: 2.0 MM tpa
Wolverine (Western Coal)
Resource: 82 MM t
Production: 2.0 MM tpa
Quintette (Teck Mines)
Production: 2.0 MM tpa
Production Start: 2013
Trend (Peace River Coal)
Production: 1 MM tpa
Production Start: 2005
Belcourt Saxon
Western / Peace River Coal
Resource: 171 MM t
Production: 4 MM tpa
Production Start: 2013
8. 8
• Located adjacent to Western Coal and Peace River
Coal’s Belcourt proposed South Pit
– Similar coal characteristics
• 27 holes and 55 trenches completed in 2008
– Focused in the North Block
– Historical work by Denison - 8 drill holes, 138
trenches
• 45.5 million tonnes total metallurgical coal resource(1)
– NI 43-101 report completed in May 2010
– Overall strip ratio of 12.9:1(2) at 20:1(2)
incremental strip ratio
• Amenable to open pit mining
• Additional 84 to 113 million tonnes potential in the
Middle and South Blocks
• 1.5% royalty FOB Port (3)
Huguenot Coal Project – 100% interest
(1) Assumes 1.0 meter minimum seam thickness cut-off
(2) Ratio: in-situ volume of waste (BCM) divided by the mass of coal (tonnes)
(3) Owned by David Austin and others
9. 9
• Pit limit shown at incremental strip ratio limit of 20:1(1)
• 4 coal seams out of 9 represent 78% of inferred resource
Huguenot Resource Cross Section
(1) Ratio calculated in-situ volume of waste (BCM) divided by the mass of coal (tonnes)
10. 10
• Metallurgical quality; medium vol, FSI of 6.5, low to very low sulphur and
phosphorous, washable to 8% ash
– 6BCD and 8A seams are high volatile A bituminous
Raw Coal Characteristics
Seam Data Point
RM
%
Ash
%
VM
%
FC
%
S
%
Dmmf
VM %
% Core
Rec.
8A(1) HB08-8-C 0.81 25.49 21.15 52.55 0.37 26.54 94.6
6D HB08-6C-B 0.64 8.56 23.71 67.09 0.73 25.34 100.0
6BCD(1) HB08-6C-B 0.71 27.86 20.07 51.36 0.51 25.59 94.0
6BC HB08-6C-B 0.69 16.93 22.83 59.55 0.45 26.36 93.0
6B HB08-6C-B 0.66 11.08 23.83 64.43 0.47 26.12 100.0
6La HB08-6A-A 0.66 27.16 19.10 53.09 0.33 24.05 91.1
5 HB08-5-B 0.48 14.29 22.31 62.91 0.34 25.07 97.3
4 BD 7906(3) 0.62 7.60 22.72 69.06 0.56 24.09 85.0(4)
3B BD 7814 0.67 33.05(5) 18.54 47.74 0.31 25.85 84.3
1 HB08-1-A 0.68 11.91 22.39 65.02 0.43 24.66 90.3
(1) includes internal rock bands omitted from resource estimates but expected to be included as part of run-of-mine material
(2) Adjusted to remove band above 6C
(3) Located in Middle Block
(4) Coal loss
(5) Approximately 28% if adjusted for core loss
North Block In-Situ Coal Quality Summary
11. 11
• Initial studies on coal cleaning target ash rate of 7.5% to 8.0%
• Expected average theoretical yield of [72.9%]
Metallurgical Coal Characteristics
Seam
Ash
%
VM
%
FC
%
S
%
FSI
% P
(in coal)
Dmmf
VM %
Theoretical
Yield %
% Core
Rec.
8A(1) 7.85 26.23 65.92 0.44 6.5 0.036 27.85 66.92 94.6
6BCD(1) 6.85 26.05 67.11 0.57 6.5 0.045 27.39 66.62 94.0
6La 9.11 22.92 67.97 0.39 6.0 0.070 24.50 62.94 91.1
5 8.04 23.74 68.22 0.36 6.0 0.036 25.19 85.47 97.3
3B 8.01 23.98 67.06 0.49 8.0 0.026 25.68 62.30 84.3
1 7.70 23.76 68.54 0.40 6.5 0.035 25.13 92.85 90.3
(1) includes internal rock bands omitted from resource estimates but expected to be included as part of run-of-mine material
North Block Clean Coal Quality Summary
12. 12
Flatbed Coal Project – 100% interest
• Property adjacent to Trend and Quintette mines
• Licenses pending
• Potential for large tonnage deposit
– 100 million tonnes metallurgical coal resource target
13. 13
• Experienced management team
– Directly responsible for developing two producing coal mines
• Projects strategically located within the Peace River coal field
– An area containing 4 producing coal mines with infrastructure in place
• Huguenot Coal Project (100% interest)
– Located between Western Coal and Peace River Coal’s Belcourt Saxon JV
– 45.5 million tonnes metallurgical coal resource plus 83 – 113 million tonnes of
potential
– Amenable to open pit mining
• Flatbed Coal Project (100% interest)
– Adjacent to Trend and Quintette mines
– Potential for large tonnage deposit
• Strong metallurgical coal prices forecast throughout 2012
Colonial Coal Summary
