Laurus Energy aims to build one of the largest energy companies in North America by unlocking a vast indigenous coal resource using new underground coal gasification technology. This technology can produce synthetic natural gas and other products at a fraction of current oil and gas prices from coal that cannot otherwise be accessed. Laurus has leased over 2 billion metric tons of coal in Alberta and plans to commence a calibration burn within 6 months to demonstrate the technology and establish off-take agreements. The goal is to solve energy problems, build a large reserves base, and create the next great North American energy company.

1. Laurus Energy, Inc.
Our Vision
To build one of the largest and
most profitable energy companies in
North America

2. ✽ What is the current state of play?
 The importation of high cost oil is threatening North America‟s economy
and is the cause of dependence of volatile oil producing nations
 Despite a great deal of rhetoric, no meaningful or economical way to
clean the air has been discovered
 Huge government subsidies towards renewables and bio technologies has
no chance of making even a dent in either of these problems facing North
America
 The cheap energy we have relied on for decades...traditional coal is
being phased out and is not permittable....with no substitute in place

3. ✽ The Solution
o North America is the largest energy market in the world and sits on an enormous,
indigenous coal resource that the incumbent industry cannot access
o Laurus has the technology that will unlock this resource at a fraction of the cost of
current prices of oil, gas and “clean” coal
o With such low production cost, subsequent products are much less expensive
than all other alternatives
o Gas created using this technology, when burned in power plants or turned into
products traditionally made with oil, will create fewer emissions than even
natural gas

4. ✽ An Abundant Resource
North America is the largest energy market in the world and sits on an enormous,
indigenous coal resource that the incumbent industry cannot access
 Over 2 trillion tonnes of unmineable coal
in North America (6.6 Trillion BOE)
 400 years of total US energy consumption (liquid, gas,
nuclear, etc.)
 Without this technology the coal has no
economic use
 Easy and inexpensive to acquire
 Reserves are important for energy
company valuations

5. * Low Cost UCG
Low Cost Structure vs. Natural Gas
$5.00
$4.50
Natural
$4.00 Gas
Unit UCG Cost Market
Margin to
Electricity $/MWh $ 29.93 $ 97.00
Nat Gas
$3.00 Price SNG $/mmBTU $ 3.06 $ 4.00
Methanol $/metric tonne $ 88.40 $ 399.00
Low Carbon Gasoline $/Gallon $ 0.90 $ 3.43
Syngas Cost Diesel $/Gallon $ 1.07 $ 3.75
$2.00 εUCG Syngas Ammonia $/metric tonne $ 132.00 $ 595.00
Royalties Urea $/metric tonne $ 155.00 $ 500.00
$1.50 (Coal &
Technology)
$1.00
$-

6. * A Wealth of Markets
With such low production cost, subsequent products are much
less expensive than all other alternatives
Diesel
Jet Fuel
Kerosene
Gasoline
Synthetic Natural Gas
Fertilizers
Films/Coatings
Plastics

7. * Low Emissions
Gas created using this technology, when burned in power plants or turned
into products traditionally made with oil, will create fewer emissions than
even natural gas
 Extracting the benefits of
Power Plant Emissions Comparison
abundant coal, minimizing
environmental impacts
 Emissions substantially reduced
over any existing coal
technologies
 Cleaner or comparable to
natural gas emissions
 CO2 removal cheaper, more
efficient, and ideal for
Enhanced Oil Recovery (EOR)

8. ✽ Underground Coal Gasification
 Underground coal gasification
(UCG) is a process that generates
a low btu gas called syngas
 Syngas is not „synthetic gas‟ or
„synthetic natural gas‟
 Syngas is comprised mainly of
hydrogen (H2), carbon monoxide
(CO), methane (CH4), carbon
dioxide (CO2), and nitrogen (N2).
 It is produced from coal that is
unusable by any other known
technology

9. ✽ Solving Alaska‟s Natural Gas Crisis
Stranded Markets
• Natural gas supply is insufficient for
o Power generation
o Retail distribution
• Ammonia / Urea Market
o Idle fertilizer facility – 25-55 BCF per year
• LNG for Export
o LNG terminal 50% idle – 75 BCF per year
• Native Alaskan partner – owner of
coal, project participant
• Next steps
o Finalize site selection
o Commence site characterization
o Arrange for off-takers
o Permitting

10. ✽ Alberta:
Showcase for εUCG in North America
✽ Laurus leases over 2.2 Billion metric tons of coal in Alberta
✽ Permits have been received tor calibration burn
✽ Calibration burn can commence within six months
✽ Supportive local stakeholders
• Letters of support from county, resident organization, and
environmentalists
✽ Next Steps
• Calibration burn Q1 2012 – Q4 2012
• Establish off-take agreements
• Evaluate partnering opportunities

11. ✽ Financial
Impacts
 [Content TBD – Need to decide on scope of
projects for AB and AK and how many others
at what size and terms and timing]
 [Format: Show cash flow build up?]
 [Show timeline?]

12. ✽ Building the Next Great Energy Company
Exxon-Mobil
Anadarko
Marathon
Chevron
Laurus
Devon
EOG
Total
Oxy
BP
Sources: Reserve quantities from companies‟ annual filings; Enterprise Value from Finance.Yahoo.com
* Laurus volumes have not been evaluated under the test of proved reserves at this time; they are based on a conversion of
estimated coal volumes under lease

13. ✽ Path forward
 Acquire coal now
 Focus on breakthrough projects
 Create the workforce to execute
 Permitting and acceptance … through education and
involvement with regulators, community and
environmentalists
 Gain wholesale acceptance of the technical, industrial
and financial communities