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1 The largest non state-owned and second largest coal producer in Chongqing, China by coal reserves Blackgold International Holdings Limited ASX: BGG Mines and Money Hong Kong Presentation March 2013

2 Disclaimer Important notice This notice applies to this presentation and any information provided in relation to or in connection with the information contained in it. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. References to Blackgold or Company are references to Blackgold International Holdings Limited or its applicable subsidiaries. This presentation contains information in summary form and is for information purposes only. It has been prepared without taking into account the investment objectives, financial circumstances, taxation position or particular needs of investors. Some of the information is based on publicly available sources and information provided to the Company, has not been independently verified or may not be complete. It should be read in conjunction with the Company s other continuous and periodic disclosure announcements lodged with Australian Securities Exchange, which are available at Forward-looking statements This presentation contains forward-looking statements which involve a number of risks and uncertainties. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward looking statements. Such risks include, but are not limited to coal price volatility, currency fluctuations, production performance, increased production costs and variances in coal specifications or recovery rates from those assumed in mining plans, project delay or advancement, environmental risks, approvals and cost estimates, as well as political and operational risks, shipping risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any forward looking statement to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Competent Person s Statement The information in this presentation that relates to Coal Reserves is based on information compiled by Tony Cameron, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and a senior associate of Behre Dolbear Asia. Tony Cameron has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Tony Cameron consents to the reporting of this information in the form and context in which it appears. The information in this presentation that relates to Coal Resources is based on information compiled by Dr. Tony Guo, a Competent Person who is a Registered Professional Geoscientist of the Professional Engineers and Geoscientists of the Province of British Columbia, Canada with the License # He is a senior associate of Behre Dolbear Asia. He has extensive experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being under taken. He qualifies as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr. Guo consents to the reporting of this information in the form and context in which it appears. Unless otherwise stated, all Mineral Resources figures reported represent estimates at January Rounding, conforming to the JORC Code, may cause some computational discrepancies. 2

3 Blackgold International Holdings Company Highlights Largest non-state owned and second largest coal producer in Chongqing by coal reserves Vertically integrated operations from coal mining and sourcing, transportation and storage to sales and marketing Own and operate four thermal coal mines with total JORC Compliant proved reserves of 65.3Mt and probable reserves of 37.0Mt for a total of 102.3Mt 1 Own logistics platform provided by private loading port, stockpile coal storage facilities, and our own fleet of hollow-hull barges transporting coal on the Yangtze River FY2012 total coal production of 1.2Mt, with 2.4Mt expected for FY % CAGR in NPAT from AUD14.5m in FY2010 to AUD40.2m in FY2012 Excellent safety track record accredited Class 1 / 2 mines with zero fatal injuries or accidents Well positioned as regional consolidator to capitalize on PRC coal industry consolidation Listed on the ASX since February 2011, constituent stock of ASX All Ordinaries Index Planning for dual primary listing in Hong Kong 2 Notes: 1. Behre Dolbear Independent Technical Report, as announced on March 18, Subject to regulatory, shareholders approvals as well as market conditions 3

4 FY2012 Financial Results Continued growth momentum from production ramp-up Summarized Financial Results (AUD 000) FY2012 FY2011 % Change Total Coal Production ( 000 tonnes) 1, % Total Trading and Agent Commission Sales ( 000 tonnes) % Revenue (AUD 000) 88,544 77,561 14% EBITDA (AUD 000) 48,008 32,298 49% NPAT (AUD 000) 40,234 22,872 76% EPS (AUD cents) % Cash Flow from Operations 35,748 30,444 17% Financial Position FY2012 FY2011 % Change Total Assets (AUD 000) 215, ,720 98% Total Debt (AUD 000) 59,512 14, % Cash and Cash Equivalents (AUD 000) 26,563 11, % Net Debt (AUD 000) 32,949 2,904 NA Gearing Ratio (%) 49% 18% NA Total Equity (AUD 000) 120,508 79,839 51% Note: 1. Financial year end at 31 October 4

5 Investment Highlights 1 Strategically located coal mines with logistical advantages and long mine lives 2 Solid execution track record with significant production growth pipeline 3 Vertically integrated operations covering entire coal supply value chain 4 Well positioned as coal sector consolidator in Chongqing region 5 Experienced management team with proven execution track record 5

6 Our Coal Mining Assets Strategically located with logistical advantages and long mine lives Baolong Mine Proved reserves Probable reserves Mine life Distance to port 29.8Mt 26.4Mt 32.7 yrs 0 km All four mines connected to the Yangtze River system at short hauling distances to loading ports Coal loaded onto barges and shipped to customers by river on timely basis Caotang Mine Proved reserves Probable reserves Mine life Distance to port 21.1Mt 3.4Mt 17.6 yrs 7 km Cost-efficient transportation of coal by river over rail (60% less on a tonne per kilometer basis) River barging not subject to capacity allocation constraints faced by railway Heiwan Mine Proved reserves Probable reserves Mine life Distance to port 2.2Mt 0.5Mt 5.2 yrs 23 km Changhong Mine Proved reserves Probable reserves Mine life Distance to port 12.3Mt 6.8Mt 20.7 yrs 32 km 6

7 Solid Execution Track Record Significant growth through production ramp-up and acquisitions 2011: Acquired Baolong Mine (exploration license) and Changhong Mine (mining license) 2012: Completed technical upgrade at Changhong Mine and commenced trial production 2013: Changhong Mine commenced commercial production, Baolong Mine production expected in second half 2014E: Organic growth primarily driven by production ramp-up in Changhong and Baolong Mines Historical and Projected Coal Production (Mt) 4,000 3,600 3,000 2,400 1,000 2,000 1, , ,200 1, E 2014E Caotang Heiwan Changhong Baolong 7

8 Vertically Integrated Operations Covering the entire coal supply value chain Coal Production and Sourcing Transportation and Storage Sales and Marketing Coal sourced from self-production or third party producers and traders Coal Mining (Self production) Caotang Mine Heiwan Mine Changhong Mine Baolong Mine Coal Sourcing (Third Party Coal Producers and Traders) Stockpile Storage at Logistics Hub and Ports Storage, Washing, Blending and Loading onto Barges Transportation by Barges Mining Fees (Subcontractors) Ex-Mine Sales (Sales at Mine Gate or Loading Port) Coal Trading and Blended Coal Sales Customers (Coal Traders and End Users) Own and operate fleet of nine hollow-hull barges with load capacity of 40,000 tonnes Private loading port and stockpile coal storage facilities near our mines Rights to use seven coal loading ports along the Yangtze River Our logistics reach extends from Sichuan province to Shanghai covering a total of 2,800 km and eight provinces and directly administered municipalities Guaranteed and stable transportation support for our coal products Sales to end users directly at mine gate or loading port, or blended coal sales through our trading arm 8

9 Well Positioned as Coal Sector Consolidator in Chongqing Capitalize on government driven opportunities PRC government-driven coal sector consolidation provides acquisition opportunities National and local directives require smaller coal mines to either cease production or be acquired by larger groups We are well positioned as regional consolidator given our status as a listed company, safety track record, and financial resources Baolong Mine Successfully made two coal mine acquisitions and integrated into our group s operations Continue to focus on making acquisition of mines situated close to the Yangtze River in the Chongqing region Potential acquisition targets Current Blackgold mines 9

10 Experienced Management Team Proven track record and strong execution capabilities PENG Yuguo James TONG OU Jun YAO Wenming ZHU Zongxiao LIM Teck Meng Founder, CEO and Executive Director Chairman and Non Executive Director Executive Director Chief Geologist Deputy General Manager Financial Controller Experienced management team 12 years+ in coal mining and sales operations management 12 years+ in venture capital investment 20 years+ in coal mining, trading and logistics 31 years+ in coal exploration and mining operations 17 years+ in coal mining and trading 15 years+ in accounting and finance 20 Years of Industry Experience on Average Extensive experience in coal production, coal trading, blended coal sales and logistics operations Proven execution track record Successfully completed acquisition and integration of coal mines in Chongqing Delivered on production ramp-up Significantly enhanced corporate governance and investor relations since IPO 10

11 Our Growth Strategies Acquisitions and capacity expansion Acquire additional coal mines in the Chongqing region and further expand and upgrade existing mining operations to increase production capacity Enhance productivity and safety Increase investment in mechanization of production process to improve productivity and occupational safety Strengthen logistics operations Further investment to increase barging capacity, access to additional loading ports, and stockpile coal storage facilities for storage and blending Coal washing facility and expand logistics hub Plan to build a coal-washing facility at our logistics hub, and expand our logistics hub to handle higher coal throughput Strategic relationship with international producers To import coal into China using our import license and expand trading activities 11

12 Appendix A JORC Compliant Coal Reserves and Raw Coal Quality JORC Code Compliant Reserves as of 1 January 2013 Mine Proved (Mt) Probable (Mt) Total (Mt) Annual Design Tonnage (Mt) Estimated Mine Life (years) Caotang Heiwan Baolong Changhong Total Average Undiluted Raw Coal Quality of the Reserves as of 1 January 2013 Mine Moisture (%) ad Ash (%) ad Volatile Matter (%) ad FC (%) ad Sulphur (%) ad CV (kcal/kg) ar Caotang ,965 Heiwan ,630 Baolong ,494 Changhong ,788 Notes: 1. Independent Technical Review report by Behre Dolbear Asia, Inc., as announced on the ASX on 18 March The Company noted there is a discrepancy in the amount of JORC compliant reserves estimated by Behre Dolbear with that indicated in the most recent estimates by Al Maynard & Associates Pty Ltd ( AM&A ) as announced on 22 February For details regarding the discrepancy, please refer to the announcement dated 18 March

13 ASX: BGG Blackgold International Holdings Limited 12 th floor, No.18,Mianhua Street, Yuzhong District, Chongqing, , PRC James Chi Ho Tong, Chairman Tel: +86 (23) Fax: +86 (23) Mobile: