Disclaimer: The information in this document is provided for information purposes only by Riversdale Mining Limited. No representation or warranty is

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1 Riversdale Mining Limited Corporate Presentation February 2010 Disclaimer: The information in this document is provided for information purposes only by Riversdale Mining Limited. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Riversdale Mining Limited.

2 ASX: RIV Corporate Profile Market $8.00 per share A$1.56 billion 19.4% 5.0% Shares 195 million 38.7% Options Net Cash Benga St 1. Capex Req d 12 million ~ A$ 250 million US$270 million As of 14 Jan % Passport tcapital 13.9% 34.8% CSN 16.3% Institutions Corporates Tata Steel Ltd 19.2% As of 14 Jan 2009 Related Parties (predominantly management) Private Investors Other Institional Source: Thomson Reuters As of 31 Dec

3 Riversdale Share Price Performance 300% 250% % Increase since % 150% 100% 50% 0% 50% Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 RIVERSDALE ALL ORDINARIES [XAO] BHP Billiton Rio Tinto Since 2 nd January 2009 Riversdale share price has increased 236% (A$8.23 as of 18/1/10) Over the same period: Rio Tinto has increased 155% BHP has increased 42% ASX All Ordinaries (XAO) has increased 35% RBS: BUY Price Target A$11.06 (18/01/10) we view the long term production potential of the combined assets as globally significant 3

4 Mozambique: Strong Track Record of Investment Mozal Sasol Moma Mozambique is a democratic and stable country Strong track record of successful resource development Resource investment is a primary focus for the Mozambique government Oct 09: Incumbent FRELIMO government re elected Democratic, non violent elections successfully held All key ministers re appointed Minister for Mines Minister for the Environment Minister for Transport Riversdale has an established relationship with all key government officials, just elected for 5 more years Strathearn Insurance Brokers Report for Riversdale (2008) ranked Mozambique s overall risk factor as 1.6 (out of 10) Other Rankings: Brazil 1.6, Italy 1.4, Australia 0.8 Significant resource investment has taken place in the country BHP Mozal US$2 billion Vale Moatize US$1.3 billion Sasol Gas Pipeline US$1.2 bll billion Kenmare Moma US$500 million 4

5 Riversdale in Mozambique Riversdale has been operating in Mozambique since 2006 The company has developed a strong relationship with the Mozambique government Discussions are ongoing with steady progress being made Short term goals Q Rail and Port Tariffs Beira Port Refurbishment Potential Beria Port Upgrade In the longer term Implementation of Zambezi river barging Nacala railway line and port facilities Recent Project Development Benga Mining Contract Approved Benga Environmental Approval Awarded (EIS) Benga Power Environmental Approval Awarded (EIS) CHPP Supply Contract Signed 5

6 Mozambique: A new source of Coking coal for growth markets Supply of seaborne HCC (Estimated 130 millions tonnes p.a. in 2009) China, India and Brazil to account for > 90% of seaborne metallurgical coal demand growth: BHPB / Mitsubishi 33% 33 15% Teck Cominco 18% Other Canada USA Rest of World China Brazil Mt 150 India Anglo / Mitsui 12% 5% 6% 11% 6% Poland, China, Russia, NZ Japan Europe Xstrata Rio Tinto Australia Other Aus Canada USA Other Source: Wood Mackenzie, Morgan Stanley, Company Reports 6

7 Seaborne Coking Coal Supply Elga: Large expansion potential High cost: 2000 km rail haul Mechel: High debt levels Canada: Teck & Western expansions 3 rd Quartile on cost curve USA: High cost, basin in decline Mongolia: Semi soft coking coal Exports to China Indonesia: Mainly semi soft coking Logistics & regulatory uncertainty Bowen basin: Large expansion potential Lower quality shift Mozambique: Large, low cost expansion potential Hard coking coal Infrastructure constraints being overcome 7

8 Coking Coal Supply Routes Panamax freight rates into Southern China (Zhanjiang): Beira (Moz) $22 Major Minor Queensland $19 Exporter Importer Mozambique Newcastle $21 Source: Braemar Seascope, Dec 09 Key markets: India & Brazil + China within striking distance 8

9 Marketing Goals Seaborne 35 Tata (40%) + 3x off take contracts 30 Coking 25 Market focus: Coal 20 Demand 15 Freight advantage (Atlantic + India) 2009 Growth markets (India, Brazil & China) China has become a significant seaborne importer of coking coal in 2009 it was the 2nd largest market Price benchmarked against premium coking coals Seaborne Impo orts (Mt) Benga Coking Coal Japan Europe China India Am mericas Japan Europe China India Americas ROW ROW Target tmarkets Tt R Tata s Role China Brazil: CSN India: Tata Europe: Tata Corus Freight advantage vs. Aust Only tenements 881 and 1319 are covered by Tata JV (35%) Riversdale has 100% ownership of over 20 tenements covering >230,000ha 9

10 Freight advantages into key growth markets Mt Uk kraine Turkey China Vie etnam Ta aiwan Ger rmany South Korea Japan Brazil India Forecast Metallurgical coal demand growth 2009 to 2025 Source: Wood Mackenzie 10

11 Benga & Zambeze will service the highest Growth Markets Seaborne Coking Coal Imports INDIA BRAZIL CHINA 24 Mt 81 Mt 16 Mt 27 Mt 3 Mt 36 Mt Coking Coking Coking High ash thermal Some thermal Thermal Expansions planned by Tata Steel, Key steel companies are Shanxi Govt closing 2,200 mining Jindal, SAIL & 2 nd tier mills expanding including Usimina, companies + 2,600 mine sites Potential restart of Posco project & Arcelor Project High ash thermal demand driven by new power capacity Privatization of Indian power sector Long approval process for coal mines & challenging internal transport logistics Gerau, CSN & Arcelor Mozambique offers superior freight advantage over Americans & Australians 3Mtpa minimum production size New amalgamated mining companies including Datong, Yangquan Jinchong, Lu Ar, Shanxi China to remain a net importer of hard coking coal Freight rates competitive for East Africa to Southern China Ports 11

12 Benga to produce prime coking coals Benga coking coals

13 Benga Coal Quality Benga Hard adcoking Coal Volatile Matter (%, ad) 23 Rank (Ro Max) CSN (swell index) 9 Vitrinite % 81 Ash (%, ad) 10.5 Gieseler max fluidity >3 (log) Coke strength (CSR) 68 Benga Coke 13

14 Mozambique s Moatize: the world s next major coking coal basin One of the largest undeveloped coal regions in the world RIV: largest licence holding in the Moatize basin Tenements contiguous with proposed Vale project Benga (65% Riv): 2% of license area contains 4.0 Billion tonne Coal Resource 1.0 Bt Measured & Indicated 3.0 Bt Inferred Coal Reserve (Phase 1) of 273 Mt Drilling on 21 additional licenses throughout 2009 Feasibility Study for 20 Mtpa operation completed in June 2009 Zambeze (100% Riv): is the second major project Initial 1.7 Bt Indicated Coal Resource Premium hard coking and thermal coals Quality equal to best in Bowen Basin Competitive freight rates into high growth markets in India and Brazil Potential oe to access European uopea coking coal market 14

15 Export thermal coal supply Supply unable to match demand growth Source: Braemar Seascope, Jan 10 Mid-high Energy coals Huge expansion potential New supply low energy Regulatory uncertainty? New supply high capex, mid-high energy coals Premium thermal Capacity constraints Premium thermal coals

16 Rapid growth in Indian Thermal Coal Demand Indian Power Station Build Source: Wood Mackenzie

17 Benga Coal Quality 6500 Benga Export Thermal CV GAD (kcal, kg) 6350 Ash (%, ad) 24 Moisture (%, ad) 0.9 Total Moisture (%, ar) 7 Energy (Kcal - GAR) Volatile Matter (%, ad) 20 HGI RSA Newcaslte Indo premium Established Supply Benga 6000 QLD - Galilee Benga 5500 Indo - Sub Bit Indo - Low rank Ash fusion (IDT, C) 1470 Export Thermal Coal Comparison 17

18 Thermal coal powered Benga Power Plant: Project Overview Power plant to be located within the Riversdale Mining Concession area 3365C Power plant tfuel lto be supplied from this mining i license Strategically located near future mine developments on Riversdale s 946, 945, 1319 tenements providing future opportunities for additional low cost supply Power plant development has two phases: Phase 1 : 500 MW (to use existing transmission infrastructure) Phase 2 : 3 X 500 MW (new backbone access) Market focus: Local demand EDM Regional demand Eskom and others Mine supply Framework Agreement signed Access to transmission line confirmed Suitable PPA for offtake required Discussions ongoing with potential investors 18 Environemental Approval Received Jan

19 19 Benga Seams Extend into Adjacent Tenements

20 20 Extensive portfolio of lower Karoo tenements

21 Zambeze (EPL946L) Second major project with an Initial Resource of 1.7 Bn tonnes Indicated Coal Resources of 1.7 billion tonnes estimated for Zambeze Project Intensive drilling in 2010 to expand and increase level of resource 21 1

22 Mozambique Coal Resources and Coal Reserves Benga Coal Resources (Coal Resources include Coal Reserves) Benga Coal Reserves Reserves only consider seams B, C, D, E in mining i area Measured Mt Indicated Mt Inferred Mt Total Mt Proved Mt Probable Mt Total Mt ,990 4, Ash 1% adm Zambeze Coal Resources (Initial Indicated dcoal Resource) Total Mt 1,700 22

23 Beira Port (2010) Minimal Refurbishment Required Government decision due Q Refurbishment 2 6Mtpa of capacity Sufficient for stage 1 production 18 month construction time Further Upgrade Potential Potential for new coal terminal at Beira. 20Mtpa potential under investigation Sena Railway Line Refurbishment 8Mtpa of capacity 570km railway from Moatize to Beira Construction due for completion Q Infrastructure Nacala Railway Corridor & Port (2015) Large Capacity, Deepwater port 900km from Benga Funding allocated by donor governments 120km of new track required High volume rail line upgrade required Potential capacity in excess of 40Mtpa Chinde (2012) Zambezi Barging + Transhipment Studies continuing Appears technically feasible Attractive cost structures Large capacity potential, possibly greater than 20Mtpa 23

24 Transport alternatives well underway Stage 1: Mtpa Sena line rail capacity to Beira Stage 2: 2013 Zambezi River Barging gto Chinde Capacity initially 2 Mtpa including thermal Growing to 20 Mtpa Stage 3: 2015 Rail through Malawi to Nacala Funding of US$500M by donor governments Scope for further off take funding and support 900 km rail system including 120kms of new rail Potential capacity >20 Mtpa Nacala deepwater port with dedicated coal loading terminal linto Cape size vessels 24

25 Barging on the Zambezi: a new transport option Riversdale Mining is proactively exploring the potential of barges to form a major transportation option for coal Zambezi river will become a new economic highway for Mozambique Zambezi River 525km to Chinde Barging of coal previously undertaken by South African miners in the pre independence war period Barging of sugar currently from Marromeu to Chinde and on to Beira Riversdale reconnaissance survey complete Bathymetric survey completed Each tow 8 x 2,500 3,000 t barges South East Asia style floating crane ship loader 25

26 Zululand Anthracite Colliery (ZAC) South Africa Production kt ROM kt saleable Reserves / Resources 17 yr LOM Significant expansion potential (Ngwabe block) Anthracite market Demand driven by the metal refining industry Relatively inelastic no price competitive substitutes Constrained supply from major producers (Vietnam, Russia) ZAC infrastructure Excellent infrastructure Spare capacity ZAC location Situated along the Richards Bay coal line (RBCT export port) Close to major markets (chrome, electrode paste & mineral sands) MINERAL RESOURCES & COAL RESERVES ZAC As at 30 June 2009 Resource Category Measured Indicated Inferred Gross in Situ Tonnes (Mt) Reserve Category ROM Tonnes (Mt) Proved 4.9 Probable Total 52.9 Total

27 Anthracite supply and demand Asian supply growth likely to be constrained Supply of seaborne anthracite (50 millions tonnes p.a.) Asia dominates demand for anthracite Asian imports: 83% of total Asia accounts for 95% of demand growth* South Africa Russia South Korea Other Brazil Europe 100% 3yr Demand Growth Ukraine China Japan 90% 80% Other Europe Asia Vietnam China 70% 1 Supply Demand * Demand growth of seaborne anthracite Source: Resource net 27

28 ZAC Continuous Development Acquisition from BHPB in 2005 Refurbishment of infrastructure & market development in 2006 Commissioning of Deep E block to create a long life asset in 2007 Development of Western Extension decline in 2008 Development of Ngwabe mine in 2009 Ngwabe Project 28

29 Using ZAC operational experience in Success at ZAC allows leverage of operational experience into Mozambique Exploration and Development success achieved to extend LOM Operational efficiency programme at ZAC targeting step change in productivity Significant reserves and resources potential at ZAC providing good cash flow throughout the Mozambique development schedule Leverage operational experience into Mozambique with initial transfers of key g p p q y Mozambique technical, HR and administration personnel 29 Western Extension

30 Competent Person Report Benga Coal Resources The Coal Resources quoted in this announcement are based on the Competent Person Report, Coal Resources, Benga Coal Project as at 15th April 2009, compiled by Mr Tri Yoso, who is a Member of the Australasian Institute of Mining and Metallurgy and the Resource Geologist for Riversdale Mining Limited. Tri Yoso has more than 12 years experience as a coal geologist in the resources industry involving exploration and evaluation assignments at operating coal mines and coal exploration areas in a number of coal basins throughout the world. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code. The Coal Resource estimate for the Benga Licence, (881L) Mozambique presented in this report has been carried out in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2004) prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia. Benga Coal Reserves The Coal Reserves quoted in this announcement are based on Report No 3517M, Benga Coal Project as at 15th April 2009, compiled under the supervision of Mr. Rob Mackenzie, who is a Member of the Australasian Institute of Mining and Metallurgy and is a full time employee of Minarco MineConsult. Rob is a mining engineer with extensive experience, working for over 30 years with major mining companies. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code. The Coal Reserve estimate for the Benga Licence, (881L) Mozambique presented in this report has been carried out in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2004) prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia. ZAC CoalR Resources & Reserves Information that relates to geology, drilling, mineralisation and Mineral Resources and Ore Reserves estimates for Zululand Anthracite Colliery (ZAC)isbasedoninformationcompiled by J Liebenberg, who is a member of South African Council for Natural Scientific Professions. Mr Liebenberg has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the meaning of the JORC Code. Mr Liebenberg,an employee of Zululand Anthracite Colliery (Pty) Limited has given his consent to the Public Reporting of these statements concerning geology, drilling and mineralisation in this format. Benga Coal Quality The coal quality information i in this announcement has been compiled under the supervision ii and reviewed by Mr. Andrew Meyers, who is a Member of the Australasian Institute of Mining and Metallurgy and Director of A&B Mylec Metallurgical Consultants Pty Ltd. Andrew Meyers has more than 19 years experience in coal processing and coal quality for coal projects and coal mines both in Australia and overseas. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code. Andrew Meyers consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Zambeze Coal Resources The Coal Resources quoted tdin this announcement are based on the Competent tperson Report, Coal Resources, Zambeze Project as at 12 th Otb October 2009,compiled by Mr TiY Tri Yoso, who is a Member of the Australasian Institute of Mining and Metallurgy and the Resource Geologist for Riversdale Mining Limited. Tri Yoso has more than 12 years experience as a coal geologist in the resources industry involving exploration and evaluation assignments at operating coal mines and coal exploration areas in a number of coal basins throughout the world. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code. The Coal Resource estimate for the Zambeze licence, (EPL946L) Mozambique presented in this report has been carried out in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2004) prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientistsand Minerals Council of Australia. 30