Riversdale Mining Limited

Corporate Presentation
September 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.
 Riversdale Corporate Profile

Corporate Information Share Register Composition

Market Cap
@ $9.49 per share A$2,240 million
6 Sep 2010

Shares 236 million

Options 7 million
Net Cash A$ 560 million

Major Shareholders
Tata Steel 24.2 %*
Passport Capital 17.2 %
CSN 16 %

Source: Thomson Reuters, as 31 July 2010

* As of 27/08/2010. Other registry information as per date above

2
 Riversdale Share price Performance

ASX: RIV
(% Increase since 2 Jan 2009) Current Share Price A$9.49 (6 Sept 2010)

All Ordinaries (XAO)

Riversdale Mining (RIV)

3
 Recent Coal Asset Transactions

Transaction Multiples Suggest Riversdale is Potentially Undervalued

(A$/t of coal resource) – Riversdale will produce prime hard coking coal

Hard Coking Coal Assets

Semi-hard/Soft/Weak Coking Coal Assets
Thermal Coal Assets

Transaction Average

RIVERSDALE
May-09

Nov-09

Aug-10

Aug-10

Aug-10
Aug-09
Dec-07

Apr-10

Jul-10

Jul-10
Jul-08

Source: RBCCM Estimates, Credit Suisse Estimates

Data shown on a raw transaction multiple basis. Includes producing assets and assets producing both low quality coking coals + thermal coal
UG denotes assets with 100% underground coal resources. Riversdale (EV as of 6/9/10)
 Market Valuation of Reserve & Resources

Valuation multiples
(EV A$/t of resource) (EV A$/t of reserve)

Global Average

Global Average
RIVERSDALE

RIVERSDALE
Source: JP Morgan Estimates (12/8/10), Riversdale (EV as of 6/9/10)
Data shown on a raw transaction multiple basis. Includes producing assets and assets producing low quality coking coals + thermal coal. Non-weighted global averages
*Only includes companies with a minimum of 20% coking coal sales (actual or projected). RIV multiple based on Benga’s current reserve base of 502Mt
 Mozambique’s Role in the World of Coal

6
 Major Seaborne HCC Exporters: 2010

Global Seaborne Hard Coking Coal Market Seaborne HCC Market

(Mtpa)
• Heavily consolidated supply side

• Little opportunity for consumers to diversify

supply sources
Australia
• Dominated by Australian exporters 110 Mt
(64%)
• USA & Canada supply less than a third of the
market

• ‘Rest of World’ producers provide minimal USA

tonnage 29 Mt
(17 %)

Canada
18 Mt
(11 %)
Poland, China
Russia, NZ,
Others
15 Mt (8 %)

Source: Wood Mackenzie, Metallurgical Markets 2009

7
 Major Seaborne HCC Exporters: 2025

Global Seaborne Hard Coking Coal Market Seaborne HCC Market

– In 2025 (Mtpa)
Mozambique
• Mozambique will be established as the 55 Mt
world’s new source of premium hard coking
coals Australia (18%)
154 Mt
• Australian exports expected to see large (50%)
volume growth, yet market share will fall

• ‘Rest of the World’ expected to increase Poland, China

share of market Russia, NZ,
Indonesia, Others
• USA and Canada volumes see modest 46 Mt (15 %)
increases

Canada
27 Mt
(9 %)

USA
25 Mt
(8 %)

Source: Wood Mackenzie, Metallurgical Markets 2009

8
 Coking Coal Supply Routes
Key Markets within striking distance

Major Minor

Exporter
Importer

Mozambique

9
 Major Steel Projects: Positioned for Imports

China: Existing and Planned Blast Furnace China’s South Coast Steel Projects - Long
Operations Term Coking Coal Importers
• China’s shift to a net importer is not
temporary – a structural shift has taken place
• Domestic market balance has a significant
impact on the seaborne market.
• 570Mt (Domestic met coal) Vs. 270Mt
(Seaborne market)
• Will be increasingly dependent upon
seaborne hard coking coals
• A long-term ‘wild-card’ in hard coking coal
Selected coastal steel mill projects include:
• Wuhan Iron & Steel (WISCO) – 10 Mtpa
Few Many China Met Coal Imports Fangchenggang Project in Guangxi, SE Coast
Blast Furnace • Anshan Iron & Steel – 10Mtpa
Major Regions of Fujian I&S JV Project in Fujian SE Coast
Expansion
2008 2020 • Baosteel – 10Mtpa
Tier 1 mill coastal
expansion project
7Mt  51 Mt Zhanjiang Project in Guangdong, SE Coast

Source: Wood MacKenzie, McCloskey

10
 Major Steel Projects: Positioned for Imports

India: Existing and Planned Blast Furnace India’s met coal import growth – Forecast
Operations to exceed China’s
• Significant crude steel production expansions
are planned
• May 2010 India’s steel minister, Virbhadra
Singh: “current production (60Mt).. By 2011-
12 should increase to at least 120Mt ...“
• Unlike China, India is completely dependent
upon imported coking coals – Domestic
production is 6Mt vs. China 570Mt
• A natural market for Mozambique coals
Selected coastal steel mill projects include:
Few Many Indian Met Coal Imports • ArcelorMittal, POSCO Projects – Circa 50Mt
Under feasibility in Karnataka, Orissa & Jharkand
Blast Furnace

Major Regions of
• Major Domestic Mills – 50Mt+ Feasibility
Expansion
2008 2020 Tata, SAIL, Essar, JSW, JSPL – East/South Regions
Tier 1 mill coastal
expansion project • Emerging Mid Tier Mills – Integrated facilities
27 Mt  89 Mt Electrosteel, Bhushan – Feasibility & Construction

Source: Wood MacKenzie, McCloskey

11
 Major Steel Projects: Positioned for Imports

Brazil: Existing and Planned Blast Furnace Brazil – a low-cost crude steel production
Operations base set to expand
• Dependent upon imported coking coals
• Long freight distances from major Met coal
supplies
• 28% of Brazilian Met coal imports from
Australia in 2008 & approximately 20% in
2009
• A natural market for Mozambique coals
Selected coastal steel mill projects include:
• CSN – Itagui & Minas Gerais Projects – 9Mtpa
• USIMINAS – Ipatinga – 5 Mtpa
Few Many Brazil Met Coal Imports
• MMX / WISCO JV – Port of Acu – 5 Mtpa
Blast Furnace
• Vale / ThyssenKrupp JV – Septiba – 5 Mtpa
Major Regions of
Expansion
2008 2020 • Vale / Dongkuk Steel JV – Ceara – 3 - 6 Mtpa
Tier 1 mill coastal
expansion project
18 Mt  38 Mt

Source: Wood MacKenzie, McCloskey

12
 Mozambique: An Opportunity for Indian
Thermal Coal Consumers
India’s economy is structurally short of India’s Power Station Build: 2010 - 2020
electricity generation capacity
• Major coal-fired power plants are being
constructed with numerous sites in the
feasibility stage

• Mozambique thermal coals represent an

opportunity for India’s rapidly growing
thermal coal market

• Mozambique coals will have a freight Indian Thermal Coal Demand

advantage over Australian and South African (Mtpa)
thermal coals into the west coast of India. Power Generation
General Industry
Indian Coal Imports (RHS)

• Long-term supply diversification prospect

• Riversdale is well placed to supply into

India’s West Coast – the country’s biggest
regional market

Source: Wood MacKenzie

13
 Riversdale’s Role in Coal

14
 Success at ZAC: Ability to Leverage
Experience into Mozambique
Using ZAC operational experience in
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
technical, HR and administration personnel

15
 Riversdale in Mozambique
Riversdale has been operating in
Mozambique since 2006
• The company has developed a strong
relationship with the Mozambique
government

• Significant progress continues to be made

across all aspects of the projects

• Key Milestones:
 Completion of A$337 million Capital Raising (July 2010)
 Announcement of Zambeze MoU w/ WISCO (June 2010)
 Zambeze Resource Upgrade (May 2010)
 Benga Reserve & Resource Upgrade (May 2010)
 Announcement of FS – Benga 20Mtpa ROM (May 2010)
 Benga Mine Officially Opened (April 2010)
 Benga Mining Contractor Selected (April 2010)
 Benga Environmental Approval (EIS) (January 2010)
 Benga Power Environmental Approval (EIS) (January 2010)
 CHPP Supply Contract Signed (December 2009)
 Benga Mining Contract Approved (April 2009)

16
 Riversdale’s Tete Region Tenements

Zambeze
Project

Benga
Project

Substantial tenement holding in the Moatize Basin

– The Next Major Coal Region
• Tata Steel hold a 35% equity stake in Benga and 1319 tenements
• All other licences are 100% held by Riverdale (Pending MoU with WISCO at Zambeze only)
• Globally significant resource companies hold licences directly adjacent to Riversdale
landholdings, including Vale, CAMEC (ENRC), Nippon Steel, Jindal and ETAStar
• Coking coal quality is equal to the Bowen Basin
17
 Benga Project Overview
Benga Project – Overview Joint venture with Tata Steel (RIV 65%/Tata 35%)
• 40% life of mine coking coal off-take agreement with
Tata Steel
Zambeze Project • 10% life of mine coking coal off-take agreement with
WISCO (pending definitive agreement w/ WISCO)
Large, open cut mine with planned full production
of 20 Mtpa ROM coal
• Hard coking coal production of 6.0Mt and export
thermal coal production of 4.0Mt
Key development milestones have already been
reached
• Mining Lease granted for 25 years
• Environmental Approval awards (Mining & Power)
Tenement holders
• Stage 1 development approved
RIV (100%) RIV (65%) TATA (35%) JV (inc Benga) Vale

Benga – Coal Reserves & Resources

Coal Resources (Mt) (JORC Compliant) Coal Reserves (Mt) (JORC Compliant)
Measured Indicated Inferred Total Proved Probable Total
710 362 2,960 4,032 346 156 502

Ash % @ 1% adm 43.9 44.5 44.1

18
 Benga HCC Overview

Comparison With
Premium Hard Coking Coal Quality QLD Hard Coking
Benga Coal Brand Coal Brand
Premium A* B*
Coals
• Hot Strength (CSR) and Cold Strength (M40)
CSR 68 68 68
equal to benchmark premium HCC
M40 81 80 83
• Specifications independently verified by Tier
1 international steel mills Rank (Ro Max) 1.37 1.17 1.33

• Superior carrying capacity – Measured by Volatile Matter (%, ad) 23.1 23.8 20.4
Gray King & Vitrinite – allows blending with
Ash (%, ad) 10.5 8.9 8.5
cheaper, soft coking coals in coke blends
Gray King G9 G6 G5
• Low Slag Volumes due to low alumina levels
Sulphur (%, ad) 0.83 0.52 0.35
• Benga HCC can improve blast furnace
Phosphorus (%, ad) 0.08 0.02 0.075
performance where iron ore supplies contain
higher alumina levels Predicted Coke Ash 13.6% 11.6% 10.7%

Al2O3 in ash 25.8% 31.3% 30.2%

• Asia’s primary iron ore supplies contain
comparatively high levels of alumina Predicted Slag
volume per 100 kg of 25.92 27.89 24.05
• Coal Brand A & B are established Prime HCC’s coke**

from the Bowen Basin in QLD, Australia Q4 2010 Settlement US$209/t US$209/t

Source: Riversdale Technical Studies, Barlow Jonker

** Assumed 14% Al2O3 in slag

19
 Benga to Produce Prime HCC Products

Benga coking coals

Prime Hard
Coking Coals

Source: Riverdale Technical Studies

20
 Benga Progress

Benga Hard Coking Coal Benga’s First Pit – March 2010 His Excellency Armando Emilio Guebuza

Benga CHPP Clearing Core Yard, Project Office & Construction Riversdale’s Team at Tete, Mozambique
Camp

21
 Benga Power Plant: Project Overview

Located Within the Benga Lease

• Power plant fuel to be supplied via conveyor
& strategically located near future mine
developments
Two Phases of Development
• Phase 1 : Up to 600 MW (existing
infrastructure)

• Phase 2 : Up to 2,000 MW total

Milestones accomplished
• Framework Agreement signed

• Access to transmission line confirmed

• EIS Government Approval

• Suitable PPA for offtake required

• Discussions ongoing with potential investors

22
22
 Zambeze Non-Binding MoU

Riversdale Mining has signed a MoU with Top 5 Crude Steel Producers 2009
WISCO and China Communications Mtpa
Construction Company (CCCC)
• 40% equity stake in the Zambeze Project for a
cash consideration of US$800 million

• Comprehensive study of mine-to-ship

logistics to enable the export of bulk
tonnages of coal products from the Zambeze
Project to ports for export markets

• WISCO is the 4th largest crude steel producer

in the world

• CCCC brings significant barge and port

technical expertise and experience

Source: Citi

23
 Zambeze Project Overview
Zambeze Project overview
World-class Tier 1 HCC project
• Adjacent to the Benga Project – potential synergies
• 40% life of mine coking coal off-take agreement with
WISCO (subject to definitive agreement)
Conceptual mine plans are being developed for the
project
• Large volume, long-life mine
• Potential for larger scale development than Benga
• Products to comprise hard coking coal and export
Benga
Project*
thermal coal
• Potential LT target of 90 Mtpa ROM under
investigation
Tenement holders
RIV (100%) (Pending definitive agreement w/ WISCO)
RIV (65%) TATA (35%) JV (inc Benga)
Vale

Zambeze – Coal Resources

Coal Resources (Mt) (JORC Compliant)
Indicated Inferred Total
2,365 6,680 9,045

24
 East Tete Licenses
East Tete Licenses overview
1242L, 945L, 948L, 937L, 935L – ‘East Tete’
Licenses
• 100% Riversdale ownership
• Ability to leverage off Benga and Zambeze logistics
Zambeze
Project systems
• Benga coal seams extend into adjacent tenements
Benga 945L is immediately adjacent to Riversdale’s
Project*
Benga and Vale’s Moatize projects
• Riversdale will target its 3rd Tier 1 HCC operation

Tenement holders
RIV (100%) (946L Pending definitive agreement w/ WISCO)
RIV (65%) TATA (35%) JV (inc Benga)
Vale

Riversdale has an exceptional exploration track record

• Spend of US$90m on exploration in Mozambique (up to May 31st 2010) has yielded a total coal
resource of 13,077 Mt.
• Equates to a world-class discovery cost of approximately 0.7 US ₵ per tonne of coal resource

25
 Benga Stage 1,2 & 3: Infrastructure Access

Refurbished Berth 8 – Beira Port

• Riversdale’s Stage 1 products will be
exported at the existing Beira Port

Beira New Coal Terminal

• Mozambique Gov is planning for a new
Beira coal terminal with 18 - 24mtpa of
capacity
The Completed Sena Railway Line
• Benga expansion coincides with completion
of the planned Beira port and rail expansion

Sena Rail
• Completed capacity ensures Stage 1 project
requirements
• Expansion potential includes double
tracking, passing loops, signalling & bridge
upgrade
Berth 8 at the Beira Coal Terminal

26
 When the Zambezi was the Mississippi

The Zambezi river would become a new

economic highway for Mozambique
...as it was in the past

• 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 Mining is proactively exploring the

potential of barges to form a major
transportation option for coal

• Detailed technical and environmental studies

are ongoing

Source: Top: Barge flotilla on the Madeira River, Brazil, Bottom: St. Louis coal barge

27
 Zambezi River Barging

Key Completion Milestones

• Barging Prefeasibility Study – Dec 2010

• Environment and Social Impact Assessment

(ESIA) Submission – Jan 2011

• FS Study for investment decision – Mar 2011

• Target Date for Environmental Approval – The “Tafica” (18m) – Riversdale’s primary work barge
Jun 2011

• Target Commencement of Barging

Operations – Late 2012 / Early 2013

The “Benga” (10m) – Multi-Purpose vessel for river and coastal studies

28
 Technical River Studies

Well Progressed
• Full bathymetric survey (river and ocean
depth profile) from mine to ship

• Navigable river channel mapped, basis of

ongoing technical simulations

• Vibracoring program for sampling river

sediment to aid channel design is underway

• Metocean program commencing in October

to assess offshore wind and wave data

• ‘In-fill’ surveying is ongoing to expand

Zambezi river data set

• Dynamic simulations of barging/ shuttle/

transloader operations to optimize channel
and fleet combinations underway

Conceptual Barge Channel

Source: Riverdale Technical Studies

29
 River Fleet Studies

Riversdale Zambezi River Fleet Schematics Detailed Design Work is Complete

• Top: Pushboat and 8- barge flotilla. A
‘typical’ convoy will be up to 300m long and
35m wide.
Each barge to carry 2,500 – 3,400t (20,000t –
27,000t per 8 barge convoy), dependent on
prevailing channel depths.

• Middle: Single barge. Raked bow allows river

barges to also operate in coastal waters.

• Bottom Left: Pushboat. High-power, Highly

manoeuverable, Z-drive vessel will push the
barge convoys in river segments.

• Bottom Right: Shuttle/Ship-handling tug.

Designed to tow barges in coastal waters
from river mouth to offshore transhipper

Source: Actual Riversdale Mining Designs

30
 Riversdale Barging Studies: Work Timeline(a)
2010 2011 2012 2013 2014 2015
H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
Environment & Social Impact Assessment (ESIA)
Specialist Studies (Flora and Fauna) 90% Complete – Due October 2010

Social Assessment & Community Consultations: ESIA

ESIA Submitted for Environmental Approval January 2011

Riversdale Technical Studies

Full Length River Survey  Complete

Zambezi River Channel Design  Complete

Fleet Design  Complete

‘Infill’ River Surveying Work

Dynamic Simulation Modelling

Convoy Optimisation

River Samples (Vibracoring) August 2010 – December 2010

Metocean Studies (Wind & Wave Data @ Chinde) October 2010 – October 2011+

PFS Submission Date December 2010

FS Submitted for Investment Decision March 2011

Target Date for Environmental Approval June 2011

Major Contract Lead Times

Target Commencement Date Late 2012 / Early 2013

(a) Subject to Government Approvals

31
 A Case Study: The Bowen Basin
A template for the Moatize Basin

The Bowen Basin, QLD Australia The World’s Premium Coking Coal Basin
Abbot Point
Then:
Port Facility • Established through the 1960’s & 70’s by
Mine
Deposit Utah Development Corp.
Railroad
• 7 mines developed in succession across a
DBCT decade
Hay Point
• Allowed for the development of large scale
infrastructure

Now

• 170Mt of exports from QLD in 2010

• Numerous mines serviced by multiple rail

Gladstone and port facilities

Source: QLD Gov, McCloskey

32
 A Case Study: The Bowen Basin
A template for the Moatize Basin

The Moatize Basin, Mozambique The World’s Next Major Coking Coal Basin
Port Facility
Barge / Now
Transhipment
Deposit • Poised to become the world’s newest coking
Railroad Nacala coal export basin

• 3 large scale mines under development

25 – 50+ Mt
• Riversdale’s Benga & Zambeze projects, as
well as Vale’s Moatize Project

Chinde • Riversdale targeting a 3rd HCC operation

The Future
Beira
• 55Mt of exports by 2025*

• Numerous mines serviced by multiple rail,

barge & port facilities

*Source: Wood Mackenzie, Metallurgical Markets 2009

33
 An Alternative, Independent Supplier of
Coking Coal

34
 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 18th May 2010, 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. Tri Yoso consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Benga Coal Reserves

The Coal Reserves quoted in this announcement are based on Report No 3517M, Benga Coal Project as at 18th May 2010, 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. Rob Mackenzie consents to the inclusion in this announcement of the matters based on his information in the form and context in
which it appears.

ZAC Coal Resources & Reserves

Information that relates to geology, drilling, mineralisation and Mineral Resources and Ore Reserves estimates for Zululand Anthracite Colliery (ZAC) is based on information compiled
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 in this announcement has been compiled under the supervision 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. Andrew Myers 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 in this announcement are based on the Competent Person Report, Coal Resources, Zambeze Project as at 31st May 2010, 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 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 Geoscientists and Minerals Council of
Australia. Tri Yoso consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

35