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Corporate Overview
June 2015
Cautionary Note Regarding Forward‐Looking Information: This Presentation contains ‘‘forward‐looking information’’ which may include, but is not limited to, statements with respect to the future financial or operating performance of Ram River Coal Corp. (“Ram Coal” or the ‘‘Company’’) and its mineral projects; the future prices of metals; future demand for seaborne metallurgical coal; the anticipated results of exploration activities; the estimation of mineral resources; the realization of mineral resource estimates; capital, development, operating and exploration expenditures; costs and timing of the development of the Company’s mineral properties; timing of future exploration; requirements for additional capital; government regulation of mining operations; availability of port capacity at the Ridley Coal Terminal; anticipated results of economic and technical studies; environmental matters; reclamation expenses; title disputes or claims; limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward‐looking information can be identified by the use of words and phrases such as ‘‘plans’’, ‘‘expects’’, ‘‘is expected’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’, ‘‘forecasts’’, ‘‘intends’’, ‘‘anticipates’’, or ‘‘believes’’ or variations (including negative variations) of such words and phrases, or state that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved.Forward‐looking information is based on the opinions and estimates of management as of the date such statements are made and is based on information currently available to management and is subject to a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward‐looking information. In particular such risks include: general business, economic, competitive, political and social uncertainties; results of exploration activities are lower than expected; the future prices of coal; failure of plant, equipment or processes to operate as anticipated; unanticipated events relating to health, safety and environmental matters, adverse weather condition, labour disputes and other operational risks of the mining industry; political stability of the jurisdictions in which the Company operates; availability of port capacity; unanticipated delays in obtaining governmental approvals or financing or in the completion of future studies, development or construction activities; actual costs of exploration are higher than expected; studies do not remain within budgeted amounts; and regulatory and legal requirements required for exploration or development activities change in an adverse manner. Forward‐looking information contained herein is made as of the date of this Presentation and the Company disclaims any obligation to update any forward‐looking information, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that such forward‐looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, potential investors should not place undue reliance on forward‐looking information.
This Presentation does not constitute an offer to sell, or solicitation of an offer to buy, any securities by any person in any jurisdiction in which it is unlawful for such person to make such an offering or solicitation. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information set out herein, and nothing contained herein is, or shall be relied upon, as a promise or representation, whether as to the past or future.
This Presentation includes industry data and forecasts obtained from independent industry publications, market research and analyst reports, surveys and other publicly available sources. Although the Company believes these sources to be generally reliable, market and industry data is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey. Accordingly, the accuracy and completeness of this data is not guaranteed. The Company has not independently verified any of the data from third party sources referred to in this Presentation nor ascertained the underlying assumptions relied upon by such sources.
Mineral resources are not mineral reserves and do not demonstrate economic viability. Production estimates are only based on available information and are subject to completion of anupdated economic analysis. Quoted estimates are preliminary in nature in that they are not based on a preliminary economic assessment or pre‐feasibility (or feasibility) study and arebased on estimates which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves,and there is no certainty that this preliminary estimate will be realized. There is no assurance that the quoted resource estimate reported in the Technical Report – Ram River Coal Property,Alberta prepared by Norwest Corporation and dated November 12, 2014; in whole or in part, will ever become economically viable.
NI 43‐101 Qualified Person: Lloyd Metz, a Qualified Person as defined by National Instrument 43‐101 has reviewed and approved the technical information contained in this presentation.
Cautionary StatementCautionary Statement
Ram Coal's mission is to develop its Aires coal project in Alberta into a modern, state‐of‐the‐art mining operation utilizing best Health, Safety and Environmental practices while providing sustainable benefits to local communities. Planning and operations will prioritize direct and constant communication and consultation with local communities as they are the most important partner in the development of the project.
Mission StatementMission Statement
World class metallurgical coal depositOne of the few remaining large, untapped and well‐defined coking coal deposits
ARIES PROJECTARIES PROJECT
Excellent jurisdiction and infrastructureWest Central Alberta, Canada mining area with access to road, rail, port, power, and labour; Best mining jurisdiction in Canada*
LOCATIONLOCATION
Focus on value add initiativesProgressive environmental and engineering work scopes
Strong board with proven track record of resource investment and development
WORK STREAMSWORK STREAMS
CORPORATE MAKE-UPCORPORATE MAKE-UP
MANAGEMENTMANAGEMENTExperienced Management TeamA senior management team with in‐depth experience in finance, project development, and surface and underground mining operations
* Fraser Institute, “Annual Survey of Mining Companies 2013,” March 2014Survey of Mining Companies 2013,” March 2014
HighlightsHighlights
Coal is the largest and most widespread fossil fuel resource across the globe. It is a vitalingredient for 70% of all steel production and provides 23% of the world’s energy. Coal ispredominantly used in one of two ways, in the steelmaking process using metallurgicalcoal, or the power generation process using thermal coal. While both types of coal havesimilar geologic origins, their commercial markets and industrial uses are vastly different
For perspective:
• An average car requires approximately 1.5 tonnes of coal ‐ 1 tonne of metallurgicalcoal for the steelmaking process and 0.5 tonnes for the energy requirements.
• An average wind turbine requires approximately 185 tonnes of steel, which in turnwould required approximately 100 tonnes of metallurgical coal
Metallurgical or steelmaking coal is used to make iron and steel and is an essential component of economic growth across the globe
Thermal coal is burned to produce steam to run turbines and generate electricity.
Metallurgical Coal vs. Thermal CoalMetallurgical Coal vs. Thermal Coal
1,4001,5001,6001,7001,8001,9002,0002,1002,2002,3002,400
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Dem
and (M
tonn
e)
Year
World Steel Demand
Source: World Steel Association
World Bank GDP Forecasts
Average Real GDP growth between 2015 ‐2017
• South Asia 6.5%• East Asia and Pacific 6.7%• India 6.8% • China 7%
Market DemandMarket Demand
$0$50$100$150$200$250$300$350
2005
‐03‐01
2005
‐09‐01
2006
‐03‐01
2006
‐09‐01
2007
‐03‐01
2007
‐09‐01
2008
‐03‐01
2008
‐09‐01
2009
‐03‐01
2009
‐09‐01
2010
‐03‐01
2010
‐09‐01
2011
‐03‐01
2011
‐09‐01
2012
‐03‐01
2012
‐09‐01
2013
‐03‐01
2013
‐09‐01
2014
‐03‐01
2014
‐09‐01
2015
‐03‐01
Metellurgicial Coal vrs Iron Ore Prices
Met. Coal Iron Ore
$120.00
$159.00
$104.00
$145.00
$80
$100
$120
$140
$160
$180
2014 2015 2016 2017 2018 2019 2020
$US / tonn
e
Year
Projected Hard Coking Coal Pricing
BMO MacQuarie
John H. CraigChairman
A securities lawyer with a focus on equity financings both for underwriters and issuers with an emphasis on resource companies, TSE listings, dealings with TSX and OSC for listed public companies, takeovers and issuer bids and going private transactions. Also involved with international resources in negotiation and drafting of mining, oil and gas concession agreements, joint venture agreements, operation agreements and farm‐in agreements in a variety of countries.
Lukas LundinDirector
Mr. Lundin is an internationally recognized business leader with a focus on the natural resource sector. He is head of the highly successful Lundin Group of Companies, comprised of individual, publicly traded natural resource companies. The companies range from exploration stage to advanced development and production. The companies are involved in a variety of commodities and operate in over twenty five countries worldwide. Mr. Lundin is a graduate of the New Mexico Institute of Mining and Technology (Engineering).
Carmel DanieleDirector
Founder of CD Capital Natural Resources Funds and serves as its Chief Executive Officer Over 25 years of natural resources investment experience. Previously employed at RAB Capital Ltd and Normandy/Newmont Mining. Served as a Director of Brazil Potash Corp. Carmel holds a Master of Laws (Corporate & Commercial) and Bachelor of Economics from the University of Adelaide and is a Fellow of the Institute of Chartered Accountants.
Damon BarberDirector
Mr. Barber is currently a Senior Managing Director at Liberty Metals & Mining. Over 20 years of experience in advisory and management roles in the natural resources industry, including five years in the coal industry. 14 years in the banking industry providing advice and investment banking services to natural resource companies. Mr. Barber earned a degree in mining engineering from the University of Kentucky and an MBA, with distinction, from the Wharton School of Business.
John VetteseDirector
A corporate finance and M&A lawyer and the Deputy Managing Partner of Cassels Brock & Blackwell LLP. Acted and continues to act as lead counsel for several mining companies, including previously for Consolidated Thompson.
BoardBoard
William Lamb,President
Mining executive with over 20 years of experience including extensive international experience in mining operations and projectdevelopment. William’s vast production experience includes coal, diamonds, gold, platinum, and chrome sectors. William joined the Lundin Group in 2008 as the General Manager for Lucara Diamond Corp and in 2011 was appointed President and CEO Mr. Lamb obtained his MBA from the Edinburgh Business School and holds an NHD in Extraction Metallurgy for the Technicon of the Witwatersrand
Glenn Kondo,Chief Financial Officer
A highly qualified finance professional with extensive senior executive and corporate board experience in the mining industry, including many years with Anglo American. Glenn has been directly responsible for delivering significant commercial growth internationally by leading mergers and acquisitions, raising capital finance and achieving business transformation through operational performance and project management. Mr. Kondo is a Chartered Accountant and holds a Bachelor of Commerce degree from the University of Toronto.
Tony George,Senior VP
Over 30 years experience in project development, construction, and operations. Tony has worked for the Iron Ore Company of Canada; De Beers in southern Africa and Canada, as the General Mine Manager of the Victor diamond project through feasibility, engineering, and construction stages In 2010 Tony joined the Lundin Group as Senior VP for Lucara Diamond Corp., and in January 2015 Tony joined Lundin Gold as VP, Project Development Mr. George is a Professional Engineer having graduated from the Royal School of Mines Imperial College, London, United Kingdom, with a degree in Mining Engineering, BSc (Hons), ARSM
Lloyd E. Metz,Executive VP, Mining
Over 35 years coal mining experience including extensive mountain mining experience in west central Alberta and south east British Columbia. Previously held senior roles with Grande Cache Coal Corporation for 8 years including COO, VP Operations and Development, Director of Engineering and Planning and Chief Mining Engineer. Prior to Grande Cache Coal, held various senior operating positions with both Luscar Ltd. and Elk Valley Coal Corporation. Mr. Metz is a Professional Engineer having graduated from the University of Alberta with a degree in Mineral Engineering ‐Mining.
Ken Brophy, VP, Sustainable Development
Over 18 years of experience in the mining and energy sector with a focus on exploration and development stage projects in Canada. Experience includes strategic planning for Environmental Assessments and sustainability requirements, which include regulatory compliance, Aboriginal, community and stakeholder engagement. Previously held senior roles including VP Operations and Sustainability for King & Bay West Management Corp., Director of Aboriginal and Community Affairs for Alderon Iron Ore Corp., and Consultation Lead for Nalcor Energy.
ManagementManagement
RAM RIVER COAL PROPERTY (NI 43‐101) RESOURCE ESTIMATE
Resource Estimate • 392 MtMeasured and Indicated• 105 Mt Inferred
Production Estimates 3 to 5 Mt clean coal per annum
Coal Quality
High volatile bituminous coking coal
(all on dry basis)
Past Drilling 601 drill holes completed (1970 – 2014)
SCURRY RAM PROPERTY (RESOURCE ESTIMATE)1
Historical Resource
• 265.4 Mt Inferred• 173.9 Mt Speculative
Coal Quality
Medium volatile bituminous coking
(all on dry basis)
Past Drilling 73 drill holes completed in 1974
1.King & Bay West estimate February 2015 –follows GSC 88‐21 guidelines but is not NI 43‐101 compliant
• FSI of 7.5 • volatile matter of 30.5%
• ash of 9.5% • low sulphur of 0.6%
• FSI of 6.5 • Volatile matter of 25.5%
• Ash of 9.6% • Low sulphur of 0.7%
Ram River and Scurry Ram Coal Leases cover 22,281 hectors
Overview of PropertiesOverview of Properties
Aries ProjectNorth Block – 100% Coal Resource with measured and indicated Classification
Aries ProjectNorth Block – 100% Coal Resource with measured and indicated Classification
A‐A Looking Southeast
B‐B Looking Southeast
C‐C Looking Southeast
Original topography Seam 3 Seam 2PEA Pit Outline
A
A
B
B
C
C
PEA Surface Mine Outline
Labour 40km from existing towns and an established labour pool
Roads Access to property via secondary roads
Rail 30km from railhead serviced by CN Rail; connection to CP Rail at Red Deer
Power Electrical power readily available; high voltage transmission lines within project area
PortAvailable port capacity at Ridley Coal Terminal; Westshore Coal Terminal being expanded; Fraser Surry Docks
Prince Rupert
Vancouver
Fording RiverGreenhillsLine CreekElkview
Coal Mountain
Quinsam
Victoria
Prince George
Lethbridge
Dawson CreekChetwynd
Edmonton
Grand Cache
Coal ValleyLloydminster
Obed Mountain
B R I T I S HC O L U M B I A
A L B E R T A
U N I T E D S T A T E S
N200 km
RamProperties
RamProperties
Calgary
~2,000 km toRidley Coal Terminal
~1,350 km toWestshore Coal Terminal
Cardinal River Red Deer
Canada
Infrastructure & Market AccessInfrastructure & Market Access
•495 drill holes completed between 1970 and 1981 for a total of 51,504m of drilling
• Suitable underground portal sites were identified
•Coal washability testing (1974)
• Preliminary engineering and economics study (1982)
• Feasibility study (1989)
Pre Acquisition
•Acquired the property in December 2012
•NI 43‐101 Technical Report by Norwest Corporation
•Preliminary Economic Analysis by Norwest Corporation
•93 holes drilled for a total of 11,408m, including 2 bulk samples
• Initiated Environmental Baseline studies
• Initiated Stakeholder and Aboriginal engagement
Post Acquisition
•Redesign mine plan to reduce environmental footprint
• Evaluate mine sequencing to reduce operating and capital cost.
• Consultation with stakeholders and Aboriginal groups
• Engagement with Regulators on permitting process
•Continuation of aquatic baseline collection
Current Work Streams
Development Work to DateDevelopment Work to Date
Ram Coal is committed to the principles of responsibleand sustainable development.
1. Health/Safety and Environmental compliance;2. Social acceptability; and3. Technical feasibility
Engagement with Aboriginal communities and stakeholders is critical to meet these deliverables.
Sustainable Development
Economic
Environmental Social
Sustainable development can be defined as fulfilling the needs of today without compromising the needs of future generations.
Sustainable Development principles are essentially all about Balance
Sustainable DevelopmentSustainable Development
Ram Coal is committed to Socially Responsible Development. Our focus is on delivering value to our shareholders while simultaneously aiming to provide economic and social benefits to affected communities.
Steps taken thus far include
Active discussions and negotiations with potentially affected Aboriginal groups Participation in environmental baseline collection process Site visits Negotiation of Memorandum of Understandings (MOU)
Proactive environmental baseline collection on key areas of interests Air Quality Aquatic Terrestrial
Continued engagement with various levels of government and regulators Federal, provincial, municipal
Meaningful engagement with local stakeholders and community groups
Continually investigating ways to minimize our environmental footprint
Corporate Social ResponsibilityCorporate Social Responsibility
www.ramcoal.com
CONTACT US
Vancouver Office2000 – 885 West Georgia StreetVancouver, BC, Canada V6C 3E8Phone: 604‐689‐7842Fax: 604‐689‐4250
Calgary OfficeHanson Square ‐ Lower Mount Royal909 ‐ 17th Avenue SW, Suite 400Calgary, AB, Canada T2T 0A4Phone: 587‐390‐3136
Thank You
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