Henry Fahman, PHI Group - From coal mining to power generation

2ND ANNUAL KALIMANTAN

COAL CONFERENCE

From coal mining to

power generation

September 4-5, 2013

Established June 1982

Trading Symbol: PHIL

SAFE-HARBOR LANGUAGE

- This presentation may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential sales, the success of the company's business, as well as statements that include the word "believe" or similar expressions. - Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of PHI Group, Inc. to differ materially from those implied or expressed by such forward-looking statements. Such factors include, among others, the risk factors included in reports filed with the SEC under the Exchange Act. - This presentation speaks as of the date first set forth above and PHI Group, Inc. assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, timely development of products and services, inability to deliver products and services when promised, inability of potential customers to pay for ordered products and services, and political and economic risks inherent in international trade.




! A Nevada (US) corporation

! Founded: June 1982

! Publicly traded: PHIL

! Authorized capital:

- 300 million shares common stock.

- 100 million shares preferred stock.

- Common stock I/O :12,075,017 shares

- Total I/O expected to increase following

acquisitions.

! Business focus:

Energy and Natural Resources.



A. DOUBLE-TRACKED ENERGY STRATEGY:

I.   CONVENTIONAL ENERGY:

1.  Acquisition of energy assets, Joint Operations, J.V. s

2.  Independent Power Plant Development

3. Carbon Capture and Storage

II.  RENEWABLE ENERGY:

1.  Wind power, Airborne wind turbine (AWT)

2.  Hydro-magnetic wave system, etc.

B. NATURAL RESOURCES:

Gold, copper, limestone, agricultural

C. TRADING ACTIVITY:

Coal, oil products, LNG, gold, gems, etc.

D. SPECIAL SITUATIONS

Petrobras bonds, Brazil




Source: Global Sun Wind & Power Corp., NV, U.S.A. (helicoptering mechanism)



Systems installed in 12 countries – Source GSWP, Neveda, USA



AWT system: lower mass, lower capital cost ($US1/Watt) – Source Makani Power, Inc.



Makani Power AWT system – Source Makani Power, Inc.



Wave Pump: Power = Water pressure * water volume per minute - Source GDS, USA .



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Hydro-magnetic gravitational wave system – Source GDS, Conroe, Texas, USA.



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POPDICE CO2 extraction and capture design – Source Oceanoco, Inc., USA.



FROM MINING TO POWER GENERATION

THE RATIONALE

PURPOSE: To participate in and contribute

towards providing sustainable solutions to the

global energy demand.

CRITERIA: - Points of entry in value chain that

can create/add most value.

- Synergistic relationships to

improve effectiveness and efficiency.

- Maximizing applications of

technological advances.

REASONS: - Growing energy demand.

- Environmental concerns.



Key findings - International Energy Outlook 2013 Courtesy US Energy Information Administration

"  With world GDP rising by 3.6 percent per year, world energy use will

grow by 56 percent between 2010 and 2040. Half of the increase is

attributed to China and India.

"  Coal grows faster than petroleum consumption until after 2030,

mostly due to increases in China s consumption of coal, and slow

growth in oil demand in OECD member countries.

"  Renewable energy and nuclear power are the world s fastest-

growing energy sources, each increasing by 2.5 percent per year;

however, fossil fuels continue to supply almost 80 percent of world

energy use through 2040.

"  Natural gas is the fastest growing fossil fuel in the outlook,

supported by increasing supplies of shale gas, particularly in the United

States.

"  Given current policies and regulations, worldwide energy-related

carbon dioxide emissions are projected to increase 46 percent by 2040,

reaching 45 billion metric tons in 2040.



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Courtesy US Energy Information Administration



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Courtesy US Energy Information Administration

ENERGY-RELATED CO2 EMISSIONS

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Additional coal-fired power plants by end of 2013 (PLN & IPP) – Courtsey PLN



Indonesian Fast Track Project Phase II - 10,000 MW

#  PLN: 26 Projects; 3,757 MW (37%)

Coal-fired PP: 8 projects, 1,804 MW

Coal-gas PP: 8 projects, 64 MW

#  IPP: 72 Projects; 6,290 MW (63%)

Coal-fired PP: 19 projects, 1,221 MW

Source: Indonesian MoEMR, Reg. No 01/2012




Vietnam power demand forecast Courtesy Electricity of Vietnam, 4th VietPower Summit



Vietnam s aggregate energy production projection - 2030 Courtesy Electricity of Vietnam, 4th VietPower Summit

Vietnam s investment in coal power generation to 2030

" Currently in operation: 13 coal-fired plants,

6,746 MW

"  2020: 36,000 MW, to produce 156 Billion kWh and

consume 67.3 million MT of coal.

"  2030: 75,000 MW, to produce 397 Billion kWh and

consume 171 million MT of coal.

(Decision No.1208/QD-TTg, July 21, 2011 of the Prime Minister, Vietnam)





TOTAL DEMAND OF COAL FOR VIETNAM S DOMESTIC

MARKET

#  2015: 56.2 million tons.

#  2020: 112.4 million tons.

#  2025: 145.5 million tons.

#  2030: 220.3 million tons. Courtesy MOIT - Vinacomin, 4th VietPower Summit

VIETNAM S DEMAND OF COAL FOR POWER GENERATION (basic plan)



#  2025: 112.7 million tons.

#  2030: 181.3 million tons.

Courtesy MOIT - Vinacomin, 4th VietPower Summit



VIETNAM S COAL RESOURCES: - Total 48.7 BMT (measured and indicated 2.75 BMT:

6%; inferred & prognostic resources: 94%

- Northeast area: 8.7 BMT (anthracite).

- Red River Delta Coal Basin: 39.3 BMT (sub-bituminous).

- Some anthracite and fat coal deposits in Northern provinces

and peat in Mekong Delta.

- Production projections (Vinacomin): 2010: 47.5 million MT; 2015: 64.7 million MT; 2020: 74.6 million MT; 2025: 82 million

MT. Courtesy MOIT - Vinacomin, 4th VietPower Summit



VIETNAM S COAL EXPORTS:

#  Reduced from 24.8 MMT in 2007 to 17 MMT in

2011.

#  High quality coal to EU, Japan, Korea, Taiwan and

India.

#  Continued reduction ahead: 2012 (14.5MMT), 2013

(11.5MMT), 2014 (9.5 MMT), 2015 (4 MMT).

# Vinacomin plans to maintain 4-6 MMT/year of high

quality coal exports. Courtesy MOIT - Vinacomin, 4th VietPower Summit



VIETNAM S COAL EXPORTS - Courtesy MOIT – Vinacomin



- Courtesy MOIT – Vinacomin



Vietnam's coal import for power plants through 2030 - Courtesy EVN, 4th VietPower Summit, 2013



COAL MINING DEVELOPMENT AND EXECUTION PLAN

#  Building a portfolio of energy assets via acquisitions of

concessions, joint operations, and joint ventures in Indonesia,

Australia, and North America.

#  Engaging local partners and fostering long-term value creation.

#  Engaging industry experts to assist in due diligence review:

technical, legal, financial, environmental, social.

#  Utilizing services of established mining contractors for

production and operation.

#  Funding acquisitions and operations through public capital

markets, private equity, institutional investors, and strategic

alliances.

#  Emphasizing sale and marketing through long-term relationships

with end-users.



COAL MINING DEVELOPMENT PROGRESS #  At various stages: the Company has entered into preliminary and

definitive agreements with a number of opportunities in Sumatra,

Kalimantan, and West Sulawesi and has identified and investigated

other prospects in Australia and North America .

#  Establishing relationships with international mining consultants

and mining contractors that can undertake various projects.

#  Having worked closely with investment bankers and institutional

investors in North America, Europe, and Asia that participate in

energy and mining projects of various scales.

#  Building a network of buyers, end users, and trading companies

that deal with coal and other energy commodities.

#  Cooperating with industry experts and government agencies with

regard to policy making and implementation.

#  Investigating and engaging advanced technologies to provide

better solutions for conventional energy and renewables.



IPP DEVELOPMENT AND EXECUTION PLAN

#  Identifying and investigating opportunities for IPP development.

#  Engaging qualified local and international partners.

#  Selecting projects for development.

#  Engaging domain experts for related disciplines.

#  Providing and/or arranging capital.

#  Providing and/or arranging technologies and technical services.

#  Retaining equity interest in projects

#  Committing secured supply for IPP s via proprietary coal mining.

#  Participating in oversight of EPC activities.

#  Promoting POPDICE technology for CO2 capture.



IPP DEVELOPMENT PROGRESS #  Identifying and investigating opportunities for development of

coal-fired power plants and wind power projects in Vietnam, Africa,

and Honduras together with our partners.

#  Engaging three Vietnamese companies and a dozen international

partners in various disciplines related to power generation (Pacific

Energy Network, SNC Lavalin, Cross Border Ventures, McNally

Bharat, GE, Harbin Bofa, EGAT, Global Sun Wind & Power, etc.)

#  Selecting and reviewing projects for imminent development.

#  Working with Vietnamese MOIT to select 2nd-phase projects.

#  Cooperating with institutional investors, strategic alliance, and

government agencies to arrange capital for projects.

#  Ensuring availability of necessary technologies and technical

services as needed through international partners .

#  Preparing to commit supply for IPP s future usage when needed.



CHALLENGES IN COAL MINING AND IPP DEVELOPMENT

#  Regulatory uncertainties.

#  Finding good projects and right local partners.

#  Securing adequate, timely and appropriate capital.

#  Engaging optimum international partners and suppliers.

#  Learning curve associated with new market entry.

#  Building sustainable competitive advantage.

#  Managing expectations of all stakeholders.



LESSONS LEARNED AND CLOSING THOUGHTS

#  Take the long view.

#  Be patient and keep learning.

#  Mind the economics.

#  Build long-term relationships.

#  Take advantage of technological advances.

#  Strive for a greener planet.

#  Be a change agent (keep trying).



THANK YOU!

Contact info:

Henry Fahman

Tel: +1-714-642-0571

Email: [email protected]

Website: www.phigroupinc.com