Baby’s Day Out

India – Australia Relationship

Gujarat NRE – Proud to play our part

It is a fact that……

• Coking Coal is in severe short supply globally

• India does not have enough coking coal to sustain her steel dreams

• She has to depend on imports – primarily from Australia

• Other potential sources, like Mozambique are untested and about a decade away from commercial viability

Australia Has all the coking coal that INDIA Needs

- Huge potentials

- Short term

Bottlenecks

notwithstanding

We bought

The coking coal mines, once the world energy giants thought worked-out and not worth keeping

These century old mines

Have been transformed into new mines and have become one of the prime coking coal assets of NSW

Advantage Australia

Democratic traditions

Shared commonwealth traditions

English speaking population

Strong, stable Government where Rule of

Law prevails

Industry friendly, proactive bureaucracy

India has Law

China has Order

While

Australia has both Law & Order

We went there to procure raw materials

Identified the

immense

potential

I Stayed

Back to

become a

proud

“Indian

Australian”

And Australia taught me

The values of thinking and acting long

term

Long term in the off-take contracts

Long term in the shipping contracts

Long terms in establishing friendships

WHAT IS MORE IMPORTANT

Is the excellent support that we have received from both the federal government and the state government

Austrade did the initial handholding and is even today always a friend in need

The local state government of NSW has been very receptive to our investment and had been a great facilitator in the process of mine acquisition.

The mine expansion approvals and clearances are always handled in a transparent manner.

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GUJARAT NRE MINERAL RESOURCES LTD

A VERTICALLY INTEGRATED

GLOBAL RESOURCE PLAYER

In the most lucrative business of coking coal and met

coke whose supply is perennially short of rising

demand

Steady supply of hard coking coal of one of the best

qualities available globally – offsetting the volatility

in this commodity market

Diversified to petroleum in the resource rich

Australia

Experienced Management

Robust track record of rewarding shareholders

Our Strengths

Although India has large coal reserves it is very short of prime HCC

Domestic Coking coal is:-

o High ash

o Tends to have poor coke strength

o Requires imported high quality HCC for blending

o Not really suitable for PCI

Production of domestic coking coal has declined since 2004

Coke production has risen by almost 30% since 2004 and is poised to grow further

The future of India’s coking coal is Imports

FORECAST OF INDIAN COKING COAL

IMPORTS ( IN MT)

Source: various reports and internal estimates

INDIA AS A COKE EXPORTER

• Why India? At first glance not a natural coke exporter due to:

– Poorer quality coking coals

– Strong domestic demand growth

– Traditional significant coke importer

– Limited deep water ports

• However, some advantages

– Rapidly growing merchant coke producer

– Adoption of quick to build non recovery, heat recovery ovens

– In between Atlantic and Pacific markets

– Has already sold coke to Brazil, Japan, SE Asian and European countries

• Emerging Huge Void - In 2007 Chinese export was 15 Mt which got reduced to 12 Mt in 2008 and in 2009 it stood at just over an ½ Mt, recovering to ~3Mt in 2010

Coke Exports by Gujarat NRE

• Brazil

• France

• Japan

• Argentina

• SE Asian Countries

In addition to meeting the increasing domestic coke demand, Gujarat NRE

Coke has been tapping the opportunity in met coke export market – to fill in

the void created by global short supply

78%

9%

6%

4%3%

Brazil

France

Japan

Argentina

Slice 5

GNCL - A SNAPSHOT

Largest independent producer of Metallurgical Coke in India

Profit earning and dividend paying with strong financials and credit rating of AA- for long term borrowing and PR1+ for short term borrowing.

Met Coke capacity 1.434 MT, being increased to 4 MT by 2015.

The 1st Indian Company to have exported Met Coke from India and has a continuous export order book

Strong focus on the Environment with ISO 14001:2004 & OHSAS 18001:1999 certification

Rated one of the top 10 company by 10-years profit performance issued by Business Today on India’s Most Valuable Companies (Nov 2009 edition)

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GNCL OPERATIONS

HARD COKING COAL

(NSW, AUSTRALIA) RESERVES 125 MMT

RESOURCES 651 MMT

LOW ASH

METALLURGICAL COKE

1.434 MMTPA

Gujarat NRE Coking Coal Limited (ASX: GNM)

NRE NO. 1 – 92 (314) million tonnes

NRE Wongawilli – 33 (337) million tonnes

STEEL UNIT TMT BARS : 0.311 MMTPA

BHACHAU (Kandla) 0.504 MILLION MTPA

KHAMBALIA (Jamnagar) 0.358 MILLION MTPA

Waste Heat Recovery Power Plants

Khambhalia* 15 MW

Bhachau* 15 MW Dharwad* 30 MW Total 60 MW

Wind Power 87.5 MW

In Australia In India

Coal Washeries

Khambalia 0.75 Bhachau 0.75

Dharwad 0.90

* Under implementation

DHARWAD (Hubli) 0.572 MILLION MTPA

Sl. No.

Particulars % of Holding

1 Promoter Group 46.03

2 Banks, Mutual Funds & FIIs 19.75

3 Indian Public and others 34.22

Total 100.00

Listed on BSE & NSE

Script Code: • For Ordinary Equity Shares: BSE – 512579 ; NSE - GUJNRECOKE ISIN no. - INE110D01013

• For B Equity Shares (DVR Shares) : BSE – 570003; NSE - GUJNREDVR ISIN no. - IN9110D01011

SHAREHOLDING PATTERN

46.03%34.22%

19.75%

Promoter Group

Banks, Mutual Funds & FIIs

Indian Public & Others

THE SCALE OF THE DOMESTIC BUSINESS HAS INCREASED SIGNIFICANTLY…

0

200

400

600

800

1000

1200

1400

1600

1800

FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11

Turnover (in Rs cr)

211%

Cumulative 4 Years PAT

255.81

384.77 387.97 385.39 430.47

0

50

100

150

200

250

300

350

400

450

500

31st March 2007

31st March 2008

31st March 2009

31st March 2010

31st March 2011

PAT (in Rs Crores)

OUR INTERNATIONAL BUSINESS TOO, HAS GROWN SIGNIFICANTLY OVER THE LAST YEAR…

562

977

FY 09-10 FY 10-11

Turnover (in Rs cr)

106

-47

FY 09-10 FY 10-11

PAT (in Rs cr)

26

GUJARAT NRE COKING COAL LTD OVERVIEW

ASX listed hard coking coal producer

» Market capitalization of ~A$ 198.58 million

100% owner of two underground mines in NSW, Australia

» NRE No. 1 & NRE Wongawilli

JORC reserves of 125 Mt and resources of 651Mt

Majority of ROM coal sold under contract to major shareholder (Gujarat NRE Coke)

» Commercial terms based on market formula

Targeting to increase coal production to 6.0Mtpa by 2015

Wollongong

Kiama

Port Kembla

Port Kembla coal

loader 18 Mtpa Sutton

Forest

proposal

Berrima

Dendrobium

W. Tahmoor Appin

Westcliff Northcliff

Southern

Coalfield

NRE No. 1

NRE WONGAWILLI

BHP Illawarra

Coal

Peabody

Metropolitan

Xstrata

Tahmoor

Capital structure Key shareholders

1. Share price as at 6th January 2012

2. Net debt per the 2011 Annual report at 31 March 2011, calculated as total debt

less cash & short term investments

OWNERSHIP & CAPITAL STRUCTURE

Source: Yahoo Finance

Share price1 (A$) 0.20

Share o/s (m) 992.93

Undiluted Market Cap. (A $ m) 198.58

Net debt2 (A $ m) 134.4

Enterprise value (A $ m) 392.00

LTM share price performance

70.22

29.78 Gujarat NRE Coke Limited

Public

27

Trading multiples

EV / Resource 0.6x

EV / Reserve 3.1x

28

Located in the Southern Coalfields of NSW

» ~10km north of Wollongong

» ~16km from Port Kembla Coal Terminal

Premium quality hard coking coal

JORC reserves of 92MT and Resources of 314MT

» Targeting Wongawilli Coal Seam

Undertaking an upgrade of all mine infrastructure

Currently developing for longwall extraction with plans to

install longwall equipment in FY 2011/12

» Targeting 3.0 Mtpa production by 2015

In excess of 30 years potential mine life

Located in the Southern Coalfields of NSW

» ~20km south west of Wollongong

» ~14km from Port Kembla Coal Terminal

Premium quality hard coking coal

JORC reserves of 33Mt and resources of 337Mt

» Targeting Wongawilli Coal Seam

Currently undertaking longwall extraction from remnant

areas

Initiated new access driveage in support of new longwall

panels to the west & south

» Target production capacity to >3.0 Mtpa by 2015

In excess of 30 years potential mine life

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Excellent Rail – Road linkage

All product transported through

uncongested Port Kembla Coal terminal

Regional rail and port infrastructure

capacity of 18Mt

Gujarat NRE holds 16% equity in Port Kembla Coal Terminal and a seat on the Board.

Cash operating costs (pre Royalty), US $/t FOB Port Kembla

Coal Terminal for ROM coal (pre washing)

Bord & Pillar, Development ~ US $120/t

Longwall production

» @ 1.0 Mtpa ~ US $ 65/t

» @ 1.5 Mtpa ~ US $ 55/t

» @ 3.0 Mtpa ~ US $ 39/t

GROWTH PLAN – OPEX

NB: Costs normalised at long term exchange rate AUD:USD = 0.8

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GROWTH PLAN – CAPEX

Expansion Capex: circa $500 million

Current Status : NRE No. 1

» Will result in > 3 Mtpa capacity mine

» Wonga Mains development well advanced

» Tail Gate & Main Gate development advanced for LW installation in FY 2011/12

» 4 x New CM‟s purchased

» New 4,000 tph conveyor commissioned

» Order for new 3,500 tph Joy LW placed

Current Status : NRE Wongawilli

» Will result in > 3 Mtpa capacity mine

» Wonga South Portals started

» 2 x New CM‟s purchased

» Order for Joy LW upgrade placed

32

• The two hard coking coal mines - Resources of

more than 650 million tonnes

• Valued in the range of US$ 3 to US$ 10 per

tonne by any valuation expert

• Implying such valuation parameters even at the

lower end of US$ 3 per tonne - we get a

valuation at US$ 2 billion for the two mines

The Value Unlocked – Potential Unlimited

• Such resource based valuations are

not reflected in the usual EPS or PE

calculations

• It is for us to make our own value

judgements

• At Gujarat NRE, we are growing

and there is no looking back

• It is only a matter of time when we

start reaping rich rewards

• In the mean time would never like

to trade off long term gain to ease

some short term jerks as we grow

GNCCL planned output by 2015

Poised to become one of the largest

Hard Coking Coal producers from Australia in 4-5 years

36

We are in Australia

The only ASX-listed pure-play metallurgical coal

developer/producer

Positioned for significant production growth to 6 Mtpa by

2015

Attractive valuation metrics relative to other ASX coal

explorers, developers and producers

Received formal approval for mine development – installing Longwall in NRE No 1 mine as per schedule. Longwall mining to start in a few weeks

Longwall equipment being assembled on site:

Community is at the heart of development

Strong bonds with the Community

• Sponsor of various sporting

events

• Major sponsor of Cricket NSW

and South Coast Wolves

• Supporters and title sponsor of

the Wollongong NRE Hawks

National basketball league team

• A long term commitment to the

Light & Hope Clubhouse

Foundation for mental health

Commitment to the Community

The Oil Saga at Gujarat NRE

Two onshore exploration blocks namely

EP457 & EP458 covering an area of 10640

Sq. KM in Western Australia

Already completed detailed re-processing

and interpretation of more than 1800 line

km multiple vintage 2D seismic data

Environmental surveys and cultural

clearances are taking place

In the next phase, the outcomes obtained

so far would be confirmed by advanced

techniques like 3D seismic survey and

locations for drilling would be henceforth

finalized.

Rights issue of OFCBs by

GNMRL

Disclaimer

This communication is just an information for private circulation to the shareholders of Gujarat NRE Mineral

Resources Limited only and not an Investment advice or solicitation to any person in any jurisdiction to

invest in the Bonds and/or Equity Shares of Gujarat NRE Mineral Resources Limited

What are Optional Fully

Convertible Bond (OFCBs)

OFCBs are „hybrid instruments‟ comprising the features and benefits of both shares and bonds.

OFCBs as the name suggests are convertible bonds with a right / option to the bondholders that allow them to either redeem the bonds at the end of maturity period or exchange the bonds for equity shares of the company.

Upon such exchange, the debt obligations inherent in such bonds are discharged by the entity by issuing equity shares.

Evaluate GNMRL OFCB Rights issue

Bonds – 9-10%

Fixed Deposit – 9-10%

Fixed Maturity – 10-11%

Plans

GNMRL OFCB – >13%

RIGHTS ISSUE

Salient Features of the

Rights Issue of OFCB

Applicants Existing Shareholders of the Company

Issue Price (*) Rs 30,000 per Bond

Issue Opens on 26th December 2011

Issue Closes on 15th February 2012

Coupon Zero Coupon Unsecured Bond

Rights

Entitlement

1 Bond for every 1000 shares or part thereof held subject to a minimum of

1 Bond per shareholder

Maturity /

Redemption

Period

18 months from the deemed date of allotment

Salient Features (Contd…)

Redemption

Premium

Each OFCB shall carry a redemption premium of Rs 6000 (i.e. a

redemption value of Rs 36,000)

Deemed Date of

Allotment 16th February 2012

Conversion

Option

Applicants shall, during the currency of the bond, have the option to

convert 1 OFCB into 2000 fully paid equity shares of the Company once

in every Quarter

Purpose / end

use of funds

Investment in Metcoke business and expansion and modernization

plans of Gujarat NRE group

Investment in oil exploration business in Australia

Expenditure towards general corporate purposes.

(*) Early Bird Incentive : Rs 600 per bond for application money paid on or before 14th January 2012

(the same has been extended till 20th January 2012 on receiving numerous requests from the

shareholders) and Rs 300 per bond for application money paid on or before 28th January 2012.

Benefits of OFCBs

Choice of Wealth

Redemption Premium

Conversion of Bonds into Equity Shares of

the Issuer Company

Assured Lucrative

Redemption Premium

The issue offers an assured lucrative

redemption premium of Rs 6,000 / bond upon

a minimum investment of Rs 30,000 / bond

over a period of just 18 months which means

an annualized effective rate of return of more

than 13 %

Benefits of OFCBs (Contd…)

Option to Switch

Risk Profile

An investor has the option to switch over

to another class of instrument (i.e, from

bond to equity shares) based on his /her

preference and risk appetite.

Hedging Impact

An investor may prefer to hedge there

position against any downturn in the

market conditions by assured returns

being offered in the bonds.

Share Performance in last 1 month

Rise of 57% in GNCL share price as against 14% in Nifty evidences the

potential worth of Gujarat NRE group

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GNCL NIFTY

TIME FOR SOME QUIZZING!!!

Get a chance to win a trip for 2 to Sydney and

Wollongong, Australia

How would you like a trip for two (self and spouse) admiring

the scenic beauty of Sydney and an optional visit to our

coal mines in Wollongong, Australia.

Just answer few questions which relate to us or more

rightly you and 2 best entries get this unique opportunity to

win a trip to Sydney and Wollongong.

Last date of Submission: 15th February, 2012 (Wednesday)

Winners announced: 29th February, 2012 (Wednesday)

THANK YOU

Mr Arun Kumar Jagatramka Chairman and Managing Director

Gujarat NRE Mineral Resources Ltd

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