Lublin Coal Project Company Presentation

November 2013

ASX: PDZ

ABN 23 008 677 852

Investment Highlights

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Massive Untapped Resource Base

1.6Bt (Inferred JORC Resource)

1.6Bt Inferred JORC Coal Resource

327Mt in the thick, continuous 391 coal seam

Premium Quality Coal 6,900+ kcal/kg

5.5 FSI

Metallurgical and thermal Coal Properties

Semi-Soft Benchmark / Premium ARA Thermal Qualities

Proven Low Cost Coal Basin 1st Quartile Adjacent to one of the highest margin, most productive coal mines in Europe

Regional operations demonstrate 1st Quartile Cash Costs

Infrastructure Ready Rail & Port Underutilised and Ready

During the 1980’s Poland was the worlds 2nd largest coal exporter

Competitive Supply Position Competitive supply position into key metallurgical and thermal markets

Corporate Structure

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Issued Share Capital 118,835,879

Options (15c exp. 30 June 2015) 14,007,133

Management Options (25c-60c exp. 30 June 2016-2017) 7,250,000

Market Capitalisation (A$0.37/share, undiluted) ~A$44 million

Cash @ Bank ~A$4 million

Listed Marketable Securities Held ~A$11 million

Enterprise Value A$29 million

Broker Coverage

Well funded through the value curve

Hartleys Spec Buy

RCF Ambrian Spec Buy

An Untapped Coal Basin

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The Lublin Coal Basin is set to become Europe’s next strategic, low cost and secure supplier of coal…

Located in the Lubelski region of Poland, the Lublin Coal Basin has seen operations since 1991 as compared to many centuries for most other European Coal Basins

Prairie has secured a strategic foothold in the Lublin Coal Basin with over 184km2 adjacent to the only current producer in the region

Metallurgical & Thermal Potential

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Initial testing has indicated that the Lublin Coal Project hosts metallurgical coal potential which compares very well with current semi-soft benchmark coals…

Historical geological reports for the LCP had indicated the presence of Polish coal “type 34”, which is equivalent to semi-soft coking coal; this has now been confirmed by our current core drilling program

PDZ is conducting the full suite of coking tests on core samples from the current drilling program including:

o Coal Chemical Properties (Calorific Value, Proximate & Ultimate Analysis, Ash Composition)

o Rheological Properties (Roga, Free Swelling, Gray King, Audibert-Arnu, Gieseler Plastometer, Ash Fusion temperature)

o Petrographic Analysis (Maceral Content, Mean Max Reflectance)

o Physical Properties (Hardgrove Grindability)

o Core Washability (float/sink analysis)

391 Coal Seam Quality & Comparisons

391 Seam Semi-Soft Coking (Typical) Thermal

Hunter Valley Russia Poland ARA Russia South Africa

Ash (%) 4.4 9.0 10.0 8.0 <16.0 16.8 17.4

Calorific Value kcal/kg gad 7,558 7,320 7,426 n/a ~6,700 7,100 6,126

FSI 5.5 4.0 – 6.0 2.0 – 3.0 5.0 – 8.0 - - -

Sulphur (%) 0.89 <1.0%

Dominant Basin Position

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Prairie has a dominant position with its 100% owned Lublin Coal Project which has a 1.6 Billion tonne Inferred JORC Compliant Coal Resource Estimate…

680 million tonnes of the 1.6 billion tonne Inferred JORC Compliant Resource Estimate is found within three high quality coal seams with the total resource located within 20 potentially economic coal seams

391 Seam 379 Seam 382 Seam

327 Million tonnes 190 Million tonnes 163 Million tonnes

8.4% Ash 12.4% Ash 11.6% Ash

6,908 kcal/kg (GAD) 6,493 kcal/kg (GAD) 6,547 kcal/kg (GAD)

Favourable Geology

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327 million tonne Inferred JORC Compliant Coal Resource in the one thick, contiguous and high quality 391 coal seam…

1 JORC (Inferred), refer to maiden coal resource announcement on 14 February 2013 Note: 391 seam isopachs based on historical core and geophysical logs

An Emerging Low Cost European Basin

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Lubl

in C

oal B

asin

Size (hectares) 9,100 km2

Years in Production 30

Production 8.5 mtpa

No. Operating Mines 1

Typical Longwall Panel 300 metre face

Up to 5 km length

Coal Geology

Seam Dip Variability Faulting Methane Rockburst

0o - 2o Low Low Low Low

Sile

sian

Coa

l Bas

ins

Size (hectares) 5,600km2

Years in Production 250

Production 82 mtpa

No. Operating Mines 29

Typical Longwall Panel 150 metre face

1.2 km length

Coal Geology

Seam Dip Variability Faulting Methane Rockburst

0o - 45o High High High High

The Lublin Coal Basin is set to become the pre-eminent coal basin in Europe given favourable geology…

Q2 2013 Unit Mining Cash Costs (Source: Company Filings, 3.15 PLN/USD, 0.74 EUR/USD)

Proven World Class Mining Methods

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World record setting longwall plow technology deployed in the Lublin Coal Basin

The Lublin Coal Basin provides ideal conditions for high productivity longwall plow operations with a world record set by Bogdanka

Mining rates have been as high as 27,485 tonnes in one day from a single face and daily production averages 12,680 tonnes which is equivalent to 4mtpa Run-of-Mine production from a single longwall face

First Quartile Cash Costs

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Lublin Coal Basin1

Russia

Colombia

New projects in the Lublin Coal Basin have strong potential to be in the lowest quartile of the cost curve for thermal coal delivered into Europe…

2013 CFR ARA Energy Adjusted Cash Costs Curve

Source: Wood Mackenzie - Total Cash Costs plus Freight to ARA, energy adjusted to 6,322kcal/kg; modified by PDZ to include Bogdanka FOR cash cost (2Q2013) energy adjusted for standard 22MJ product Note: 1 – Based on Bogdanka’s current cash costs

Export & Domestic Infrastructure

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Rail, Port and Power infrastructure are all in place for new developments to supply both export and domestic European markets…

Underutilised Coal Export Ports

Poland was the world’s 2nd largest coal exporter during the 1980’s, exporting 45mtpa

Capesize and Panamax capable

Terminals are now well underutilised

Bulk Freight Rail System

Coal freight has been an established part of the Polish rail system for decades

Significant capacity available to export terminals and for domestic European sales

Electrified system ensures very competitive rates

Power: 90% Coal Fired

Coal fired generation ensures very low cost power

Very well established high voltage power distribution system

Multiple international utilities present in Poland

Competitive Freight Advantage

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Lublin Coal Project’s location and access to infrastructure gives it a distinct advantage to capture key regional markets for both metallurgical and thermal coals…

Excellent Seaborne European Market Penetration

Ability to penetrate all key European markets with access to Polish Coal Ports

Potential for further exports into BRIC countries if demand warrants

Spain, Italy and Turkey are key import regions

Breakdown Seaborne Metallurgical Coal Trade (261mt) Seaborne Metallurgical Coal Demand – 2013 & Growth to 2035

Coking Coal Markets

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European, South American & Indian coke markets will remain in need of increased imported coal into the future…

Lublin Basin Coal can fill a significant need for domestic European semi-soft coking coals which are traditionally sourced from Australian operations and Silesian mines which are declining in production

Strong regional demand for metallurgical coal from Poland, Germany, Czech Republic, Austria, Romania, Slovakia and Hungary with over 65 million tonnes consumed in 2011

Source: WoodMackenzie; BRE Bank Securities

2012 European Import Origin Countries European Thermal Coal Imports & Exports

European Thermal Coal Markets

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European thermal markets face increased reliance on imported coal increasing the strategic value of the Lublin Coal Project as a source of fuel supply for the power generation sector…

European thermal coal imports have been on an increasing trend in the recent past due to significant reduction in European production from traditional basins as a result of increased costs and more technically challenging geology (Ruhr and Silesian basins)

Future decreases in European production coupled with increased use of coal in the near future as a result of; new coal fired capacity being commissioned; sustained high natural gas prices; and low CO2 prices may result in significant requirements for increased imports

Source: Eurocoal, EU includes Turkey

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Project Timeline

2013 2014 2015

Project Milestones Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Maiden Resource Estimate Strengthen Management Team Drilling Program (7-hole) & Coal Quality

Scoping Study

EIA (EP compliant)

Infill Drilling

Pre-Feasibility Study

Financing Work Stream

Definitive Feasibility Study

Polish Requirements Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Update Geological Documentation

Deposit Development Plan (Mining Licence)

Potential for market re-rating in the short term…

Progressing Drilling & Studies

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Core Drilling Program

A core drilling campaign is presently underway to: – update the coal quality and washability database to determine potential

product pricing and yields – enhance the Project’s geological model and delineate outer boundaries of the

various coal seams – validate historical drilling conducted during the 1970’s and 80’s

Two drill rigs currently on site, first two holes have been completed and drilling for the next holes is progressing well

Scoping Study

Scoping Study has commenced to examine the following areas – revised JORC Coal Resource estimate – mine production scenarios and scheduling – mine access – coal handling, processing and surface infrastructure requirements – environmental and social assessment – operating and capital cost evaluation

Drill Rig on Site

Appointed Wardell Armstrong International Limited as consultant for Scoping Study – leading geological and mining consulting firm highly regarded in the international coal sector with extensive experience in deep

coal mining, particularly in Eastern and Central Europe – recently completed the Expert Report in support of the IPO of Polish coal producer JSW SA (WSE: JSW)

Board of Directors

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Ben Stoikovich Chief Executive Officer

Highly respected, London based, mining engineer and investment banker; holds a NSW mine managers certificate of competency for underground coal mining with significant experience in longwall mining operations

Previously held position as Director of Metals and Mining M&A for Standard Chartered Bank and has completed over $15

billion worth of mergers and acquisitions transactions, and a range of leveraged finance, project finance and corporate debt facilities for international mining companies

Ian Middlemas Chairman

Highly respected resource executive with extensive finance, commercial and capital markets experience Current Chairman of Papillion Resources Limited, Equatorial Resources Limited, Berkeley Resources Limited & former

Chairman of Coalspur Mines Limited and Mantra Resources Limited

Anastasios Arima Executive Director

Founder & former Executive Director of Coalspur Mines Limited having been instrumental in developing Coalspur from a A$3 million market capitalisation to a A$1.2 billion market capitalisation company upon his departure

John Welborn Director

Current Managing Director of Equatorial Resources Limited (ASX: EQX) and previously a senior executive at Investec

Mark Pearce Director

Current director of a number of ASX listed companies including Equatorial Resources Limited and Aviva Corporation and was formerly a Director and CFO of Coalspur Mines Limited and a founding director of Mantra Resources Limited

Strong board with proven development experience…

Polish Executive Team

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Janusz Jakimowicz President & Chairman of PD Co

Geologist with over 30 years experience and a proven ability in the identification, exploration and appraisal of international resource projects; Dual Polish and Australian citizenship

Instrumental in identifying, negotiating and applying for the concessions and progressing the development of the Lublin Coal Project

Dr Jacek Jezierski Supervisory Board of PD Co

Ex-Deputy Minister Poland’s Ministry of the Environment (“MoE”) (2007 to 2011), Under Secretary of State, Chief National Geologist, Deputy Director of the Office of the Polish Oil and Gas Company Inc (“PGNiG SA”); and expert advisor to the World Bank

Previously Director on the Supervisory Board of Kompania Weglowa SA (“KW”), Poland’s largest coal mining company

Holds a PhD in Geology and completed his Master’s degree in Geology at the University of Warsaw, where he focused his thesis on the Lublin coal basin

Artur K. Kluczny Supervisory Board of PD Co

Held position in Poland’s Ministry of Privatization (MSP), where he was in charge of corporate oversight of National Investment Funds and sale of state-owned portfolio companies

Served in the Prime Minister’s Office as the secretary to two successive prime ministers and was senior government representative on the Council for Development of the Financial Market (RRRF) in Poland

Lech Lewczuk Exploration Manager

Exploration and resource geologist with over 30 years experience; Polish and Canadian dual citizen with experience across Polish, JORC and NI 43-101 reporting standards

Previously Overseas Project Manager for KGHM, the Polish based copper producer and also has considerable expertise in coal exploration in Poland

Dr Witold Woloszyn Environmental Manager

Over 20 years experience preparing Environmental Impact Assessments in Poland for local, regional and national authorities; previously Chair of the Lublin Regional EIA Commission and member of the Polish National Commission for EIA’s.

Holds an MSc in EIA Assessment from the UK, and a Doctorate from the University of Marie Curie Sklodowska; recent involvement with the shale gas sector in Poland

Respected and established Polish team…

Poland: A favorable investment jurisdiction

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One of the most attractive fiscal regimes globally for coal

19% corporate tax rate

No Requirement for Government Participation

4PLN/t royalty (~US$1.2/t) Poland is a first world country having gone through significant reform since

the end of communism in 1989

Over US$120 billion in foreign direct investment into Poland since 2004

Poland is the largest hard coal producer in Europe and is a key supplier of coal to its domestic market and neighbors

Poland has a highly skilled coal mining workforce, with 110,000 people still directly employed in the industry

Availability and low cost of skilled labour make Poland an attractive jurisdiction to develop coal projects

Poland is a safe, low risk mining jurisdiction with an excellent fiscal regime…

Belchatow Power Station (4,440MW) in Poland

Coal Terminal at Gdansk, Poland

Source: Eurostat and Polish Ministry of Treasury

Global Coal Producer Comparables

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Disclaimer

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Important Information This presentation has been prepared as a summary only, and does not contain all information about Prairie Downs Metals Limited’s (“Prairie”) assets and liabilities, financial position and performance, profits and losses, prospects, and the rights and liabilities attaching to Prairie’s securities. The securities issued by Prairie are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the shares or that there will be an increase in the value of the shares in the future. Prairie does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this report. Recipients of this report should carefully consider whether the securities issued by Prairie are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position. Forward Looking Statements Some of the statements contained in this report are forward looking statements. Forward looking statements include but are not limited to, statements concerning estimates of coal tonnages, expected costs, statements relating to the continued advancement of Prairie’s projects and other statements which are not historical facts. When used in this report, and on other published information of Prairie, the words such as “aim”, “could”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-looking statements. Although Prairie believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward looking statements include the potential that Prairie’s projects may experience technical, geological, metallurgical and mechanical problems, changes in product prices and other risks not anticipated by Prairie. Competent Persons Statement Information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Dr Richard Lowman (an employee of independent consultant Wardell Armstrong LLP which owns Wardell Armstrong International) who is a Fellow of the Geological Society of London. Dr Lowman 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 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (‘The JORC Code’). Dr Lowman consents to the inclusion of the data in the form and context in which it appears.