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HEAVY HAUL RAIL CONFERENCE

Newcastle City Hall 27th -28th August 2014

Project Iron Boomerang

“Yes we can make sustainable globally competitive 1st stage Steel in Australia”

Case Study Up-Date of Project Iron Boomerang

For Global Sustainable/Profitable Steel Production. Shane Condon - MD & Founder

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Disclaimer

• This presentation has been prepared by East West Line Parks Limited (“EWLP”).

• EWLP has prepared this presentation based on information available to us. All statements, other than statements of historical fact, are forward looking statements that involve risks and uncertainties. There can be no assurances that such statements will prove accurate and actual results and events could differ materially from those anticipated in such statements.

• EWLP does not assume the obligation to update any forward looking statement.

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PIB Banner

of supply-chain fully

optimised & integrated

logistics and infrastructures

of

Mine - Rail - Port & Ships

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Project Update HH Rai Newcastle

1.PIB “Big Picture” Indicative National Economic Benefits.

Total PIB 10 mill Steel Production of 44m tpy Steel fob Value $22bn

p/a - $11bn value added consuming 116m tpy iron ore coal and

limestone p/a.

•Ref TSC & NRI

TSC & NRI both confirm “directly related generated economic

benefit” standard models per $1 of steel production is $3-$1.

Indicative PIB Steel $22bn + econ benefit $66bn p/a = $88bn p/a in

total direct related economic activity.

Permanent Total Employment 35,000

• 20,000 at Abbot Point QLD & 12,000 at Newman Pilbara WA.

Ref TSC & NRI

• An integrated industrial services town of 42,000 at Bowen Qld

is scoped by NRI Japan.

– Construction 7-8 years Est. 75,000

- Operations with secondary support industries 75,000

Once proven a two PIB times repeat possilility.

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PIB Projected Economic Tax Revenue Benefits

Influences for the current Budget Future Planning Forecast

•Steel Production $22Bn p/a $11Bn value added by 2023

•World Steel $3 for every steel $1 generates Economic Benefit of $66Bn

•Generating new taxable economic growth revenues of $77Bn at say 30% tax

av Commercial and/or Individual tax rate - indicates a conservative net tax

revenue potential of: (not including other tax areas GST/Fuel Local Govt Rates and Taxes etc.)

•$23Bn p/a Net Tax Forecast Revenue by 2022/23 PIB could be confirmed and factored in by end of the current term of this

Abbott Government!

National PIB Commercial Infrastructure CAPEX Cost

Savings in not expanding the global supply chains.

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Heavy Haul Rail Newcastle

Project Update August 2014

1. PIB Spreadsheet Costed 2013 Updated Summary (ref 1 page excel summary) Key Point Findings on the projects base business case only!

ROE after Tax indicating 12% $660m p/a or $60m ea. x10 PIB consortium steel

mill + PIB.

2. PIB Currency Sensitivity Effect 7-P Global Steel Sustainable Advantage

Report August 2013. - By Tata Steel Consulting UK “TSC” indicating over

a S-Korea Mill!

Indicating mill profit $170m p/a per mill or $1.7bn total project

3. The PIB Big Picture Indicative National Economic Benefits.

Total PIB 10 mill Steel Group Production Value $22bn p/a

$11bn value added economic benefit per $1 of steel production $3-$1.

Indicative PIB Steel $22bn + econ benefit $66bn p/a = $88bn p/a in

total direct related econ activity.

4. PIB First-Mover Incentive Global Steel Mill PIB Commitment Programme now underway S-Korea 14/11/2013 Japan EEC India & China next 1-3 months.

5. Boomerang Class Slab and Container Ship has progress to 20-year world

patent stage August 2013 International Registration 2y Commercialisation Process Underway

6. Joint Parliamentary Committee on North Australia

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1 - PIB Spreadsheet Summary Costed Updated 2013 • “Key Point Findings” on the projects base business case only!

• + Development Mines across the Australian Continent. Capex on Continental Rail & Rolling-Stock 2013 = $18bn

Capex on Steel Park Complex Industrial Lands 2 Land Sites WA &

Qld = $5bn

Total PIB $25bn Rail & Steel Complex Industrial Land

• PIB Consortium Revenues on Continental Rail Freight at $26t on 53mtpy Ores

+ Steel Park Admin Fee Revenues at $12t on 44m tpy Steel

ROE after Tax indicating 12% $660m p/a or $60m ea. x10 PIB

consortium steel mill + PIB.

Capex Expenditure by 10 standardised 1st Stage Steel Mills

$35Bn +

Direct Third Party Plants $10bn + Cement / Refractory Bricks

etc. • Power- Oxygen-Stock-Yards - Coke Ovens- Water/Air Treatments

Total $60Bn direct PIB expenditure delivered over 7-8 years

2024-5

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5. Boomerang Class Slab and Container Ship has progress to 20-year

world patent stage August 2013

Project Update Agenda December 2013

Federal Coalition Government Visit

Key Self-Loading Ship Independent Features: Inside Main Floor Area Dimensions Length 170m x Width 30m x 12 m High Ideal for huge roll-on/off mining equipment and/or modular unit delivery. Ship has in-built Gantry 75t Cranes for fully automated computer controlled loading and unloading. RORO dual tracked floor moves sideways for under – floor cargo loading/storage. Tracked Floor is mechanised for self-loading/unloading of slab wagons. Automated Self-Righting Water Ballast balanced loading/unloading adjustment system - wharf and ship height adjustments. 10-12 meters. Inner & Outer Strong Hulls for water ballast and to minimise Great Barrier Reef Risk Impact management. Schedule & Turnaround Time Saving 2-days each in loading & unlading instead of 6 days ea. – 8 days saved in turnaround time– greatly consolidates major CAPEX Equipment Expenditures on Ships Wharfs & Cranes. Estimated 40% of Oz container/bulk ships redundant.

Consolidates primary iron/steel Bulk Ore Cape Ships by 2 ½ times to slab Panamax Ships via Sues/Panama Canal’s. From Australia / E-Coast Asia: 70,000t PIB slabs for a total 44m tpy + empty Containers 2,000 a trip. To Australia / E-Coast Asia: 2,000 Full Containers inside and top-deck for a total capacity.

o This PIB Smart Ship will save Billions annually against the current operating sea freight rates. Ship Owners Per Trip Ship Income Estimates + /– 15% based on E-Coast Asia Oz trade.

o North From Oz Slabs @ $15t + Empty Containers = $1.05m o South To Oz Full Containers @ 25% rate discount at $750ea 2,000 = $1.5m o Total Return Boomerang Ship Trip Gross Income = $2.55m o Ship Return Trip Turnaround & Loading hire rate 45 days at $24k a day = $1.08m o Economic Freight Cost Productivity Improvements: Slabs > 50% - Containers by 25%. o Indicative ROE (+/- 15%) = >50% for ship owner/operator.

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Australia leads the world in heavy haul rail technology.

Why aren’t we applying and planning such rail and rolling stock productivity cost & social impact efficiencies in Queensland?

WA Pilbara 230 -42t axle IO wagon s G-wt: 168t N-wt: 146t >30% more efficient than 32t. A picture is worth a thousand words! You

could live well inside this wagon - two big bedrooms and a kitchen in each two sections of six!

Fuel wagon at 42t axle will result in major fuel freight savings per liter at designated rail depots 500-1,00km inland.

A 40t axle coal wagon would be fatter and wider not longer, holding around 20% more volume in coal volumes.

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100% 85%

40 T axle Tippler or Bottom Dump

PIB Generation Overview

Coke Oven

SM 1

SM 2

SM 3

SM 4

SM 5

1,400 MW

New Embedded

Loads

New Embedded

Loads

Power Station

Developer

Supply to embedded loads

New Embedded

Loads

Each SM has an equal stake in the Coke

Oven

700 MW Supply to SM’s

Loads or retailer

Options for sale of generation

- “Retailer” sell direct to customers.

- “Wholesaler” sell to the Pool*.

MWh

$

Approx. 700 MW for export

Gases from the Coke Oven fuel generator. Ownership of gas and output of generator lies with SM’s

Ownership of the output of the generator and all revenues from the sale of electricity remain with SM’s

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Project Update HH Rai Newcastle 2014

A World First - Steel Industry History Tender Request

for 10 1st Stage Mills.

Preliminary Quotation Supply Tender Document

by TSC for 10 Modularised and Standardised 1st

Stage Steel Mills

(doing it this way saves around $1bn ea +

operational maintenance costs > 25%)

Already distributed to the four biggest

suppliers in the EEC 2012 .

Now to China, Japan& S- Korea.

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2 - Currency Sensitivity Effect 7-P Report August 2013. by Tata Steel Consulting UK “TSC” Au/US$ Currency effects 0.85 to

0.95conclude a $42t advantage range for a PIB located global 1st stage

steel plant delivering comparative advantage on slab C&F to S-Korea of

$40t.

or $176m for each Mill producing 4.4m tpy or project T $1.7bn p/a (Note: the Korea comparison is the toughest comparison we could make and

currently considered the worlds best profit and practice steel producing country)

High Grade Steels the PIB advantage is expected to be much

greater at a range of $65-$75t indicating a comparative advantage

of $300m per mill or $3bn p/a for the project as a whole. Ref TSC (Ref P-5 Graph)

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PIB S-Korea Dr Kim personal Hyundai Steel Plant Site Visit 14-11-2013

3x4m tpy BF = 12m tpy most modern WBP & Efficient in the world.

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PIB Next Steps & Action

1. Announced Federal Government national support for the PIB

concept and strategy White Paper Inclusion. Expected 01

September 2014 by N-Australia Joint Parliamentary Committee.

2. As previously with Dr Peter Shergold in the Howard

Government’s project due-diligence and scrutiny analysis in

2007-8, we welcome and are more than pleased for your

immediate political and bureaucratic departmental staff advisors

complete due-diligence verification and analysis.

3. First Mover Commitment by PIB Global Steel Mills before

Christmas World Steel Economics favours the PIB Model.

4. Time-line Bankable Approval Study early 2015-2017 June.

5. Construction Rail & 2 steel mills at each end 2021-22.

• First Trains Run & steel made!

We do thank you for your continuing necessary interest and support

and look forward to our future engagements towards mutually

desired goal delivery results and project commissioning.

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Thank you Thank you