ADVANCING TOWARDS DEVELOPMENTMOORLANDS PROJECT

March 2014

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Cuesta Coal Overview

Asset OverviewAsset Overview

Project Coal Production Mine Life Resources First Production

Moorlands Thermal 1.9Mtpa ROM > 30 yrs 281.1Mt* 2016

Yellow Jacket Thermal - - 364Mt -

Other Projects Thermal - - 99.3Mt -

Total Resource 744.4Mt

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Corporate SnapshotCorporate Snapshot

Stock Code: ASX: CQC

Current Share Price: $0.085 @ 5 March 2014

Shares on issue: 375,289,380

Market Cap: $31m

Cash: $8.4m @ 31st December 2013

Debt: $5.0m convertible note

Major ShareholdersLongluck Investments 36%Hanford Holdings 19%Management 12%

Longluck Investments is a wholly owned subsidiary of Beijing Guoli, who own and operate power stations, coal mines and chemical refinery facilities in China.Hanford Holdings are a privately owned company based in Hong Kong who are focused on international mining investments

* Refer to Compliance Statement on page 14

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Moorlands Highlights

Scoping Study completed by Xenith Consulting confirms economic 1.9Mtpa ROM / 1.7Mtpa Product Coal open pit mine for 30 years in the proposed Moorlands South Pit

Low FOB operating costs of $63/t* driven by low strip ratio and average 89% yield

Development capital costs estimated at $148m including rail spur and train load out facilities**

Export thermal coal quality confirmed

40m to first coal with thick seams (23m cumulative coal thickness) amenable to simple truck and shovel mining operations

Close proximity to existing coal infrastructure:

- Adjacent to Clermont and Blair Athol mines

- 280km by existing rail to Dalrymple Bay Coal Terminal and 380km to Abbot Point Coal Terminal

Definitive Feasibility Study has commenced

* Contractor basis, excluding royalties** Standalone project on a contractor operated basis, including contingencies

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Scoping Study Key Parameters

Proposed Moorlands South Pit

Mining operator Contractor

Schedule duration 30 years

Schedule total coal mined 57Mt

Raw coal mined 1.9Mtpa

Product tonnes 1.7Mtpa

Yield 89%

Average stripping ratio (bcm/t) 3.2:1

Owner’s capital from FID (incl. contingency) $148m

Average FOB cost (excl. royalty) $62.80/t

NPV @ 10% (real) discount rate $138m

IRR (post tax) 20.1%

Key Assumptions

Average coal sale price over 30 years US$83.60/t*

Average exchange rate over 30 years (AUD:USD) 0.85

4*12% discount to long term Newcastle benchmark of US$95/t

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Moorlands Resource Upgrade Highlights

92% Resource Increase as a result of 2013 drilling activities totalling 281.1Mt*

JORC Resource of 118.9Mt Measured and Indicated Resource of 52.7Mt

Particularly encouraging is the consistent coal quality throughout the deposit

Additional coal resources identified in Proposed South Pit enhancing mine design layout

Majority of resource now in Measured and Indicated Category in proposed south pit as shown in resource polygons of the 8-10m thick B8 seam (opposite)

Maiden Reserve assessment underway, to be completed in 4-6 weeks

Geological model to be used for Definitive Feasibility Study

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* Refer to Compliance Statement on page 14

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Moorlands Long Section & JORC Resources

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Deposit Measured Indicated Inferred Total

Moorlands 118.5Mt 52.7Mt 109.9Mt 281.1Mt*

JORC ResourcesJORC Resources Proposed South Pit Mining Schedule

Schedule duration 30 years

Schedule total coal mined 57Mt

Raw coal mined 1.9Mtpa

Product tonnes 1.7Mtpa Majority of resource now in Measured and Indicated Category

Additional coal resources identified in Proposed South Pit enhancing mine design layout

* Refer to Compliance Statement on page 14

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South Pit Coal Quality

Proximate Analysis (%adb) Calorific Value (adb) Ultimate Analysis (%daf) Other

Inherent Moisture Ash VM FC Mj / kg kcal /

kg Carbon Hydrogen Nitrogen Oxygen Sulfur HGIAsh Fusion

Initial Deformation

Product Yield(%)

9.5 10.4 30.7 49.4 25.44 6077 78.07 4.98 1.86 0.95 0.73 59 >1500oC 89.9

One product coal specification – Low Ash, Moderate Energy Thermal Coal Excellent yields of 90%, bypass coal quality of ~25% Washability curves indicate potential for a lower ash (8%) and higher energy (6,300k/cal adb) with yield

above 80% Good to excellent HGI and Ash Fusion characteristics

HighlightsHighlights

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Particularly encouraging is the consistent nature of coal quality throughout the deposit.

It is expected the final product specification will remain largely unchanged.

It is likely the average sulphur levels will decrease as evidenced by a reduction in average raw coal sulphur levels, resulting from recent collection of additional coal quality data.

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Cuesta’s 12 Month Development Objectives

ObjectivesObjectives

Health, Safety & Environment

Cuesta to strive towards top quality health & safety and environmental practices

2013 was LTI free with 1526 man hours

Moorlands

Finalise Reserve Estimate Finalise negotiation for rail and port Complete Definitive Feasibility Study Lodge Mining Lease Application Infill & geotech drilling to occur in 2014

Pipeline Projects

Modest Exploration Programme planned for 2014

West Emerald – targeting Maiden Resource

Montrose and Callide to have wide spaced scout drilling

Snake Creek Farm-In

The Snake Creek JV is located in the Eastern Galilee Basin, (EPC’s 2079 & 2080)

QCI can earn a 51% interest through expenditure of $3 million on exploration activities.

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Appendices

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Project Overview & Resource Table

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Deposit Measured Indicated Inferred Total

Moorlands 118.5Mt 52.7Mt 109.9Mt 281.1Mt*

Yellow Jacket - - 364Mt 364Mt

Amberley - - 54.7Mt 54.7Mt

Thorn Hill - 22.1Mt 22.5Mt 44.6Mt

Total 118.5Mt 74.8Mt 551.1Mt 744.4Mt* Refer to Compliance Statement on page 14

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Snake Creek Joint Venture

The Snake Creek Project is a Joint Venture with QCI (Galilee) Pty Limited, a wholly owned subsidiary of Hancock Prospecting

Under the terms of the agreement, QCI is able to earn up to a 51% interest in the two tenements (EPC 2080 and EPC 2079) through the expenditure of $3 million on exploration at the tenements in two stages

QCI can earn 25% interest through the staged development and expenditure of $1.5 million and a further 26% through the expenditure of a further $1.5 million

Cuesta and QCI (Galilee) Pty Limited look forward to working collaboratively on the Joint Venture

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Moorlands Project

Geologist sampling coal at Moorlands Project

Geophysical logging at the Moorlands Project

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Moorlands Project

Xxx at Moorlands Project

Site Visit to Moorlands Project by major shareholders

S and K Drill Rig on site at Moorlands Project

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Compliance Statement

Information relating to EPC’s 1738, 775 & 776 (collectively know as the Moorlands Project) was prepared and first disclosed under the JORC Code 2012 on4 March 2014 in the Company’s ASX announcement titled ‘92% Resource Upgrade at Moorlands Project to 281Mt’. The Company confirms that it is notaware of any new information or data that materially affects the information included in that announcement and that all the material assumptions andtechnical parameters underpinning the estimates continue to apply and have not materially changed.

Information relating to EPC’s 1802, 1955 and 2127 was prepared and first disclosed under the JORC Code 2004. It has not been updated since to complywith JORC 2012 on the basis that the information has not materially changed since it was prepared.

The information in this report/statement relating to the resource of EPCs 1802 is based on information reviewed by Blair Richardson, who is a member of theAustralasian Institute of Mining and Metallurgy. He is a full time employee Cuesta Coal Limited.

Blair Richardson has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he isundertaking, to qualify as a ‘Competent Person’ as defined in the 2004 edition of the Australasian Code for the Reporting of Mineral Resources and OreReserves. Blair Richardson consents to the inclusion in this report of matters based on this information in the form and context in which it appears.

A report entitled ‘East Wandoan Project JORC Resources dated June 2012’ and ‘Amberley Project (EPC 2127) – Resource Estimate’ dated 4th September2012’, have been complied by Lyndon Pass of Encompass Mining, and it reflects his current view of the Moorlands, East Wandoan and Amberley coaldeposit resources. In the future, as additional information may become available, this view could be subject to modification. The full reports contain detailedinformation regarding the Moorlands, East Wandoan and Amberley deposit.

Lyndon Pass is a Member of the Australasian Institute of Mining & Metallurgy (AusIMM). Lyndon Pass consents to the inclusion in the current document ofthe matters concerning Coal Resources at Moorlands, East Wandoan and Amberley based on his information in the form and context in which they appear.He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken toqualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and OreReserves’ published by the Joint Ore Reserves Committee (JORC).

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