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PRESENTATION May 2010

Driving Into A New Coal Era11

DISCLAIMERThe information in this presentation does not purport to contain all the information that may be required to evaluate the prospects of Coalworks and in particular only discloses material information within the knowledge of Coalworks. You should seek independent professional advice in relation to the technical, financial, taxation, legal and commercial matters relating to the information and rely on your own due diligence and analysis accordingly. Other than to the extent required by law (and only to that extent) we disclaim all liability and make no representation, guarantee or warranty (expressed or implied) as to, and assume no responsibility nor liability for, the information provided.

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EXECUTIVE SUMMARYCore business: Thermal and Coking Coal Listed in June 2008Cash $10M as at Jan 2010 Shares on Issue ~103.8M Current Share Price ~$0.40 Market Cap ~$42MResources:Vickery South 42 Mte JORC Inferred Semi-soft Coking Coal, PCI and Thermal Coal.Ferndale 250 to 300 Mte Exploration Target of export quality Thermal Coal and Semi-soft Coking Coal. Oaklands North 121 Mte JORC Measured Thermal Coal.572 Mte JORC Indicated Thermal Coal.129 Mte JORC Inferred Thermal Coal.TOTAL of above - 1,164 Mte

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PROJECT STAGEProject Stage:Oaklands North coal BFS underway

Vickery South coal PFS underway

Ferndale coal PFS to commence Q3 2010

Hodgson Vale coal Further drilling planned

Ashford Lime Further drilling planned

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QUALITY PROJECTSWORLD CLASS PROVINCESPOTENTIAL FOR LARGE PRODUCTIONSEMI-SOFT COKING, PCI & THERMAL POTENTIAL

RESOURCES & TARGETS5

COALWORKS PROJECT NEAREST MAJOR EXISTING OR DEVELOPING COAL MINEVICKERY SOUTH (100% reducing to 51%) - JV farm in with ITOCHU signedVICKERY (WHITEHAVEN EX RIO TINTO)TARRAWONGA (WHITEHAVEN)ROCGLEN (WHITEHAVEN)CANYON(WHITEHAVEN)WATERMARK (SHENHUA)ASTON (EX RIO TINTO)CAROONA (BHP)FERNDALE (90%) MANGOOLA (XSTRATA)BENGALLA (RIO TINTO WESFARMERS-TAIPOWER MITSUI) OAKLANDS NORTH (100%)OAKLANDS (RIO TINTO/MITSUBISHI)HODGSON VALE (100%)NEW ACLAND NEW HOPECOMMODORE INTERGEN/MILMERRANWORLD CLASS COAL PROVINCES6

Coal is main electricity fuel for China, India, USA & othersUnderinvestment in coal indicates long term growth and market reboundCoal is low cost and reliableABARE predicts continued strong demand from China to increase world coking coal trade by 8% to 232Mt in 2010Steel linked to economic growth in China and India continues to drive coking coal demand and prices [Graphs: ABARE Nov 2009]

COKING & THERMAL COAL MARKETS RISING

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STRONG MANAGEMENT

Wayne Mitchell AASA, AAIM (Appointed Chairman November 2007)

Mr Mitchell is a qualified accountant with over 20 years extensive senior management experience in the natural resource sector, both in Australia and in South East Asia. Mr Mitchell and two partners were the initial promoters and developers of Thailand's major zinc deposit located at Mae Sot, Northern Thailand in early 1970s. This resource deposit is now owned and operated by a Thai public company, Padaeng Industry Company Ltd. Mr Mitchell specializes in the areas of financial planning, fund raising and project evaluation.

Dr Andrew Firek M. Sc., Ph.D., FAusIMM, FAIE (Appointed CEO June 2005)

Dr Firek has been involved in coal exploration, mining and processing industry at operational and executive levels for over 20 years. Dr Firek was a group leader at the CSIRO developing clean coal technologies. He has worked as a United Nations expert on coal, oil and gas projects in Europe and Africa. He was a foundation director of three publicly listed companies and is currently a director of a $500 million publicly listed company Gujarat NRE Coking Coal Limited and two Gujarat subsidiaries.

Mr Sin Pyng TengB Econ., Dip Fin Mgmt., CPA, FAICD, AFAIM (Appointed Director/Secretary June 2005)

Mr Teng is a Certified Practicing Accountant, a Fellow of the Australian Institute of Company Directors and an Associated Fellow of the Australian Institute of Management. Mr Teng has been employed by several manufacturing companies in senior accounting positions. Mr Teng has since 1990 worked full time as a consultant involved with mergers, acquisitions and corporate restructuring.88

STRONG MANAGEMENT

Chris Hagan Senior ConsultantBA, LLB, Acc.Spec. (Bus)

Mr Hagan has over 25 years experience advising publicly-listed and private companies on legal and corporate affairs, including large scale capital raising strategies, IPOs and restructures. His career include co- founding and acting as CEO of Allegiance Mining NL in its early years before its major nickel discovery and takeover by Zinifex in 2008 for over $800 million.

Mr Geoff Kidd Operation Manager

Mr Kidd has extensive experience in hands-on roles driving technological and operational efficiencies in new mine development and managing coal projects. He has over 25 years experience at a senior level within the mining, engineering, contracting, power, chemical and petrochemical industries. He has over 25 years experience at a senior level within the mining, engineering, contracting, power, chemical and petrochemical industries. His professional experience in the coal Industry has primarily focused on new mine developments and the expansion of existing Mines.

Mr Chris Burgess Project Manager

Mr Burgess has 30 years experience working in and around the Gunnedah coalfields. He has extensive mining experience, ranging from his earlier employment in surveying and coal mining to his senior roles as Production Manager at the Gunnedah and Glennies Creek Collieries. He has over 12 years experience in the establishment and development of new mines, for example, at Glennies Creek (Underground), Brickworks Open Cut, Whitehaven Open Cut, Canyon Open Cut, Tarrawonga Open Cut, Narrabri Underground and Rocglen Open Cut.

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STRONG MANAGEMENT

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Matt Morgan - Exploration Manager BSc (Geology)

Mr Morgan has 15 years experience in coal, gold, antimony, and iron ore mining & exploration, both Open Cut and Underground. He has a diverse set of skills covering mine geology, quality control and mining engineering, and mine management roles. His previous management experience includes Open Cut roles with BHP Billiton, Rio Tinto, Theiss, and Underground Mine Manager for Mandalay Resources.

Mr Steve Harper Project ManagerBE (civil)

Mr Harper has 32 years experience in project and study management, design management and engineering design, in the field of building, infrastructure, mining, petrochemical, heavy industrial and process fields. His previous experience include engineering Manager for a recent major expansion at BHPs Mount Arthur North Mine, study Manager for TOP Marua Wahau Coal Mine Development, Design Manager and Petrosea JO Representative for the EPC and Study Manager for CVRDs Belvedere Coal Mine Development.10

CORPORATE MILESTONES ACHIEVED2008:Listed in June 2008 Oaklands 280 MtMine Concept Study Connell HatchRail Study Connell HatchPre Feasibility Coal Gasification & Liquid Fuels Study Uhde Shedden8m coal seams intersected at Hodgson Vale drilling Oaklands resource increased to 640Mt from drillingStrategic Alliance landowner at Oaklands 2009Commencement Oaklands BFSMarketing Study Wood MackenzieWon Vickery South NSW government tender EOIStrategic Alliance: Synthesis Energy SystemsOaklands resource increased to 822 Mt including 121 Mt Measured 2010Acquisition of 90% Ferndale Coal ProjectOaklands North CTL Market Study commenced for Petrol & LPG by Muse Stancil and Seddon AssociatesVickery South Both high quality thermal and coking coal inferred resource achievedJV farm in with ITOCHU signedVickery South Phase 2 drilling about to commence to provide Indicated StatusFerndale Phase 1 drilling about to commenceOaklands North Mine & CTL Study about to be completed.

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VICKERY SOUTH COAL PROJECT Vickery South EL in coal-rich Gunnedah Basin, NSW

JV farm in with ITOCHU signed

Thermal, PCI & SS coking coal identifiedProduction target 2Mtpa ROMProximity operating minesRailway to Newcastle42 Mte inferred resource Open Pit Mine is being designedNewcastle Ports expanding capacity

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VICKERY SOUTH COAL PROJECT

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VICKERY SOUTH : PROJECT COMPARISONSVickery South has a mix of Thermal, PCI and semi-soft coking coal similar to existing mines in the Gunnedah BasinGunnedah Projects comparison:Maules Creek (398Mt coal-sold $A480m) ~ A$1.20/t [Source: The Aust. 5.11.2009] Narrabri (400Mt -7.5% -sold $125m) : ~A$4.16/t [Source: Whitehaven ASX 24.11.2009] 1414

VICKERY SOUTH DEVELOPMENT TIMETABLEACTIVITY20092010201120122013Vickery South EL GrantedInitial drilling & JORC Inferred ResourceIndicated ResourceMeasured ResourceScoping / prefeasibility studySample testingEA base dataMine PlanEnvironmental assessmentFinal feasibility (Bankable)Mine ApprovalEngineering & ConstructionStart ProductionFirst Shipment15

FERNDALE COAL PROJECT

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FERNDALE COAL PROJECT

Ferndale EL in Prime Hunter Valley coal province, NSWThermal and coking coal resourceProduction target 2 5 MtpaProximity to a blue chip operating coal mines Railway to NewcastleTarget: 250 - 300 MtePredominantly underground Newcastle ports expanding capacity

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FERNDALE: PROJECT COMPARISONSFerndale has similar thermal and coking coal seams to existing mines in the Hunter ValleyHunter Valley Projects comparison:Mangoola( >1,000Mt coal- sold $468m) ~ A$0.46/t [Source: Xstrata plc Annual Rpt 2007] Newpac (252Mt sold A$960m) : ~A$3.80/t [Source: Xstrata release 5.12.2007]Nucoal (247Mt- Mkt Cap >$140m 21.5.10): ~ A$0.56/t

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FERNDALE DEVELOPMENT TIMETABLEACTIVITY2010201120122013201420152016Ferndale EL GrantedInitial drilling & JORC Inferred ResourceIndicated ResourceMeasured ResourceScoping / prefeasibility studySample testingEA base dataMine PlanEnvironmental assessmentFinal feasibility (Bankable)Mine ApprovalEngineering & ConstructionStart ProductionFirst Shipment19

OAKLANDS NORTH COAL RESOURCEPresent Oaklands North Resource Measured:121MteIndicated:572 Mte Inferred:129 Mte

Total Resource: 822 Mte

Measured resource drilling program completed in Northern portion Southern Measured resource pendingLarge open pit mining potentialExisting rail alignment and easement into the project

Oaklands Norths resource has almost TRIPLED since June 20082020

OAKLANDS NORTH CONVENTIONAL COAL MINE Preliminary Mine & CTL Study almost complete & Bankable Feasibility Study (BFS) process commencedPreliminary mine plans for the north and south developedLandowner RelationsStrategic partnerships formed with key landownersCommunity RelationsRegular updates distributed to local residents by Urana Shire CouncilLocally-based Operations Manager & Exploration Manager appointedWater & Environmental studies commencedMeteorological Station installed at Oaklands and data is being uploaded via the Telstra NextG networkTransport Options Securing of Rail/Port well advanced

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OAKLANDS NORTH: PROJECT COMPARISONSOaklands as 822 Mte open pit sub-bituminous resource compares to Indonesian coal projectsIndonesian Projects comparison:GPK Coal (247Mt Sub B coal) : A$0.80c/t [Source: Stonebridge Group-Analyst -2009] PT Indobara Pratama (50-60Mt Sub B) : A$1.10/t [Source: Pursuit Capital/Churchill mining plc 2009]

Oaklands 822 Mte coal as barrels of oil equivalent would equate to over 1 billion barrels of oil ranking it as a major energy deposit linked to rail and port2222

OAKLANDS NORTH CTL PROJECTPre feasibility study with Uhde Shedden for Coal to Liquids (CTL) was completed in 2008 Synthesis Energy Strategic alliance signed in Dec 2009 to develop CTLCTL Feasibility Study with Synthesis is underway Oaklands coal tested at GTI found to be ideal for gasificationTransport route for hauling petrol and LPG to market via rail to Geelong Port is in planningMarket Study for petrol and LPG was completed in 2010 with positive resultsDiscussions underway with potential offtake partners & financiers

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OAKLANDS NORTH COAL MINE AND CTL PLANT SITE LAYOUT24

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OAKLANDS DEVELOPMENT TIMETABLE 25

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HODGSON VALE DRILLING Initial Drilling intersected up to 8m coal in two holesResource targets reviewed2 main zones targeted for future drillingLicence renewed

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ASHFORD LIME Drilling program completed Grades indicate suitability for selected Ground Calcium Carbonate (GCC) productsFurther drilling targeted to optimize gradesGCC off-take agreements targeted

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SUMMARY COALWORKS POSITIONED FOR GROWTH Strong Management team Focused on the development of the Vickery South, Ferndale and Oaklands North Projects Focused on coal production and early revenue generation Recent Corporate Activity has highlighted the prospectivity of the CWK leases JV farm in with ITOCHU signed to initially fund Vickery South project Solid Cash Position

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ENQUIRY AND CONTACTSAndrew FirekChief Executive OfficerWayne MitchellChairmanTony TengCompany Secretary / DirectorGeoff KiddOperations ManagerChris Hagan Senior Consultant_____________________________________________________________________________________________

COALWORKS LTDLEVEL 5, 44 MILLER STREETNTH SYDNEY NSW 2060PHONE: +61 2 9922 1344FAX: +61 2 9922 4288 EMAIL: info@coalworks.com.auWEBSITE: www.coalworks.com.au

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Resource status Seam Mass (Tonnes) Average Thickness (m) Raw Ash 2 (%) Fixed Carbon2 (%) Total Sulphur2 (%) Volatile Matter 2 (%) Gross Calorific Value2 (Kcal/kg) Total Moisture3 (% ar) Measured Lanes Shaft 121 Mt 16.7 14.2 44.9 0.27 24.4 4900 26.2 IndicatedLanesShaft570 Mt14.517.841.70.2824.14610 25.6Coreen Creek 2 Mt0.920.540.50.2222.64370 24.6Total Indicated 572 Mt 15.4 17.8 41.7 0.28 24.1 4610 25.6 InferredLanesShaft112 Mt13.919.740.30.2823.54460 24.7CoreenCreek18 Mt1.014.542.70.6126.44850 26.6Total Inferred Total 129 Mt 15.0 19.0 40.6 0.32 23.9 4510 25.0 Total 4 822 MtAPPENDIX 1: OAKLANDS NORTH MEASURED, INDICATED & INFERRED RESOURCES Calculated in accordance with the Preston & Sanders MethodBased on a constant (16.46%,) air dried moisture content, determined from the average for all plies. Values have been corrected for total sulphur using the formula CV (corrected) = CV(uncorrected)0.95 x total sulphur. Moisture as received in the laboratory, core having been wrapped on recovery to prevent moisture loss before analysis; included for comparison purposes only.Calculated using minimum potential working section thickness 0.40m, maximum potential working section raw ash content 40% (adb), and maximum cumulative overburden: coal ratio 10:1 BCM/tonne.3030

APPENDIX 2: U-GAS PLANT IN COMMERCIAL OPERATION PROPOSED FOR OAKLANDS NORTH

31Sheet1ACTIVITY200720082009201020112012201320142015Oaklands El GrantedInitial drilling & JORC Inferred ResourceIndicated ResourceMeasured ResourceScoping / prefeasibility studySample testingEA base dataMine PlanEnvironmental assessmentFinal feasibility (Bankable)Mine ApprovalEngineering & ConstructionStart ProductionFirst ShipmentCTL Study Pre FEED FEEDCTL Plant Produces Petrol LPG

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