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Becoming Colombia’s Leading Independent Coal Producer
                   December 2011
                     TSXV: PAK
Disclaimer
Forward Looking Statement

This presentation contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the business, operations
and financial performance and condition of Pacific Coal, S.A. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect
to business plans and strategies of Pacific Coal; information with respect to the proposed subscription receipt financing of Pacific Coal; estimated production of the various projects
of Pacific Coal; the benefits of the acquisitions and the development potential of properties of Pacific Coal; the future price of coal; estimates regarding mineralization and
exploration results; the ability of Pacific Coal to achieve mining success consistent with management’s expectations; and expected levels of royalty rates, operating costs, and other
costs and expenses. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject
to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-
looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized.
Actual results will differ, and the difference may be material and adverse to the Corporation and its shareholders.

All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as
“anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intend”, “may”, “plan”, “predict”, “project”, “should”, “target”, “will”, or similar words suggesting
future outcomes or language suggesting an outlook. Forward looking statements are based on the opinions and estimates of management at the date the statements are made, as
well as a number of assumptions made by, and information currently available to, the Corporation concerning, among other things, Pacific Coal’s ability to successfully complete the
proposed subscription receipt financing; anticipated geological, operational and financial performance, business prospects, strategies, regulatory developments, future commodity
prices, future production levels of the Corporation’s assets, the ability to obtain financing on acceptable terms, the timely receipt of any required approvals and that there will be no
significant events occurring outside of Pacific Coal’s normal course of business. Although management considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements
include changes in market conditions, risks relating to international operations, fluctuating coal prices and currency exchange rates, changes in project parameters, the possibility of
project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of equipment or processes to operate as anticipated, and
acquisitions not being integrated successfully or such integration proving more difficult, time consuming or costly than expected. Although Pacific Coal has attempted to identify
important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or intended. Pacific Coal undertakes no obligation to update forward-looking statements if circumstances or
management’s estimates or opinions should change except as required by applicable securities laws.

This presentation uses the terms “measured”, “indicated”, and/or “inferred” mineral resources. United States investors are advised that while such terms are recognized by
Canadian regulations, the United States Securities and Exchange Commission does not recognize them. Unites States investors are cautioned not to assume that all or any part of
mineral resources will ever be converted into mineral reserves. Inferred mineral resources have a great amount of uncertainty as to their existence, and as to their economic and
legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of an inferred mineral
resource exists, or is economically or legally mineable.




                                                                                                                                                                                     1
Vision


         Explore, expand and develop existing producing
         assets to increase efficiencies, reserves and
         production, while securing infrastructure capacity
         (La Caypa, Cerro Largo, CI Jam/Port of
         Barranquilla)
                                                                 LEADING
                                                              INDEPENDENT
         Seek opportunities to secure access to markets
         and ensure commercial flexibility                     COLOMBIAN
                                                                   COAL
         Foster a corporate environment of responsible
                                                                PRODUCER
         citizenship




                                                                            2
Strategy


                                • La Caypa – thermal coal
   RAW MATERIAL                 • Cerro Largo – thermal coal                       100% ownership and
    PRODUCTION                  • CI Jam – hard coking coal                           control of assets
      (UPSTREAM)                • La Tigra – asphaltite
                                                                                                              CAW/CPW plant
                                                                                                          • 50% equity interest
                                                                                                          • Carried interest for
                                                                                                            50/50 JV
                                         • Upgraded coke production
             MANUFACTURING/              • Colloidal asphaltite in water (“CAW”)*
               PROCESSING
                  (MIDSTREAM)
                                         • Colloidal petcoke in water (“CPW”)*                                 Pyrolysis plant
                                         • Pyrolysis                                                      • 100% equity interest




                                                           • Marketing of asphaltite products to:
                                                                 • Power generation plants
                         RETAIL/MARKETING                        • Heavy oil producing companies and refineries
                            (DOWNSTREAM)                   • Marketing of thermal coal
                                                           • Marketing of coke

                      Vertical integration to secure market access in value-added product streams

*CAW and CPW are technologies being developed by Blue ACF, a company in which PAK has a 5% equity interest, with the right
to increase its investment to 20% pending successful trials. Pyrolysis is a proven procedure.                                      3
Capital Structure
  Fully Funded to Execute Strategy

              Pacific Coal became a publicly listed company via RTO on March 14, 2011, making the Company the
               only independent, public coal producer in Colombia
                       Fully leveraged to rising interest in Colombian coal
              Strong sponsorship and institutional investor support
              Cash flow positive
              As at November 29, 2011, 6.9 million shares have been purchased for cancellation under the normal
               course issuer bid
             Pacific Coal (TSXV: PAK)

             Shares outstanding:                                                       326.3 million

             Options (vested & exercisable)                                            35.8 million

             Warrants outstanding with weighted avg. exercise price of $2.10(1)        75.1 million

             Fully diluted:                                                            437.2 million
             Market cap (basic):                                                       $124.0 million (2)
             Cash (September 30, 2011)                                                 $14.3 million
             Long-term debt (3) (September 30, 2011)                                   $32.0 million
             Enterprise value                                                          $141.7 million

(1)   Expiry date March 14, 2016
(2) Based   on closing price of $0.38 on 11/29/2011
(3)   Includes finance leases                                                                                      4
Pacific Coal
 Fully Funded Capex 2011-2012




  Exploration = $10 m         Development = $15 m        Acquisitions = $125 m     Infrastructure = $17 m      Equipment = $15 m
  Pending* = $9 m             Pending* = $2.5 m          Pending* = $15 m          Pending* = $13 m            Pending* = $5 m
  • Drilling at Cerro Largo   • South pit expansion at   • Paying Cerro Largo      • Completion of Coking      • Double body trailers
    to update NI43-101          La Caypa (Royalties)       contract to Masering      Infrastructure              (Trucks were acquired
  • Drilling, mapping and                                • Paying Barranquilla                                   via leasing)
                                                                                   • Barranquilla Port setup
    geophysics at La Tigra                                 Port outstanding debt                               • Exploration drills
  • Drilling in Catatumbo                                • Closing 86% Cerro                                   • Equipment for South
  • Drilling La Caypa for                                  Largo                                                 Pit operations
    underground mine                                     • Blue ACF investment                                 • Other equipment
    design
* As at September 2011
                                                                                                                                     5
Executive Management
Strong and Experienced Team

Luis Arturo Carvajales (Chief Executive Officer)
   More than 20 years of experience in the mining industry, holding management positions in marketing, sales, logistics, and serving
    as legal counsel
   Most recently President / Legal Representative of Carbones Colombianos del Cerrejon S.A.

Miguel Velasquez (Chief Financial Officer)
   Over 25 years experience as Finance & Administrative Manager at companies in Colombia and at Colombian branches of Canadian
    companies

Giovanni Pizarro (Chief Operating Officer)
   Over 23 years experience in the mining industry, specifically coal, holding senior positions in logistics and mine management. He
    spent over 8 years with Carbones del Caribe (Argos) and has a breadth of experience in managing integrated mining projects, coal
    processing and handling facilities, quality control, and port operations in Colombia.
   Has a degree in Civil Engineering

Peter Volk (General Counsel and Secretary)
   Mr.Volk has acted as General Counsel and Secretary of PetroMagdalena Energy Corp., Pacific Rubiales Energy Corp., Gran
    Colombia Gold Corp., and Bolivar Gold Corp.

Jose Ignacio Noguera (Vice President, Public Relations & Corporate Social Responsibility)

   A lawyer with over 20 years experience in the resource industry, holding positions as legal counsel, public affairs, government
    relations, and community relations. During the last 8 years, he was the Public and Government Affairs Manager of ExxonMobil.


                                                                                                                                      6
Asset Summary
 Diverse Portfolio of High Quality Coal Assets

          Well-positioned portfolio with diversified current and future production of steam coal, coke and asphaltite

                                                                                                Current
              Asset                              Type                        Stage
                                                                                              Production*                           Puerto Brisa
                                                                                                                  Port of Santa Marta                    1
                                                                                                                                                         1
                                                                                                                  Port Barranquilla 6
                                      Open pit steam coal
                                                                                                 1.2 Mt1
    1    La Caypa                     mine with                           Producing                                                          2
                                                                                                  (Coal)
                                      underground potential
                                                                                                                                                     5
                                      Open pit steam coal                                        450 Kt2
    2    Cerro Largo                                                      Producing                                                              4
                                      mine                                                        (Coal)
                                                                                                                       Medellin
                                      Underground coking                 Producing
                                                                                                   20 kt                                         3
    3    CI Jam                       coal mine upgrading               (2011 ramp-                                                Bogota
                                                                                                  (Coke)
                                      to coke                               up)
                                                                                                                            Cali

    4                                                                  Exploration/            Start early-
         La Tigra                     Asphaltite
                                                                       Development                2013


    5                                                                   Evaluating
         Catatumbo                    Steam coal                                                     -
                                                                       opportunities

                                      Port concession for
    6    Port Barranquilla                                             Development                   -
                                      coke export

Source: Management estimates
*Annualized rate
1 La Caypa produced 970,340 tonnes in the nine months ended September 30, 2011                                                                                            7
2 Cerro Largo produced 210,744 tonnes in the nine months ended September 30, 2011; Q1 production of 110,875 tonnes was prior to Pacific Coal acquisition of Cerro Largo
Thermal Coal Production Profile
 Fully Funded Organic Growth Pipeline

          Robust production growth from existing assets with additional greenfield and consolidation opportunities
             Annual Production (millions of tonnes)




                                                                                                         3.4-3.6


                                                                                               2.7-2.9
                                                                                     2.6-2.9


                                                            1.6-1.8*


                                                      1.2




Source: Management estimates
*Includes total production from Cerro Largo Q1/2011, before the acquisition closed
                                                                                                                     8
Coke Production Profile
 Fully Funded Organic Growth Pipeline

                          High value coke operation with long mine life and coal to coke conversion of ~70%

  Operational adjustments
   during the first year of                                                                         90,000-   90,000-
   operations resulted in                                                                           120,000   120,000
   reduced production                  Annual Production in tonnes   CI Jam
   guidance for this year
   (from 36,000 t to 20,000
   t)
                                                                                          60,000-
  These adjustments also                                                                 72,000
   allowed for
   infrastructure and
   capacity to be built up,
   resulting in longer-term
   production targets being
   achieved sooner
                                                                                 20,000




                                                                         2010A   2011E    2012E     2013E     2014E

Source: Management estimates
                                                                                                                        9
La Caypa Mine
 Significant Thermal Coal Production
                        High quality steam coal production with attractive expansion and underground potential

 Location:                    • Guajira Department, Colombia
                              • Adjacent to Carbones del Cerrejón mine, largest coal mine in South
                                America
 Resource estimate:           • 47.0 Mt of measured resource (1)
                              • 17.8 Mt of indicated resource (1)
 Area:                        • 300 hectares
 Average BTU:                 • 12,264       (1)


 Average Sulphur:             • 0.69%       (1)


 Operations:                  • One open-pit mine currently operating
                                ₋ South pit expansion in development with expected start-up in
                                  2012 and potential production of additional 1.0 Mtpa
                                                                                                                                      LA CAYPA – COAL CHARACTERISTICS (1)
                                                                                                                                                                (1)
                              • One underground mine in exploration, expected development in
                                                                                                                                 Year Moisture % Ash % Sulphur % CV Btu/lb
                                2013
                                                                                                                                 2009     10.11    5.78     0.69      12,264
 Projected Costs (2):         • US$85/t
 Avg Contract Price:          • US$102/t in long-term contracts for 100% of production to 2013                                            RESERVES & RESOURCES (1)
                                                                                                                                  LA CAYPA - (Inclusive of Additional Resources)
 Infrastructure:              • Secured allocation at Santa Marta (250 km)                                                                     Surface (Mt) Underground (Mt)
                              • Expected additional capacity at Puerto Brisa, early-2012, reducing                              Measured           11.2               35.8
                                freight costs by 40%-50%                                                                        Indicated             -               17.8

 Current strip ratio:         • 7:1

(1) Source: Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010
(2) Includes transportation, port, and administrative costs
                                                                                                                                                                           10
La Caypa Mine
 South Pit Expansion to Extend Mine Life

                                                      Potential incremental production of 1.0 Mt per annum

   Extension of existing open pit to south of highwall
    with same premium coal characteristics as the
    primary pit with a similar CV Btu/lb
   Straightforward integration into existing mining
    operations
   Expected production start-up in 2012 with all
    permits in hand
   South pit measured and indicated resources of 7.7
    Mt(1)
   Development of south pit will be concurrent with
    existing mining operations




(1) Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010
                                                                                                                                                                 11
La Caypa Mine
 Underground Production to Drive Growth

                        Underground potential to drive resource expansion and continued growth in production(1)

   Mine planning underway based on 16 coal seams showing consistent thicknesses suitable for underground mining (average
    thickness ranging from 2.3 meters to 6.8 meters)
   Measured and indicated resource of 53.6 Mt (1)
   Potential thermal coal production to increase 0.8 – 1.0 Mtpa expected to commence in 2013
   Existing pit provides underground access point with three contemplated levels to depth of 240 meters from pit bottom
   Studies underway to determine optimum mining method and design; potential to become the largest underground coal
    operation in Colombia



                                                                                  EXISTING OPEN PIT


                                                   ELEVATION: 0                                                                                                 Level 1
                                                                                                                                                                Cradle


                                                   ELEVATION: -150
                                                                                                                                                                Level 1



                                                   ELEVATION: -300
                                                                                                                                                                Level 2


(1) Source: Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010 and management
projections
                                                                                                                                                                                        12
Cerro Largo – La Divisa
 Acquisition of Significant Coal Production
                          Contains high volatile bituminous type B coal with high calorific values and low sulphur
 Location:                      •    Cesar Department, Colombia in the La Jagua
                                     de Ibirico coalfield
                                •    Adjacent to licences owned by Drummond
                                     and Vale. Glencore is currently operating an
                                     open-pit mine on the adjacent La Jagua
                                     sector
 Resource estimate:             •    11.6 Mt – 21.2 Mt inferred             (1)


 Area:                          •    488 hectares
 Average BTU:                   •    12,000      (1)


 Average Sulphur:               •    0.78%      (1)


 Operations:                    •    One open-pit mine currently operating
 Projected Costs (2):           •    US$80/t, expected to lower US$2/year with
                                     improved efficiencies and strip ratio
 Infrastructure:                •    Secured allocation at Santa Marta (250 km)
                                •    Expected additional capacity at Puerto Brisa
                                     in early-2012, reducing freight costs by 30%-
                                     40%
 Current strip ratio:           •    13:1 (during ramp up)
                                •    Long-term mine plan has been implemented

(1) Source: Report titled “Independent Technical Report, Cerro Largo Mine” prepared by SRK Consulting and dated February 2011
(2) Includes transportation, port, and administrative costs
                                                                                                                                13
Regional Infrastructure
Proximity to Infrastructure Supporting Growth

            Significant port and road infrastructure in place to support existing regional coal production

                                                         Puerto Bolivar
                                                                                              Secured allocation to 2013 of 1.8 Mtpa
                                                                                               of coal stockpiling and shipping capacity
                            Port of Santa Marta Puerto Brisa                                   at the Port of Santa Marta
                         Barranquilla                                                         Production trucked 250 km by paved
                         Port                                          La Caypa
                                                                                               highway to Santa Marta at a cost of
                                Barranquilla
                                                                                               approximately US$20-$23 per tonne
                           Cartagena                                                           from La Caypa and 280 km from Cerro
               Cartagena Port
                                                                                               Largo at a cost of approximately US$23-
                                                                   Cerro Largo                 US$24.
                                                                                              Expected capacity at Puerto Brisa
  Panama                                                                                       provides alternative port location closer
                                                              Catatumbo                        to both La Caypa and Cerro Largo with
                                                                                               potential to reduce freight costs by 40%-
                                                                                 Venezuela     50% and by 30%-40%, respectively
                       Colombia                                    La Tigra                            Puerto Brisa construction expected
                                                                                                        to be completed by Q4/2012,
                                                                                                        providing additional 35 Mt of
                                                                                                        specialized coal shipping capacity
                                                              CI Jam

                                        Legend
   River Transport     Coal Mine          Coal Project      Road        Ports                                                         14
CI Jam
 Coking Coal and Upgraded Coke Production

                            Underground coking coal operation selling premium coke into high price environment

  Location:                             •     Boyaca Department, Colombia, west of the town of
                                              Samaca
                                        •     3,000 small HCC producers in the area
  Resource estimate:                    •     2.8 Mt in situ     (1)


  Area:                                 •     52 hectares
  Average BTU:                          •     13,800 with coking properties (1)
  Average Sulphur:                      •     0.92%     (1)


  Operations:                           •     Underground coking coal
                                        •     Upgrading coking coal to coke
  Projected Costs (2) :                 •     US$210/t
  Avg Contract Price:                   •     US$300/t – US$350/t
  Infrastructure:                       •     Well maintained roads to truck coke to domestic
                                              markets and to port terminals (800km to Barranquilla)
  Status:                               •     Completed refurbishment of 160 beehive coking ovens
                                        •     Completed refurbishment of coker infrastructure
                                        •     2011 estimated production at 20,000 tpa of coke
                                        •     Currently building additional 100 ovens to bring capacity
                                              to 120,000 tpa

(1) Source: Report titled “SRK Technical Report Written To Be Compliant With NI 43-101 On Contract 7241, Boyaca, Colombia” prepared by SRK Consulting and dated August 2010
(2) Includes transportation, port, and administrative costs
                                                                                                                                                                              15
Port of Barranquilla
Investing in Long-Term Port Access for Coke

 Pacific Coal has agreed to acquire a port concession owned by Masering situated on the Magdelena River near the Port of Barranquilla
  (approximately 5km from the Caribbean Sea) to be used to export coke, specialized coals, and bulk commodity products. Excess
  capacity at the port can be monetized by selling to other exporters.
 Pacific Coal plans to tender for engineering, construction and procurement by Q1/2012, expecting to have an early start on coal loading
  operations with a provisional set-up for Q3/2012
                                                                              Main features of the final proposed scheme:

                                                                               Two portable shiploaders

                                                                               A pile supported concrete berth with 12 m water depth

                                                                               Portable Stacker

                                                                                      Coal/coke piles
                                                                      BARRANQUILLA
                                                                       CONCESSION     Reclaim conveyor alongside the open stockpiles

                                                                                      Office/Maintenance building

                                                                                      FEL receiving hopper (rail mounted)

                                                                                      Overall average loading capacity of
                                                                                       approximately 10,000 tonnes per day

                                               BARRANQUILLA
                                                CONCESSION




                                                                                                                                    16
La Tigra’s Asphaltite

                                                               Profile
Asphaltites are species of bitumen, dark-colored, comparatively hard
and non-volatile solids, composed principally of hydrocarbons.               Gilsonite
As of today in the La Tigra area, there is evidence for the presence of
two different types of asphaltite: Grahamite and Gilsonite.
Management expects a significant resource at La Tigra to be confirmed
with a National Instrument 43-101 compliant report – physical
evidence on outcrops, oil seeps and 3 mines already in production in
the area lead to optimistic forecasts on the existence of important
asphaltite reserves.
                                                                              Grahamite


Location of La Tigra:        •   80 km from Barrancabermeja
Area:                        •   5,700 hectares
Operations:                  •   Initial exploration drilling, mapping, trenching and geophysics commenced
                                 June 2011 with the objective of a NI 43-101 compliant report by Q2/2012     La Tigra outcrop
                             •   Production start planned for Q1/2013
Infrastructure:              •   70 km from Bucaramanga with paved roads between Bucaramanga and
                                 San Alberto
                             •   80 km from Barrancabermeja, the centre for petroleum refining and a port
                                 on the Magdalena River


                                                                                                                          17
La Tigra’s Asphaltite Applications

                    Proven Applications                                         Applications in Evaluation Phase
Asphalt modifiers                                                    Colloidal Asphaltite in Water (“CAW”)

•    Oil drilling and mud additive                                   •   Crushed asphaltite, suspended in water forming a colloid,
•    Metal casings                                                       can be used as fuel by power generators
•    Paving/roofing asphalts                                         •   PAK and Blue ACF are in the process of developing a pilot
•    Paint resins                                                        plant test for CAW at Babcock & Wilcox facilities in Ohio,
                                                                         USA
Pyrolysis                                                            •   Trials on track at Babcock & Wilcox with results expected
                                                                         in Q4/2011
•    Extensively used technology at the industrial level
                                                                     •   Significant marketing opportunities as CAW can be sold as
•    Converts asphaltite to valuable liquid and gas products,            a fuel oil substitute
     and pet coke
                                                                     •   Management foresees strong market demand for CAW in
•    Pet coke is a by-product produced through pyrolysis                 Central America and the Caribbean
•    Prefeasibility study indicates excellent economics based on
     lab tests conducted with Colombia grahamite and gilsonite       Colloidal Petcoke in Water (“CPW”)
•    High margin application, potential for substantial volumes      •    Similar to CAW, but using pet coke instead of asphaltite
•    Feasibility study in progress in order to select the specific   •    Blue ACF already conducted successful trials on colloidal
     technology and to conduct pilot plant tests (100% PAK)               pet coke in water at Babcock & Wilcox in Q1/2011

                                                                     PAK has investment option in the development
                                                                           of the CAW and CPW plants (50%)


                                                                                                                                 18
CAW/CPW Emissions Abatement

The technologies being developed by Blue ACF have emissions abatement opportunities embedded in the R&D


                                                             SO2

 The abatement of these emissions is usually achieved using Flue Gas Desulfurization technologies (`FGD`)
 The key component is the limestone-based reaction (or calcium carbonate) as it removes SO2 from the flue gases to
  produce calcium sulfate or gypsum, a non-emission causing element
       CAW with this limestone-based component will make this fuel less detrimental to the atmosphere than other heavy
        fuels
                                                             NO2

 The abatement of NO2 is achieved by re-burning: re-burning is a NO2 staged combustion control technique that suppresses
  the formation of NO2 in burners and then provides for additional NO2 reduction in the furnace area of the boiler




                             Blue ACF is currently developing a new scheme to further
                                           reduce SO2 and NO2 emissions


                                                                                                                      19
Pacific Coal
Health & Safety

Mission & values: To achieve Health & Safety goals through stewardship, integrity, and employee empowerment

Our goal as a responsible company is to reduce the safety incidents in our operations each year:
seeking to achieve the lowest rates of the mining industry

• The organization maintains weekly updates in our    • The company makes strategic alliances with environmental
  safety performance indicators.                        corporations to guarantee top eco-friendly performance.

                                                      • We seek to find work partners that have high standards in
                                                        health and safety politics.
                                                      • We periodically work with our direct and indirect
                                                        workforce in industrial security to ensure best practice in
                                                        the mining industry.

                                                      • We encourage our employees to participate actively in
                                                        safety activities by creating prevention programs.

                                                      • We assure that the company and our work partners
                                                        perform by all law obligations regarding health and safety
                                                        activities.
                                                      • All of our employees take part in our community health
                                                        programs as volunteers and patients.


                                                                                                                 20
Pacific Coal
Community Relations

Mission: To maximize shareholder value, while fostering a corporate environment of responsible citizenship and
  respecting the interests of our stakeholders and members of the communities in which we operate and live


Leading the responsible progress our country needs


               We align our initiatives with local government
               needs and activities contributing to the nation’s
               progress.


               We work hand to hand with non-profit
               organizations to maximize our community efforts.


               We ensure responsible operations by minimizing
               the impact on the environment.



                                                                                                           21
Pacific Coal
Achievement Scorecard

                                                                         Achieved   In Process

 Completion of amended NI 43-101 at La Caypa and Cerro Largo                           O
 Production and costs in line with management estimates at La
 Caypa
                                                                           
 Commencement of development of south pit expansion and surface                        O
 work for underground at La Caypa
 Implementation of integrated mine plan at Cerro Largo                     
 Transition from Port of Santa Marta to Puerto Brisa, reducing freight                 O
 costs by 30%-50%
 Completion of refurbishment of 160 beehive coking ovens at CI Jam         
 Building additional 100 beehive ovens at CI Jam                                       O
 Commencement of exploration at La Tigra                                   
 Completion of NI 43-101 on La Tigra                                                   O
 Development of Port of Barranquilla                                                   O
 CAW/CPW tests and trials                                                              O

                                                                                                 22
Pacific Coal
Summary

       Strategically located, high-quality projects in a world-class jurisdiction with significant growth potential

 Fully funded for organic growth plans and cash flow positive
 High-grade material of which global supply is permanently depleting and thus carrying premiums
 High quality coal characteristics – high BTU, low moisture, low ash, low sulphur
 Access to international markets via ports – improving efficiencies and cost reductions
 Opportunities to develop projects to access growth markets such as coking coal and asphaltite
 Strong operating team with a proven track record for project advancement




                                                                                                                      23
APPENDIX




           24
Colombia
 A World-Class Coal District

                                Catatumbo                     LA GUAJIRA DEPARTMENT
                                    La Tigra
                                                          Cerrejon
                                                          (BHP/Xstrata/Anglo)
                                    CI Jam
                                                                                                      Colombia is the world’s 10th largest producer (76
                                                                                       La Caypa
                                                                                                       million tonnes in 2009) and 4th largest exporter of
                                                                                                       coal
                                                                                                      Coal represented 25% of total export earnings for
                                                                                                       Colombia in 2009
                                                                                                      Colombia has one of the largest proven coal reserves
                                                               CESAR DEPARTMENT                        in the world, with over 7 billion tonnes of recoverable
                                                  El Descanso
                                                                                Calenturitas
                                                  (Drummond)
                                                                                (Glencore)             reserves and 17 billion tonnes of potential reserves
                                                 El Hatillo
                                    La Francia
                                                 (Vale)
                                                                                                      Colombia’s estimated 2011 coal production is 85
                                    (Goldman Sachs)
                                                                                                       million to 95 million tonnes
                                               Cerro Largo                          La Jagua
                                                                                    (Glencore)

                                               Pribbenow
                                               (Drummond)




Source: Ingeominas Colombian Institute of Geology and Mining; Energy Information Administration; Reuters; Intierra
                                                                                                                                                           25
Colombia
 A World-Class Coal District

                  Colombia is a significant coal mining region with 2011 production forecast to exceed 85 million tonnes

                              Colombian Coal Production (Mt)                                                                         DMTU Thermal Coal Price (FOB Puerto Bolivar)
90.0

80.0
                                                                                                                         $250                                     Colombian Coal
70.0                                Production in Mt                                                                                                            prices up over 60%
                                                                                                                                                                since January 2010
60.0                                                                                                                     $200


50.0
                                                                                                                         $150
40.0
                                                                                                                         $100
30.0

20.0                                                                                                                     $50

10.0
                                                                                                                          $0
  0.0                                                                                                                       Jul-06   Jul-07   Jul-08      Jul-09       Jul-10   Jul-11        Jul-12   Jul-13
                                                                                                                 2011E
        1980
               1982
                      1984
                             1986
                                    1988
                                           1990
                                                  1992
                                                         1994
                                                                1996
                                                                       1998
                                                                              2000
                                                                                     2002
                                                                                            2004
                                                                                                   2006
                                                                                                          2008
                                                                                                                 2010




                                                                                                                                               FOB Puerto Bolivar to Europe     API#2 Price




Source: BP Statistical Review of World Energy and Bloomberg
                                                                                                                                                                                                       26
Valuation Metrics
 Opportunity For Re-evaluation

                                                                                                                                $18                  $16.17
                         As at November 1, 2011                                                                                 $16
                                                                                                                                $14
                                                                                                                                $12




                                                                                                                EV / Resource
                  3.0                                                                                                           $10
                                                                                                                                 $8
                                                                                                                                 $6
                  2.5                                                                                                            $4      $2.56
                                                                                                                                 $2

                  2.0                                                                                                            $-
                                                                                                                                      Pacific Coal   Peer*
    EV / EBITDA




                             3.4x
                                                                 3.1x                                              $121.00                           $120.24
                  1.5
                                                                                                                   $120.00
                                                                                                                   $119.00




                                                                                            EV / Tonne Sold**
                  1.0                                                                                              $118.00
                                                                                                                   $117.00
                                                                                                                   $116.00
                  0.5                                                                                              $115.00              $114.41
                                                                                                                   $114.00
                                                                                                                   $113.00
                  0.0                                                                                              $112.00
                         Pacific Coal                           Peer*                                              $111.00
                                                                                                                                      Pacific Coal    Peer*


Source: Management estimates, Fraser Mackenzie research, and Bloomberg
* Peers: Corsa Coal Corp., Forbes & Manhattan Coal Corp., Lipari Energy, and Xinergy Ltd.
** Production sales as of most recent quarter on an annualized basis                                                                                           27
Becoming Colombia’s Leading Independent Coal Producer
                   December 2011
                     TSXV: PAK




                                                        28

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Pacific coal december_website

  • 1. Becoming Colombia’s Leading Independent Coal Producer December 2011 TSXV: PAK
  • 2. Disclaimer Forward Looking Statement This presentation contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the business, operations and financial performance and condition of Pacific Coal, S.A. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to business plans and strategies of Pacific Coal; information with respect to the proposed subscription receipt financing of Pacific Coal; estimated production of the various projects of Pacific Coal; the benefits of the acquisitions and the development potential of properties of Pacific Coal; the future price of coal; estimates regarding mineralization and exploration results; the ability of Pacific Coal to achieve mining success consistent with management’s expectations; and expected levels of royalty rates, operating costs, and other costs and expenses. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward- looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to the Corporation and its shareholders. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intend”, “may”, “plan”, “predict”, “project”, “should”, “target”, “will”, or similar words suggesting future outcomes or language suggesting an outlook. Forward looking statements are based on the opinions and estimates of management at the date the statements are made, as well as a number of assumptions made by, and information currently available to, the Corporation concerning, among other things, Pacific Coal’s ability to successfully complete the proposed subscription receipt financing; anticipated geological, operational and financial performance, business prospects, strategies, regulatory developments, future commodity prices, future production levels of the Corporation’s assets, the ability to obtain financing on acceptable terms, the timely receipt of any required approvals and that there will be no significant events occurring outside of Pacific Coal’s normal course of business. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, risks relating to international operations, fluctuating coal prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of equipment or processes to operate as anticipated, and acquisitions not being integrated successfully or such integration proving more difficult, time consuming or costly than expected. Although Pacific Coal has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. Pacific Coal undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. This presentation uses the terms “measured”, “indicated”, and/or “inferred” mineral resources. United States investors are advised that while such terms are recognized by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. Unites States investors are cautioned not to assume that all or any part of mineral resources will ever be converted into mineral reserves. Inferred mineral resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. 1
  • 3. Vision Explore, expand and develop existing producing assets to increase efficiencies, reserves and production, while securing infrastructure capacity (La Caypa, Cerro Largo, CI Jam/Port of Barranquilla) LEADING INDEPENDENT Seek opportunities to secure access to markets and ensure commercial flexibility COLOMBIAN COAL Foster a corporate environment of responsible PRODUCER citizenship 2
  • 4. Strategy • La Caypa – thermal coal RAW MATERIAL • Cerro Largo – thermal coal 100% ownership and PRODUCTION • CI Jam – hard coking coal control of assets (UPSTREAM) • La Tigra – asphaltite CAW/CPW plant • 50% equity interest • Carried interest for 50/50 JV • Upgraded coke production MANUFACTURING/ • Colloidal asphaltite in water (“CAW”)* PROCESSING (MIDSTREAM) • Colloidal petcoke in water (“CPW”)* Pyrolysis plant • Pyrolysis • 100% equity interest • Marketing of asphaltite products to: • Power generation plants RETAIL/MARKETING • Heavy oil producing companies and refineries (DOWNSTREAM) • Marketing of thermal coal • Marketing of coke Vertical integration to secure market access in value-added product streams *CAW and CPW are technologies being developed by Blue ACF, a company in which PAK has a 5% equity interest, with the right to increase its investment to 20% pending successful trials. Pyrolysis is a proven procedure. 3
  • 5. Capital Structure Fully Funded to Execute Strategy  Pacific Coal became a publicly listed company via RTO on March 14, 2011, making the Company the only independent, public coal producer in Colombia  Fully leveraged to rising interest in Colombian coal  Strong sponsorship and institutional investor support  Cash flow positive  As at November 29, 2011, 6.9 million shares have been purchased for cancellation under the normal course issuer bid Pacific Coal (TSXV: PAK) Shares outstanding: 326.3 million Options (vested & exercisable) 35.8 million Warrants outstanding with weighted avg. exercise price of $2.10(1) 75.1 million Fully diluted: 437.2 million Market cap (basic): $124.0 million (2) Cash (September 30, 2011) $14.3 million Long-term debt (3) (September 30, 2011) $32.0 million Enterprise value $141.7 million (1) Expiry date March 14, 2016 (2) Based on closing price of $0.38 on 11/29/2011 (3) Includes finance leases 4
  • 6. Pacific Coal Fully Funded Capex 2011-2012 Exploration = $10 m Development = $15 m Acquisitions = $125 m Infrastructure = $17 m Equipment = $15 m Pending* = $9 m Pending* = $2.5 m Pending* = $15 m Pending* = $13 m Pending* = $5 m • Drilling at Cerro Largo • South pit expansion at • Paying Cerro Largo • Completion of Coking • Double body trailers to update NI43-101 La Caypa (Royalties) contract to Masering Infrastructure (Trucks were acquired • Drilling, mapping and • Paying Barranquilla via leasing) • Barranquilla Port setup geophysics at La Tigra Port outstanding debt • Exploration drills • Drilling in Catatumbo • Closing 86% Cerro • Equipment for South • Drilling La Caypa for Largo Pit operations underground mine • Blue ACF investment • Other equipment design * As at September 2011 5
  • 7. Executive Management Strong and Experienced Team Luis Arturo Carvajales (Chief Executive Officer)  More than 20 years of experience in the mining industry, holding management positions in marketing, sales, logistics, and serving as legal counsel  Most recently President / Legal Representative of Carbones Colombianos del Cerrejon S.A. Miguel Velasquez (Chief Financial Officer)  Over 25 years experience as Finance & Administrative Manager at companies in Colombia and at Colombian branches of Canadian companies Giovanni Pizarro (Chief Operating Officer)  Over 23 years experience in the mining industry, specifically coal, holding senior positions in logistics and mine management. He spent over 8 years with Carbones del Caribe (Argos) and has a breadth of experience in managing integrated mining projects, coal processing and handling facilities, quality control, and port operations in Colombia.  Has a degree in Civil Engineering Peter Volk (General Counsel and Secretary)  Mr.Volk has acted as General Counsel and Secretary of PetroMagdalena Energy Corp., Pacific Rubiales Energy Corp., Gran Colombia Gold Corp., and Bolivar Gold Corp. Jose Ignacio Noguera (Vice President, Public Relations & Corporate Social Responsibility)  A lawyer with over 20 years experience in the resource industry, holding positions as legal counsel, public affairs, government relations, and community relations. During the last 8 years, he was the Public and Government Affairs Manager of ExxonMobil. 6
  • 8. Asset Summary Diverse Portfolio of High Quality Coal Assets Well-positioned portfolio with diversified current and future production of steam coal, coke and asphaltite Current Asset Type Stage Production* Puerto Brisa Port of Santa Marta 1 1 Port Barranquilla 6 Open pit steam coal 1.2 Mt1 1 La Caypa mine with Producing 2 (Coal) underground potential 5 Open pit steam coal 450 Kt2 2 Cerro Largo Producing 4 mine (Coal) Medellin Underground coking Producing 20 kt 3 3 CI Jam coal mine upgrading (2011 ramp- Bogota (Coke) to coke up) Cali 4 Exploration/ Start early- La Tigra Asphaltite Development 2013 5 Evaluating Catatumbo Steam coal - opportunities Port concession for 6 Port Barranquilla Development - coke export Source: Management estimates *Annualized rate 1 La Caypa produced 970,340 tonnes in the nine months ended September 30, 2011 7 2 Cerro Largo produced 210,744 tonnes in the nine months ended September 30, 2011; Q1 production of 110,875 tonnes was prior to Pacific Coal acquisition of Cerro Largo
  • 9. Thermal Coal Production Profile Fully Funded Organic Growth Pipeline Robust production growth from existing assets with additional greenfield and consolidation opportunities Annual Production (millions of tonnes) 3.4-3.6 2.7-2.9 2.6-2.9 1.6-1.8* 1.2 Source: Management estimates *Includes total production from Cerro Largo Q1/2011, before the acquisition closed 8
  • 10. Coke Production Profile Fully Funded Organic Growth Pipeline High value coke operation with long mine life and coal to coke conversion of ~70%  Operational adjustments during the first year of 90,000- 90,000- operations resulted in 120,000 120,000 reduced production Annual Production in tonnes CI Jam guidance for this year (from 36,000 t to 20,000 t) 60,000-  These adjustments also 72,000 allowed for infrastructure and capacity to be built up, resulting in longer-term production targets being achieved sooner 20,000 2010A 2011E 2012E 2013E 2014E Source: Management estimates 9
  • 11. La Caypa Mine Significant Thermal Coal Production High quality steam coal production with attractive expansion and underground potential Location: • Guajira Department, Colombia • Adjacent to Carbones del Cerrejón mine, largest coal mine in South America Resource estimate: • 47.0 Mt of measured resource (1) • 17.8 Mt of indicated resource (1) Area: • 300 hectares Average BTU: • 12,264 (1) Average Sulphur: • 0.69% (1) Operations: • One open-pit mine currently operating ₋ South pit expansion in development with expected start-up in 2012 and potential production of additional 1.0 Mtpa LA CAYPA – COAL CHARACTERISTICS (1) (1) • One underground mine in exploration, expected development in Year Moisture % Ash % Sulphur % CV Btu/lb 2013 2009 10.11 5.78 0.69 12,264 Projected Costs (2): • US$85/t Avg Contract Price: • US$102/t in long-term contracts for 100% of production to 2013 RESERVES & RESOURCES (1) LA CAYPA - (Inclusive of Additional Resources) Infrastructure: • Secured allocation at Santa Marta (250 km) Surface (Mt) Underground (Mt) • Expected additional capacity at Puerto Brisa, early-2012, reducing Measured 11.2 35.8 freight costs by 40%-50% Indicated - 17.8 Current strip ratio: • 7:1 (1) Source: Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010 (2) Includes transportation, port, and administrative costs 10
  • 12. La Caypa Mine South Pit Expansion to Extend Mine Life Potential incremental production of 1.0 Mt per annum  Extension of existing open pit to south of highwall with same premium coal characteristics as the primary pit with a similar CV Btu/lb  Straightforward integration into existing mining operations  Expected production start-up in 2012 with all permits in hand  South pit measured and indicated resources of 7.7 Mt(1)  Development of south pit will be concurrent with existing mining operations (1) Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010 11
  • 13. La Caypa Mine Underground Production to Drive Growth Underground potential to drive resource expansion and continued growth in production(1)  Mine planning underway based on 16 coal seams showing consistent thicknesses suitable for underground mining (average thickness ranging from 2.3 meters to 6.8 meters)  Measured and indicated resource of 53.6 Mt (1)  Potential thermal coal production to increase 0.8 – 1.0 Mtpa expected to commence in 2013  Existing pit provides underground access point with three contemplated levels to depth of 240 meters from pit bottom  Studies underway to determine optimum mining method and design; potential to become the largest underground coal operation in Colombia EXISTING OPEN PIT ELEVATION: 0 Level 1 Cradle ELEVATION: -150 Level 1 ELEVATION: -300 Level 2 (1) Source: Report titled “NI 43-101 Compliant Technical Report, La Caypa Mine, Department of Guajira, Colombia” prepared by SRK Consulting and dated November 1, 2010 and management projections 12
  • 14. Cerro Largo – La Divisa Acquisition of Significant Coal Production Contains high volatile bituminous type B coal with high calorific values and low sulphur Location: • Cesar Department, Colombia in the La Jagua de Ibirico coalfield • Adjacent to licences owned by Drummond and Vale. Glencore is currently operating an open-pit mine on the adjacent La Jagua sector Resource estimate: • 11.6 Mt – 21.2 Mt inferred (1) Area: • 488 hectares Average BTU: • 12,000 (1) Average Sulphur: • 0.78% (1) Operations: • One open-pit mine currently operating Projected Costs (2): • US$80/t, expected to lower US$2/year with improved efficiencies and strip ratio Infrastructure: • Secured allocation at Santa Marta (250 km) • Expected additional capacity at Puerto Brisa in early-2012, reducing freight costs by 30%- 40% Current strip ratio: • 13:1 (during ramp up) • Long-term mine plan has been implemented (1) Source: Report titled “Independent Technical Report, Cerro Largo Mine” prepared by SRK Consulting and dated February 2011 (2) Includes transportation, port, and administrative costs 13
  • 15. Regional Infrastructure Proximity to Infrastructure Supporting Growth Significant port and road infrastructure in place to support existing regional coal production Puerto Bolivar  Secured allocation to 2013 of 1.8 Mtpa of coal stockpiling and shipping capacity Port of Santa Marta Puerto Brisa at the Port of Santa Marta Barranquilla  Production trucked 250 km by paved Port La Caypa highway to Santa Marta at a cost of Barranquilla approximately US$20-$23 per tonne Cartagena from La Caypa and 280 km from Cerro Cartagena Port Largo at a cost of approximately US$23- Cerro Largo US$24.  Expected capacity at Puerto Brisa Panama provides alternative port location closer Catatumbo to both La Caypa and Cerro Largo with potential to reduce freight costs by 40%- Venezuela 50% and by 30%-40%, respectively Colombia La Tigra  Puerto Brisa construction expected to be completed by Q4/2012, providing additional 35 Mt of specialized coal shipping capacity CI Jam Legend River Transport Coal Mine Coal Project Road Ports 14
  • 16. CI Jam Coking Coal and Upgraded Coke Production Underground coking coal operation selling premium coke into high price environment Location: • Boyaca Department, Colombia, west of the town of Samaca • 3,000 small HCC producers in the area Resource estimate: • 2.8 Mt in situ (1) Area: • 52 hectares Average BTU: • 13,800 with coking properties (1) Average Sulphur: • 0.92% (1) Operations: • Underground coking coal • Upgrading coking coal to coke Projected Costs (2) : • US$210/t Avg Contract Price: • US$300/t – US$350/t Infrastructure: • Well maintained roads to truck coke to domestic markets and to port terminals (800km to Barranquilla) Status: • Completed refurbishment of 160 beehive coking ovens • Completed refurbishment of coker infrastructure • 2011 estimated production at 20,000 tpa of coke • Currently building additional 100 ovens to bring capacity to 120,000 tpa (1) Source: Report titled “SRK Technical Report Written To Be Compliant With NI 43-101 On Contract 7241, Boyaca, Colombia” prepared by SRK Consulting and dated August 2010 (2) Includes transportation, port, and administrative costs 15
  • 17. Port of Barranquilla Investing in Long-Term Port Access for Coke  Pacific Coal has agreed to acquire a port concession owned by Masering situated on the Magdelena River near the Port of Barranquilla (approximately 5km from the Caribbean Sea) to be used to export coke, specialized coals, and bulk commodity products. Excess capacity at the port can be monetized by selling to other exporters.  Pacific Coal plans to tender for engineering, construction and procurement by Q1/2012, expecting to have an early start on coal loading operations with a provisional set-up for Q3/2012 Main features of the final proposed scheme:  Two portable shiploaders  A pile supported concrete berth with 12 m water depth  Portable Stacker  Coal/coke piles BARRANQUILLA CONCESSION  Reclaim conveyor alongside the open stockpiles  Office/Maintenance building  FEL receiving hopper (rail mounted)  Overall average loading capacity of approximately 10,000 tonnes per day BARRANQUILLA CONCESSION 16
  • 18. La Tigra’s Asphaltite Profile Asphaltites are species of bitumen, dark-colored, comparatively hard and non-volatile solids, composed principally of hydrocarbons. Gilsonite As of today in the La Tigra area, there is evidence for the presence of two different types of asphaltite: Grahamite and Gilsonite. Management expects a significant resource at La Tigra to be confirmed with a National Instrument 43-101 compliant report – physical evidence on outcrops, oil seeps and 3 mines already in production in the area lead to optimistic forecasts on the existence of important asphaltite reserves. Grahamite Location of La Tigra: • 80 km from Barrancabermeja Area: • 5,700 hectares Operations: • Initial exploration drilling, mapping, trenching and geophysics commenced June 2011 with the objective of a NI 43-101 compliant report by Q2/2012 La Tigra outcrop • Production start planned for Q1/2013 Infrastructure: • 70 km from Bucaramanga with paved roads between Bucaramanga and San Alberto • 80 km from Barrancabermeja, the centre for petroleum refining and a port on the Magdalena River 17
  • 19. La Tigra’s Asphaltite Applications Proven Applications Applications in Evaluation Phase Asphalt modifiers Colloidal Asphaltite in Water (“CAW”) • Oil drilling and mud additive • Crushed asphaltite, suspended in water forming a colloid, • Metal casings can be used as fuel by power generators • Paving/roofing asphalts • PAK and Blue ACF are in the process of developing a pilot • Paint resins plant test for CAW at Babcock & Wilcox facilities in Ohio, USA Pyrolysis • Trials on track at Babcock & Wilcox with results expected in Q4/2011 • Extensively used technology at the industrial level • Significant marketing opportunities as CAW can be sold as • Converts asphaltite to valuable liquid and gas products, a fuel oil substitute and pet coke • Management foresees strong market demand for CAW in • Pet coke is a by-product produced through pyrolysis Central America and the Caribbean • Prefeasibility study indicates excellent economics based on lab tests conducted with Colombia grahamite and gilsonite Colloidal Petcoke in Water (“CPW”) • High margin application, potential for substantial volumes • Similar to CAW, but using pet coke instead of asphaltite • Feasibility study in progress in order to select the specific • Blue ACF already conducted successful trials on colloidal technology and to conduct pilot plant tests (100% PAK) pet coke in water at Babcock & Wilcox in Q1/2011 PAK has investment option in the development of the CAW and CPW plants (50%) 18
  • 20. CAW/CPW Emissions Abatement The technologies being developed by Blue ACF have emissions abatement opportunities embedded in the R&D SO2  The abatement of these emissions is usually achieved using Flue Gas Desulfurization technologies (`FGD`)  The key component is the limestone-based reaction (or calcium carbonate) as it removes SO2 from the flue gases to produce calcium sulfate or gypsum, a non-emission causing element  CAW with this limestone-based component will make this fuel less detrimental to the atmosphere than other heavy fuels NO2  The abatement of NO2 is achieved by re-burning: re-burning is a NO2 staged combustion control technique that suppresses the formation of NO2 in burners and then provides for additional NO2 reduction in the furnace area of the boiler Blue ACF is currently developing a new scheme to further reduce SO2 and NO2 emissions 19
  • 21. Pacific Coal Health & Safety Mission & values: To achieve Health & Safety goals through stewardship, integrity, and employee empowerment Our goal as a responsible company is to reduce the safety incidents in our operations each year: seeking to achieve the lowest rates of the mining industry • The organization maintains weekly updates in our • The company makes strategic alliances with environmental safety performance indicators. corporations to guarantee top eco-friendly performance. • We seek to find work partners that have high standards in health and safety politics. • We periodically work with our direct and indirect workforce in industrial security to ensure best practice in the mining industry. • We encourage our employees to participate actively in safety activities by creating prevention programs. • We assure that the company and our work partners perform by all law obligations regarding health and safety activities. • All of our employees take part in our community health programs as volunteers and patients. 20
  • 22. Pacific Coal Community Relations Mission: To maximize shareholder value, while fostering a corporate environment of responsible citizenship and respecting the interests of our stakeholders and members of the communities in which we operate and live Leading the responsible progress our country needs We align our initiatives with local government needs and activities contributing to the nation’s progress. We work hand to hand with non-profit organizations to maximize our community efforts. We ensure responsible operations by minimizing the impact on the environment. 21
  • 23. Pacific Coal Achievement Scorecard Achieved In Process Completion of amended NI 43-101 at La Caypa and Cerro Largo O Production and costs in line with management estimates at La Caypa  Commencement of development of south pit expansion and surface O work for underground at La Caypa Implementation of integrated mine plan at Cerro Largo  Transition from Port of Santa Marta to Puerto Brisa, reducing freight O costs by 30%-50% Completion of refurbishment of 160 beehive coking ovens at CI Jam  Building additional 100 beehive ovens at CI Jam O Commencement of exploration at La Tigra  Completion of NI 43-101 on La Tigra O Development of Port of Barranquilla O CAW/CPW tests and trials O 22
  • 24. Pacific Coal Summary Strategically located, high-quality projects in a world-class jurisdiction with significant growth potential  Fully funded for organic growth plans and cash flow positive  High-grade material of which global supply is permanently depleting and thus carrying premiums  High quality coal characteristics – high BTU, low moisture, low ash, low sulphur  Access to international markets via ports – improving efficiencies and cost reductions  Opportunities to develop projects to access growth markets such as coking coal and asphaltite  Strong operating team with a proven track record for project advancement 23
  • 25. APPENDIX 24
  • 26. Colombia A World-Class Coal District Catatumbo LA GUAJIRA DEPARTMENT La Tigra Cerrejon (BHP/Xstrata/Anglo) CI Jam  Colombia is the world’s 10th largest producer (76 La Caypa million tonnes in 2009) and 4th largest exporter of coal  Coal represented 25% of total export earnings for Colombia in 2009  Colombia has one of the largest proven coal reserves CESAR DEPARTMENT in the world, with over 7 billion tonnes of recoverable El Descanso Calenturitas (Drummond) (Glencore) reserves and 17 billion tonnes of potential reserves El Hatillo La Francia (Vale)  Colombia’s estimated 2011 coal production is 85 (Goldman Sachs) million to 95 million tonnes Cerro Largo La Jagua (Glencore) Pribbenow (Drummond) Source: Ingeominas Colombian Institute of Geology and Mining; Energy Information Administration; Reuters; Intierra 25
  • 27. Colombia A World-Class Coal District Colombia is a significant coal mining region with 2011 production forecast to exceed 85 million tonnes Colombian Coal Production (Mt) DMTU Thermal Coal Price (FOB Puerto Bolivar) 90.0 80.0 $250 Colombian Coal 70.0 Production in Mt prices up over 60% since January 2010 60.0 $200 50.0 $150 40.0 $100 30.0 20.0 $50 10.0 $0 0.0 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 2011E 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 FOB Puerto Bolivar to Europe API#2 Price Source: BP Statistical Review of World Energy and Bloomberg 26
  • 28. Valuation Metrics Opportunity For Re-evaluation $18 $16.17 As at November 1, 2011 $16 $14 $12 EV / Resource 3.0 $10 $8 $6 2.5 $4 $2.56 $2 2.0 $- Pacific Coal Peer* EV / EBITDA 3.4x 3.1x $121.00 $120.24 1.5 $120.00 $119.00 EV / Tonne Sold** 1.0 $118.00 $117.00 $116.00 0.5 $115.00 $114.41 $114.00 $113.00 0.0 $112.00 Pacific Coal Peer* $111.00 Pacific Coal Peer* Source: Management estimates, Fraser Mackenzie research, and Bloomberg * Peers: Corsa Coal Corp., Forbes & Manhattan Coal Corp., Lipari Energy, and Xinergy Ltd. ** Production sales as of most recent quarter on an annualized basis 27
  • 29. Becoming Colombia’s Leading Independent Coal Producer December 2011 TSXV: PAK 28