Aquila Resources Limited Aquila’s Coal Business Wilson HTM FocusOnCoal Sydney March 2008

1. Aquila Resources Limited Aquila’s Coal Business Wilson HTM FocusOnCoal Sydney March 2008

2. Disclaimer and Warning • No representation or liability: No representation or warranty is made as to the fairness, currency, accuracy, completeness, reliability or reasonableness of this presentation, or any opinions, conclusions and forward-looking statements it contains or any other information which Aquila provides to you (whether in this presentation or otherwise). Except to the extent required by law, Aquila Resources Limited (“Aquila”) does not undertake to advise any person of any information coming to its attention (including, without limitation, correcting or updating information) relating to the financial condition, status or affairs of Aquila or its related bodies corporate. • To the maximum extent permitted by law, Aquila and its related bodies corporate and officers, employees and advisers are not liable for any loss or damage (including, without limitation, any direct, indirect or consequential loss or damage) suffered by any person directly or indirectly as a result of relying on this presentation or otherwise in connection with it. • Forward-looking statements: This presentation is heavily dependent on forecasts, projections or forward-looking statements (together the “Forward-looking Statements”). No representation or warranty is given as to the accuracy, completeness, reliability, financial feasibility, likelihood of achievement or reasonableness of any Forward-looking Statements contained in the presentation. Forward-looking Statements are by their nature subject to significant uncertainties and contingencies and no representation is made that any Forward-looking Statements will come to pass. • Seek your own independent advice: Do not rely on this presentation to make an investment decision. This presentation has been prepared without consideration of your objectives and needs (including, without limitation, the need if any for the information to be accurate, reasonable, complete or reliable) and financial situation. You should make your own independent assessment of the information in the presentation and seek your own independent professional financial, taxation and legal advice in relation to the information and before taking any action in relation to any matter contained in the presentation. • Not an offer: This presentation is not intended to be an offer for subscription, invitation, solicitation or recommendation with respect to securities in Aquila in any jurisdiction. Without limiting the foregoing, this presentation is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in the United States, United Kingdom or Australia or to any person to whom it is unlawful to make such an offer, invitation, solicitation or recommendation. No shares or other securities in Aquila have been nor will be registered under the US Securities Act. • This presentation does not constitute an advertisement for an offer or proposed offer of securities. It is not intended to induce any person to engage in, or refrain from engaging in, any transaction. • Currency: Where applicable Australian dollar revenue and costs have been converted to US dollars with a FX 85 cents

3. Corporate Overview Project Inventory Tenement Summary Coal Projects Joint Venture Projects QLD Exploration and Development Southern Africa Energy JV Challenges Production Targets Summary

4. Aquila is a West Australian based mining company focusing on the steel making raw materials coal and iron ore, both in Australia and Southern Africa; Head office in Perth, regional offices established around commodity groups in Brisbane and South Africa; Aquila has 206 million ordinary shares on issue and 7.7 million unlisted options, market capitalisation of ~AUD 1.9 billion undiluted; Board owns ~50% of the issued share capital with other major shareholders including institutions from Australia, United Kingdom, and United States; Corporate Overview

5. Project Inventory Isaac Plains Coal Operations Isaac Plains South + Dragline (IIPP) West Pilbara Iron Ore Peak Downs East Belvedere Coal Washpool Coal Red Hill Coal South African Iron Ore Botswana Coal East Pilbara Iron Ore QLD Coal

6. COAL

7. Queensland Coal Tenements ^ 24.5% after Vale option exercise (a) Under Application

8. Coal Projects Overview ISAAC PLAINS COAL MINE

9. Isaac Plains Coal Mine • Aquila Interest – 50%; • Resource – 140Mt (JORC); • ROM Reserves – 65.5Mt (JORC) • Coal quality - 75% Metallurgical - 25% Thermal • Targeting +17yr mine life; • Ramp up to 2.8Mt product over two years as Isaac Plains South is developed and Dalrymple Bay Coal Terminal (DBCT) is expanded.

10. Isaac Plains Coal Mine • Open cut truck & excavator mining. Contract mining by Cooks Construction; • Contract CHPP operations by Ascentis; • Sales managed under marketing agreement by Vale until 2011 under Isaac Plains brand.

11. Isaac Plains Coal Mine • Project capital cost to date AUD$78 million (100%); • Project Debt AUD$18.5 million; • CHPP design to 500 tph; • Integrated Isaac Plains Project (IIPP) Feasibility Study basically complete; • Development of IP South; • Refurbishment and Upgrade of BE1370. (This machine is in transit to Australia); • IIPP Environmental Impact Statement currently working on submissions and supplementary report; • Upgraded reserves reported in Jan 08. Isaac Plains Proposed Underpass & Haulage Route Isaac Plains South Expansion Area

12. Isaac Plains Coal Mine LOADING DRAGLINE

13. Peak Downs East Underground Project • Aquila interest 50%; • Project located immediately east of BMA’s Peak Downs operations; • Large Inferred Resource of 696 million tonnes (Stage 1 programme model); • Targeting Q, Harrow Creek Upper and Lower and Dysart seams; • Depths range from 170-600m; • Concept Study Complete July 07; • Product potential up to 7Mtpa hard coking coal; • Potential for multi-seam longwall mine + top coal caving; • Mine life potential >30yrs.

14. Peak Downs East Underground Project • Approved work program for FY08 AUD $10.9M; • Exploration - 27 partially cored holes; • Infill to 1,000m spacing; • 2-D seismic program – completed; • Upgrade Resource status to Indicated; • Update mining study; • Preliminary infrastructure /CHPP design; • Quality and marketing assessment; • Mining lease application made Nov 07; • EIS commenced, TOR advertised;

15. Belvedere Coal Underground Project • Aquila interest 24.5%; • Large Hard Coking Coal JORC compliant Resource (2.7bn tonnes calculated by SRK Consulting); • Vale: • Completed USD13 million Exploration Study; • Results reported as “Advanced Concept Study”; • Vale exercised option to acquire 51% for USD90 million; • Vale can acquire balance of the project at fair market value; • FY08 exploration programme approved; • Current plans are around 2 longwalls up to 9Mtpa.

16. Belvedere Coal Underground Project • Initial drill program completed, 73 partly cored holes for 52,432m at end of Sep 07; • Coal quality results encouraging – low vol hard coking coal, low phos, sulphur, and ash with good yields in order of 80%; • 82km of 2D seismic completed; • Gas and geotechnical work programs completed; • Review of historical seismic information has indicated that seams extend further to the West and South; • Two additional Exploration Permits granted.

17. QLD Exploration and Development

18. Washpool Project • Aquila interest 100%; • Well located to regional infrastructure; • Shallow perched basin; • Targeting Burngrove formation- Scorpio seam; • To date approx. 40 open holes; • 5 Cored Quality Holes; • Coal quality; • Preliminary Marketing assessment; • Concept study commenced Scope: • Initial resource statement; • Mining and processing; • Infrastructure; • Market assessment.

19. Washpool Project

20. Red Hill Project • Aquila interest 100% • Well located to regional infrastructure; • Targeting Rangal Coal Measures; • Current phase drilling program is complete; • Focussed on area Nth of Isaac River; • LHD and Vermont seams intersected between 30-330m depth; • LHD seam thickness 2-3m; • Concept Mining study commenced in December; • Initial resource statement; • Mining and processing; • Infrastructure; • Market assessment. LHD <80m

21. Southern Africa Energy JV

22. Challenges Operations and Development • Establishment of systems to manage outcomes beyond statutory obligations; • Effective delivery of capital; • Build consistency in cost, production, quality (executing the plan); • Embedding improvement mechanisms and resources; • Responding quickly to opportunity; • Building on the relationship with stakeholders; • Maintaining our focus on growth independently of our JV structures.

23. QLD Coal Pipeline & production targets Isaac Plains BE 1370 Dragline Belvedere* Peak Downs East Isaac Plains Sth Washpool June 07 June 08 June 16 June 13 June 11 June 10 June 12 June 09 June 14 June 15 Red Hill Aquila Managed Note* Joint Venture Managed Note: * Belvedere subject to Vale’s option to acquire Aquila’s 24.5% interest

24. Summary • Aquila has established its initial production base in the Bowen Basin through early acquisition of exploration permits and Joint Venture arrangements that enabled the development of Isaac Plains; • We are continuing to progress study work on the larger scale HCC projects Peak Downs East and Belvedere under our Bowen Central and Belvedere JV’s with Vale; • Aquila second phase of project generation secured our 100% owned exploration permits which provide the basis for our future expansion in QLD; • Aquila is building capability around project delivery and operations; • Our aim is to build a 10Mtpa business within the next 5 years, primarily focussed on metcoal from our existing portfolio of assets; • We will continue to develop our ASENJO interests with an experienced team in country.