AGM Presentation December 2010

Important Notice THESE PRESENTATION MATERIALS ARE FOR INFORMATION PURPOSES ONLY AND DO NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES, AND NEITHER THE PRESENTATION MATERIALS NOR ANYTHING CONTAINED THEREIN NOR THE FACT OF THEIR DISTRIBUTION SHALL FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH OR ACT AS ANY INDUCEMENT TO ENTER INTO ANY CONTRACT OR COMMITMENT WHATSOEVER. The Presentation Materials, being this presentation and any additional documents handed out in the meeting, are being issued on a strictly private and confidential basis and solely to and directed at persons (a) who (i) are qualified investors within the meaning of Section 86(7) of the Financial Services and Markets Act 2000 and (ii) have professional experience in matters relating to investments and who are persons specified in Article 19 and/or Article 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Financial Promotions Order”); or (b) who are otherwise lawfully permitted to receive them. Any investment to which the Presentation Materials relates is available to (and any investment activity to which it relates will be engaged with) only such persons. This document is exempt from the general restriction on the communication of invitations or inducements to enter into investment activity and has therefore not been approved by an authorised person as would otherwise be required by section 21 of the Financial Services and Markets Act 2000. It is a condition of your receiving this document or attending this presentation that you fall within, and you warrant and undertake to the Company that (i) you fall within, one of the categories of persons described above, (ii) you have read, agree to and will comply with the terms of this disclaimer, (iii) you will conduct your own analyses or other verification of the data set out in the Presentation Materials and will bear the responsibility for all or any costs incurred in doing so, (iv) you will use the information in the Presentation Materials solely for evaluating your possible interest in acquiring securities of the Company and for no other purpose; and (v) you will not at any time have any discussion, correspondence or contact concerning the information in the Presentation Materials or acquiring securities with any of the directors or employees of the Company, or their subsidiaries nor with any of their respective suppliers, customers, sub-contractors or any governmental or regulatory body without the prior written consent of the Company. If the Presentation Materials have been received in error, they must be returned immediately to the Company. The Presentation Materials are confidential and should not be copied, transmitted, distributed or passed on, directly or indirectly, to any other class of persons. They and any further confidential information made available to you are being supplied to you solely for your information and may not be reproduced, transmitted, forwarded to any other person or published, in whole or in part, for any other purpose. The Presentation Materials contain only a synopsis of more detailed information published in relation to the matters described therein and accordingly no reliance may be placed for any purpose whatsoever on the sufficiency or completeness of such information and to do so could potentially expose you to a significant risk of losing all of the property invested by you or the incurring by you of additional liability. The proposals in the Presentation Materials are preliminary. The information contained in the Presentation Materials is for background purposes only and is subject to updating, completion, revision, amendment and verification, which may result in material changes. Some of the statements made in the presentation represent the opinion of the directors of the Company. No reliance should be placed on any of the information and no representation or warranty, express or implied, is given by the Company as to the accuracy of the information or opinions contained in this document and, save in respect of fraud, no liability is accepted by the Company or any of their respective directors, members, officers, employees, agents or advisers for any such information or opinions. Certain forward looking statements may be contained in the Presentation Materials. Words such as “expect(s)”, “project(s)”, “believe(s)”, “forecast(s)”, “may”, “anticipate(s)” and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations, assumptions, statements, projections, beliefs and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be accurate. Accordingly, results could differ materially from those expected, projected, assumed or believed as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, circumstances, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of the Presentation Materials. Neither this document, nor any copy of it, may be taken or transmitted into the United States, Canada, Australia, the Republic of Ireland, the Republic of South Africa or Japan, and their states, territories or possessions, except in accordance with applicable laws. Any failure to comply with this restriction may constitute a violation of relevant local securities laws or regulations.

2

Overview  Altona Energy Plc (ANR.LN) is an AIM listed Australian based energy company  Primary asset is a 49% interest in the Arckaringa Project, which has an estimated 7.8 bt coal resource in the Arckaringa Basin of South Australia (1.287 bt JORC) considered to be one of the world’s largest untapped energy banks  Defined work programme to develop Arckaringa with recognised value trigger points  Currently conducting a Bankable Feasibility Study (‘BFS’) with JV partner Chinese energy major CNOOC-NEI (finance rating equivalent to Chinese sovereign rating), which is funding the work amounting to A$40m  Base case: Open cut mine up to 15 Mtpa capacity to support integrated coal to liquid (‘CTL’) and co-generation power plant (10 mbl and 560MW), however multiple project potential through CNOOC-NEI  Highly experienced management team and partner framework to crystallise project potential 3

Key Data      

Market Ticker Share price (08 Dec) Shares in issue Market cap Nom Advisor/Broker

AIM ANR 11.25p 417.325m £46.44m Evolution

Tongjiang International Energy Co. Limited 18.50% Invesco Asset Management 17.70% Directors 1.80% Other 62%

4

The Team Christopher Lambert Chairman

Over a period of 17 years, Mr Lambert was head of London Precious Metals Trading for Elders Finance Group, The Rural and Industries Bank of Western Australia, Barclays Bank and Prudential Securities (USA.). He left the city in 1997 to act as a consultant to a number of mining houses.

Christopher Schrape Managing Director

Mr Schrape has more than 30 years of experience in the resource and mining industries, including 20 years at Rio Tinto. He was also previously CEO of Griffin Coal.

Peter Fagiano Executive Director

Mr Fagiano is a chartered chemical engineer with over 40 years of experience in energy and hydrocarbon process industries world-wide and is currently Director of Operations at Jacobs Engineering UK Ltd Process and Technology Division.

Anthony Samaha Exec Finance Director

Mr Samaha has over 16 years of experience in providing accounting and corporate advice in a diverse range of industry sectors, including resource development.

Phillip Sutherland Non-executive Director

Mr Sutherland was previously CEO and Chief Industry Advocate for the South Australian Chamber of Mines and Energy. He has extensive executive management experience with Australian local, state and federal government agencies.

Zheng Qiang Non-executive Director

Mr Qiang previously held senior management positions at AMR Technologies Inc and has served as Deputy General Manager of the China Rare Earth Development Corporation, a commercial arm of the State Council Rare Earth Leading Group.

5

A World Scale Energy Bank  7.8 billion tonne of which 1.287 billion tonnes is JORC-compliant at Wintinna  CNOOC JV opens up CTL and export potential (CNOOC and BG Group signed a 20-year

Transportation Fuel (Mbl)

Gas (Bcf)

8,720

114,800

419

5,341

Wintinna Total (nonJORC)

1,268

12,865

Arckaringa Total (non-JORC)

2,535

32,370

Feedstock

gas sales contract for more than 3.6 million tons of liquefied natural gas from a facility in Australia) North Sea Proven Reserves 2 Deposit

Million Tonnes

Wintinna JORC

Measured1

Indicated1

Inferred1

Total

Wintinna

1,150

750

2,000

3,900

Westfield

100

200

500

800

Murloocoppie

250

300

2,600

3,150 7,850

Million Tonnes (JORC) Wintinna

187

650

450

1,287

Assuming 50:50 ratio of Coal converted to Liquid Fuels and SNG, the Arckaringa coal resources are respectively 28% and 29% of North Sea proven reserves [2] ‘BP North Sea Production Statistics for UK / Norwegian Sector (published June 2009), combined oil and gas proven reserves’

[1] Not current JORC standard, based on SA Dept. of Minerals & Energy standards of the day

Source: Jacobs Engineering Process & Technology, Nov 2009

6

A World Scale Energy Bank (cont..)

 Wintinna coal asset can sustain 30,800 barrels per day of diesel and 0.39 bcf/d of SNG for 40 years  At Q4 2010 diesel price, the value of the Wintinna JORC coal asset is estimated at US$100 billion  The Wintinna JORC coal asset and its conversion to SNG production both comply with P90 categorisation

Potential Value Of Production (US$) (Assuming $120/barrel for Diesel)

Wintinna JORC

$100bn

Wintinna Total (non-JORC)

$304bn

Arckaringa Total (non-JORC)

$608bn

Source: Jacobs Engineering Process & Technology, Nov 2009

7

Arckaringa Project - Rationale  Coal quality ideal for conversion to syngas using existing commercial technology  High value fuels and chemical feedstocks  Low cost and low emission power

 Proven technologies  High demand for product  South Australia faces a shortage of base load power, needing additional > 1000 MW over the next 10 years  CNOOC-NEI enables the targeting of coal and liquids exports to China and other Asian destinations

 Financial backing secured through CNOOC JV and FIRB approval granted 8

Project Funding  CNOOC-NEI funding BFS to:  Evaluate integrated mining and high value coal conversion facilities based on the Arckaringa coal deposits  Develop new projects, such as CTL and co-generation power, that reach bankable standard

 Funding agreed for BFS of up to A$40m (approx £24m)  Stage 1 - A$12m, Stage 2 – A$28m  Historical expenditure and PFS investment in excess of A$20m

 Over 12-15 months BFS Stage 1 will see undertaking of key work programmes including:  Mine design, planning, groundwater engineering, environmental and numerous technical studies

 £3m fundraising in March 2010 provided funding to Altona for 18 months  33,333,334 shares placed at 9 pence per share 9

BFS Development Schematic 2010

2011

2012

2013

JV Office establishment (Adelaide) Priority Early Works Plan

Potential drill programme

- Geology and Coal Resources - Groundwater Management - Environmental baseline studies - Mine Output and Design Options

Stage 1

- Product Market Research Detailed Works Mine Approvals process/ Environmental Impact Assessment Long term mine and groundwater management plan Infrastructure and Transport First Stage Cost Estimation Coal Processing and Utilisation selection Detailed engineering and design of selected processing plant option (integrated with mine)

Stage 2

Detailed engineering and design of transport and support infrastructure Environmental Impact Assessment and Approvals Construction and financing plans

Start Construction

BFS – Stage 1 Work Programme Stage 1 is anticipated to cover 12-15 months ahead of the detailed design of the selected coal processing project in Stage 2. Most of the elements below will be conducted in parallel.

Element

Scope of Work

Management and Conduct of Work

Priority Early Works

 Early Works Plan, already agreed, covers the following elements and continues with work described in the sub sections below  Review coal geology and resources/reserves and consider if supplemental drilling is needed  Review and verify groundwater investigation results, and associated geotechnical studies  Establish groundwater management research and design parameters  Select and commence environmental baseline studies  Review and select surface coal mining methodology options  Continue product market research  Delineate and allocate coal reserves for the long term mine plan

 Overall - JV Operating Team  Technical lead - CNOOC NEI, assisted by Altona and utilising  in house project development and planning expertise  expert consultants selected by JV partners and/or used by Altona

 Conduct additional drilling (only if considered necessary for mine plans)

 Chinese and local geological consultants  Local drillers as required

Groundwater Management

 Establish mine dewatering and water management prelim design and costs  Prepare inputs to the Mine Plan and Environmental Impact Assessment

 Local hydrogeological consultants and planners

Environmental baseline studies

 Flora and fauna (all seasons), topography and land use, climatic database, local and aboriginal heritage, community profile and social impacts  Covers areas in and around mine, potential transport corridors, GAB mound springs, local towns, other projects

 Local environmental and social impact consultants

Mine Output and Design Options

 Confirm volume and quality parameters for output options  Define coal delivery chain → export and/or → feedstock for processing project(s)  Select mine method and establish mining equipment options

 Local mine design and planning consultants

Product Market Research

 Review domestic and export market options for coal and processed products, including liquid fuels, chemical feedstocks and power  Establish preliminary marketing plan and priorities

 CNOOC and other Chinese marketing experts  Local fuels and power market 11 analysts

Geology and Coal Resources

BFS – Stage 1 Work Programme Element

Scope of Work

Management and Conduct of Work

Detailed Works

 Complete work necessary to establish a mine and associated groundwater management plan sufficient in detail and scope to establish the base case for a Mining Licence application  Review and select coal processing options for engineering and design in Stage 2 of the BFS

 Overall - JV Operating team and, if considered necessary, a Study Co-ordination Contractor or Engineer

Mine Approvals Process/ Environmental Impacts Assessment

 Develop Mining Licence and Mining And Rehabilitation Plan (MARP) pathway with PIRSA  Complete and compile baseline social impact/environmental studies ready for inclusion and integration with the environmental impact assessment of the selected coal processing project  Define and specify  coal reserve allocation  mine design and plans to initial production and beyond  dewatering and disposal method and costs  coal quality profile  mining equipment profile  coal delivery chain elements

 JV Operating team

Infrastructure and Transport

 Rail and Port option studies and select preferred option(s)  Accommodation, mine facilities and project social infrastructure studies

First Stage Cost Estimation

 Complete capital and operating costs (+/- 10 to 30%) , including any coal beneficiation, for mining and infrastructure

 Local transport and mine/social infrastructure consultants, plus input from government departments  JV Operating team in conjunction with Study Engineer

Coal Processing and Utilisation

 Review and select processing option (CTL/Power, SNG etc)

Long term mine and groundwater management plan

 Complete Process Design package as basis for detailed engineering at BFS level in Stage 2

 Local environmental and social impact consultants  Local mine design and planning consultant

 JV Partners, with input from CNOOC in China  CTL/Power Process 12 Engineering Specialist

Coal To Liquids  Fischer-Tropsch process – coal is gasified to form synthetic gas or ‘syngas’ which is condensed over a catalyst to produce high quality, ultra-clean products such as:     

Premium diesel and jet fuels Synthetic waxes Lubricants Chemical feedstocks Alternative liquid fuel such as Methanol and Dimethyl ether

 CTL offers a way for countries to access domestic coal reserves and decrease reliance on oil imports, improving energy security  Coal-derived fuels are sulphur-free, low in particulates, and low in nitrogen oxides liquid fuels from coal provide ultra-clean cooking and transport fuels, alleviating health risks from indoor and outdoor air pollution  South Africa has been producing coal-derived fuels since 1955 and has the only commercial coal to liquids industry in operation to date  Currently 30% of SA gasoline and diesel are produced from indigenous coal

 World’s first passenger aircraft test flight successfully completed in 2010 using 100% synthetic jet fuel produced from the CTL process

Multiple Product Options “CNOOC has the funding capacity to carry the CAPEX needed to maximise the potential of the Arckaringa energy bank”

Syngas key to unlocking high value Source: Jacobs Engineering

Arckaringa Project Outputs 14

Technology Progress

Source: US Dept. of Energy – New Energy Technology Laboratory “2010 World Gasification Database”, Oct 2010

Technology Progress  Significant advances in design and deployment of gasification and F-T technology in past two years  Leading process technologies  Gasification – ConocoPhilips, Siemens  SNG – Topsoe  Fischer-Tropsch (FT) - Rentech

 Current coal conversion projects include  POSCO, Korea: SNG Plant 1 million tonnes pa in 2 phases  Feedstock – sub bituminous coal

 Total/China Power (NCPP 1) – Coal to Methanol/Polypropylene Plant 5,000 tpd  Siemens SFG – 500 gasifiers (5), commissioning end 2010

 Powerfuel, UK, IGCC Power Plant 900 MW  CIC Energy, Botswana, CTL Plant 10,000 Bpd

 FT Synthetic Fuel commercial milestones  Rentech MOU with 13 American/international airlines to use “Renjet” aviation fuel (Dec 2009)  Rentech LOI with Solena Group to supply FT technology for sustainable BioJetFuel project in UK (Nov 2010)  EU and US fuel standards changed in 2009 to include synfuels and capture benefits of lower emissions and increased engine efficiency

Share Price Graph 30.03.10 – Placing to raise £3m at a price of 9p per share and Interim Results

21.04.10 - CNOOCNEIA’s submission of FIRB application

20.04.10 – Formal Signing of JV by Arckaringa Energy and CNOOC-NEIA

01.06.10 CNOOC-NEIA successful FIRB Assessment

19.07.10 - Arckinga Project Update

04.10.10 Commencement of BFS Work Programme

29.10.10 Final Results

06.12.10 Appointment of Peter Fagiano as Executive Director

Government Support

Support from South Australian Government “The South Australian Government welcomes foreign investment in its energy sector” (Hon. Paul Holloway, SA Minister for Mineral Resources Development, 18 Nov 2009)

Support from Australian Government “Energy security is absolutely critical to Australia’s economic prosperity and I believe coal-to-liquids and gas-to-liquids will play a major role in Australia’s energy future.” (Hon. Martin Ferguson, Minister for Resources and Energy, 26 February 2008)

18

Summary         

World class resource Politically stable country World class JV partner Proven commercial technologies Domestic and export markets BFS Funded BFS Work Programme under way Project finance pathway secured Unlimited long term development potential – multi project

Wintinna Mine area landscape

Contacts

Chris Lambert Altona Energy plc 18-19 Pall Mall, London, SW1Y 5LU Tel: +44 (0) 20 7024 8391 Chris Schrape Altona Energy plc Level 1, 117 King William Street Adelaide, South Australia 5000 Tel: +61 (0) 8 8203 1900

Appendix Financial Modelling Covering the Risks - Environmental, Political, Social, FIRB Government Support Benefits to South Australia Technology Joint Venture Investment

21

Large Revenues and Low Production Costs CTL, Power and Mine

Results derived from Royal Bank of Scotland Project Economic Model

(Cumulative)

Capital US$m (+ / - 30%)  CTL and Power  Mine (incl. development opex)

The Project’s combination of CTL and power can reduce unit operating costs to the low end of the world cost curve

Est. Annual Revenue US$m - diesel @US$75/bbl** - power @US$30/MWh

Phase 1 and 2 Combined 10 MBPA

After Phase 3 15 MBPA

Industry Benchmarks for new Plants

2,706

4,035

500

670

750 150

1,125 225

US$35

< 35

35 – 65

US$20

< 20

25 – 50

Costs per Barrel, after Power Sales Revenue credit  Total Project expenditure

US$/bbl  Opex US$/bbl **Diesel price = Crude oil price plus $15/bbl

22

Project ReturnsProject Financial Model (Equity Case) BASE CASE (No Hedging) 100% Diesel Fuel Output (0% Naptha) Power 562 MW Output @ US$30/MWh

IRR %

NPV @10% US$ million

PAYBACK

PAYBACK

Years from 1st Construction

Years from 1st Production

Fuel Product Prices**  Diesel US$75/bbl (BASE CASE)  Diesel US$50/bbl  Diesel US$100/bbl (WORKING CASE)

15.1 7.7 21.0

681 (261) 1,633

11.0 16.5 9.0

6.5 12.0 4.5

Capital Costs  Base Case + 10%  Base Case – 10%  Base Case – 20%

13.9 16.6 18.2

551 811 940

11.5 10.5 10.0

7.0 6.0 5.5

Operating Costs  Base case + 10%  Base Case – 10%

15.0 15.3

664 699

11.0 11.0

6.5 6.5

Power Prices  Base Case + 25% (US$37.50/MWh)  Base Case + 50% (US$45/MWh)

16.0 16.9

814 946

10.5 10.5

6.0 6.0

**Diesel price = Crude oil price plus $15/bbl

23

Project Returns – Project Financial Model (Equity Case) BASE CASE (No Hedging) 50% Diesel Fuel, 50% Jet Fuel Output Power 562 MW Output @ US$30/MWh

IRR %

NPV @10% US$ million

PAYBACK

PAYBACK

Years from 1st Construction

Years from 1st Production

Fuel Product Prices**  Diesel US$75/bbl Jet Fuel US$100/bbl (BASE CASE)  Diesel @ US$50/bbl, Jet Fuel @US$85/bbl  Diesel @ US$100/bbl, Jet Fuel @US$125/bbl

19.7 13.0 25.3

1,405 391 2,417

9.5 12.0 8.5

5.0 7.5 4.0

Capital Costs  Base Case + 10%  Base Case – 10%  Base Case – 20%

18.3 21.4 23.3

1,274 1,534 1,663

10.0 9.0 9.0

5.5 4.5 4.5

29.5

2,677

8.0

3.5

30.9

2,942

8.0

3.5

SUPER UPSIDE CASES 1. Diesel @US$100/bbl, Jet Fuel @ US$125/bbl, Capital Costs – 20% 2. Diesel @ US$100/bbl, Jet Fuel @ US$125/bbl, Capital Costs – 20%, Power @ US$45/MWh

** Diesel price = Crude oil price plus $15/bbl, Jet fuel price = Crude oil price plus $40/bbl

24

Covering the Risks - Environmental  Water  All process water is sourced from water intrinsically in the coals  Open cut intersects the Great Artesian Basin (‘GAB’) and requires dewatering using conventional techniques  Pro-active engagement with government at technical and political level  Arckaringa Project research will expand knowledge base and improve environmental management of the GAB  Regional centres and mining activities could derive high quality water from the Arckaringa Project

 Carbon Dioxide  Process requires CO2 stripping from raw gas stream: intrinsically CCS ready  Founder member of the Global CCS Institute  Opportunity to create a flagship CCS model in line with Australian Government policy

25

Covering the Risks – Political & Social  Government    

Location: South Australia, a mining friendly state Long term and broad engagement We have supportive relationships South Australian Government has the Arckaringa Project in its published list of development projects  Australian Federal Government acknowledges CTL and other clean energy projects as key contributors to energy security

 Community  Long term and extensive strategic engagement programmes in place for each affected community  We have supportive local communities

26

Covering the Risks - FIRB 

Altona has strong relationships with, and support from the South Australian Government, particularly the Department of Primary Industries and Resources of SA (PIRSA)



CNOOC-NEI completed considerable due diligence prior to JV



FIRB notified CNOOC NEIA in May 2010 that the Australian Government had no objection to the terms of the Arckaringa JV

The latest FIRB report is for 2007-08: 

China was the 6th largest foreign investor in Australia for 2007-08



Over 1,700 Chinese backed investments were approved by FIRB



Nearly A$7.5 billion was invested by China in Australia throughout the period, including over A$5.3 billion in the resource sectors



Of 7855 worldwide applications considered by FIRB, only 14 were rejected

27

Government Support  On Monday 21 June 2010, the Arckaringa UEJV was signed at an official ceremony in Canberra, in the presence of: Mr Xi Jinping – The Vice President of the People’s Republic of China Mr Kevin Rudd – The Prime Minister of Australia Mr Fu Chengyu – The President of CNOOC Mr Tom Koutsantonis – The Minister for Trade & Industry for South Australia

28

Benefits for South Australia  Employment potential  780 direct jobs - 550 in mining, 230 in the CTL/power plant

 Clean fuel for domestic markets (mines, towns, the railway and SA/NT) and potential exports  Expanded and upgraded electricity network for the Far North with back up to the national grid

Water Supply to regional towns, pastoral leases and Mine sites (subject to approvals)

 Increasing volumes for the Tarcoola – Darwin railway (60km from Wintinna)  Current activity – sporadic cattle grazing on the contiguous Arckaringa Station pastoral lease

29

South Australian Resources

30

Technology With CO2 extraction and storage capability, the process is “Sequestration ready” and a prime example of Clean Coal Energy

Source: Jacobs Engineering 31

Joint Venture - Investment Phase

ONE

Corporate Entity Arckaringa Evaluation Joint Venture

Purpose

Bankable Feasibility Study

(Unincorporated)

TWO

Project Joint Venture (s)

Project Construction /Operations

Participant s

Shar e

Contribution

CNOOC – NEI (Australian Subsidiary)

51%

 Full funding of BFS  Representatives for the Management Committee (4) and Operating Team

Altona Energy (Australian Subsidiary)

49%

 3 Arckaringa EL’s  Project Pre-Feasibility Study  Representatives for the Management Committee (3) and Operating Team

CNOOC – NEI (Australian Subsidiary)

70% min

 Debt and equity funding share (CNOOC procures all project debt funding if development decision is made before BFS is completed)  Management/Operations staff

Altona Energy (Australian Subsidiary)

30% max

 Debt and equity funding share (CNOOC will assist Altona if not otherwise procuring all project debt)  Management 32

Our Partner CNOOC and CNOOC-NEI  China National Offshore Oil Corporation (‘CNOOC’)  One of three major oil companies in China, China’s largest offshore oil and gas producer  Established 1982, Headquarters in Beijing  51,000 employees worldwide  Holds a 5.3% interest in Australia’s North West Shelf Project  Active in oil and gas exploration in WA

 CNOOC New Energy Investment Co. Ltd (‘CNOOC-NEI’)    

Established 2007, Headquarters in Beijing Evaluates and develops new & alternate energy projects Special focus on innovative clean technologies Concentrates on large and strategic energy resources in secure environments to underpin profitable long term investments  Planning several multi billion dollar investments worldwide over the next five years Standard& Poor’s and Moody give CNOOC, CNOOC Ltd. and CNOOC Finance A+/stable and A1/stable, equivalent to China’s sovereign ratings.

www.cnoocltd.com Results 2008

Billion RMB

£Billion

Sales

194.8

19.8

Profit

67.8

6.9

Total Assets

409.5

41.7

Ranking 80 among FT Global 500 in 2009

33

Our Partner – CNOOC and CNOOC-NEI  CNOOC-NEI’s objectives:  Build a global coal resource base  Develop coal mines to feed ‘Transformation’ projects  World leader in Clean Coal Energy, including SNG and CTL www.cnoocltd.com

 Altona developed the relationship with CNOOC from mid 2008 onwards  MOU signed in August 2008  Terms Sheet signed Feb 2009 after CNOOC conducted 6 months of due diligence  Joint Venture Agreement with CNOOC-NEI signed Nov 2009  Held first JV meeting in Sydney 7 December 2009  Formal signing of the UEJV Agreement completed 15 April 2010  Ceremonial signing with Chinese Vice President, Australian PM and President of CNOOC 22 June 2010  FIRB application submitted 21 April 2010 and approved on 31 May 2010

34