Kevin Garner, Cougar Energy

7/30/2019 Kevin Garner, Cougar Energy

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UCG

A Cleaner

Energy SolutionEnvironmental Benefits of

Underground Coal Gasification

Mining MethodsCoaltrans - Emerging Asian Coal Markets

Presented by: Kev Garner

15 and 16 November, 2012

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CAUTIONARY STATEMENT

The views expressed in this Presentation are based on information derived from the internal sources of

Cougar Energy Limited and its subsidiary companies (referred to collectively as the CougarGroup) andfrom publicly available sources that have not been independently verified by the Cougar Group. Norepresentation, warranty or undertaking, express or implied, is made or given by the Cougar Group or any

of its officers or employees as to the fairness, accuracy, completeness or reliability of that information.

Any decision to rely on the information contained in this Presentation is the sole responsibility of the

recipient of this document and the Cougar Group will not be responsible for any loss incurred by the

recipient as a result of any actions taken by them relying on the information herein.

Nothing in this Presentation should be construed as either an offer to buy or sell or a solicitation of anoffer to buy or sell securities in any of the Cougar Group companies. The material provided in thisPresentation is provided for the information of recipients and does not constitute an invitation or

inducement to such persons to enter any investment activity relating to securities in any of the CougarGroup companies.

This Presentation is provided on a strictly private and confidential basis to be used solely by the recipient.

Neither this Presentation nor any of its contents may be reproduced or used for any other purposewithout the prior written consent of Cougar Energy Limited. In accepting this Presentation, the recipient

agrees that it is provided solely for its use in connection with providing background information on theCougar Group and that it is not to be used for any other purpose.


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SYNGAS THE VERSATILE FEEDSTOCK

AGENDA

INTRODUCING COUGAR ENERGY

UNDERGROUND COAL GASIFICATION EXPLAINED

THE ENVIRONMENTAL UPSIDE

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WHO ARE WE?

Cougar Energy is a leading Australian clean energy

and resources company at the forefront ofdevelopment and commercialisation of Underground

Coal Gasification (UCG) for cost effective and

environmentally friendly energy supply solutions.

Cougar Energy has created a separate, wholly-

owned company called Kandoman Resources to

hold and further develop its non-UCG coal assets.

Cougar Energys strategic vision is to become the

leading alternative energy provider in the Asian

energy market the New Power for Asia.

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ASIAN BUSINESS STRATEGY

Key Achievements

IndonesiaJV Partner Medco Energy | Largest listed energy company

Focussed on three target areas | UCG to Power Project

Financial modelling and feasibility for 30MW Power project

MongoliaNegotiations with Government | Upgraded terms and next steps

MOU with Hulaan | 500M tonnes of coal under review

ChinaDiscussions with major SOE | Preliminary review of coal resources

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Review of UCG potential | Inner Mongolia | Xinjiang Provence


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WHY ARE WE RESPONSIBLE?

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Adhering to economic, social and environmental responsibilities

Embracing all environmental responsibilities including the equator principals

Importance of EIA as part of project development

Working with local communities to protect the ecosystem

Respectful of cultural and historic heritage

Commitment to site rehabilitation

Strong health and safety record

Domestic clean energy security

Knowledge transfer to local teams


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Source: Paul Whincup, Technical Director, ERM Asia Pacific


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UCG TECHNOLOGY

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Ground level

Water TableExternal

casing

Air or oxygenand

steam injectionPower station

Transmission line

Residue

Underburden

UCG Gasifier

Injection

Gas

removal

Coal

Overburden

Productionwell casing

Injectionwell casing

External

casing

Gas extraction


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TRANSFORMATION IN ACTION

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Legend

Opencut overburden stockpile

Opencut extractionCoal resource mined by opencut

Coal resource suitable for UCG

Adequate Coal Seam thickness

Ash and moisture content

Simple geological structure

No sensitive aquifers above resource

150m

UCG reactor area

Sufficient rock head depth to extraction ratio

Known geological and hydrogeological

characteristics

Favourable drilling conditions

Low permeability overburden and underburden

UCG utilises stranded coal


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ENVIRONMENTAL BENEFITS OF UCG

Minimal surface impact and visual presence

Utilises stranded coal

Reduced atmospheric emissions

Small environmental footprint

Minimises transport costs Benefits for local communities

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UCG METHODS CAN OVERCOME SURFACE MININGOPERATIONAL ISSUES


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UCG CAN OVERCOME LOCAL INFRASTRUCTURE ISSUES


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BUILDING A PRACTICAL UCG REGULATORY FRAMEWORK

Resource management through integrated use of coal and natural resources

Mineral and hydrocarbon resource ownership and access rights

Method of determining royalty fees and commercial production license costs

Environmental framework and standards - baseline monitoring needs

Health and safety management practices for surface and underground

operations

Environmental monitoring and management Air emission standards

Enforcement regimes

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RANGE OF UCG SYNGAS COMPOSITION

Source: UCG Gordon Couch, IEA Clean Coal Centre - July 2009

Ref: Natural gas ci rca 38 MJ/Nm3


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UCG

Syngas

Power

Generation

Synthetic Natural

Gas

Methanol

Ammonia

FischerTropsch

Liquids

Gas turbine or

spark ignition

engines

Compressed

Natural Gas

Dimethyl Ether

Gasoline

Urea & Ammonia

Nitrate

Diesel &

Gasoline

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UCG PRODUCTS


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Product syngas is a flexible fuel source suitable for power generation options:

Large - 200MW plus, intermediate - 50 to 200MW and small 10 to 50MW

Proven standard technology with high electrical efficiencies

Option for CHP scheme with increased energy and/or heat use

Reduced atmospheric emissions

Cougar Energy has undertaken costings from 15MW to 200MW

POWER GENERATION
http://www.power-technology.com/projects/san_joaquin/


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SYNTHETIC NATURAL GAS (SNG)

Product syngas is convertible to SNG technology can be readily licensed:

SNG has the same heating value and properties as natural gas

Can use fixed pipeline infrastructure or virtual pipeline for supply

Compressed (CNG) and liquefied (LNG) for residential use and as an

industrial/chemical feedstock

Option to develop transport use replacing conventional vehicles fuels

Existing SNG plants operating in USA and China

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Contact Details

Kev Garner

General Manager - AsiaMobile | +86 13910306861

Email | [email protected]

Cougar Energy LimitedASX Code: CXY

www.cougarenergy.com.au

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Kevin Garner, Cougar Energy