Liquefied Natural Gas Ltd 5 Ord Street, West Perth Perth 6005 Western Australia Tel: (618) 9366 3700 Fax: (618) 9366 3799 Email: lng@lnglimited.com.au Website: www.lnglimited.com.au ABN: 19 101 676 779

24 February 2009 The Announcement Officer Australian Stock Exchange Limited Exchange Plaza 2 The Esplanade Perth WA 6000 Dear Sir / Madam Liquefied Natural Gas Limited We attach a copy of a presentation in Brisbane on 24 February 2009 to the Gladstone Resources Industry update. Yours faithfully

David Gardner Company Secretary

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GLADSTONE LNG leads the waywith its first LNG shipment in 2012

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Development of “mid-scale” LNG projects of up to 1.5 million tonne per

annum (Mtpa) production capacity per LNG train, based on:

� Gas Access: gas fields seeking international gas pricing,

insufficient local energy demand, too small, far from energy

markets and/or reserves insufficient to support traditional large-

scale LNG plant (require multiple trillion cubic feet of gas)

� Project Location: target sites that are close to low cost gas source,

existing infrastructure, availability of suitable sites with access to

deep, protected water,

� LNG Markets: targeting existing LNG markets in close vicinity to

Project location

LNG Business Model

LNG Limited offers a complete “LNG package/solution”structured for the benefit of all stakeholders

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� Smaller land access requirement, increases ability to strategically

locate LNG plants closer to existing infrastructure and sheltered

deepwater access (lower associated infrastructure costs)

� Proven uncomplicated & highly efficient single mixed refrigerant

process with lower equipment count, easier installation, operation &

maintenance (including faster shut down and start up) and faster

construction

� Use of membrane tank technology delivering a lower construction

cost and faster construction schedule

� Smaller project size and uncomplicated contracting (potential only 1

LNG buyer) reduces period to complete detailed (bankable) feasibility

study and achieve financial close

� All of the above advantages leads to a faster project delivery

schedule, thus lower overheads and financing costs

Advantages of Mid-Scale LNG Projects

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Project Background

� 2001: LNG Ltd commenced planning of mid scale LNG projects

� 2004: LNG Ltd first considered coal seam gas (CSG) for LNG export

� 2006: Maturity of CSG production in Queensland

� 2007: LNG Ltd signs HOA with Arrow for gas supply

Project site identified with Gladstone Port Corporation

EOI provided by Golar LNG and others for LNG offtake

� 2008: LNG Ltd commences voluntary EIS approvals process

Signs with LOR / SKEC as preferred EPC Contractor

Signs site Licence Agreement with GPC

� 2009: LNG Ltd signs HOA with Golar LNG for LNG offtakeFor

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Arrow Energy Ltd / AGL GLNG PL GPC

Licence Agreement for Site signed August 2008with Gladstone Port Corporation

Project Scope

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Source: Arrow AGM Presentation 2008

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Gas Supply

Entire gas supply (Train 1) is covered under proposed Gas Sale

Agreement with Arrow Energy. Material terms / conditions are:

� Parties: Arrow Energy and Gladstone LNG Ltd

� Maximum Daily Quantity: 257 TJ / day after initial 24 month

ramp-up period

� Annual Contract Quantity (ACQ) – (45PJ yr 1, 75PJ yr 2 and

thereafter 90PJ/yr for 12 years

� Delivery Point: Gladstone LNG’s Plant

� Gas Price: floor with oil price upside agreed

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The Coal Seam Gas Challenge

� Little or No Proven Gas Reserves at Financial Close (all 2P / 3P)

� The low heating value of Coal Seam Gas

� Potential multi-user gas pipeline, requires careful plant design

� Variable gas composition over production term

� Ramp up of coal seam gas requires 12 to 24 months to reach

required contractual volumes

� LNG Plant shutdown may cause major issues upstream

� Relative new industry in Australian with limited experience

� LNG is a very conservative industry

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CSG – Reserves / Deliverability

� Largely mitigated by implementing a mid-scale LNG project

� Quantity of CSG required is realistic and achievable

� Accommodation of ramp up, as opposed to large scale LNG projects

� Mid scale trains easily duplicated as reserves and deliverability increase

CSG - Quality and Pressure

� Extensive gas quality testing program requested from Arrow to minimise

risk of “off-spec gas” being delivered

� LNG plant capable of tolerating gas quality beyond current CSG spec

� Gladstone LNG / Arrow have agreed minimum delivery pressure

Gas Delivery to Gladstone Project Site

� Pipeline Licence already granted to Arrow / AGL (from Bowen Basin)

� PL variation underway for 5km lateral from Gladstone Gas Gate to Site

� Only LNG Project that has pipeline approval to Gladstone (from Bowen)

� Pipeline Licence under development from Surat Basin

Working with Coal Seam Gas

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Co-ordinates are estimates only and are subject to CQPA approval and final survey

Project Site, Fisherman’s Landing

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Advantages of Fisherman’s Landing

� Natural deepwater harbour

� Protected, no need for breakwater infrastructure

� Under-utilised existing Wharf #5 available for LNG export

� Existing infrastructure (roads, water, etc)

� Existing dredging approvals for Targinie Channel

� Future potential for additional Land (expansion project)

� Only LNG project in Gladstone that can potentially commence

construction next year, and be operational in 2012

� Avoidance of “Curtis Island” type issues

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* Based on A$ to US$ exchange rate of 0.80, excludes Arrow and GPC’s scope

LNG Project Overview

� Location Fisherman’s Landing 25ha site, Port of Gladstone, Qld

� Gas Supply Arrow Energy (coal seam gas) delivered to Gladstone

� LNG Offtaker Golar LNG

� Capacity First Train of 1.5 million tonnes per annum

� Capital Cost: ~ US$500* million, including owner’s and financing costs

� Process Optimised Single Mixed Refrigerant Process (OSMRTM)

� Storage: 1 x 180,000m3 Membrane storage tank (net capacity)

� Contractors SKEC and LOR (preferred)

� Port Facilities Gladstone Ports Corporation

� Ownership Shareholding at Financial Close likely to be 40% LNG Ltd,

40% Golar LNG; and 20% Arrow Energy

� Funding US$250 million equity / US$250 million debt (proposed)

� Schedule Financial Close end of 2009, LNG Sales 2012

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OSMRTM Process

Mixed

Refrigerant System

MR Cooler (x2)

BOG

Compressor (x2)

Feedgas

LNGShip

Loading

CHP Plant

Inlet Air

Chiller

Suction

Scrubber (x2)Once

Through

Steam

Genertor

Gas Sweatening Plant

Dehydration

PlantChillerHeater

LP Fuel(Aux Boiler)

Gas Turbine Compressor (x2) HP Fuel

Process

Steam

Ammonia

Refrigeration

Plant

Plant

Power

CO2

H2 0

Marine

Flare

Ammonia Refrigerant

Aux Boiler

MR Make-up

OSMRTM

PROCESS

Amine

Regen

STG

ACC

BFW

Pump

LNG Storage

& Ship LoadingLNG Tank

LNG Pumps (x4)

H2 0

Cold

Box

(x2)

Grid

Power

To Cold

Box # 2

From Cold

Box # 2

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Membrane LNG Storage Tank

� 1 x 180,000m3 Membrane storage tank (net storage)

� Lower capital cost than conventional LNG tank technology

� Shorter construction schedule than conventional LNG tank technology

� Comparative risk assessment report completed, stating that when

comparing the membrane tank concept to the full containment tank

concept “these two tank types are considered to provide some of the

highest integrity options for above ground refrigerated liquefied gas

storage”

� Quantitative Risk Assessment near completion

� Historically, membrane tank acceptance hindered by lack of accepted

standards. Post 2006, European Standard EN 14620 developed, LNG Ltd

believes future LNG projects will consider membrane technology as a

serious alternative

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29 Membrane Tanks Already Built

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� Working with SKEC/LOR throughout 2008, jointly undertaking FEED

to ensure a definitive and seamless EPC contract can be concluded

� The approach eliminates interface issues caused by separate parties

undertaking FEED, EPC and providing technology

� Propose that SKEC and LNG Technology Pty Ltd jointly provide the

process guarantee for the OSMR process. SKEC to wrap into EPC

contract

� Strong relationship built with key equipment vendors

� SKEC undertaking procurement and takes full responsibility for

equipment and plant performance

FEED / EPC / Technology

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� Best solution - All aspects of the plant including gas pre-treatment, liquefaction, storage, utilities, construction techniques etc optimised and integrated. Numerous industry experts engaged to accomplish the best techno-economic solution

� Liquefaction system - single mixed refrigerant composition, flowrate and pressures optimised to match cooling curve and best fit standard available equipment. Proven SMR process used with numerous reference sites

� Efficient / Simple Process -Modern high efficiency gas turbines (MR compressors) and CHP plant utilised for utility power. Less equipment items required per train compared to alternative processes, resulting in low capital and low operating / maintenance costs

� High train availability – parallel compressors (MR and ammonia) used compared to compressors in series for alternative processes

� Government – no government assistance being sort, provides early start up benefits, sets the scene for the larger LNG projects in Gladstone

� LNG storage tank – uses membrane tank technology and concrete slip form construction technique to minimise construction time (critical path) and reduce costs

� Project Viability – at the floor price level

Summary of Benefits

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Port Infrastructure (GPC Scope)

� Port Interface being addressed under draft term sheets /

agreements, currently being reviewed:

� Commercial Port Users Agreement

� Agreement to Lease

� Licence for Services Agreement

� Engagement of GHD for Wharf Modification design

� Ship Simulation Work on-going to determine extent of dredging

requirements for

� Targinie Channel

� Swing Basin and berth pocket adjacent to Wharf #5For

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Typical LNG Loading Facility

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Dredging Required of:• Berth Pocket No.5• Swing Basin• Targinie Channel

Required Dredging by GPC

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LNG Off-take Agreement

� Parties: Golar LNG and Gladstone LNG Ltd

� Annual Contract Quantity: 1.5 mtpa, with 24mth ramp up period

Delivery Point: FOB from Gladstone

� Contract Term: matching GSA Term

� LNG Price: floor with oil price upside agreed

Entire LNG production (Train 1) covered under proposed LNG Sale and

Purchase Agreement with Golar LNG. Material terms / conditions are:

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Golar LNG Limited

� Golar LNG is LNG Limited’s largest single shareholder at 16%

� Golar LNG, with total assets of ~US$2.5 billion and 15 LNG ships, is

one of the world’s largest independent owners and operators of LNG

carriers with over 30 years experience

� Golar developed the world’s first “floating storage and regasification

unit” (FSRU) projects, based on the conversion of existing LNG

carriers and leads the FRSU industry in committed projects

� Golar LNG’s stated objective is to become an integrated midstream

participant in the LNG industry

� Golar LNG is listed on both the Oslo and Nasdaq Stock ExchangesFor

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1st Half 2009: FEED / EPC / Process Guarantee

� Project Execution Plan

� Finalise FEED

� Process Guarantee Agreement with SKEC

� EPC Contract (near completed draft) with SKEC/LOR

� Ship simulation modeling / Preliminary design for wharf upgrade

� EIS assessment report / Development Approval applications submitted

� Quantatative risk assessment report complete

2nd Half 2009: Agreements / Financial Close

All project approvals grant. Project contracts and financing documentation to

be signed and conditions precedent to initial drawing of the debt being

“satisfied” for the overall project (end-to-end from gasfield to port activities

to LNG offtake)

2012: First LNG Shipment

Milestones for 2009

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The information in this presentation is not an offer or recommendation to purchase or subscribe for securities in Liquefied Natural Gas Limited or to retain any securities currently being held does not take into account the potential and current individual investment objectives or the financial situation of investors was prepared with due care and attention and is current at the date of the presentation.

This presentation contains forward looking statements that are subject to risk factors associated with the gas and energy industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: price and currency fluctuations, geotechnical factors, drilling and production results, development progress, operating results, reserve estimates, legislative, fiscal and regulatory developments, economic and financial markets conditions in various countries, approvals and cost estimates.

All references to dollars, cents or $ in this document is a reference to US$, unless otherwise stated.

Disclaimer & Important Notice

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