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Project Development Update

Conference Call

Project Development Update

Conference Call

080710

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Disclaimer

The material that follows is a presentation of general background information about MPX Energia S.A. and its subsidiaries (collectively, “MPX” or the “Company”) as of

the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made

concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this information.

This presentation may contain certain forward-looking statements and information relating to MPX that reflect the current views and/or expectations of the Company

and its management with respect to its performance, business and future events. Forward-looking statements include, without limitation, any statement that may

predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “may”, “plan”, “believe”, “anticipate”, “expect”, “envisages”,

“will likely result”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you

that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this

presentation. In no event, neither the Company, any of its affiliates, directors, officers, agents or employees nor any of the placement agents shall be liable before any

third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this

presentation or for any consequential, special or similar damages.

This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything

contained herein shall form the basis of any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of this summary as

legal, tax or investment advice and recipients should consult their own advisors in this regard.

The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal surveys, market research, publicly

available information and industry publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any material

respect, we have not independently verified the competitive position, market share, market size, market growth or other data provided by third parties or by industry or

other publications. MPX, the placement agents and the underwriters do not make any representation as to the accuracy of such information.

This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without MPX’s prior written

consent.

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Integrated and diversified generation portfolio

Size (MW) MPX (MW)

Coal 5,900 5,540

Natural Gas 3,300 3,300

Hydro 380 260

Diesel 23 12

9,603 9,112

UTE Porto de Itaqui (Maranhão)(360 MW + 360 MW)

UTE Porto do Pecém (Ceará)(720 MW + 360MW)

UTE Porto do Açu (Rio de Janeiro)(2,100 MW + 3,300 MW)UTE Castilla (Chile)

(1,400 MW)

UTE MPX Sul(Rio Grande do Sul)(600 MW)

UHE Baixo Iguaçu (Paraná)(350 MW)

UTE Serra do Navio (Amapá)(23 MW)

PCH Capivara (Amapá)(30 MW)

* Already considering 100% of UTE Açu and UTE Castilla, according to the relevant fact released on February 20, 2008

Coal Mines Colombia

MPX will be a leading integrated and diversified energy producer

Seival Coal Mine(Rio Grande do Sul)

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Brazilian Power Market OverviewBrazilian Power Market Overview

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Spot Prices Indicate Need for New Capacity

Rationing in 2001: consumptiondeclined to 1998 levels.

� Short-term situation aggravated by structural deficit.

� ENA in the month of January 2008 was the 2nd worstin the data series ����average spot price close to the ceiling price

History – Southeast (~ 60% of the Brazilian market)

Rationing result: structural energy surplus (decline inconsumption + Thermoelectric Plant Priority Program(PPT)), combined with subsequent favorable hydrologicalperiods →→→→ low spot prices.

Spot price LoadENA(Hydropower)

EAR(Stored Energy)

GW

avg

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Forecasted Marginal Operating Costs (CMO)

218.87218.43164.16128.1588.60North

212.00219.75161.38133.4890.44Northeast

261.05230.61176.91142.1086.88South

267.55240.55178.14141.3276.47Southeast/Midwest

20122011201020092008SUBSYSTEM

Base Scenario – CMO (R$ / MWh)

70

110

150

190

230

270

2008 2009 2010 2011 2012

Southeast/Midwest

South

Northeast

North

R$ / M

Wh

Source: ONS

MPX will have over

2,600 GWh in energy

available for sale in

2011, from Itaqui and

Pecém plants

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MPX BrazilMPX Brazil

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• Contract price: US$ 503.5 million

• EPC contracts assure the start up of the operations in 2011

• Bonus mechanisms to accelerate COD1

• Down payment for long lead items already made

• Civil works to start in Nov 2008

EPC

• Eligibility for BNDES and IDB financing secured

• BNDES and IDB due diligence phase starting on July 14

• Bridge loan contracts of US$ 160 million

Funding

• Preliminary License granted by State Environmental Authority

• 3 Public Hearings in the State of Maranhão finalized and issues raised addressed by the environmental study

• IBAMA cross-checking entire process

• Installation License shall be jointly granted by State Authority and IBAMA before Oct 2008

Licensing

• 315 MW sold in the October 2007 auction A-5

• Full pass-through of fuel costs to energy prices

• Annual Fixed Revenue of R$ 231,3 million 2 (escalated by IPCA3)

Energy sales

Details

UTE Porto de Itaqui

Fuel: Coal

Location: Maranhão State, Itaqui Port

Shareholder: 100% MPX

Start-up: Aug/11

1. Commercial operation date2. As of June 20083. IPCA = Consumer Price Index

UTE Porto de Itaqui - 1st phase (360 MW)

Potential Upsides

• Coal trading spread

• Coal freight spread between Colombia-Brazil and Africa-Brazil

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UTE Porto do Pecém - 1st phase (720 MW)

• Contract price: US$ 935.9 million

• EPC contracts assure the start up of the operations in 2011

• Bonus mechanisms to accelerate COD1

• Down payment for long lead items already made

• Construction started in early July 2008

EPC

• Eligibility for BNDES and IDB financing secured

• BNDES and IDB due diligence phase starting on July 14

• Bridge loan contracts of US$ 270 million

Funding

• Installation License Issued – Construction under way

Licensing

• 615 MW sold in the October 2007 auction A-5

• Full pass-through of fuel costs to energy prices

• Annual Fixed Revenue of R$ 437,5 million 2 (escalated by IPCA3)

Energy sales

Details

UTE Porto do Pecém

Fuel: Coal

Location: Ceará State, Pecém Port

Shareholders: 50% MPX / 50% EDP

Start-up: May/11 (360 MW) + Nov/11 (360 MW)

Potential Upsides

• Coal trading spread

• Coal freight spread between Colombia-Brazil and Africa-Brazil

1. Commercial operation date2. As of June 20083. IPCA = Consumer Price Index

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UTE Porto do Pecém - 2nd phase (360 MW)

• Negotiations under way with consortium composed by EFACEC, BC Projetos and led by Maire Engineering. Boilers to be supplied by Doosan Babcock and Turbines by Siemens, both major players

• MoU to be signed before A-5 auction, scheduled for late August 2008

EPC

• Public hearing for Preliminary License finalized in May 08

• Preliminary License to be issued in Jul 2008

Licensing

• Full capacity registered for A-5 auction, scheduled for late August 2008

Energy sales

Details

UTE Porto do Pecém

Fuel: Coal

Location: Ceará State, Pecém Port

Shareholder: 100% MPX

Start-up: 2013

• Eligibility process started with BNDES

Funding

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Fuel: Coal

Location: Rio de Janeiro State, Açu Port

Shareholder: 100% MPX (future strategic partner)

Start-up: Jul/12 (700MW); Jan/13 (700MW); Jul/13 (700 MW)

EPC

• US$ 500 million firm commitment from Santander

• US$ 500 million firm commitment from Unibanco

• Bridge loan contracts of US$ 200 million

• Financial advisory agreement with Santander

• Eligibility process started with BNDES

Funding

• Public hearings for Preliminary License scheduled for July 14 and 15

• Preliminary License to be issued in late July 2008

Licensing

• Participation in A-5 energy auction

• Sale to Free Market within the self-production concept, with option to contract capacity - Negotiations under way

Energy sales (planned)

Details

UTE Porto do Açu • MOU to be signed in early Aug 2008

• Reservation fee to long lead items in order to secure project schedule

UTE Porto do Açu – 1st phase (2,100 MW)

Credit Suisse mandated to find strategic partner

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Free Market - Shared self production + Capacity option

Competitiveness in Free Market enhanced by adding option to contract capacity

CoalSupply

UTEPorto do Açu

Availableaverage MW

Self-Producer’sQuota

Q1

Q2

Plant’sOperations

Management of Energy Requirements

Quotas of each offtakerQuotasself-producer 1

Quotasself-producer 2

Quotasself-producer N

FreeConsumersOR

Capacity Pmt

(fixed)

+

Variable cost

(if dispatched)Qn

Q3

Quotasself-producer N

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Chilean Power Market OverviewChilean Power Market Overview

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6.000

9.000

12.000

15.000

18.000

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Expected Capacity

Required Capacity

Forecasted Supply/Demand Balance (MW)

Energy Demand Increasing Faster than Supply

Source: Santander, CNENote: Projections include only mayor projects such as LNG plants and Hydroayèn

Source: CNE.

Expected Sales (Th. GWh)

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Free Clients Regulated Clients

6.4%

5.5%

Coal generation projects will have to cover the gap between

increasing energy demand and projected supply.

Strong growth in industrial clients energy demand (mining companies) as well as power auctions of distributors from

2012 onward (regulated clients) secures significant

opportunities in the SIC for the next decade.

Supply / Demand Gap

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MPX ChileMPX Chile

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Fuel: Coal

Submarket: SIC

Location: 3rd Region, near Copiapó City

Shareholder: 100% MPX (future strategic partner)

Start-up: Jul/12 (350MW); Jan/13 (350MW); Jul/13 (350 MW); Jan/14 (350MW)

EPC

Funding

• Environmental process started in Sept 2007

• Environmental Impact Assessment to be filed at CONAMA (Environmental Authority) in 3Q08

• Installation License to be issued in 1Q09

Licensing

• Binding agreements expected for end of Sept 2008

Energy sales

Details

• 4 proposals under evaluation

• EPC selection process to be closed by Aug 2008

• Reservation fee for long lead items

UTE Castilla

MPX Chile - UTE Castilla (1,400 MW)

• US$500 MM long term financing from Santander

• Bridge loan contracts of US$ 100 million

Santander mandated to find strategic partner

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Coal SupplyCoal Supply

18

0

2

4

6

8

10

12

14

2008 2009 2010 2011 2012 2013 2014 2015

Coal Supply Forecasted Ramp-up

Studies and definition oflogistics alternatives

“Full Capacity”*12 Mtpy coal production

Cerrejon andCesar

DepartmentsExploration–

AUG/2008

On GoingExplorations

including possibilityof new acquisitions –

2009/2010

Colombianmines

productionstart-up

1.5

4.0

10.0

12.0 12.0

Colombian properties already acquired

MPX has made significant progress in order to secure coal supply to its plants

Coal ProductionTon (MM)

New acquisitions * Not including Seival Mine

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MilestonesMilestones

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MPX Milestones Roadmap

Notes:NTP – Notice to Proceed; EPC – Engineering, Procurement and Construction; MOU – Memorandum of Understanding; PPA – Power Purchase Agreement

1H081H08 2H082H08 1Q091Q09

UTE Porto do Açu (2.100 MW): Environmental Impact Study

filing

UTE Porto de Itaqui:

Installation License

1st phase UTE Porto do Açu: Preliminary License

( 2,100 MW)

1st phase UTE Porto do Açu: Installation License

( 2,100 MW)

UTE Seival II: Preliminary License

UTE Seival II: Installation License

UTE Castilla: Installation License

UTE Porto de Itaqui: Environmental Impact Study

filing

UTE Castilla: financing Term Sheet

UTE Castilla: Long term financing contract

UTE Porto do Pecém: Bridge

loan

UTE Porto do Pecém: Long term financing contract

UTE Porto do Açu: Long term financing contract

UTE Porto de Itaqui: Long term financing contract

UTE Porto de Itaqui: Bridge loan

UTE Castilla: EPC contract signature

2nd phase UTE Porto do Pecém: MOU for EPC

2nd phase UTE Porto do Pecém: EPC contract

signature

UTEs Porto de Itaqui and Pecém: EPC contract

signature

Porto de Itaqui and Pecém: NTP for EPC and down

payment long lead items

UTE Porto do Açu:

MOU for EPC

UTE Porto do Açu: EPC contract signature

UTE Porto do Açu: NTP for EPC and down payment long

lead items

UTE Seival II: EPC contract

signature

UTE Porto do Açu: Eligibility for BNDES long term financing

Coal mine acquistion in the

international market

UTE Castilla: Letter of intents

for PPA UTE Castilla: PPAs signature

1st phase UTE Porto do Açu: MOU for PPAs

1st phase UTE Porto do Açu: PPAs signature

Legend:

Environmental Licensing

Funding

Engineering and Construction (EPC)

Power Marketing and Coal Supply

Accomplished Events

Additional Events

UTE Porto do Açu and Castilla30% stake transference from

Centennial to MPX

Solar Energy: Yinglipartnership

UTE Seival II: NTP for EPC and down payment long lead

items

2nd phase UTE Porto do Pecém: NTP for EPC and down payment

long lead items

2nd phase UTE Porto do

Pecém: Preliminary License

UTE Porto do Açu: strategic partner selection

UTEs Porto do Açu e Castilla: Bridge loan

UTE Seival II: MOU for PPAs

R&D- Solar energy: Site identification and Basic

design

UTE Castilla: strategic partner selection

Participation in the A-5 auction for new energy

UTE Castilla:

MOU for EPC

UTE Castilla: “Limited NTP”for EPC (down payment for

long lead items)

1st phase UTE Porto do Açu: PPAs signature

1st phase UTE Porto do Açu: MOU for PPAs

ANEEL’s approval to the structure of the Açu project