Cougar Energy Limited

Advancing Underground Coal Gasification in Indonesia

Presentation to Directorate General Mining

Dr Len Walker, Managing Director
June 2012

COMMERCIAL-IN-CONFIDENCE
Vision for Asia THE NEW POWER IN ASIA

Cougar Energy - a clean energy vision for Asia

In alignment with Government clean energy policies:
 New policies in energy security - looking to replace coal with gas
 New policies in lowering energy production environmental impacts
 New polices seeking alternative downstream uses for coal

Cougar Energy - a clear pathway to a clean energy future in Asia

Meeting future Asian energy demand:
 Increasing energy demands in Asia offer significant opportunities
 UCG allows downstream optimisation of coal resources that are considered uneconomic for mining
 UCG is a flexible fuel source for power generation or as a chemical feedstock
 Implementing experienced project management to deliver UCG energy production

More importantly
Adopting the Cougar Energy UCG process to unlock the value of stranded coal:
 Reduces environmental harm - limited above ground disturbance
 Lowered atmospheric emissions - lowering pollution levels from resource extraction & processing

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Why UCG ? THE NEW POWER IN ASIA

UCG is a viable energy alternative to traditional coal mining

 Product syngas has a wide range of end uses

 High energy recovery & efficient resource utilisation
 Minimal above ground disturbance - minimal environment impacts
 Low production costs - when compared to conventional coal mining
 UCG technology is suited to a wide range of coal types and seam thicknesses
 Exploits and recovers coal resources that are uneconomic to mine.
 Unlocking value by offering a solution to monetise stranded coal assets

“A clear alternative energy source offering security for global supply”

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 THE NEW POWER IN ASIA
UCG Technology in Action

Utilisation of the worlds leading UCG technology

Transmission line
Air or oxygen and
Gas extraction
steam injection Power station

Ground level

Gas removal
External casing External casing Water Table

Overburden
Injection

Injection Production
well casing well casing

UCG Gasifier Coal

Residue

Underburden

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Complex Surface IGCC Plant THE NEW POWER IN ASIA

UCG offers
 Reduced surface infrastructure footprint
 Lower environmental impact and improved emissions controls

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(Picture is for illustration purposes only - assets shown are not owned by Cougar Energy)
UCG Accesses Stranded Coal THE NEW POWER IN ASIA

UCG utilises coal inaccessible by opencut mining

100m
150m
Legend
Opencut overburden stockpile
Opencut extraction

Coal resource mined by opencut

Coal resource suitable for UCG

Schematic cross section of UCG target coal resource
UCG reactor area

Key UCG assessment criteria

 Adequate Coal Seam thickness  Sufficient rock head depth to extraction ratio
 Ash and moisture content  Known geological and hydrological characteristics
 Simple geological structure  Favourable drilling conditions
 No sensitive aquifers above resource  Low permeable overburden and underburden

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UCG End Use Options THE NEW POWER IN ASIA

Power generation

Product Syngas is a flexible fuel source suitable for power generation options:
 Large - 200MWe plus
 Intermediate -50 to 200MWe
 Small - 10 to 50MWe

 Proven standard technology can be used with high electrical efficiencies

 Option for CHP scheme with increased energy use efficiencies
 Reduced atmospheric emissions

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UCG End Use Options THE NEW POWER IN ASIA

Synthetic Natural Gas (SNG)

 Interchangeable with natural gas

 Can use fixed pipeline infrastructure or “virtual” pipeline methods for supply
 Compressed and used for cooking/transportation for both domestic and industrial use
 Existing SNG plants operating in USA and China using expensive surface gasifiers
 Technology to produce SNG straight forward and can be readily licensed (Haldor-Topsoe)

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UCG End Use Options THE NEW POWER IN ASIA

Methanol

 Can be blended with gasoline for transport use

 Technology to convert syngas to methanol readily available - (Lurgi and UHDE)
 Methanol can be converted to:
 Gasoline using the Mobil process
 Dimethyl Ether (DME)
 Which is a replacement for LPG and can be used for cooking and/or transport

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Tarakan THE NEW POWER IN AUSTRALIA

Typical power project commissioning timeline

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Tarakan THE NEW POWER IN AUSTRALIA

Medco conceptual timeline

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 THE NEW POWER IN ASIA
Contacts - www.cougarenergy.com.au

Dr Len Walker Cougar Energy Limited

Managing Director Suite 1002, 530 Little Collins Street
Mob: + 61 419587396 Melbourne, Victoria 3000
len.walker@cougarenergy.com.au AUSTRALIA

Kev Garner
General Manager Asia
Mob: + 86 13910306861
kev.garner@cougarenergy.com.au

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