Australian Future Energy Pty LtdGladstone Energy and Ammonia ProjectGEA Conference – Gladstone – 11 October 2018

Ensuring Secure Energy Supply For East Coast Australia

Certain forward-looking statements may be contained in this presentation which can be identified by the use of forward-looking words such as “may”, “could”, “will”, “expect”, “believes”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs including, without limitation, expectations regarding ammonia, gas, electrical power, and coal, prices, estimates of resources, production, operating expenditure, capital expenditure and projections regarding the completion of capital projects as well as the financial position of the Company.

Statements other than statements of historical fact may be forward looking statements. AFE believes that it has reasonable grounds for making all statements relating to future matters attributed to it in this presentation.

Although AFE believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be accurate. Accordingly, actual results, values, performance or achievements could differ materially from those projected as a result of, among other factors, changes in commodity prices, foreign exchange fluctuations, changes in economic and market conditions, changes in the regulatory environment, increased costs and demand for production inputs, the speculative nature of exploration and project development including, the risks of obtaining necessary licences and permits and diminishing quantities or grades of resources or reserves, political and social risks, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues, litigation and other business and operational risks.

Investors should note that any reference to past performance is not intended to be, nor should it be, relied upon as a guide to any future performance. Forward-looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. AFE does not give any assurance that the assumptions on which forward-looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

Therefore, AFE, its officers, employees and its advisors make no representation or warranty, express or implied, that the projections and/or material contained in this presentation including the accuracy or likelihood of fulfilment of any forward-looking statement, will be achieved or prove to be correct. AFE, its officers, employees and advisors, to the extent permitted by law expressly disclaim all responsibility relating to or resulting from the use of the material and information contained in this presentation and exclude all liability whatsoever (including negligence) for any loss (including consequential loss) or damage suffered by any person as a result of the use of any of the information in this presentation or any error or omission therefrom. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information AFE does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based including updating any inaccuracy, omission or change of the information contained in this presentation.

This presentation is not, and should not be considered to, constitute any invitation, offer to sell, or solicitation of an offer to buy or subscribe for any securities in the Company, and no part of this presentation forms the basis of any contract or commitment whatsoever with any person.

Disclaimer

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§ Australian Future Energy (AFE) is a vertically integrated energy generation company, using world class, commercially proven above ground gasification technology.

§ AFE’s core business model is based upon :Ø Providing secure and reliable, base load energy solutions to large industrial users and markets requiring a secure

energy supply;Ø Having exclusive Australian rights to apply NASDAQ listed Synthesis Energy Systems, Inc. (SES) above ground

gasification technology to produce syngas from low ranking coal deposits;Ø Ownership of or long-term commercial offtake contracts for coal supply; andØ Unique ability to use non-market specification thermal coal (low rank) in conjunction with biomass, as feedstock.

§ AFE’s focus is on actively developing projects that will utilise SES’s efficient and low cost clean syngas production technology.

Current market characteristics:Ø Increasing demand for secure and reliable energy Australia wide and particularly on the east-coast;Ø Increasing market prices for gas and base load power; andØ Industrial users seeking long term, secure energy supply contracts.AFE offers a clear solution to these problems.

AFE is in the business of Energy Generation

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AFE Business Model

November 2017 Investor Presentation 4

Exclusive Australian rights

to technology secured

Mining and coal processingoperations

Coal Resources Callide - ContractedPentland - Owned

Export thermal coal

SES syngas production and

purification

Synthetic natural gas

(SNG)

Low emission base load

power

Explosives (feedstock)

/Agricultural Chemicals

By-products: ash (cement),

steam, sulphur

Coal and biomass Densify

Biomass resources

Export biomass

Commercial customers - Domestic (Gladstone and Townsville) and ExportPower generation from standard gas generation technology

Feedstock (as ammonia) for Explosives IndustryAgricultural chemicals – real value add – import replacement opportunity

Lower-rank coal

AFE primary focus

Exclusive gasification technologyAFE owns Exclusive Rights

to Proven Technology

§ AFE holds the exclusive rights and access to SES gasification technology (SGT) for the Australian market through a Master Technology Agreement (May 2017) with SES.

§ US based, Nasdaq listed SES (SYMX) is the global leader in flexible fuel clean syngas production with high efficiency and low cost.

§ 13 commercial scale gasification systems currently operating at 6 project locations around the world (USA and China).

§ AFE has the right to license the technology in Australia to other parties, and will receive a share of licence fees.

§ SES provides AFE with required technical support services.

§ SES is a 39.2% shareholder in AFE (since AFE’s inception in 2014).

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ZZ Plant China – 2 SGT Systems

Proven Gasification Technology being used in Commercial Operating Plants

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§ AFE holds the exclusive rights and access to SES above-ground gasification technology (SGT) for the Australian market through a Master Technology Agreement (May 2017) with SES.

§ 13 commercial scale gasification systems currently operating at 6 project locations around the world (USA and China).

§ Outstanding performance.§ Proven track record.

SES project name Zao Zhuang Yima Chalco

ShandongChalco Shanxi

Chalco Henan

Year commissioned 2008 2012 2015 2016 2016

# of gasifiers 2 3 2 1 4

Main product Methanol Methanol Fuel Gas Fuel Gas Fuel Gas

Annual output 90,000 tpa 300,000 tpa 9.33 PJ pa 3.27 PJ pa 14 PJ paZao Zhuang Plant, China

Yima operation currently expanding to 1,000,000 tpa (2 stage expansion)

Overview of Gladstone Energy and Ammonia Project

§ Development of a 20PJ per annum pipeline spec. gas production facility for local industrial customers – a truly captive market.

§ Significant local demand for reliable energy supply (gas and power) – issues not only of energy costs, but also of energy security.

§ Project to be located in Landing Road, in Qld State Development Area in Gladstone (approx. 110 hectares) – option over land in place.

§ Coal to be sourced from local regional mines – HOA currently in place for this, approx. 1.5 mtpa low rank coal.

§ Offtake arrangements well advanced for supply of app 1,000 tpd Ammonia product – to established players.

§ Offtake arrangements well advanced for sale of 8 PJ per annum of pipeline spec gas – established gas player.

§ First production late 2021 / early 2022.7

Aerial view of Gladstone State Development Area

Gladstone Energy and Ammonia Project

Overview of Initial Projects and Requirements

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Project Requirement Project StatusOfftake Advanced discussions for 1,000 tpd ammonia product.

Advanced discussions for remaining 8 PJ pipeline spec. gas.

Coal Agreement with local regional area mines for 1.5 mtpa low quality coal.

Power Generate own power, transmission line at front gate for remaining export power (30MW). Captive local market.

Water Agreement with Gladstone Area Water Board for 1 GL/pa.

Land Firm option over 110 hectare site in Gladstone SDA with Qld Govt.

Permitting Initial Advice Statement lodged on 16/08/2018, Qld Govt fully briefed. Project now formally announced and granted “Co-Ordinated Project Status”.

Yima Gasification and Methanol PlantSES Technology

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Aerial View - Plant Location

Gladstone Energy and Ammonia Plant

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Site Schematic

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Gasification Island Schematic

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Process Plant Support Facilities

GEAP Process – Inputs and Outputs

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SULPHUR

AS FED COAL NH3

CO2SNG

ASU SRUTGTU

PSACOAL HANDLING

GASIFICATION ISLAND

CO SHIFT ACID GAS REMOVAL

AMMONIA PLANT INCL STORAGE

STEAM & POWER

OTHER UTILITIES CW,

WW ETCCO2 EXPORT & PIPELINE

METHANATION INCL GAS PIPELINE

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GEAP Process Block Schematic

§ Total estimated capital cost – approximately $AUD 1 billion.

§ 2 year construction period – approximately 800 to 1,000 direct jobs – plus flow-on effect for indirect jobs.

§ 30+ year operating life – approximately 200 to 250 direct jobs – plus flow-on effect for indirect jobs.

§ Strong preference for local employees – attraction for AFE to the Gladstone area was the availability of a skilled work-force.

§ Quality local infrastructure – SDA, port, rail, roads, water, to support AFE project and similar projects.

§ Supportive local community.

§ Strong political support from all sides – Federal, State and Local.

Key Statistics and Parameters

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§ Heads of Agreement with major EPC Contractor, for pathway to EPC contract. Contract now in place for Phase 1 works.

§ 3 phase process by GEAP :Ø Finalise Pre-FEEDØ FEED and process and works to FIDØ EPC

§ Next phase of finalising Pre-FEED works – to be completed at NIL cost to GEAP, in return for rights to future works

§ Costs of FEED and process to FID not payable by GEAP until completion of works, costs rolled into EPC contract milestone payments

EPC Contractor On Board

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Management of By-Products, and CO2

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By-Product Management ActionsAsh • App. 400,000 tpa from Gladstone Energy and Ammonia Project, not leachable.

• Highly inert, very uniform granular structure.• Local demand for building materials and products, or local councils for road-base

materials.Sulphur • App. 2,000 tpa elemental sulphur powder (or equivalent sulphuric acid).

• Local demand for all produced.Water • Treated onsite, maximum recycle then aeration ponds before release.Off gasses • Flared, small volume.CO2 • On a total project basis, emissions at or below HELE equivalent and below Finkel

guidelines.• Identify specific plant process carbon emissions.• Develop CO2 strategy/targets in collaboration with regulators. • Define practical mitigation strategy as part of EIS approval process :

ü Minimise plant emissions.ü Local green project investments.ü Interaction with local industrial parties for industrial use.ü Enhanced Oil Recovery. 18

Proven Track Record - Batchfire Resources

§ Founded in 2016 as spinoff from AFE (in specie distribution).§ Currently AFE shareholders own approximately 52% of Batchfire.

AFE no longer directly holds any shares in Batchfire.§ Acquired Callide Thermal Coal Mine (Central Queensland)

operations October 2016. § ~230mt reserves; ~850mt resource.§ Significant progress since acquisition to increase production and

lower costs to near bottom of global cost curve.§ Supplies CS Energy power stations for Australia’s national grid

(c.18% of Qld’s electricity generation), domestic customers in Gladstone and exports via Gladstone Port.

§ Increased production since acquisition and potential for further expansion.

§ Positive cash flow from operations –a true “turn-around”.§ Highly profitable long-life operation.

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Organization Structure and Key Staff

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AFEBoardofDirectorsStephenLonie– Chairman

RobertRigdon- DeputyChairmanEdekChoros– ExecutiveDirector

RichardBarker– Director

KerryParkerChiefExecutiveOfficer

RonHigsonCOO

TBACFO

SESTechnologies

Industry Experienced Professionals§ Australian and International project development.§ Clean energy and coal industry.§ Large scale EPC.§ Financing and debt structuring.§ Environmental modeling & project permitting.§ Technology application and design.

Investment Highlights - Recap

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ü Favourable market dynamics - Energy (ammonia and gas) supply concerns, AFE meeting a strong need

ü Attractive financial returns, strong investment caseü Offtake advanced - Advanced stage of documentation with key

industrial energy usersü Competitive cost of production – Delivered ammonia/gas

prices compellingü Key alliance partnersü Proven gasification technology - Exclusive rights,

commercially operating plantsü Experienced board and management – Strong successful

track record (Batchfire/Callide)ü Strong State and Federal government support – Plant sites

secured, recognise need for secure energy supply, jobs and growth

ü Strong local and community support – Seeking further industry development and investment

ü Feedstock secured - Access to coal resources for gasification projects

ü Expansion opportunities

Thank You

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Contacts:

Kerry Parker – Chief Executive OfficerPhone: +61 417 731 014Email: k.parker@ausfutureenergy.com.auwww.ausfutureenergy.com.au

AFE Directors ProfilesStephen Lonie - Chairman§ Chartered Accountant having over 30 years with KPMG in Australia where he was responsible for Queensland

management consulting and corporate finance practices.§ Currently on several boards of public and private companies in Queensland, was the former chairman of an ASX listed

company, former Chairman of CS Energy and formerly Deputy Chairman of Ambre Fuels (a coal to liquids (CTL) company).

§ Has a great understanding of the CTL industry and has a very strong personal interest to see the CTL industry developed in Australia.

Edek Choros – Executive Director§ Geologist with over 25 years of professional experience in coal exploration, mine design, mine planning and

management of “turn around” operations for a number of coal mines in Australia and the USA.§ Founder, CEO and MD of Millennium Coal Pty Ltd – company founded in 1999, and which developed a very

successful hard coking coal mine in Bowen Basin in Queensland, which in 2004 was sold to Excel Coal Ltd.§ Founder, CEO and MD of Ambre Energy Ltd – company founded in 2005 and currently owns and operates two large

coal mines in the USA and is developing the Millennium Bulk Terminal at Longview in the USA to export coal to Asia.§ Founder of Australian Future Energy Pty Ltd – company formed in 2014 to develop large scale coal gasification

projects converting waste coal to urea and SNG.§ Founder of Batchfire Resources Pty Ltd – formed in 2016 to acquire the Callide mine from Anglo American.

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AFE Directors Profiles (cont’d)

Richard Barker – Independent Director§ 25+ years of investment banking and corporate finance, including mergers and acquisitions, valuations, financings

and general corporate advice.§ Strong and broad contact network.§ Former Managing Director and Co-head of the Metals & Mining Investment Banking group for RBC Capital Markets.§ Former CEO of a publicly traded company, with a strong understanding of ASX listed company issues.§ Complementary mix of corporate finance skills and corporate strategy expertise.§ Currently serves as a director on private company and ASX listed boards.

Robert Rigdon – Director§ Deputy Chairman of SES.§ President and CEO of SES – 2009 to 2016.§ Leader in GE’s gasification business, including manager of gasification engineering, director of IGCC

commercialization, director of gasification industrials and chemicals.§ 23 years at Texaco (ChevronTexaco) in worldwide power & gasification group – engineering manager, project director,

vice-president gasification technology.

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AFE Management Profiles

Kerry Parker – Chief Executive Officer§ Over 25 years’ experience within the energy, mining, and resources sectors, in Australia and internationally (Asia,

Europe, Southern Africa, and US).§ A Chartered Accountant, 8 years with KPMG in various advisory roles.§ Managing Director and Chief Financial Officer roles with a number of ASX listed entities, including Arrow Energy

Limited, CH4 Gas Limited, Panax Geothermal Limited, and Unity Mining Limited.§ Also senior commercial positions with both Downer Group and Santos and a number of Non-Executive Director roles

with publicly listed and private companies in the resources sector.

Ron Higson – Chief Operating Officer§ Executive and Senior Project Director demonstrating strong leadership and strategic business development.§ Over 35 years in oil and gas and the power industry working with some of the most successful leading global

organizations including TransAlta, SNC-Lavalin and Hatch in both project development and operations.§ Demonstrated leadership in raising team performance to achieve desired goals and targets.§ Led teams in small cap to large project organizations, including an executive role on one of the world’s largest ever

projects, the $56 billion Chevron Gorgon Project in Western Australia.

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Unique, proven technology§ Extensive development over 40 years with support from US

Department of Energy and Industry (original development through Gas Technology Institute).

§ Multiple pilot, demo and commercial-scale plants since 1975, developing extensive feedstock and operational experience.

§ Twelve commercial gasifiers at five large operating sites in China (largest is 13.5PJ of syngas for 300,000tpa of methanol at the Yima facility), with more projects in pipeline. Yima currently planning expansion to 1mtpa methanol.

Economic advantage§ Fuel flexibility and efficiency - able to gasify low rank/waste coals,

biomass and municipal solid waste (MSW).§ Low capital intensity and operationally efficient.§ Simple operation, high availability and reliability.Environment-friendly§ Energy policy compatible - low carbon emissions (in line with recent

“Finkel Report” guidelines).§ Low water consumption, able to utilise industrial waste water.§ Able to produce green energy using renewable biomass.

Gasification Process and Methodology

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CO2Low Grade Coal

Biomass

Syngas Processing

Syngas(CO+ H2)

SULFURAsh

iGAS Power

Low Value Feedstock

SES Gasification Processing

$3-6 per MMBTU Cost of Syngas

High Value End Products

MSW

Industrial Fuels

Chemicals & Fertilizers

SNG

DRI for SteelProduction

Diesel & Naphtha

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H2 for Cleaner Fuels

Gasification Process and MethodologyUnique, proven technology§ Extensive development over 40 years with support from US

Department of Energy and Industry (GTI).

§ Multiple pilot, demo and commercial-scale plants since 1975, developing extensive feedstock and operational experience.

§ Twelve commercial gasifiers at five large operating sites in China (largest is 300,000tpa of methanol at the Yima facility). Yima currently planning expansion to 1mtpa methanol.

Economic advantage§ Fuel flexibility and efficiency - able to gasify low rank/waste

coals, biomass and municipal solid waste.§ Low capital intensity and operationally efficient.§ Simple operation, high availability and reliability.Environment-friendly§ Energy policy compatible - low carbon emissions (in line with

recent “Finkel Report” guidelines).§ Low water consumption, able to utilise industrial waste water.§ Able to produce green energy using renewable biomass.

NOTES

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