East West Line Parks Limited

NT Transport Conference Darwin NT 11th December 2012

Presented by Shane Condon - MD & Founder &

Matthew Magin EWLP Regional Director

Disclaimer

• This presentation has been prepared by East West Line Parks Limited (“EWLP”).

• EWLP has prepared this presentation based on information available to us. All statements, other than statements of historical fact, are forward looking statements that involve risks and uncertainties. There can be no assurances that such statements will prove accurate and actual results and events could differ materially from those anticipated in such statements.

• EWLP does not assume the obligation to update any forward looking statement.

PIB NT Benefits 2012

• NT Government Revenue Streams Increased

• Aboriginal & Communities & Business

• Construction 1,600km PIB HH Rail + Spur Lines

• Stranded NT Mine Developments Realised 20-50?

• Transport Logistics & Communications NT a major

beneficiary

• Associated Industrial Developments

• Defence & Remote Tourism

• N - S - E & W :: Rail-City-Port-Connections

The NT PIB 2013 Agenda

2013 NT PIB Development Plan Schedule– Formal detailed meetings with all Government and community

stakeholders.

– Begin to Acquire the PIB Rail Corridor in the NT and across

Australia including within the NT.

– E-W PIB Rail from the Qld Boarder to WA Newman commence our

First Option Rail Corridor Rights programme completed in place by

June 2013.

– Consult with the new NT Government and all NT Stakeholders on

maximising the economic/commercial long-term potential development

benefit opportunities in the vicinity of the PIB E-W HH Rail Corridor.

• Musgrave has a major economic development potential.

– Rail Design Surveys and Planning to begin on the E-W PIB Rail

Corridor.

PIB Master Project Agenda 2013

East West Line Parks’ “EWLP” Project Iron Boomerang “PIB”

• EWLP - PIB – Introduction Concept and Strategy

– PIB Big Picture – We can always do much better, think smarter, globally collaborate as major trading nations, innovate and commit with passion and drive. Our kids and grandkids will think much more globally than we do! Productivity and Progress is the main game!

• PIB 2012 Developments.

• First half of 2013

– EWLP PIB New $30m 30% of Company share capital raising first quarter 2013 -Information Memorandum Available February 2013.

– Hold Global Steelmakers workshops $150m by 10 places in the Business Plan Queue

– Acquire First Option Rights on the 3,300km PIB E-W Continental Rail Corridor.

• Bankable Feasibility Study already begun and continued on steel-parks 2012-13.

• Continental Rail Corridor Lands and Steel Complex Lands Acquisition Programme to commence First quarter 2013.

• Conclusion

NT PIB Support

• Support the PIB Whole-of-Government approach as called for

by Dr Peter Shergold in the Howard Federal Government

Bureaucracy.

• Overseas major trading nations political and economic trade

and investment support.

• Energy supply to the project.

• Special PIB legislation requirements.

Project Iron Boomerang - Overview

Major Logistics Flows (1st Stage Steel Complex Parks: 5 x 4.4 mtpa Plants at

each end)

Newman Smelter

Park

Abbot Point Smelter ParkPort

Hedland

Total 40 mtpa Coal

20 mtpa Coal

33 mtpa Iron Ore

20 mtpaCoal

22 mtpaSteel

Total 66 mtpa Iron Ore

Moranbah Coal Hub

Total 106 mtpa Ores consumed

Total 44 mtpa Steel 22 mtpaSteel

PIB Heavy Haul Railstep-by-step development approach

Newman Smelter

Park

Abbot Point Smelter Park

Port Hedland

Moranbah Coal Hub Bowen Basin

Mt. Isa Galilee Basin

Darwin- Alice Springs

Container Rates To and From Australia 20-30% reduction on current rates

Productivity ChallengesCurrent Situation

High Australian Dollar High costs - world’s highest wages Productivity decline of 0.7% pa from 2005 to 2011* 2 Global Recessions in major economies - last 5 years. PIB Steel Park Concept Labour Efficiency 50% better. Australia’s Productivity ChallengeFor Australia’s key economic drivers of mining and agriculture Supply Chain Productivity and Innovation Efficiencies provide competitive advantage.

• Source: Beyond the boom: Australia’s productivity imperative, McKinsey Global Institute, August 2012

Yes we can make Iron & Steel in Oz under the PIB Model.PIB Provides the 50-75 year plus Sustainable Scale Competitive Steel Production Solution for Global Steelmakers as major trading nations.

PIB Big Picture Economics Nov - 2012

Value-Added Revenue Generation for Federal State/Territory Treasures!

EWLP PIB National Contributing Production Value Comparison Slab Steel.

• One year 44m tpy x $720 FOB = $31,680,000,000 or $31.68Bn p/a

• 20 year x 44m tpy @$720t FOB = $6.33 trillion

• QLD & WA P/A = $15.84Bn ea p/a production value.

• Against Primary Steel-Making ores fob value PIB consuming 106m tpy

• 106m tpy IO & C-Coal & Limestone approximate values = $14.84 Bn

• Indicates a 50% value-added increase for the Australian Economy.

Detailed and Deeply Researched Independent Economic Studies are available over 6 years of work.

Plus the EWLP PIB Fully-Optimised 40t axle HH Continental Rail will maximise stranded mine developments across the continent - $Billions p/a

NT Economic PIB Delivery Example The PIB Rail /QLD Economic Delivery Value

For Heavy Haul EWLP Rail Products – at 2012 fob p/a values - by 2018-19.

• Mt Isa-2m tpy = $1.6bn

– Ores; Copper/silver/lead/zinc-IO & Phosphate Mines.

• N-Galilee-30m tpy T-Coal = $2.7bn

– Thermal Coal -Mac Mines; ADANI; AMCI etc.

• Bowen Basin - Moranbah-20m tpy =$2.5bn

– Coking/Thermal BHP-BMA & Xstrata Coal + others?

• + 2018/19 EWLP Slab Steel 9m tpy. = $6.4bn. (2012 fob slab w-cost)

+ Subsidiary EWLP/PIB QLD end HH Rail Freight annual revenue generated from above estimated at >$1.2bn p/a.

2018/19 Total =$13.2bnEWLP Production Slab by 2022 : 22m tpy. =$15.8bn.(2011 fob slab cost)

2022 Est Total =$22bn p/a.• The 2020 PIB HH Rail figure is understated with conservative delivery expectations

• For reference details please contact EWLP HO Brisbane, Australia!

Project Aim

PIB “To establish first stage industrial steel parks with five standard steel making units located at each steel park precinct.”

PIB will design build own administer and operate the continental E/W rail and steel-making complex industrial parks appoint best contract operators and extract best optimal value and efficiencies on behalf of the steel-makers consortium.

Global Iron and Steel producers are invited to form a PIB steelmakers led consortium, after equally and collectively contributing to the bankable feasibility study. PIB to hold 10%

Steel park lands connected by 3,370 km of world class transcontinental standard gauge heavy haul railway.

PIB’s 40t Axle Coal Wagon & HH Trains “World’s Most Efficient ”

The Iron Boomerang Slab/Container Ship “World wide Patent Pending 2012-13”

PIB Slab & Container Ship

• Key Self-Loading Ship Independent Features:

• Inside Main Floor Area Dimensions

• Length 170m x Width 30m x 12 m High

Ideal for huge roll-on/off mining equipment and/or modular unit delivery.

• Ship has in-built Gantry Cranes 75t for fully automated loading and unloading.

• RORO dual tracked floor moves sideways for under – floor cargo loading/storage.

• Tracked Floor is mechanised for self-loading/unloading of slab wagons.

• Automated Self-Righting Water Ballast balanced loading/unloading adjustment system - wharf and ship height adjustments.

• Inner & Outer Strong Hulls for water ballast and to minimise Great Barrier Reef Risk Impact management.

• Schedule & Turnaround Time Saving 2-days each in loading & unlading instead of 6 days ea. – 8 days saved in turnaround time– greatly consolidates major CAPEX Equipment Expenditures on Ships Wharfs & Cranes.

• The Iron Boomerang Independent Self-Loading Slab Ship - World Wide Patent Pending. From Australia / E-Coast Asia: 65,000t PIB slabs to a total 44m tpy + empty Containers 2-4,000t per trip.

To Australia / E-Coast Asia: Full Containers inside and top-deck 40,000t for a total capacity of 30m tpy.

Ship Owners Per Trip Ship Income Estimates + /– 15%:

o From Oz Slabs @ $15t & Empty Containers @ 10t = $1m

o To Oz Full Containers @ $15t Cargo Wt. 40,000t = $600k

o Total Return Ship Trip Income = $1.6m

Return Trip Turnaround & Loading Time estimated at 35-40 days.

o Economic Efficiency/Productivity Improvements

o ROI +/- 15% = 20-30% for ship owner/operator

PIB 1st Stage 5-Steel Mill Complex Plan – 22mtpa Conceptual based on Tata Steel Consulting Engineering PIB Steel Complex Design

This Project proposes to dramatically effect and cut the current operating system inefficiencies to economic cost, to social and emission/climate advantage!

1. Fossil Fuels @ no1 world emitter.

2. Coal Fired Power @ no2 world emitter.

3. Steelmaking @ no3 world emitter.

4. Cement Making @ no4 world emitter - to 60% less

5. Bunker fuels @ no7 world emitter.

– PIB Carbon Capture Research Center Incorporation Proposal – worlds biggest trial site.

Green Steel Global Collaboration A Better Way

PIB’s Value-Adding the Mine & Farm Productivity Gain Efficiencies

In order to be competitive and world class, industry needs to invest and plan the most efficient supply chain and smartest steel production location sites and steel-making technologies/strategies.

Some PIB examples: Purpose built PIB steel parks can share service facilities, standardized designs and be more than 15-20% more efficient than world best practice.

PIB Continental E-W Heavy Haul Rail Corridor - Payload each way U-Rail CAPEX amortized at twice the rate >15-20% freight gain

40 t Coal axle load wagons and rail infrastructure 20-25% gain!

Aerodynamic wagon design with lids

• for a 30m t mine 500 km to port $12-15m of fuel saved!

• Faster returns - Less Rolling-stock Capex for lower freight rate.

Back-loading for all transport logistics Ships & Trains$Billions p/a saved in the PIB scale! Smart ship design to export slab and return to Australia with containers complementary N/S primary cargoes for better freight rates .

Iron ore (60%Fe) export seems efficient, but huge ships move approximately 40% of waste

material - dirt (non Fe) and return empty 60/200 - only a 30% efficiency factor!

The PIB Spur Solution for the Galilee Infrastructure Rail Corridor

1. One PIB 40t axle Rail Single Solution for all 5 mines – 300m tpy 2025.

• 32t axle 240 trains per week less

• 26t axle 500 trains per week less

2. Fully Optimised PIB HH Rail Efficiencies on marginal export thermal coal lowers risk for project financial closures.

3. World’s most efficient 40t coal axle lidded wagon saves $3-6 per t freight against 26t & 32t axle current operating comparisons -difference between finance and investment project closure or none!

4. The wagon is the most expensive piece of equipment mine-rail or port in the Galilee production supply chain 500-600km to port empty return.

5. Efficiency = Sustainable Business Competitive Productivity Gain

Ref: Xstrata Copper Presentation “Ernest Henry Mine (EHM) Magnetite Project – information Pack” (26 March 2009)

Queensland Perspective

PIB-Progress Update

• Key Feasibility Study Outcomes (2012).

1. The PIB Concept and Strategy - Australia will be the best place on earth to manufacture scalable “Green Steel” sustainably for the next 50 -75 years +

• Steel manufacturing - PIB Production & Operations Indicate 15-20% Net Productivity Gains on world best practice benchmarks

• Materials rail freight door-to-door advantage - PIB Supply Chain and Logistics offer 15-20 % Net Productivity Gains – includes “Green Steel” correction to benchmark practices.

• A major nation building Australian-led Global Project

• Prototype design for the world’s most efficient 40t coal axle wagonand Heavy Haul Rail Systems.

2. Boomerang Ship serves 2-primary N/S cargoes To & From the tyranny-of-distance Australia continent complementing each others better freight rates.

2012 Key Developments

• Commencement of PIB HH Rail Corridor and 1st Stage Steel Making Complex Land Title acquisition Processes – Project Feasibility team engaged.

– First 500km - dual 40t axle from Abbot Point to N-Galilee

– Industrial 1st Stage PIB Steel Parks Lands at Abbot Point

• TATA Steel Consulting UK - PIB 1st Stage Steel Complex Economic 200p Study – indicate net 15-20% sustainable productivity gains on production/operation/environmental efficiencies.

• Smart Materials Project Japan FRSM wholly owned PIB subsidiary developments.

• Ernst & Young / Everything Infrastructure Economic Study

Confirms Galilee Infrastructure Corridor is the highest productivity, least cost freight option from Galilee to Abbot Point on marginal energy coal.

• Slab Ship – Design world-wide patent pending’ Reduces shipping cost by >50% complementing the projects multiple efficiencies.

• NRI & Tata Steel Consulting Collaboration - Tokyo Press Release Dec 02 2012

2013 Key PIB Programme Developments

• Country by Country PIB Steel Complex Workshops to start March to June 2013.

• Feasibility Study International Collaboration Dec 04 2012 Tokyo signing with NRI Nomura Research Institute & TSC Tata Steel Consulting UK.

• PIB First Option Acquisition Rights Programme commences on the 3,300km Continental Rail Corridor - commencing February 2013

• Federal Communications Licence Granted – for 3,000km PIB Continental Rail Network servicing PIB Steel Parks R Continental Rail and Mine Automations.

• Assets realised on Infrastructures Rail, Ship, Trains and Wagon.

• Galilee Rail and Mt Isa QLD Regional Shires and communities favour the PIB dual 40t axle HH Rail Corridor lower impacts.

Project Communications

• 24 global steel-mills signed - 17 of top 20 global steelmakers have signed the PIB CA along with some of the worlds biggest corporations + 3 of the top 4 biggest world miners.

• Global Finance, Infrastructure/Logistics Service and Engineering companies expressing interest from China, Japan, Korea, UK, NY, HK,, Korea and the Gulf States.

• Major global resource, mining and steel industry equipment and steel associated companies.

• 5 National Governments –Japan, Korea, China, India, Australia

• 5 Australian Governments - The Federal, WA, QLD, SA and NT Governments.

Total shares on issue –

10,000 Ordinary

Fully Subscribed

STAGE 1: Pre-feasibility

Share Structure

Private Company

Pre-Feasibility Report

Completed Jan 2009

East West

Line Parks

Pty Ltd

STAGE 2: Feasibility

Share Structure

Private Company

February 2011 to 2012

Offering 10-positions 5-ea

end AU$15M each.

Group 1: Founders &

Associates

Group 2: Feasibility Study

Consortium Investors

Raise funding for the

Feasibility stage

(controlled for global

steelmakers) AUD$150M

Incentives

• Priority BF place in the

queue 1-10 Steel investors.

• Exclusive Consortium Share

• Land Site & Regulator

Approval to construct BF/BOF.

STAGE 3: Commercial

Share Structure

Unlisted Public Company

(Construction & Commissioning)

Year 2013 to 2017

Basis 50% Debt & Equity

US$420 million each

East West Line Parks Limited

Capitalisation:

Change the status of the Company from Private

to Public status

Capitalisation of US$12.4 billion 2008

Group 2: Feasibility Study Consortium Investors

Group 3: Investors

Group 3: Equal Share Consortium Investors

(US$420 million each), up to US$6.2B

Group 1: Founders & Associates

Revaluation of equity (10% of the final capital

raised)

Group 2: Feasibility Study Investors

AUD$150 million carried forward to Group 3.

Group 4: Debt Finance (Non-Recourse

Project Finance or 10y Bond Issue)

US$6.2 billion

Group 1: Founders & Associates

STAGE 4: Commercial

Share Structure

Public Company Listed

(Operational)

Year 2017 to 2018/19

Initial Public

Offering

Stock Exchange

Listing

Profit Exit 6-8y

opportunity for

Initial Investors

STAGE 5: Commercial

Share Structure

Listed Public Company

Beyond 2019

East West Line

Parks Limited

EWLP- PIB

Corporate Structure & Business Plan

Group 1: Founders &

Associates

East West

Line Parks Pty

Ltd

Approx. 8-9 steelmakers controlling majority of the final consortium of 10 BF positions 9%ea + PIB 10%.

STAGE 1

Pre-feasibility

STAGE 2

Feasibility

STAGE 3

Construction & Commissioning

STAGE 4

Operation & Completion of 1st

Stage Steel Plants

Feb 2010

to 2012/13

Years 2013/14

to 2017

Years 2019

to 2021

To Jan 2009

STAGE 5

Further DevelopmentsDuplication of 10 Steel mills

Beyond 2021

Conclusion

Our 2012 Seasons Greetings Best Wishes & Thank-you

From the Project Iron Boomerang Team