July 2013

Virtual Gas Pipeline Solutions

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Sub161 introduction

� Provides cost-effective, environmentally-friendly Natural Gas solutions to users of diesel and

other crude-based fuels for power generation

� Business model centres around delivering Natural Gas to areas not supported by gas pipeline

infrastructure

� Significantly cheaper than standard diesel and 25% less carbon emissions

� Using conventional Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG)

technologies

� Plants designed for flexible mobile solutions without jeopardising plant efficiency

� Principals are Nathan Mitchell (Chairman) and Angus Karoll (CEO) who have 20 year track

records of success in energy and related businesses

� Very experienced team with deep financial, commercial, technical and operational skills

� Sub 161 is developing projects in Australia, Tanzania, doing due diligence in Nigeria, and

Ghana

� Looking for opportunities in Mozambique

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Operating through vertically integrated entities, Mitchell Group assimilates knowledge and leverages off existing

specialised capabilities in the coal and energy industry to add value to projects.

Mitchell Group Holdings (MGH) is an Australian

company that provides corporate services to the

Mitchell Group of companies.

The Group operates at a global level through

entities that specialise in the development and

operation of port infrastructure, the delivery of

unconventional energy outcomes, and the hire

of drilling-related equipment.

Mitchell Ports specialises in the identification, development and

operation of flexible marine solutions to provide export capacity

for the resource sector.

ME targets coal resources that are stranded by geological,

geographic or commercial conditions. Through innovative clean

gas extraction or coal conversion technologies, Mitchell Energy

turns stranded coal into economically recoverable energy.

MDI is a specialist production and exploration drilling contractor.

With over 40 years experience in the resource industry, MDI is an

internally recognised expert in CBM, CMM and UCG.

MEH is a niche operator specialising in hiring Triplex Mud

Pumps, Drilling Rigs, Compressors and Lighting Towers in

Australia and abroad.

With Mitchell Group as a major shareholder, Sub161 is able to leverage off the Mitchell Group experience and capabilities

in setting up and managing large international projects

Subsidiary of Mitchell Group

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Delivering greener, smarter & faster energy solutions around the world

Mitchell Group has been working in foreign countries for over 10 years and has set up and developed a number of

international projects.

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Virtual pipeline solution

GAS SUPPLY GAS PROCESSING

TRANSPORTATION

POWER SITESPOWER GENERATION

� Natural gas sourced from gas supplier � Natural gas compressed into CNG or

liquefied LNG at the gas processing facility

� Land transportation via truck using

specialised trailers, supplied by Sub

161

� LNG regasified or CNG decompressed

at the customer site ready for use

� Natural gas is used for power

generation and supplied to the

customer under take-or-pay

agreements

[ 6 ]

Sub161 – opportunities for customers

2013 – Convert Power Generation (CNG or LNG)

� Bi-fuel conversion of diesel generators or end of life replacement with

gas sets at mine site

� Delivery of CNG or LNG infrastructure to the mine sites

� Capex will depend on generation equipment and estimates to install bi-

fuel kits on the generator

� Lower maintenance costs

� CO2 reduction – green/clean/reduction in footprint

� 100% of mine locomotives converted to run on up to 95% gas

� Maximising emissions reduction, fuel efficiencies and delivering further

fuel and carbon cost savings

2014 – Convert Locomotives (LNG)

� Mine haul truck fleets are able to be converted to run on gas (conversion

at 95% not available until 2017), 60% conversion is currently available

� Maximising emissions reduction, fuel efficiencies and delivering further

fuel and carbon cost savings

� Regardless of pipelines getting to the mines, there will always be a need

for LNG at site for mine haul trucks in the future

2017 – Convert Mine Haul Trucks (LNG)

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Tanzanian project

� Phase I of project source gas from an onshore gas well

� Initially bring 6mmscf/d of stranded gas on stream

� Enough for 25MW of power generation

� Gas delivered to customers in Dar es Salaam

� Initial CNG to test flow rates and commercial viability

of the gas well

� Phase 2 will see a small scale LNG facility built

� gas to be delivered to areas in the interior of

Tanzania, including Mwanza, Dodoma and Songea

� Customers will include remote power generation sites

and mining companies

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Western Australian project

� Sub 161 is currently developing its WA Project

� Gas for the plant will be sourced from one of the

largest gas supplier in WA

� Up to 15TJ/d of gas as will be compressed and

delivered to customers within 250km of the facility

� Gas transported to end customer using quad road

trains

� Gas is used as a diesel substitute for up to 50MW of

power generation allowing the customers a 30% cost

saving and reduces the CO2 emissions by up to 27%

Storage

System

From

Mother

Station

CNG

Trailer

Decant

PanelCompressor

Customer

facilities

Gas

Supply

Inlet Gas

DryerCompressor(s)

Buffer

Storage

Trailer Fill

Panels

CNG

Trailers

To the

Daughter

Station

Customer Site

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Eastern Australia project

� Sub161 together with the Mitchell Group is providing a full gas pre-

drainage and distribution solution

- Mitchell Group providing field development plan and drilling

management and services

- Sub161 providing all equipment required to compress and

transport gas to market

� Sub161 will have a gas sale and purchase agreement to take gas on an “as

available” basis with the coal mining company

� Sub161 has sized the plant within a range to minimise any flaring of gas

while maintaining the ability to take peak gas flow from wells

� Coal mine provides the gas gathering system to the Sub161 facility

� Sub161 plant and equipment located at the mine site and includes a truck

loading area and road access for semi trailers

� Gas is transported by truck to Sub161 customers

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Sub161 – opportunities in Mozambique

Connect onshore stranded natural gas to market

� Replicate model from projects being developed in Tanzania and

Australia

� Connect gas fields with the market through Sub 161 virtual

pipeline model

� Capture CBM from coal fields

� Build a small scale liquefaction facility

� LNG to power mine haul vehicles

� LNG to fuel locomotives

� Transport LNG for remote power generation

Connect Coal Bed Methane to market

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Contact details

Michael Fichardt

Business Development Manager Africa

Cell (SA): +27 761880519

Cell (TZ): +255 756 373 305

Email: m.fichardt@sub161.com