Presentation By Colin Randall, Managing Director

Allegiance Coal Limited AGM

28 November 2013

DISCLAIMER• The material in this presentation (“material”) is not and does not constitute an offer, invitation or

recommendation to subscribe for, or purchase, any security in Allegiance Coal Limited (“AHQ”) nor does itform the basis of any contract or commitment. AHQ makes no representation or warranty, express orimplied, as to the accuracy, reliability or completeness of this material. AHQ, its directors, employees,agents and consultants, shall have no liability, including liability to any person by reason of negligence ornegligent misstatement, for any statements, opinions, information or matters, express or implied, arisingout of, contained in or derived from, or for any omissions from this material except liability under statutethat cannot be excluded.

• Statements contained in this material, particularly those regarding possible or assumed futureperformance, costs, prices, resources, reserves or potential growth of AHQ or, industry growth or othertrend projections are, or may be, forward looking statements. Such statements relate to future events andexpectations and, as such, involve known and unknown risks and uncertainties. Actual results anddevelopments may differ materially from those expressed or implied by these forward looking statementsdepending on a variety of factors and risks, many of which are outside the control of AHQ and its directors.Investment in the securities of AHQ is considered to be highly speculative.

• The information in this material that relates to Exploration Results is based on information compiled by MrColin Randall who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Randall is a full‐time employee of Allegiance Coal Limited and has sufficient experience which is relevant to the style ofmineralisation and type of deposit under consideration and to the activity which he is undertaking toqualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves”. Mr Randall consents to the inclusion in thereport of the matters based on his information in the form and context in which it appears.

Year of Focus on Cost Control• Focus on cost control and reduction in overheads

• Back Creek Project: 98Mt maiden JORC ResourceMDLA 501 application lodged

• Kilmain Project: 200Mt TargetCoking/PCI/Thermal Indicative specifications established

• Mt Marrow Project EPC 2374 granted January 2013Identified archived drill holes to reduce future exploration cost

• Townsville Archival searches find reports of coalField mapping confirms coal seam outcrops

• Cash 26 November 2012 $3.41 million• Loans 30 June 2013 Gullewa $2.395m

CRA $0.510mRepayment commencing 30 June 2014 and latest completion date is 30 June 2017

Coal’s Year of Discontent

Thermal coal spot prices remain low at USD $78 FOB

Coking coal moves to monthly contracts at USD $150 FOB

Cyclical nature of the coal industry

Poor investor sentiment regarding coal and resource stocks in general

Coal industry looks to reduce cost and improve productivity

Increased coal production and exports

Coal exploration grinds to almost a halt in Queensland

AHQ Approach to Managing Current Situation

Reduction in operating cost and cash retention• MD takes over role of exploration manager• Field manager retrenched• Reduction in use of higher cost outside consultants• Reduction in salary of directors by 60%• Closer relations with adjacent tenement holders to gain access to geological data• Extensive archival searches for past exploration e.g.: Townsville, West Moreton and Bowen

Basin• Kilmain Project, further exploration deferred while negotiation to find JV partner continues• Cash back tax rebates for approved R&D projects e.g. $360,000 for Kilmain this year

Farm-out• Farm-out in the Calen Project with adjacent tenement holder Square Resources completed.

Look for Opportunities using our knowledge• Looking at other tenements where our knowledge could earn free-carried share in a near-

term project Near-term producer opportunity

• Look at opportunity to bring Mt Marrow into production in near term Drilling

• Drill at Connemarra to investigate coking coal potential• Investigate drilling of one hole at Mt Marrow

Back Creek ProjectOpen Cut: low ash thermal coal 98 Mt Maiden JORC Inferred Resources (1) confirmed by

independent geologist Runge Ltd

MDLA 501 application lodged March 2013

Completed stage 2 drilling in late September 2012

Stage 2 drilling in southern area with seam intersections from 2.85m to 8.26m

Drilled holes in northern area; intersected 7.2m of coal within Bulwer and Condamine seams

Additional drilling by Cockatoo Coal in the adjacent Bushranger Project has been made available and incorporated in JORC modeling

No Strategic Cropping Land within the tenement

JORC Resource significantly exceeds target of 60-80 Mt (2)

Low ash thermal coal suitable for open pit mining

Back Creek coal is an updip extension of the Bushranger deposit and an along-strike extension of the Range deposit

35.2 Mt

289 Mt

Kilmain ProjectUnderground: coking/PCI/low ash thermal coal Drilled three holes and intersected full suite of Rangal Coal

Measures Intersected 3.1m Castor/Pollux Seam All seams cored with coal quality and gas concentrations

analyses New target of 200Mt (previously 100Mt) (2)

Coal quality analysis indicate coking fraction Four Indicative Coal Specifications prepared

• Whole seam as 9% ash thermal• Washing with three fractions i.e. 5% ash coking

9% Ash PCI15% Ash Thermal

Underground project with limited negative impacts from either flooding or Strategic Cropping Land

RAN

GA

L C

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Granted Exploration Tenements

Tenement Applications

6 current tenement applications

Sandy Creek EPCA 2251

CompetingCorsia EPCA 2592

Galium EPCA 2634

Mayaca EPCA 2644

Fleetwood South EPCA 2698 Secondary Applications

Fleetwood East EPCA 2699

Project & Tenement Details

Project Name BasinTenement Number

Number of Sub Blocks

Surface Area km2 Grant Date Coal Type Deposit

Back Creek Surat EPC 1297 20 68 22 Mar 2010 Thermal Open cut

Kilmain BowenEPC 1298 16 50 7 Apr 2009

Coking/PCI/thermalUnderground

EPC 1917 2 6 22 Mar 2010 Underground

Connemarra Bowen EPC 1296 32 110 7 Apr 2009 Coking/PCI/thermal Underground

Calen CalenEPC 1631 27 84 5 Nov 2009 PCI Open cut/Underground

EPC 1820 17 53 19 Feb 2010 PCI Open cut/Underground

Mt Marrow Moreton EPC 2374 30 91 14 January 2013 Thermal Open Cut

Townsville Northern BowenEPC 1492 120 494 21 May 2010 Coking/thermal Open cut/Underground

EPC 1617 42 131 6 Aug 2009 Coking/thermal Open cut/Underground

Lochaber Mulgildie EPC 1672 47 146 18 Dec 2009 Thermal Open cut

Normanby Hodgkinson EPC 1874 86 267 19 Apr 2011 Anthracite Open Cut

Mintovale Moreton MDL 138 n/a 2.44 22 Mar 2010 Thermal Open cut

Pinetree Laura EPC 1875 217 670 19 Apr 2011 Low vol PCI/thermal Open cut

Lochaber Mulgildie EPC 1672 47 146 18 Dec 2009 Thermal Open cut

Cedar Creek Surat EPC 2278 12 36 31 May 2011 Thermal Open cut

Mobs Creek Surat EPC 2309 23 96 27 July 2011 Thermal Open cut

Total 738 2,450

The Year Ahead

Apply for cash tax rebates for R&D at Back Creek, Connemarra, Townsville and Normanby

Drill at Connemarra to investigate coking coal potential Seek JV partner for tenements including Kilmain & Pinetree Investigate aggregation in relation to Back Creek and Kilmain Sale or relinquishment of Cedar Creek, Mobs Creek and Lochaber

Shareholding

Current Shareholdings

Gullewa Limited 57.8% 102 million sharesC.Randall and Associates 14.2% 25 million sharesOther shareholders 28.1% 49 million sharesTotal 100.0% 177 million shares

Current Share Price $0.033 as at 26 November 2013Market Capitalisation $5.84m

Footnotes

1. Refer to AHQ’s ASX Announcement of 27 November, 2012

2. Exploration Target ClarificationAll statements pertaining to the Company’s exploration target andstatements as to the potential quantity and grade made in this Statementwere conceptual in nature. There was insufficient exploration undertaken atthat date to define a coal resource in accordance with the JORC Code,and it was uncertain if further exploration would result in the definition of acoal resource in accordance with the JORC Code.