SinoCoking Coal and Coke Chemical Industries

Date		Title
05/10/12		Sinocoking Coal and Coke Chemical Industries Announces 2012 Third Quarter Financial Results
02/10/12		Sinocoking Coal and Coke Chemical Industries Announces 2012 Second Quarter Financial Results
02/09/12		Sinocoking Coal and Coke Chemical Industries to Report 2012 Second Quarter Financial Results on Friday, February 10th and Conduct Conference Call on Monday, February 13th
12/23/11		SinoCoking Provides Business Update
11/09/11		SinoCoking Coal and Coke Chemical Industries Announces 2012 First Quarter Financial Results
09/23/11		SinoCoking Coal and Coke Chemical Industries' Letter to Shareholders

SinoCoking (NASDAQ Ticker: SCOK) is a vertically integrated producer and marketer of coke coal products, including chemical and metallurgical coke, raw and washed coal and chemical byproducts in the People’s Republic of China.

SinoCoking operates Hongchang (underground coal mine)

• Mine received clearance to resume operations at full capacity on August 1, 2011
• Permitted to extract 2.5 million metric tons of coal
• Extracts coal using the “room and pillar” method
• Mine produces bituminous coal
     - 75% of tonnage suitable for coke production
     - 25% can be used as fuel in steam-electric power generation
  
• The raw coal is of high quality, generally has a sulfur content of less than 0.6% and energy content of 5,200-6,200 kcal/kg

Three additional mines

• In May 2011, acquired three coal mine companies – 60% of Shuangrui & Xingsheng, and 100% of Shunli
• In August 2011, Xingsheng mine received clearance to resume operations
• Shuangrui and Shunli mines are on the waiting list to receive clearance

	Hongchang Mine	Shuangrui Mine	Xingsheng Mine	Shunli Mine
BACKGROUND DATA:
Commencement of construction	1984	1970	1970	1995
Commencement of commercial production	1987	1970	1998	1998
Coalfield area (square kilometers)	0.65	0.47	0.19	0.08
RESERVE DATA:
Total in-place proven and probable reserves (metric tons)	2,479,000	1,674,000	2,475,000	1,373,300
Recoverable reserves (metric tons)	1,215,100	1,539,000	2,233,000	1,122,000
Coal washing recovery rate (%)	75	75	75	75
Depth of mining (meters underground)	10 – 210	40 - 270	80 - 90	100 - 130
Type of coal	Thermal/ Metallurgical	Thermal/ Metallurgical	Thermal/ Metallurgical	Thermal/ Metallurgical
Leased/owned	Owned	Owned	Owned	Owned
PRODUCTION DATA: (METRIC TONS)
Designed raw coal production capacity (per year)	150,000	150,000	150,000	150,000
Raw coal production:
2009	260,938	150,000	150,000	150,000
2010	242,878	150,000	150,000	150,000
2011	186,226	1,020	67,981	0
Cumulative raw coal production as of June 30, 2011	690,042	301,020	367,981	300,000

Extracted coal is processed at SinoCoking’s coal-washing facility for washing and sorting. Washed coal is sold to customers as washed coal and portions of washed coal are used by SinoCoking to manufacture coke.

Coal-washing facility located two miles from the mine

• Capacity of 750,000 metric tons annually
• Uses a water-based jig washing process
• Sorting machines that can process up to 600 metric tons of coal per hour - sorting the washed coal according to size
• Approximately 1.33 - 1.38 metric tons of raw coal generally yields 1 metric ton of washed coal
• The bulk of the washed coal currently produced is reserved for SinoCoking’s coking plant
• Company sells washed coal on the open market if prices are favorable

Coal-washing process produces two byproducts

• “Medium” coal - Does not have sufficient thermal value for coking; mixed with raw coal and coal slurries and sold for home and industrial heating purposes
• Coal slurries are the castoffs and debris from the washing process; sold “as is” or mixed with “medium” coal

SinoCoking produces and sells two types of coking coal ("coke"): metallurgical coke primarily used in steel manufacturing and chemical coke used mainly for synthesis gas production.

Current Factory

• Annual production capacity of 250,000 metric tons
• Produces two type of coke: metallurgical coke and chemical coke
• SinoCoking’s metallurgical coke typically has 85% fixed carbon, less than 12% ash, less than 1.9% volatile matter and less than 0.7% sulfur

New coking factory
(click here to view pictures of the progress made in the construction of the new coking plant
as of September 21, 2011)

(Click here to view pictures as of October 20, 2011)
(Click here to view pictures as of November 2011)
(Click here to view pictures as of January 2012)

• Expected capacity of 900,000 metric tons annually
• To produce higher-margin byproducts: benzol, sulfur, ammonium sulfate and clean coal gas
• Equipped with cutting edge technologies capable of processing lower-grade, less expensive washed coal that can be easily acquired in the open market
• At full capacity, to generate approx. $100-$150 million revenues and $20-$25 million net income per year
• Estimated construction cost reduced from $70 million to $60 million (use existing electricity and water lines)