Source: CPS Securities                    Date: 10 February, 2011

Goldman Sachs believes extensive flooding in Queensland may curb Australian coking coal exports (Australia is the largest exporter of coking coal in the world), and boost demand for alternative sources of coking coal, including Mongolian. Goldman also raised its 2011 global coking coal price forecasts by 11% to USD254/ton (from USD229/MT) on weaker production from Australia.