VFT Canada Inc. Coal Tar Pitch Markets in Europe & North America Michael Sutton VFT Canada Inc. Presented at 12 th Annual Met Coke World Summit Chicago, Illinois October 22-24, 2008

VFT Canada Inc. 2 Agenda ●North American Coal/Coke/Tar/Pitch Process ●North American Coke & Coal Tar Production  Coke Plant Locations  Tar Distilled  Distillation Plant Locations ●North American Coal Tar Pitch Markets  Aluminum Industry  Graphite Electrode Industry  Pavement Coatings ●Coal Tar Pitch Balance – North America & Europe ●Creosote/Naphthalene ●Development of New Products ●Participation in Growing Markets – Aluminum Industry

VFT Canada Inc. 3 The Coal/Coke/Tar/Pitch Process DISTILLATIONDISTILLATION Coal Tar Oils Pitch Naphthalene Creosote Carbon Black Feedstock Aluminum Smelters Specialty Carbon Products Coking Coal Coke Ovens Steel Productio n Pavement Coatings Coke Refractories Graphite Electrodes

VFT Canada Inc. 4 North American Coke Production Capacity & Coal Tar Production – 2007

VFT Canada Inc. 5 North American Coke Plants

VFT Canada Inc. 6 North American Tar Distilled Data Source: ACCCI

VFT Canada Inc. 7 North American Tar Distillers VFT CANADA COOPERS CREEK TANGENT RAIL (2) LONE STAR SPECIALTY KOPPERS (3)

VFT Canada Inc. 8 North American Coal Tar Distillation (2007)

VFT Canada Inc. 9 North American Coal Tar Pitch Markets

VFT Canada Inc. 10 North American Coal Tar Pitch Markets

VFT Canada Inc. 11 North American Coal Tar-Based Refined Tar Demand Data Source: ACCCI

VFT Canada Inc. 12 North American Pitch Balance 2007

VFT Canada Inc. 13 European Pitch Balance 2007 Note: Ukraine & Russia excluded

VFT Canada Inc. 14 Canada & U.S. Creosote Consumption

VFT Canada Inc. 15 North American Naphthalene Consumption Major Markets% Phthalic Anhydride49 Naphthalene Sulphonates33 Pesticides8 Other10 Data Source: ACCCI

VFT Canada Inc. 16 European Naphthalene Consumption Major Markets% Phthalic Anhydride40 Naphthalene Sulphonates47 Pesticides6 Other7

VFT Canada Inc. 17 Development of New Products  Low PAH Pitch –Soderberg Aluminum Smelters  Carbores –Specialty Graphite and Refractories More environmentally-friendly pitch containing lower PAH’s (BaP)

VFT Canada Inc. 18 Participation in Growing Markets % Aluminum85 Graphite10 Others China (increased domestic demand) - Middle East - Iceland - Canada Low energy costs Aluminum– Main driver for world-wide pitch demand Growth Areas

VFT Canada Inc. 19 Primary Aluminium Production (Tmt)

VFT Canada Inc. 20 Primary Aluminium Capacity (Tmt)

VFT Canada Inc. 21 New Tar Production  China  Russia  Brazil North American and European tar distillers are involved/pursuing options in these markets.

VFT Canada Inc. 22 The Future For North American Tar Distillers ? COAL COKE BY-PRODUCTS RECOVERED TAR GASES NON-RECOVERY OF BY-PRODUCT STEEL OILS PITCH CO-GENERATION