Forward Looking Statement

This presentation contains forward-looking statements concerning the businesses of POSCO

E&C. All statements other than statements of historical fact are, or may be deemed to be,
forward-looking statements. Forward-looking statements are statements of future expectations
that are based on current expectations and assumptions and involve known and unknown risks
and uncertainties that could cause actual results, performance or events to differ materially from
those expressed or implied in these statements. Forward-looking statements include, among
other things, statements concerning the potential exposure of POSCO E&C to market risks and
statements expressing managements expectations, beliefs, estimates, forecasts, projections
and assumptions. These forward-looking statements are identified by their use of terms and
phrases such as achieve, anticipate, forecast, envision, believe, could, estimate,
schedule, expect, intend, may, plan, objectives, outlook, probably, project, will,
seek, target, risks, goals, should and similar terms and phrases. All forward-looking
statements contained in this presentation are expressly qualified in their entirety by the
cautionary statements contained or referred to in this section. Although POSCO E&C believes
that in making such forward-looking statements our expectations are based upon reasonable
assumptions, such statements may be influenced by factors that could cause actual outcomes
and results to be materially different from those projected by us. POSCO E&C cannot assure
you that the assumptions upon which these statements are based will prove to have been
correct.

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POSCO E&C The Optimum Solution Provider

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Coal Gasification Projects in POSCO E&C

Gwangyang SNG Plant

Client: POSCO
Contractor: POSCO E&C (EPC Turnkey including PDP, FEED, & Commissioning)

Plant Capacity: SNG 500,000 ton/year (85,000 Nm3/hr)

Coal Consumption: 1.8 Million ton/year (5,350 kcal/kg Coal)

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Key Process Licensors: CB&I (Gasification) / Linde (CO Shift & AGR) / Haldor Topsoe (Methanation)

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Coal Gasification Projects in POSCO E&C

Brazilian SNG Project

General Information
Client : Copelmi Mineraao LTDA
Location : Eldorado do Sul, RS, Brazil

Production Capacity : SNG 2,000,000 m3/day

Coal Source : Guaiba Mine (200 million tons of coal reserve)

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Coal Consumption : 3 Million ton/year (3,600 kcal/kg with 48 wt% ash dry basis)

Project Schedule

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3 stage (40 months)
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2014.08
2015.06
2017.01
2
stage
(18
months)
1 stage (10 months)

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Feasibility Study
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PDP
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- Market Study
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a
- Gasification
Study
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4
- Conceptual
Design
1
FEED
2- 0
Economic Analysis
(By FEED Company)
Pre-FEED

Financial Model
Development
Process Licensors
Selection

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2020.2Q
Mechanical
Completion

Preparation of PDP(Process Design Package)

Integration of PDPs
Design of utilities and offsite
Estimation of investment cost (15% accuracy)
EPC Schedule

EPC

2020.4Q
Commercial
Production

Coal Gasification Projects in POSCO E&C

Mongolian CTL Plant

General Information
Client : Joint Venture of POSCO & MCS
Location : Baganuur, Mongolia

Scope of Work : EPC Turnkey including Pre-FEED, FEED, & Commissioning

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Production Capacity : Diesel 420,000 ton/year, DME 100,000 ton/year

Project Schedule

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Coal Gasification Projects in POSCO E&C

Samcheok SNG Plant

General Information
Client : Korea Southern Power Company (KOSPO)
Location : Samcheok, Korea

Production Capacity : SNG 500,000 ton/year

Project Schedule

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3 stage (40 months)
ch

2014.03
2015.02
2016.06
2
stage
(18
months)
1 stage (12 months)

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Feasibility Study
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f
PDP
i (By Licensor)
Financial Model as
DevelopmentG
4
SPC Establishment
1
FEED
0
2
Licensors Selection
(By FEED Company)
Pre-FEED

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2019.3Q
Mechanical
Completion

Preparation of PDP(Process Design Package)

Integration of PDPs
Design of utilities and offsite
Estimation of investment cost (15% accuracy)
EPC Schedule

EPC

2019.4Q
Commercial
Production

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Progress Update on Gwangyang SNG Project

Project Progress (as of August 2014)
Process Design Package (PDP) & FEED : 100% Completed
Detailed Engineering : 99.9%
Procurement : 92.8%

Construction : 88.8%

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Main Construction Quantity

Equipment : 470 types, 900 EA

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Stationary Items : 335 types, 600 EA

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Rotating items : 95 types, 250 EA

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Man Power Mobilization
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Management/Procurement:
900,000 MH
G
014 700,000 MH
2
Engineering:
Package items : 40 types, 50 EA

Piping : 1,000,000 Dia inch

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Construction: 3,400,000 MH

Total: 5,000,000 MH
Number of Workers at the Site : 1,621 persons (as of October 21st, 2014)

 SNG Site in Gwangyang, Korea

Satellite Map in 2008

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 SNG Site in Gwangyang, Korea

Satellite Map in 2014

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 SNG Site in Gwangyang, Korea

July 2009

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 June 2012

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 September 2012

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 September 2013

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 December 2013

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 March 2014

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 May 2014

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 August 2014

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 October 2014

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