080710

Project Development Update Project Development Update Conference Call Conference Call
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Disclaimer

The material that follows is a presentation of general background information about MPX Energia S.A. and its subsidiaries (collectively, MPX or the Company) as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this information. This presentation may contain certain forward-looking statements and information relating to MPX that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like may, plan, believe, anticipate, expect, envisages, will likely result, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company, any of its affiliates, directors, officers, agents or employees nor any of the placement agents shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar damages. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard. The market and competitive position data, including market forecasts, used throughout this presentation were obtained from internal surveys, market research, publicly available information and industry publications. Although we have no reason to believe that any of this information or these reports are inaccurate in any material respect, we have not independently verified the competitive position, market share, market size, market growth or other data provided by third parties or by industry or other publications. MPX, the placement agents and the underwriters do not make any representation as to the accuracy of such information. This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without MPXs prior written consent.

Integrated and diversified generation portfolio

MPX will be a leading integrated and diversified energy producer
PCH Capivara (Amap) (30 MW) Coal Mines Colombia UTE Porto de Itaqui (Maranho) (360 MW + 360 MW) UTE Porto do Pecm (Cear) (720 MW + 360MW) UTE Serra do Navio (Amap) (23 MW)

UTE Castilla (Chile) (1,400 MW)

UTE Porto do Au (Rio de Janeiro) (2,100 MW + 3,300 MW) UHE Baixo Iguau (Paran) (350 MW) UTE MPX Sul (Rio Grande do Sul) (600 MW) Coal Seival Coal Mine (Rio Grande do Sul) Natural Gas Hydro Diesel

Size (MW) 5,900 3,300 380 23 9,603

MPX (MW) 5,540 3,300 260 12 9,112

* Already considering 100% of UTE Au and UTE Castilla, according to the relevant fact released on February 20, 2008

Brazilian Power Market Overview Brazilian Power Market Overview

Spot Prices Indicate Need for New Capacity

History Southeast (~ 60% of the Brazilian market)
Spot price Load ENA (Hydropower) EAR (Stored Energy)

Short-term situation aggravated by structural deficit. ENA in the month of January 2008 was the 2nd worst in the data series average spot price close to the ceiling price

Rationing in 2001: consumption declined to 1998 levels.

GWavg

Rationing result: structural energy surplus (decline in consumption + Thermoelectric Plant Priority Program (PPT)), combined with subsequent favorable hydrological periods low spot prices.

Forecasted Marginal Operating Costs (CMO)

Base Scenario CMO (R$ / MWh)
SUBSYSTEM Southeast/Midwest South Northeast North
270 Southeast/Midwest 230 South Northeast North

2008 76.47 86.88 90.44 88.60

2009 141.32 142.10 133.48 128.15

2010 178.14 176.91 161.38 164.16

2011 240.55 230.61 219.75 218.43

2012 267.55 261.05 212.00 218.87

190 150 110 70

MPX will have over 2,600 GWh in energy available for sale in 2011, from Itaqui and Pecm plants

R$ / MWh

2008

2009

2010

2011

2012

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Source: ONS

MPX Brazil MPX Brazil

UTE Porto de Itaqui - 1st phase (360 MW)

Details
UTE Porto de Itaqui

Licensing

Preliminary License granted by State Environmental Authority 3 Public Hearings in the State of Maranho finalized and issues raised addressed by the environmental study IBAMA cross-checking entire process Installation License shall be jointly granted by State Authority and IBAMA before Oct 2008

Fuel: Coal Location: Maranho State, Itaqui Port Shareholder: 100% MPX Start-up: Aug/11

EPC

Energy sales

Contract price: US$ 503.5 million EPC contracts assure the start up of the operations in 2011 Bonus mechanisms to accelerate COD1 Down payment for long lead items already made Civil works to start in Nov 2008

315 MW sold in the October 2007 auction A-5 Full pass-through of fuel costs to energy prices Annual Fixed Revenue of R$ 231,3 million IPCA3)
2 (escalated

Funding

by

Eligibility for BNDES and IDB financing secured BNDES and IDB due diligence phase starting on July 14 Bridge loan contracts of US$ 160 million

Potential Upsides

Coal trading spread Coal freight spread between Colombia-Brazil and AfricaBrazil
1. Commercial operation date 2. As of June 2008 3. IPCA = Consumer Price Index

UTE Porto do Pecm - 1st phase (720 MW)

Details
UTE Porto do Pecm

Licensing

Installation License Issued Construction under way

EPC

Fuel: Coal Location: Cear State, Pecm Port Shareholders: 50% MPX / 50% EDP Start-up: May/11 (360 MW) + Nov/11 (360 MW)

Contract price: US$ 935.9 million EPC contracts assure the start up of the operations in 2011 Bonus mechanisms to accelerate COD1 Down payment for long lead items already made Construction started in early July 2008

Energy sales Funding

615 MW sold in the October 2007 auction A-5 Full pass-through of fuel costs to energy prices Annual Fixed Revenue of R$ 437,5 million 2 (escalated by IPCA3)

Eligibility for BNDES and IDB financing secured BNDES and IDB due diligence phase starting on July 14 Bridge loan contracts of US$ 270 million

Potential Upsides

Coal trading spread Coal freight spread between Colombia-Brazil and AfricaBrazil
1. Commercial operation date 2. As of June 2008 3. IPCA = Consumer Price Index

UTE Porto do Pecm - 2nd phase (360 MW)

Details
UTE Porto do Pecm

Licensing

Public hearing for Preliminary License finalized in May 08 Preliminary License to be issued in Jul 2008

EPC
Fuel: Coal Location: Cear State, Pecm Port Shareholder: 100% MPX Start-up: 2013

Negotiations under way with consortium composed by EFACEC, BC Projetos and led by Maire Engineering. Boilers to be supplied by Doosan Babcock and Turbines by Siemens, both major players MoU to be signed before A-5 auction, scheduled for late August 2008

Energy sales

Funding

Full capacity registered for A-5 auction, scheduled for late August 2008

Eligibility process started with BNDES

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UTE Porto do Au 1st phase (2,100 MW)

Details
Licensing

Public hearings for Preliminary License scheduled for July 14 and 15 Preliminary License to be issued in late July 2008

EPC
UTE Porto do Au

MOU to be signed in early Aug 2008 Reservation fee to long lead items in order to secure project schedule

Fuel: Coal Location: Rio de Janeiro State, Au Port Shareholder: 100% MPX (future strategic partner) Start-up: Jul/12 (700MW); Jan/13 (700MW); Jul/13 (700 MW)

Funding

US$ 500 million firm commitment from Santander US$ 500 million firm commitment from Unibanco Bridge loan contracts of US$ 200 million Financial advisory agreement with Santander Eligibility process started with BNDES

Energy sales (planned)

Participation in A-5 energy auction Sale to Free Market within the self-production concept, with option to contract capacity - Negotiations under way

Credit Suisse mandated to find strategic partner

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Free Market - Shared self production + Capacity option

Competitiveness in Free Market enhanced by adding option to contract capacity
Quotas of each offtaker
Available average MW

Coal Supply

Quotas self-producer 1 Quotas self-producer 2

Q1

Q2
OR
Self-Producers Quota

Q3
Capacity Pmt (fixed)

Quotas self-producer N

Free Consumers

UTE Porto do Au

+ Variable cost (if dispatched)

Qn

Quotas self-producer N

Plants Operations

Management of Energy Requirements

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Chilean Power Market Overview Chilean Power Market Overview

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Energy Demand Increasing Faster than Supply

Forecasted Supply/Demand Balance (MW) Expected Sales (Th. GWh)

18.000

Expected Capacity Required Capacity

Supply / Demand Gap

6.4%

15.000

12.000

9.000

6.000
20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20

45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0

5.5%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Free Clients Regulated Clients

Coal generation projects will have to cover the gap between increasing energy demand and projected supply.

Strong growth in industrial clients energy demand (mining companies) as well as power auctions of distributors from 2012 onward (regulated clients) secures significant Source: CNE. opportunities in the SIC for the next decade.

Source: Santander, CNE Note: Projections include only mayor projects such as LNG plants and Hydroayn

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MPX Chile MPX Chile

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MPX Chile - UTE Castilla (1,400 MW)

Details
Licensing

UTE Castilla

Environmental process started in Sept 2007 Environmental Impact Assessment to be filed at CONAMA (Environmental Authority) in 3Q08 Installation License to be issued in 1Q09

Fuel: Coal Submarket: SIC Location: 3rd Region, near Copiap City Shareholder: 100% MPX (future strategic partner) Start-up: Jul/12 (350MW); Jan/13 Jul/13 (350 MW); Jan/14 (350MW) (350MW);

EPC

4 proposals under evaluation EPC selection process to be closed by Aug 2008 Reservation fee for long lead items

Funding

Energy sales

US$500 MM long term financing from Santander Bridge loan contracts of US$ 100 million

Binding agreements expected for end of Sept 2008

Santander mandated to find strategic partner

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Coal Supply Coal Supply

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Coal Supply Forecasted Ramp-up

MPX has made significant progress in order to secure coal supply to its plants
Full Capacity* 12 Mtpy coal production

Coal Production Ton (MM)

14 12 10 8 6 4 2 0

Studies and definition of logistics alternatives 12.0 10.0

Colombian mines production start-up On Going Explorations including possibility of new acquisitions 2009/2010

12.0

Cerrejon and Cesar Departments Exploration AUG/2008

4.0 1.5

2008

2009

2010

2011

2012

2013

2014

2015

Colombian properties already acquired New acquisitions * Not including Seival Mine

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Milestones Milestones

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MPX Milestones Roadmap

1H08
UTE Porto do Au (2.100 MW): Environmental Impact Study filing UTE Porto de Itaqui: Environmental Impact Study filing UTE Castilla: financing Term Sheet UTE Porto do Pecm: Bridge loan UTE Porto de Itaqui: Bridge loan UTEs Porto de Itaqui and Pecm: EPC contract signature Porto de Itaqui and Pecm: NTP for EPC and down payment long lead items ANEELs approval to the structure of the Au project UTE Porto do Au and Castilla 30% stake transference from Centennial to MPX Solar Energy: Yingli partnership 1st phase UTE Porto do Au: Preliminary License ( 2,100 MW) UTE Porto de Itaqui: Installation License 2nd phase UTE Porto do Pecm: Preliminary License UTE Porto do Au: Eligibility for BNDES long term financing 2nd phase UTE Porto do Pecm: MOU for EPC UTE Porto do Au: MOU for EPC Coal mine acquistion in the international market 1st phase UTE Porto do Au: MOU for PPAs UTE Castilla: Letter of intents for PPA R&D- Solar energy: Site identification and Basic design UTE Porto do Pecm: Long term financing contract UTE Porto de Itaqui: Long term financing contract UTEs Porto do Au e Castilla: Bridge loan 2nd phase UTE Porto do Pecm: EPC contract signature 2nd phase UTE Porto do Pecm: NTP for EPC and down payment long lead items UTE Porto do Au: EPC contract signature UTE Castilla: MOU for EPC 1st phase UTE Porto do Au: MOU for PPAs

2H08
1st phase UTE Porto do Au: Installation License ( 2,100 MW) UTE Seival II: Preliminary License

1Q09
UTE Castilla: Installation License UTE Seival II: Installation License UTE Castilla: Long term financing contract UTE Castilla: Limited NTP for EPC (down payment for long lead items) UTE Seival II: EPC contract signature UTE Seival II: NTP for EPC and down payment long lead items UTE Seival II: MOU for PPAs UTE Castilla: strategic partner selection

UTE Porto do Au: Long term financing contract UTE Porto do Au: NTP for EPC and down payment long lead items UTE Castilla: EPC contract signature 1st phase UTE Porto do Au: PPAs signature

UTE Castilla: PPAs signature

1st phase UTE Porto do Au: PPAs signature Participation in the A-5 auction for new energy UTE Porto do Au: strategic partner selection

Legend: Environmental Licensing Funding Engineering and Construction (EPC) Accomplished Events Power Marketing and Coal Supply Additional Events

Notes: NTP Notice to Proceed; EPC Engineering, Procurement and Construction; MOU Memorandum of Understanding; PPA Power Purchase Agreement

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