Zambezi Coal ProjectZAMBEZI ENERGY CORPORATION LIMITADA

Ncondezi Coal Project

Zambezi Coal Project

AIM LISTED VEHICLE

NCONDEZIPROSPECTING

LICENCES

100%

ZAMBEZI ENERGY CORPORATION

ZEC PIPELINE PROJECTS:

•Other Coal Projects

•Oil and Gas Projects

•Exploration

Structure of ZEC

Anchor ProjectsNcondezi Coal

Other Coal Oil and Gas Exploration

MCHUCHUMALICENCES

40%

Zambezi Coal ProjectZEC: Organogram

Non Executive Chairman

Financial Director CEO Technical Director

Country Manager Project Director

Chief Geologist

Service ProvidersDrillingMining

ProcessEnvironment

Zambezi Coal ProjectNcondezi Coal Project

The Ncondezi Coal Project is a large exploration target close to the Moatize Coal Project beingDeveloped by Companhia Vale do Rio Doce (“CVRD”).

Zambezi Coal ProjectSummary of Work Completed during1980-1982 by

Swede Coal Development AB

• Part of Minjova Coal Exploration Programme;

– Coal exploration initiative by Mozambique government in 1980’s;

– For an area east of existing Moatize coal mine, between Moatize and the

Malawian border, the Ncondezi licence covers 385 km2”;

– Scope: investigating coal potential and the possibilities to produce both thermal

and coking coal for export;

• Drilling, logging and sampling;

• Analytical test work;

– Ply and Composite analysis;

• Geological mapping.

Zambezi Coal ProjectGeology of Ncondezi

Zambezi Coal ProjectGeology of Ncondezi

Zambezi Coal ProjectTenement Owners - Tete

Zambezi Coal ProjectTenement Holders – Eastern Tete

Zambezi Coal ProjectProspecting Right Area and Satellite Photograph

Zambezi Coal ProjectNcondezi Geology, Borehole Locations and Licence Area

Zambezi Coal ProjectBoreholes drilled at Ncondezi

Zambezi Coal ProjectStratigraphic Columns from Ncondezi and Moatize

Source: B. Cairncross, African Earth Science 33 (2001)529-562

Zambezi Coal ProjectStratigraphic Correlation of the

Karoo Sediments in Southern Africa

X: where coal seam occurs

X

XX

Zambezi Coal ProjectHistorical Test Work Programme by Swede Coal

Test work procedures summary of details in the Swede Coal Report

Zambezi Coal ProjectWashability Curves of Boreholes drilled in the

vicinity of Ncondezi

% Cumulative Float vs RD0.5mm*10mm

0.010.020.030.040.050.060.070.080.090.0

100.0

1.2 1.4 1.6 1.8 2.0 2.2

RD

% C

umul

ativ

e Fl

oat

% Cum Float. FS 001, S1 % Cum Float. FS 001, S2% Cum Float. FS 001, S3 % Cum Float. FS 002, S1% Cum Float. FS 002, S2 % Cum Float. FS 002, S3% Cum Float. Moatize 0.5MM*20mm

33

Zambezi Coal ProjectExploration Results and Tonnage

Estimates for Ncondezi

Note: This was historical information reported in 1982 and is not SAMREC compliant

Zambezi Coal ProjectCoal Classification

Zambezi Coal ProjectComparison of the South African and Mozambique

coal fields

COAL FIELD/MINE TONS (RESERVES)1 Highveld 9,821,103,433 2 Witbank 9,370,464,898 3 Ermelo 4,444,010,747 4 Chicoa-Mucaha-Vuzi 3,633,000,000 5 Moatize-Minjova 2,400,000,000 6 Vereniging 1,805,472,853 7 Waterberg 846,142,103 8 Grootegeluk 773,000,000 9 South Rand 715,448,849

10 Uitrecht 540,653,553 11 Kliprivier 536,812,660 12 NCONDEZI 450,000,000 13 Optimum 314,000,000 14 Muacadzi 300,000,000 15 Sanangoe-Mefideze 300,000,000 16 Chirodeze 300,000,000 17 Khutala 299,000,000 18 Middelburg 292,000,000 19 Southpansberg 259,304,059 20 Lunho Basin 233,000,000 21 Leeuwpan 159,000,000 22 Kangwane 146,387,365 23 Vryheid 104,088,762 24 Douglas 97,000,000 25 Macaa Itula Basin 40,000,000 26 Inyanda 14,600,000 27 Koornfontein 10,000,000 28 Nongoma 9,751,028 29 Tshikondeni 7,100,000 30 ZAC 2,000,000

MozambiqueSouth AfricaIngwe MinesKumba

Zambezi Coal ProjectValue Growth and Coal Resource Value in

Comparison

Zambezi Coal ProjectInvestment Driver: Coking Coal - World Supply (2010)

Mozambique: Strategically located to service Brazil, Europe, China and India

View (Barlow Jonker): Supply Tight

Zambezi Coal ProjectInvestment Driver: Mozambique: Well-Positioned as

an Emerging SADC Power Corridor

Zambezi Coal Project

Map Source: World Bank

Mozambique: List of Major Resource Projects

Limpopo CorridorSands: Titanium

Moma Heavy Sands: Zircon, Rutile, Ilmenite

Gabon

Angola

South Africa

Botswana

Atlantic Ocean

D.R.C.Congo

Namibia

Zimbabwe

Zambia

Tanzania

Burundi

Kenya

Rwanda

Uganda

Cameroon

Malawi

Madagascar

0 300 600km300SCALE:

Indian Ocean

Nkondezi CoalProject

Sasol TamaneGas Field & pipeline

$1.7 billionIn operationsince 2004

Mozal AluminiumSmelter

$2.3 billionIn operationsince 2000

CVRD MoatizeCoal Project

$1 billionFeasability Study

Mozambique

-

Development Corridor- Namibe Development Corridor

Malane Development Corridor- Benguela

- Trans-Kalahari Transport Corridor- Rustenburg SDI- West Coast Investment Initiative

- Tazara Development Corridor- Nacala Development Corridor- Beira Development Corridor- Mauritius Development Corridor

- Phalaborwa Secondary Corridor- Maputo Development Corridor- Lubombo SDI- Kwazulu Natal SDI- Wild Coast SDI- Fish River SDI

Zambezi Coal ProjectMozambique: Regional Logistics and Infrastructure

• The Ncondezi Camp is +/- 42 km east of Tete;

• Access to Tete via paved highway Estrada Nacional 103;

• Access to exploration camp site by dirt road and bulldozed truck;

• Nearest port: Beira;

• Tete-Beira distance: 428 Km;

• Nearest Town: Moatise, 17km North of Tete;

• Beira-Moatize railway passes close to Necungas camp;

• Tete has an airport;

• Sena railway line linking Moatizearea to ports of Beira and Nacalais concessioned to Indian companies.

Zambezi Coal ProjectMozambique: Large Unexplored World Class Coal

Deposits

Tete Province:

Karoo Sedments: 15.8 billion tons;Moatize-Minjova Basin (Tete) – 12Bt (200KM2);

Moatize subbasin – 2.4 Bt;

• Ncondezi - 24000 ha;

• CVRD Moztise Project - 23780 ha;

Mucanha-Vusi Basin (northern shore of CaboraBassa) – 3.6 billion tons;

• Central Africa Mining & Exploration’s licenses cover entire basin except parts held by CVRD;

• CVRD: 20260 ha.

Niassa Province;

Metangula – 720 Km2;

•228 Mt Coal.

Monica Province:

•Espungaberg: 4 Km2.

Zambezi Coal ProjectMozambique – Foreign Investments

Investment by Province

Manica4%

Nampula8%

Gabo Delgado9%

Tete8%

Inhambane4% Zambezia

2%Niassa

6%

Maputo and Maputo City59%

0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000

US$

South Africa

UK

India

Portugal

Yugoslavia

Malawi

Zimbabwe

Mauritius

Swiss

Tanzania

Top 10 Foreign Direct Investment by Country