Investor Update Presentation November 2013

DISCLAIMER

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This  document,  which  is  personal  to  the  recipient,  has  been  issued  by  Ncondezi  Coal  Company  Limited  (the  “Company”).  This  document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company. In particular, this document and the information contained herein does not constitute an offer of securities for sale in the United States.

This document is being supplied to you solely for your information. The information in this document has been provided by the Company or obtained from publicly available sources. No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company  or  any  of  the  Company’s  directors,  officers  or  employees  or  any  other  person  as  to  the  accuracy  or  completeness  of  the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of the Company’s members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.

Nothing in this document or in the documents referred to in it should be considered as a profit forecast. Past performance of the Company or its shares cannot be relied on as a guide to future performance.

Certain statements, beliefs and opinions in this document are forward-looking,  which  reflect  the  Company’s  or,  as  appropriate,  the Company’s  directors’  current  expectations  and  projections  about  future  events.  By  their  nature,  forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document.

This document has been prepared in compliance with English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this document.

NCONDEZI ENERGY INVESTMENT HIGHLIGHTS Developing integrated 300MW1 power plant & mine business in a growth region of Mozambique

– Supported by 100% owned +4Bt JORC coal resource (open pit, low strip mine)

– Scalable to 1800MW

– 25 year exclusive offtake with Mozambican national power utility EdM2

Significant momentum in project development over last 7 months – April 2013 - Power  Framework  Agreement  (“PFA”)  with  Mozambican  government

– August 2013 - Mine Concession granted

– October 2013 - Power Purchase Agreement Heads of Terms (“PPA  HoTs”)  signed with EdM

– September/October 2013 - ESIAs on Power Plant and Mine approved by Mozambican Government

Clear pathway to unlocking value – Accelerated timetable agreed with Government and EdM

– Binding  Final  Form  Power  Purchase  Agreement  targeted  for  Q1  2014  (“FF  PPA”)  

– Co-developer to be brought in by end Q1 2014

– Financial Close targeted for Q4 2014

– Commissioning targeted to start H2 2017

Compelling project economics/value prospect – Target Equity IRR of 18-20%

– Expected Project NPV of >$200m at Financial Close

– Expected Total net equity cashflows of >$2bn over 25 years

Experienced management team with track record of project delivery – Current milestones being met on or ahead of schedule 3 1 Installed in units of 150MW

2 Electricidade de Mocambique

EXPERIENCED AFRICAN POWER TEAM LEVERAGING WORLD CLASS CONSULTANTS

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Paul Venter CEO

+39 years experience in Africa, Russia & Asia, mining, power generation & transport logistics Previously Director Prophecy Coal, Director of Gobi Coal & Energy, Managing Director Coal at EN+,

Finance & Service Manager at Eskom

Eddie Scholtz Mine Development Consultant

+40 years experience in the mining industry, primarily in Africa and South America Previously Managing Director of BHP Billiton Energy Coal South Africa, COO Mining of CIC Energy,

and GM at Optimum Colliery

Dr Estevão Pale Non-Executive Director

Ncondezi’s representative on Liaison Committee with EdM & Government CEO of Companhia Mocambicana de Hidrocarbonetos, formerly National Director of Mines & Energy

Peter  O’Connor Non-Executive Director +20 years working for Eskom across Generation Transmission, and Capital Expansion divisions

Christiaan Schutte Non-Executive Director +20 years working for Eskom in Group Generation and Technology divisions

Jacek Glowacki Non-Executive Director

Over 30 years of international experience in the power sector CEO and Chairman of the Board of Polenergia, a Polish Independent Power Producer – part of Kulcyzk

Group

Technical Consultant EPC Selection Process

One  of  Germany’s  largest  independent  electricity  producers,  total  installed  capacity  worldwide  of  9,400MW

Core activities are planning, construction & operation of large power plants

Machiel Coetzee Power Evacuation Studies

Specialist transmission consultant with extensive SAPP & Mozambican experience Anointed transmission systems advisor to EdM and Eskom

Maree Roos & Karl Lawrenze Project Commercial Advisors

Energy market design and pricing specialists Advised on numerous energy projects across Africa and Asia Advised both the Mozambican and South African governments on energy policies and designs

COAL FIRED POWER GENERATION STRATEGIC TO MOZAMBIQUE

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1. Cahora Bassa 2. Mpanda Nqua 3. Lupata

4. Moatize 5. Ncondezi 6. Benga 7. Sasol 8. Aggrekko 9. Kuvaninga

Hydro

Coal

Gas

Mozambique plans to have diversified generation mix Hydro,  gas  and  coal  all  form  part  of  Mozambique’s  energy  

strategy Power supply gap exists Gas generation limited to 600MW and only connected to

southern grid

Hydro long lead time commissioning (7 years) and requires substantial transmission upgrades

Coal ideally suited to meet supply gap Scalable to meet available transmission capacity – 150MW

units

Commissioning achievable within 3 years

Long life of operation – +25 years

Located close to power generation & transmission infrastructure hub in Tete

Ncondezi - dedicated coal power generator for Mozambique Power is main focus – not reliant on export coal

development

Other potential coal generators believed to be focused on internal energy requirements

Large gas discoveries

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Source: Company

NCONDEZI POWER PLANT OVERVIEW 2x150MW Power Plant using standard technology

EdM exclusive offtaker for 300MW under Heads of Terms

Supplying Mozambican Northern Grid (c.85km away)

Coal supply to come from Ncondezi Mine (c.2km conveyor)

ESIA approved October 2013

EPC selection processes initiated with binding bids due January 2014

Transmission evacuation route approved by EdM

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Project Base Map

Concession Area Topography

Source: Company

Source: Company

SIGNIFICANT PROGRESS MADE ON KEY COMMERCIAL AGREEMENTS FOR THE POWER PLANT

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Agreement Signing date

Power Framework Agreement* April 2013

Mine Concession* August 2013

Power Purchase Agreement HoT* October 2013

Transmission Agreement HoT* October 2013

Coal Supply Agreement HoT* October 2013

Agreements Signed to Date

Agreement Target date

Power Plant Project Vehicle HoT* December 2013

MoU on Fiscal and Investment Incentives* December 2013

Power Framework Agreement Effective December 2013

Power Generation Concession Q1 2014

Final Form Power Purchase Agreement Q1 2014

Agreements to be Concluded Remain on Track

* Required Conditions Precedent to make Power Framework Agreement Effective and initiate Power Generation Concession negotiations with Mozambican Government

POWER PURCHASE AGREEMENT - A BIG VALUE DRIVER

The Final Form PPA will set out the binding terms for which EdM will purchase power from the Ncondezi Project

Sets out revenues for life of power plant

Main driver of expected project NPV at Financial Close of >$200m

Final Form PPA supported by a number of key agreements on – Fuel costs – Capital cost – Operating and maintenance costs – Level of Government support

Target completion of Final Form PPA and key agreements Q1 2014 – Power Purchase Agreement signed at Financial Close – target Q4

2014

Bankability of Final Form PPA is expected to be supported by – Political and Commercial risk insurance – Government guarantee

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Key tariff parameters

25 year term

Payments calculated in US$

Monthly payments

Index linked

EPC BINDING BIDS DUE Q1 2014 Power plant to be built on turnkey basis

EPC pre-selection process completed June 2013

Binding bid RFQ issued October 2013

Process being managed by German IPP, STEAG

Binding bids expected January 2014

Preferred EPC will be selected based on: – Cost (capex and opex) – Construction period – Financing package – Equity contribution

Process includes IPPs from around the world

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Source: Company

INDICATIVE POWER PLANT ECONOMICS Target equity IRR of 18-20%

Estimated project NPV at Financial Close (Q4 2014) of >$200m – Total net equity cash flow estimated to be >$2.0bn

over 25 years of operation

Target Debt/Equity: 70%/30% – Majority of debt expected to be linked to EPC

contract

– Balance of debt expected from DFI and Commercial Banks

Equity funding requirement to be secured from: – Co-developer/strategic IPP

– Developer premium

– EPC and O&M contracts

Power Plant Economics to be confirmed Q1 2014 – EPC Binding Bids Received

– Final Form PPA

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Expected Annual Revenue >$200m

Expected Average EBITDA margin >50%

Estimated Project NPV @ Financial Close >$200m

Estimated NPV @ Commissioning (Q4 2017) >$1.0bn

Key Target Financials

Source: Company

ROLE OF CO-DEVELOPER & STRATEGIC IPP

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Capital requirement to Financial Close of c.$15m

Co-Developer/Strategic IPP expected to fund majority of development costs to Financial Close

Co-Developer/Strategic IPP expected to bring significant additional benefits to the project – Leverage off of internal expertise to reach Financial Close – reducing development cost to

Ncondezi – Support equity capital requirement at Financial Close

Co-developer would likely to convert funding into equity at Financial Close

Targeting the selection of a preferred co-developer in Q1 2014 – Process initiated and being managed by KPMG

Technical Work

DFS completed & approved

Measured JORC coal resources

• Updated capex and opex due Q4 2013

Permitting Mining Concession granted

ESIA approved

Commercial Agreements

Coal Supply Agreement HoT agreed

25 year fuel supply

Mine to ring-fence coal resources

Funding Financing expected to be secured via100% bankable offtake agreement with power plant

Overview

• $54m spent to date

• +4Bt coal resource identified with sufficient resources to meet plant requirements

• Open pit, low strip ratio mine Contractor mining operation

• Targeting production of 1.3Mtpa coal product

• c.2.0Mtpa ROM and +70% yields

• c.2km conveyor to power plant

THE NCONDEZI COAL MINE WILL SUPPLY THE POWER PLANT

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NEXT STEPS

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Q4 2013 Power Plant Project Vehicle HoT Power Framework Agreement Effective Mine Update

Q1 2014 EPC Binding Bids Bring in Co-developer Final Form Power Purchase Agreement Transmission RFQ Appoint Mandated Lead Arranger

Q2 2014 Transmission Binding Bids

Q4 2014 Signed Power Purchase Agreement Financial Close

SUMMARY

2x150MW integrated power plant with dedicated coal mine

Final Form PPA targeted for Q1 2014

Financial Close targeted for Q4 2014

Compelling project economics

Co-developer partner search initiated

Strong regional demand backdrop and expansion potential

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www.ncondezienergy.com

Hanno Pengilly Chief Development Officer OR Alex Buck Investor Relations Tel: +44 (0) 20 7183 5402

A DISTINGUISHED BOARD WITH STRONG POWER DEVELOPMENT EXPERIENCE

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Michael Haworth Non-Executive Chairman Senior Partner at Greenstone Resources, Director of Strata, NED of Zanaga Iron Ore Company, extensive investment banking experience at J.P Morgan in natural resources

Peter  O’Connor Non-Executive Director +20 years working for Eskom across Capital Expansion Division, Generation Division & Transmission Division

Christiaan Schutte Non-Executive Director +20 years working for Eskom in Group Technology Division & Generation Division

Jacek Glowacki Non-Executive Director Over 30 years of international experience in the power sector CEO and Chairman of the Board of Polenergia, a Polish Independent Power Producer –

part of Kulcyzk Group

Estevao Pale Non-Executive Director CEO of Companhia Mocambicana de Hidrocarbonetos (Mozambican natural gas

company)  and  formerly  National  Director  of  Mines  in  Mozambique’s  Ministry  of  Mineral  Resources and Energy

Mark Trevan Non-Executive Director +30 years experience in mining, Managing Director of Caledon Resources

Graham Mascall Non-Executive Director +35 years of experience in mining project management, business development & M&A

Nigel Sutherland Non-Executive Director +35 years working in the resource sector

AN EXPERIENCED MANAGEMENT TEAM WITH A SOLID TRACK RECORD

Paul Venter Director, CEO & COO

+39 years experience in Africa, Russia & Asia, mining, power generation & transport logistics

Previously Director Prophecy Coal, Director of Gobi Coal & Energy, Managing Director Coal at EN+, Finance & Service Manager at Eskom

Manish Kotecha CFO +10 years experience in financial management for mining companies

Francois du Plessis Legal Counsel >10yrs legal counsel experience in mining sector

Hanno Pengilly Chief Development Officer

Former investment banker, responsible for Corporate Development since 2010

David Eshmade Country Manager Project Manager on exploration/mining projects through out Africa, Ncondezi’s Country Manager since 2010

NCONDEZI POWER PROJECT BENEFITS TO MOZAMBIQUE

Security of supply - dedicated mine mouth power station

Affordable source of electricity

Proven and reliable technology

Energy portfolio diversification - reduced exposure to hydro and gas

Ideally sized and located - not reliant on large longer term transmission projects

Scalability - potential to scale up to 1800MW meet future demand

Increase in economic investment and national income

Job creation and skills development

Government revenues from taxes and levies

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SUBSTANTIAL PROGRESS OVER PAST TWO YEARS

Power DFS for 1,800MW power station completed September 2012

Power Framework Agreement signed with Department of Energy in April 2013

Power Purchase Agreement HoT signed with EdM in October 2013

Power evacuation route identified and approved by EdM

Mine DFS for substantial 4.7Bt thermal coal resource completed December 2012

Mine Framework Agreement signed with Ministry of Mines in May 2012

Mining Concession issued August 2013

Coal Supply Agreement HoT

Power Plant ESIA approved October 2013

Mine ESIA approved September 2013

Interim Social Development Plan under implementation

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Pow

er

Min

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MINE OVERVIEW – CONCESSION MAP & RESOURCE BLOCKS

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MINE OVERVIEW – RING FENCING OF REQUIRED RESOURCES

Concession coal resource currently at +4Bt

Mining Concession Issued August 2013

ESIA approved October 2013

Mining area identified in South Block to feed the 300 MW power station – 810Mt mineable JORC resource

120Mt Measured coal resource sufficient to supply power plant for 25 years (ca. ROM 50 Mt) plus a 40% contingency (ca. ROM 20 Mt) – Key for bankable CSA between mine and

power plant

Previous Mine area Drill Spacing

Updated Mine area Drill Spacing

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Source: Company

Source: Company