23 July 2009 ASX Announcement

Benga Power Project Attached is a presentation on the Benga Power Project in Mozambique. This update was presented to the SADC/SAPP/RERA Investor Roundtable Conference in Livingstone, Zambia between Wednesday 15th and Friday 17th July.

The Riversdale/Elgas SARL Joint Venture project for a proposed 500MW coal-fired thermal power station was one of ten short-listed Southern African power projects presented to potential investors and financiers at the conference.

Whilst good progress has been made in advancing this prospective project, its development is dependent upon, inter alia:

• Access to existing Mozambique power transmission networks

• Finalization of a Framework Agreement with the Mozambique Government, and

• Concluding satisfactory Power Purchase Agreements with various off-take parties.

The Riversdale/Elgas SARL Joint Venture is well advanced in its discussion and negotiation on each of the three pre-conditions outlined above.

Further progress will be provided on this project in the second half of 2009.

Steve Mallyon Managing Director

For further information: Michael O’Keeffe Executive Chairman Ph: +612 8299 7900 Steve Mallyon Managing Director Ph: +612 8299 7900 or Media: Fortbridge Bill Kemmery Ph: +612 9331 0655 Mob: +61 400 122 449 Riversdale Mining Limited ABN 53 006 031 161 Level 1 50 Margaret Street Sydney NSW 2000 PO Box 5371 Sydney NSW 2001 Tel: +61 2 8299 7900 Fax: +61 2 8299 7999 Website www.riversdalemining.com.au ASX Symbol RIV Riversdale Mining Limited ABN 53 006 031 161 Office Level 1, 50 Margaret Street

Sydney NSW 2000

Mail GPO Box 5371 Sydney NSW 2001

Phone +61 2 8299 7900 Fax +61 2 8299 7999 Email info@rivmining.com.au Web riversdalemining.com.au

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THE 500 MW BENGA POWER PLANT“a fast track implementation coal fired project”

SADC-SAPP-RERA Pre-Investors’ Conference Workshop15 July 2009

Disclaimer: The information in this document is provided for information purposes only by Riversdale Mining Limited and ELGAS, S.A.R.L.. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Riversdale Mining Limited and ELGAS, S.A.R.L.

An invitation for stakeholder and shareholder participation in this exciting Regional project!!F

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Agenda

I. Project Summary

II. Country Overview

III. Project Structure

IV. Project Description

V. Tariff Summary Analysis

VI. Funding Plan

VII. Project Agreements, Licenses & Permits

VIII.Project Development Programme

IX. Summary

X. Questions and answers

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I. PROJECT SUMMARY

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I. Benga Power Plant Overview

The Benga Power Plant (“BPP”) will be located in the Tete province of Mozambique on Riversdale’s Mining Concession 3365C (formerly EL 881L)

The BPP will develop a 500MW coal-fired, mine-mouth power station (Phase I) expected to be completed during 2013 using existing transmission assets

Upgrade of the BPP to a generation capacity of 2,000MW (Phase II) depending upon the proposed transmission backbone and other transmission capacity

The BPP will help fill the regional power shortage:

Mozambique (local) demand – EDM

Regional demand – Eskom and others

Mine supply

Expected operational life of 20+ years

Highly attractive project to help meet the power needs of the region:

Strategically located and competitive cost advantages over other proposals due to proximity to mine location and Zambezi River

Mining Concession issued by Government

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I. Status Update

Benga Coal Mine can proceed regardless of power station

Conceptual Engineering design completed

Full Category “A” EIA with all specialist studies completed

Designed to meet World Bank Standards

Record of Decision end September 2009

Transmission grid connection analysis completed and awaiting results from EDM appointed consultants on available capacity

Expressions of Interest received from internationally recognised power producers interested in taking a major equity stake

Pre-feasibility study completed

Project Information Memorandum completed

Socio-economic impact study completed

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I. Benga Power Plant Location

Located on current mine tenement and adjacent to future tenements

Proximity to fuel supply

28 km from Matambo s/sBi-directional supply to HCB and EDMNear Malawi interconnector

Proximity to transmission infrastructure

Adjacent to the perennial Zambezi river offering cost-effective water supply

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I. Mine & Power Plant Design

The BPP will be operated as a base load power station

Phase I - 500MW

2 x 250MW units or 4 x 125MW units (all nett)

Unit sizing will be determined by availability, cost and PPA requirements

Phase II - 2,000MW, depending on:

Development of new regional transmission infrastructure

Ramp-up in mining operations at Riversdale’s Mining Concession / development of new mining operations at neighbouring tenements

Plant on a unitised basis (matched boiler and turbine alternator)For

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I. Benga Coal Mine

Mining Contract approved and awaiting environmental approval expected in September 2009

Significant pre-preparation work already completed

4 billion tonne Coal Resource estimated, comprising Measured Resources of 313Mt, Indicated Resources of 720 Mt and Inferred Resources of 2,990Mt

Coal Reserves total 273.3Mt, comprising Proved Reserves of 181.3Mt and Probable Reserves of 92.0Mt (Coal Resources are reported inclusive of Coal Reserves)

Domestic quality thermal coal which will supply the BPP is ideally suited for a power plant – moderate ash, low sulphur, good energy value and combustion characteristics for high boiler efficiency

Staged development:

1.7Mtpa premium hard coking coal0.3Mtpa export quality thermal coal (22% ash)Sufficient domestic quality thermal coal to fuel Phase 1 of the BPP

Stage 1 - 2010

3.3Mtpa premium hard coking coal2.0Mtpa export quality thermal coal (28% ash), OR3.0Mtpa domestic quality thermal coal (35% ash)

Stage 2 - 2014

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II. Country Overview

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II. Macro Economic Overview

Country location: South Eastern Coast of Africa

Capital: Maputo

Currency: Meticais (1 USD = MT 26,7)

Population: 20,366,795

Legal system: Roman Germanic (“Civil Law”)

Languages: Portuguese official language with English being widely used as

business language

Banking system: Central Bank – Banco de Mocambique (9 Commercial banks)

Macroeconomic Indicators:

2002 2003 2004 2005 2006

Nominal GDP (US$ Millions)

4.093,85 4.789,39 6.086 6.636 7.296

Real GDP Growth (%) 8,2 7,9 7,2 7,0 7,9

Average Annual Inflation (%)

16,7 13,4 12,6 6,4 12,5

Exports (US$ Millions) 680 1.043,9 1.452,9 1.745 2.381,1

Imports (US$ Millions) 1.262,9 1.671,7 1.753,9 2.242 2.869,3

GDP Per Capita (US$) 226,3 258,6 311,7 314,7 366,8

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III. Project Structure

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III. Project Owners and Advisors

Riversdale Mining Limited:

Riversdale is an Australian Mining Company

Market Capitalisation of A$1bn

Strong balance sheet

Experienced African coal mine operator

Largest land holder in Tete Province ~250,000 hectares

Elgas S.A.R.L.

Public Private partnership

Mozambican registered since 2000

Cross border equity holders – RSA

EDM major shareholder (27,5%)

Experienced in Mozambican energy sector

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III. Project Owners and Advisors

Joint venture received despatch from the Minster of Energy providing permission for development and the Framework Agreement is expected to be signed shortly

Actively seeking the involvement of an internationally recognised power generator to take a majority equity interest in the BPP

The Strategic Equity Partner will:

Take a significant stake in project – 50% - 80%

Have a proven development and operational capabilities and references in coal-fired power stations

Have a track record of development/investment in Africa

Evaluation process to be completed within 60 days

Aided by a strong team of advisors

FIRST TECH

t/a Power Projects Africa

Financial advisors Project technical consultants

International EIA consultants

Mozambique EIA consultants

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III. Pro Forma Equity Structure

Opportunity exists for additional strategic or equity partners who could provide financial support or strategic benefits to the project

Strategic Development and Operational Equity

Holder

Financial Equity Holder(s)

MozambiqueEquity Holder(s)

Benga Power Plant

50 – 80% 0 – 30% 10 – 30%

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IV. Project Description

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IV. Power Evacuation – Phase 1

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Located 28km from the Matambo substation hence power can be evacuated via exisitng transmsission options

Dedicated transmission lines will connect the BPP to Matambo

Matambo will be the point of supply for offtake to EDM

From Matambo, electricity can be transmitted to the Songo substation via the existing 90km double circuit (2 x 220kV lines):

From Songo, power can be evacuated into regional locations:

Two potential transmission routes have been envisaged via the HV DC link or via EDM/ ZESA/ CTC (Zimbabwe)

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IV. Power Evacuation – Phase II

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The proposed Mozambique Transmission Backbone will facilitate the upgrade of the BPP to a generation capacity of 2,000MW

The transmission backbone will be a North – South carrier which would allow the evacuation of 6,000MW of power from the Northern region of Mozambique to the Southern region of Mozambique and to South Africa

Given it will be operating prior to the completion of the backbone, Benga will provide a suitable base load that can be further expanded to underwrite/utilise the capacity on the backbone

Significant coal resources on Riversdale’s Mining Concession and surrounding 21 tenements will provide a long term fuel supply for the power plant

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IV. Project Incentives

Regulated by Law 4/2009 of 12 April 2009 – Code of Fiscal Benefits

Exemption from Customs Duties and Value added tax on Class K items for first 5 years of operation

Accelerated depreciation – up to 50% increase of approved legal rates

Professional training allowance of up to 5% of taxable income for first 5 years

An allowance during first 5 years of 110% of the value of expenditure in the construction of works that are considered to be of public utility (roads, schools, water supply, etc)

Investment tax credit of 20% of investment realised deductable from Corporate Tax for first 5 years

Tax credits may be carried forward and used in the five successive tax years

Current corporate tax rate – 32%

Above is standard and additional incentives can be negotiated during negotiations of terms and conditions of concession agreementF

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V. Tariff Analysis

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V. Tariff Analysis

Mozambique

South Africa

3.1 US$c / KWh (Approximate average of Megaflex TOU)Industrial

4.7 US$c / KWh (Business rate 2 ZAR 0.3834c / KWhCommercial

4.88 US$c / KWh (Homepower Bulk Rate ZAR 0.3906c / KWhDomestic

Current TariffTariff Type

Note: Subject to 34% escalation, but based upon averages from Eskom 2008 Tariffs excluding VAT, extension fees and reactive power at ZAR8 =US$1.00

Current TariffTariff Type

4,5 to 6,5 US$c / kWhIndustrial

8,5 to 10 US$c / kWhCommercial

7,5 to 9,0 US$c / kWhDomestic

3,5 to 5 US$c / kWhLife Line Tariff

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VI. Funding Plan

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VI. Financial Analysis

SOURCES OF FUNDS $US MILLION

APPLICATION OF FUNDS

$US MILLION

Equity (30%) 383 EPC Turnkey costs 1,250

ECA covered debt 214 Owners costs 18

Development agencies 200 Financing costs 9

Commercial debt 480

TOTAL 1,277 1,277

Debt / Equity 70 / 30Project return on Equity 18%Debt tenor 15 yearsInterest rates 10%DSCR 2+Sent out tariff dependent on finalization of EPC, Coal Supply and PPA agreementsF

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VII. Project Agreements, Licences & Permits

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VII. Critical Agreements

Power Purchase agreement:

Ongoing discussions with EDM and Eskom

Coal Supply agreement:

Riversdale will supply the thermal coal on a long term contract basis

Framework agreement:

In process of being finalised

EPC:

Seeking lowest cost EPC solution

Water supply agreement:

Studies and abstraction plans completed

Draft supply agreement under review

EIA:

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VIII. Project Development Programme

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VIII. Timelines

Activity Status Expected completion date

Date Completed

Outstanding

Formalising the development company or joint venture (shareholders agreement)

X August 2009

Completing the feasibility study X October 2009

Obtaining EIA approval to proceed X September 2009

Negotiating and formalising PPAs with off-takers X October 2009

Negotiating and formalising:a land purchase or lease agreement a water supply agreementa fuel supply agreementconcession agreementsinvestment agreement

N/AXXX

On mine concessionOctober 2009

November 2009September 2009

Formalising all licences and approvals required by local legislation (ref Section xx PIR)

X November 2009

Finalising the plant designs and procurement documentation X September 2009

Award of an EPC or construction contracts X October 2009

Issue of PIM (information memorandum) X March 2009

Indicative term sheets X September 2009

Lender due diligence X December 2009

Financial close and fulfilment of CP’s X January 2010

Commissioning of the plant X April 2013

Note: Above timelines subject to BPP getting transmission access by end August 2009

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IX. Summary

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IX. Summary

Highly attractive project supported by already approved mine development

Substantial fuel supply through delineated coal reserves

Feasibility and project analysis well progressed with Environmental Approval expected in September 2009

Project designed to meet World Bank Standards

Key supplier and part of the solution to Southern Africa’s power needs

Significant potential to expand as additional transmission capacity is developed in this power hungry region

Process well progressed to identify cornerstone strategic equity holder

Opportunity exists for additional equity investors and financiers to participate in the BPP

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Competent Persons Report

Benga Coal ResourcesThe Coal Resources quoted in this announcement are based on the Competent Person Report, Coal Resources, Benga Coal Project as at 15th April

2009, compiled by Mr Tri Yoso, who is a Member of the Australasian Institute of Mining and Metallurgy and the Resource Geologist for Riversdale Mining Limited. Tri Yoso has more than 12 years experience as a coal geologist in the resources industry involving exploration and evaluation

assignments at operating coal mines and coal exploration areas in a number of coal basins throughout the world. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code. The Coal Resource estimate for the Benga Licence, (881L) Mozambique presented in this report has been carried out in accordance with the “Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves” (2004) prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

Benga Coal ReservesThe Coal Reserves quoted in this announcement are based on Report No 3517M, Benga Coal Project as at 15th April 2009, compiled under the supervision of Mr. Rob Mackenzie, who is a Member of the Australasian Institute of Mining and Metallurgy and is a full time employee of Minarco

Mineconsult. Rob is a mining engineer with extensive experience, working for over 30 years with major mining companies. With this level of experience, he is adequately qualified as a Competent Person as defined in the 2004 edition of the JORC Code. The Coal Reserve estimate for the

Benga Licence, (881L) Mozambique presented in this report has been carried out in accordance with the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (2004) prepared by the Joint Ore Reserves Committee of the Australasian Institute of

Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

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